PART I – INDIVIDUALS CORPORATIONS ESTATES & NOTES

tax rates Definition of Corporation: TRUSTS

Under Sec. 22 (B) NIRC, a corporation includes
partnerships, no matter how created or organized,
joint-stock companies, joint accounts (cuentas en
participacion), association, or insurance companies,
but does not include general professional partnerships
and a joint venture or consortium formed for the
purpose of undertaking construction projects or
engaging in petroleum, coal, geothermal and other
energy operations pursuant to an operating
consortium agreement under a service contract with
the Gov’t.

CITIZEN ALIEN DOMESTIC FOREIGN

RESIDENT NON-RESIDENT RESIDENT NON-RESIDENT RESIDENT NON-RESIDENT

Engaged in Not engaged

trade or in trade or
business business

In general RT: 0% - 35% RT: 0% - 35% RT: 0% - 35% RT: 0% - 35% RT: 25% RT: 30% RT: 30% RT: 30%

(Ordinary/Regular Income TB: NI from TB: NI from TB: NI from TB: NI from TB: GI from TB: NI from TB: NI from TB: GI from
Tax) WI and WO; WI; Option for WI; Option for WI; Option WI WI and WO WI WI
Option for 8% FT if <3M (for 8% FT if <3M for 8% FT if
8% FT if <3M self-employed (for <3M (for Sec. 25 (B) Sec. 27 (A) Sec. 28 (A)(1) Sec. 28 (B)(1)
(for and/or self-employed self-employe NIRC NIRC NIRC NIRC
self-employed professionals) and/or d and/or
and/or professionals) professionals
professionals) )
Sec. 24 (A)(1)(a)
Sec. 24 NIRC and RMO Sec. 24 (A)(1)(a)
(A)(1)(a) NIRC 23-2018 NIRC and RMO Sec. 24
and RMO 23-2018 (A)(1)(a)
23-2018 NIRC and
RMO
23-2018

Except:

1. Passive Income Passive income defined: ​is a source of income which requires little to no active effort or participation on the part of the taxpayer in order for him or her
to derive said income. Under the NIRC, passive income consists of interest from foreign and Philippine currency bank deposits, including yields and
other monetary benefits from deposit substitutes and trust fund and similar arrangements), royalties, prizes and other winnings, and dividends.
a. Interest on RT: 20% FT RT: 20% FT RT: 20% ​FT RT: 20% FT RT: 25% RT: 20% FT RT: 20% FT RT: 30%
TB: GI from TB: GI from WI, TB: GI from WI, TB: GI from TB: GI from TB: GI from WI
i. peso deposits WI, except except long-term except long- WI, except TB: GI from WI TB: GI from
long-term deposits term deposits long-term WI Sec. 28 WI
deposits deposits. Sec. 27 (D)(1) (A)(7)(a) NIRC
Sec. 24 (B)(1) Sec. 24 (B)(1) Sec. 25 (B) NIRC Sec. 28 (B)(1)
Sec. 24 (B)(1) NIRC NIRC Sec. 25 (A)(2) NIRC NIRC
NIRC NIRC
Note: gross
income of
non-resident
foreign
corporations
include interests
sourced within
the PH.

ii. Interest on FCDU RT: 15% FT Exempt: 0%, RT: 15% FT Exempt: 0%, Exempt: 0%, RT: 15% FT RT: 7.5% FT RT: 30%
TB: GI from interest on FCDU TB: GI from WI interest on interest on TB: GI from TB: GI from WI
WI does not apply to FCDU does FCDU does not WI TB: GI from
non-resident Sec. 24 (B)(1) not apply to apply to Sec. 28 WI
Sec. 24 (B)(1) individuals NIRC non-resident non-resident Sec. 27 (D)(1) (A)(7)(a) NIRC
NIRC individuals individuals NIRC, as Sec. 28 (B)(1)
Sec. 24 (B)(1) amended NIRC
NIRC Sec. 24 (B)(1) Sec. 24 (B)(1)
NIRC NIRC Note: gross
income of
non-resident
foreign
corporations
include interests
sourced within
the PH.

