TAXED ON

Gains from dealings in property

Gain from sale of ORDINARY
ASSETS
Passive investment income
Interest Income
Currency bank deposit & yield,
monetary benefit from deposit
substitutes, trust funds, etc
From foreign currency deposits
w/ offshore banking unit (OBU)
or foreign currency deposit unit
(FCDU) in the Philippines
Long term deposit/investment
[savings, trust funds, deposit
substitutes, investments]
Pre-terminated long term
investment (should actually be
based on expired term)
Interest income of a depository
bank (under the expanded
foreign currency system);
foreign currency transactions w/
non-residents, OBU's in the
Phils, local commercial banks
including branches of foreign
banks authorized by BSP to
transact business w/ foreign
currency deposit system
Interest income of depository
banks (under the expanded
foreign currency system) from
foreign currency loans to
residents other than OBU's in
the Phils. or other depository
banks under the expanded
system
Other interest income derived
from the Philippines
(between individuals)
Other interest income derived
from outside the Philippines
- tenant who paid to a
landowner under CARP
- from a duly registered
cooperative
BSP prescribed form of

DESLATE 1

RC

NRC

RA

NRAETB

NRANETB

5-32%

DC

RFC

NRFC

30%

20% FT

20% FT

20% FT

20% FT

25% FT

20% FT

20% FT

30%

7.5% FT

EXEMPT

7.5% FT

EXEMPT

EXEMPT

7.5% FT

7.5% FT

EXEMPT

EXEMPT

EXEMPT

EXEMPT

EXEMPT

EXEMPT

EXEMPT

N/A

10% FT

10% FT

20% FT on foreign
loans contracted after
Aug. 1, 1988

25% FT
5% FT (4 to <5 yrs)
12% FT (3 to <4 yrs)
20% FT (< 3 yrs)

5% FT (4 to <5 yrs)
12% FT (3 to <4 yrs)
20% FT (< 3 yrs)

5% FT (4 to <5 yrs)
12% FT (3 to <4 yrs)
20% FT (< 3 yrs)

5% FT (4 to <5 yrs)
12% FT (3 to <4 yrs)
20% FT (< 3 yrs)

25% FT

5-32%

5-32%

5-32%

5-32%

25% FT

5-32%

EXEMPT

EXEMPT

EXEMPT

EXEMPT

EXEMPT
EXEMPT
EXEMPT

investments maturing more

than five years
Expanded foreign currency
deposit system by non-resident
citizens/aliens
Dividend income
Cash/property dividends (FMV
amt) from domestic corp
OR
Share in distributable net
income after tax of a
partnership, assoc, joint acct,
joint venture, or consortium
taxable as a corp
Cash/property dividends from a
foreign corp. doing business
in Phils.
" " foreign corp outside Phils.
Royalties
Passive income
Paid by a domestic corp. to
[on books, literary works,
musical compositions]
[cinematographic films]
- for non-resident
cinematographic film owner,
lessor, distributor (28 B (2) )
Paid by a foreign corp. to
Rent
Prizes
Within Philippines
> P10,000
< P10,000
Outside Philippines

EXEMPT

10% FT

10% FT

20% FT

25% FT

EXEMPT

EXEMPT

15% FWT1

- inter-corporate dividends are exempt from tax

- but once declared to its SH, they have to pay
taxes on them

5- 32% FT

5-32% FT

5-32% FT

5-32% FT

25% FT

30% FT

5-32% FT

EXEMPT

EXEMPT

EXEMPT

EXEMPT

30% FT

EXEMPT

EXEMPT

20% FT
10% FT

20% FT
10% FT

20% FT
10% FT

20% FT
10% FT

25% FT
25% FT

20% FT

20% FT

30% FT

20% FT

25% FT

25% FT

??

30%

30% FT
??

30% FT
??

5-32%
5-32%

EXEMPT
5-32%

EXEMPT
5-32%

EXEMPT
25% FT

EXEMPT
25% FT

30% FT
??

20& FT
5-32% FT
5-32%

20% FT
5-32% FT
5-32% FT

20% FT
5-32% FT
EXEMPT

20% FT
5-32% FT
EXEMPT

25% FT
25% FT
EXEMPT

30% FT
??
EXEMPT

Sec. 28 (5b): condition is that of tax credit

DESLATE 2

10% FT