b. royalties RT: 20% FT RT: 20% FT RT: 20% FT RT: 20% FT RT: 25% RT: 20% FT RT: 20% FT RT: 30%
TB: GI from TB: GI from WI TB: GI from WI TB: GI from TB: GI from TB: GI from WI
WI WI TB: GI from WI TB: GI from
Exception: 10% FT Exception: 10% WI Sec. 28 WI
Exception: shall apply in the FT shall apply in Exception: Sec. 27 (D)(1) (A)(7)(a) NIRC
10% FT shall case of books, the case of 10% FT shall Sec. 25 (B) NIRC Sec. 28 (B)(1)
apply in the literary works, books, literary apply in the NIRC NIRC
case of books, and musical works, and case of
literary works, compositions musical books, Note: gross
and musical compositions. literary income of
compositions. Sec. 24 (B)(1) NIRC works, and non-resident
Sec. 24 (B)(1) musical foreign
Sec. 24 (B)(1) NIRC composition corporations
NIRC s. include royalties
sourced within
Sec. 25 (A)(2) the PH.
NIRC
c. prizes and winnings RT: 20% FT RT: 20% FT RT: 20% FT RT: 20% FT RT: 25% RT: 30% RT: 30% RT: 30%
TB: GI from TB: GI from WI TB: GI from WI TB: GI from
WI WI TB: GI from TB: NI from TB: NI from TB: GI from
Note: Note: WI WI and WO WI WI
Note: Prizes worth Prizes worth Note:
Prizes worth P10,000 or less P10,000 or less Prizes worth Sec. 25 (B) Sec. 27 (A) Sec. 28 (A)(1) Sec. 28 (B)(1)
P10,000 or shall be taxed on shall be taxed P10,000 or NIRC NIRC NIRC NIRC
less shall be the basis of Sec. on the basis of less shall be
taxed on the 24 (A). Sec. 24 (A). taxed on the
basis of Sec. Winnings basis of Sec.
24 (A). Winnings amounting to 24 (A))
amounting to P10,000 or less
Winnings P10,000 or less from PH Charity Winnings
amounting to from PH Charity Sweepstakes from PH
P10,000 or Sweepstakes and and Lotto are Charity
less from PH Lotto are exempt exempt from Sweepstakes
Charity from the 20% FT. the 20% FT. and Lotto
Sweepstakes are exempt
and Lotto are Sec. 24 (B)(1) Sec. 24 (B)(1) from the
exempt from NIRC NIRC 20% FT.
the 20% FT
Sec. 25 (A)(2)
Sec. 24 (B)(1) NIRC
NIRC

2. Dividends Distinguish between Cash/Property Dividends, Stock Dividends, and Liquidating Dividends:

Cash dividend​​ is money paid to stockholders, normally out of the corporation's current earnings or accumulated profits.
Property dividends​​ are dividends in the form of property.
Stock dividend​​ is a ​dividend​ payment made in the form of additional ​shares​ rather than a cash payout.
Liquidating dividend ​is a type of payment that a corporation makes to its shareholders during a partial or full ​liquidation.​ In Wise v. Meer, these have
been defined as distributions of dividends after the liquidation of the business had been decided upon, which makes them payments for the surrender
and relinquishment of the stockholders' interest in the corporation.

a. Cash RT : 10% RT : 10% RT : 10% RT : 20% RT: 25% Not subject to Exempt - 0% RT: 15% FT
TB: TB: TB: TB: TB: tax, provided
it is received Sec. 28 TB: GI from WI
NI from WI NI from WI NI from WI NI from WI GI from WI from another (D)(7)(d), NIRC (amount of cash
domestic dividends
(Sec. 24(B)(2), (Sec. 24(B)(2), (Sec. 24(B)(2), (Sec. 25 (Sec. 25 (A)(2), corporation; received from a
NIRC NIRC NIRC (A)(2), NIRC) NIRC) otherwise, it domestic
is subject to corporation)
the normal
corporate tax Sec. 27 (B)(5)(b),
rate NIRC

Sec. 27 (D)(4)
NIRC
 b. Property RT : 10% RT : 10% RT : 10% RT : 20% RT: 25% Not subject to Exempt - 0% RT: 15% FT
TB: TB: TB: TB: TB: tax, provided
it is received Sec. 28 TB: GI from WI
NI from WI NI from WI NI from WI NI from WI GI from WI from another (D)(7)(d), NIRC (amount of
(Sec. 24(B)(2), (Sec. 24(B)(2), (Sec. 24(B)(2), (Sec. 25 (Sec. 25 (A)(2), domestic property
NIRC NIRC NIRC (A)(2), NIRC) NIRC) corporation; dividends
otherwise, it received from a
is subject to domestic
the normal corporation)
corporate tax
rate Sec. 27 (B)(5)(b),
NIRC
Sec. 27 (D)(4)
NIRC

c. Stock Generally not Generally not Generally not Generally Generally not Not subject to Exempt - 0% RT: 30%
subject to tax. subject to tax. subject to tax. not subject subject to tax. tax, provided
to tax. it is received Sec. 28 TB: GI from
(Sec.73(B), Sec.73(B), NIRC Sec.73(B), NIRC Sec.73(B), Sec.73(B), from another (D)(7)(d), NIRC WI
NIRC) NIRC NIRC domestic
corporation; Sec. 28 (B)(1)
otherwise, it NIRC
is subject to
the normal 15% FT only
corporate tax applies to cash
rate and/or property
dividends. Thus,
Sec. 27 (D)(4) we revert back to
NIRC the general
corporate
income tax rate.

d. Liquidating
Dividends (treated as (treated as capital (treated as (treated as (treated as (treated as (treated as (treated as
capital gain or gain or loss capital gain or capital gain capital gain or capital gain or capital gain or capital gain or
Holding periods if loss subject to subject to regular loss subject to or loss loss subject to loss subject to loss subject to loss subject to
applicable regular income tax rates) regular income subject to regular regular regular income regular income
income tax RT: 0% - 35% tax rates) regular income tax corporate tax rates) tax rates)
rates) RT: 0% - 35% income tax rates) income tax
TB: NI from rates) RT: 25% rates) RT: 30% RT: 30%
RT: 0% - 35% WI; Option for TB: NI from RT: 0% - 35%
8% FT if <3M (for WI; Option for TB: GI from RT: 30% TB: NI from TB: GI from
TB: NI from self-employed 8% FT if <3M TB: NI from WI WI and WO WI
WI and WO; and/or (for WI; Option TB: NI from
Option for professionals) self-employed for WI and WO Sec.73(A) NIRC Sec.73(A) NIRC
8% FT if <3M and/or 8% FT if <3M (Sec.73(A),NIR
(for professionals) (for C) Sec.73(A),NIR
self-employed (Sec.73(A),NIRC) self-employe C
and/or d and/or 100% of the
professionals) 100% of the (Sec.73(A),NIRC) professionals gain/loss shall
gain/loss shall be ) be taken into
professionals taken into 100% of the account if the
account if the gain/loss shall (Sec.73(A),NI capital asset
 capital asset has be taken into RC) has been held
(Sec.73(A),NIR been held for not account if the for not more
C) more than 12 capital asset has 100% of the than 12
months been held for gain/loss months
100% of the not more than shall be
gain/loss shall 50% of the 12 months taken into 50% of the
be taken into gain/loss shall be account if gain/loss shall
account if the taken into 50% of the the capital be taken into
capital asset account if the gain/loss shall asset has account if the
has been held capital asset has be taken into been held capital asset
for not more been held for account if the for not more has been held
than 12 more than 12 capital asset has than 12 for more than
months months been held for months 12 months
more than 12
50% of the months 50% of the
gain/loss shall gain/loss
be taken into shall be
account if the taken into
capital asset account if
has been held the capital
for more than asset has
12 months been held
for more
than 12
months

Capital Assets​​- ​Property held by the taxpayer, whether or not connected with his trade or business which is not an ordinary asset, but does not
include: stock in trade of the taxpayer, property of a kind which would properly be included in the inventory of the taxpayer if on hand at the close of
the taxable year, property held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business, property used in trade or
business of a character which is subject to the allowance for depreciation, and real property used in trade or business of the taxpayer.

Capital Gain​​- An income derived from sale of assets not used in trade or business. Examples are sale of family home and other sales of shares of stocks
which are subject to final taxes. Other sales of capital assets are subject to normal tax.

Ordinary Assets​​- S​tock in trade of the taxpayer/ other property of a kind which would properly be included in the inventory of the taxpayer if on hand
at the close of the taxable year.

3. Capital Gains from sale of

shares of stock

a. not traded in the stock RT: 15% FT RT: 15% FT RT: 15% FT RT: 15% RT: 15% RT: 15% RT: 5% for the RT: 5% for the
exchange TB: TB: TB: TB: TB: TB: first P100,000 first P100,000
NI from WI NI from WI NI from WI NI from WI NI from WI NI from WI and and
10% in excess 10% in excess of
(Sec. 24(C), (Sec. 24(C), NIRC) (Sec. 24(C), (Sec.25(3), (Sec.25(3), Sec.27(D)(2), of P100,000 P100,000
NIRC) NIRC) NIRC) NIRC) NIRC, as
amended TB: TB:
NI from WI NI from WI
 Sec.28 (A) Sec. 28(B)(5)(C)
(7)(C)

b. traded in the stock RT: 6⁄10 of RT: 6⁄10 of RT: 6⁄10 of RT: 6⁄10 of RT: 6⁄10 of RT: 30% ​RT: 30% RT: 30%
exchange 1% 1% 1% 1% 1%
TB: gross TB: gross TB: gross TB: gross TB: gross TB: NI from TB: NI from TB: GI from
selling price selling price selling price selling price selling price WI and WO WI WI
or gross or gross or gross or gross or gross
value in value in value in value in value in Sec. 27 (A) Sec. 28 (A)(1) Sec. 28 (B)(1)
money of money of money of money of money of NIRC NIRC NIRC
shares of shares of shares of shares of shares of
stock sold stock sold stock sold stock sold stock sold

TRAIN TRAIN TRAIN TRAIN TRAIN

4. Capital gains from sale of RT: 6% FT RT: 6% RT: 6% RT: 6% RT: 6% RT: 6% RT: 30% RT: 30%
real property TB: gross TB: gross selling TB: gross selling TB: gross TB: gross
selling price or price or current price or current selling price selling price or TB: gross TB: gross TB: gross selling
current fair fair market value fair market or current current fair selling price of selling price of price of fair
market value as determined in value as fair market market value fair market fair market market value as
as determined accordance with determined in value as as determined value as value as determined in
in accordance Section 6(E) of accordance with determined in accordance determined in determined in accordance with
with Section this Code, Section 6(E) of in with Section accordance accordance Section 6(E) of
6(E) of this whichever is this Code, accordance 6(E) of this with Section with Section this Code,
Code, higher, from WI whichever is with Section Code, 6(E) of this 6(E) of this whichever is
whichever is higher, from WI 6(E) of this whichever is Code, Code, higher, from WI
higher, from Sec. 24 (D) NIRC Code, higher, from whichever is whichever is
WI Sec. 24 (D) NIRC whichever is WI higher, from higher, from Sec. 28 (B)
higher, from WI WI NIRC
Sec. 24 (D) WI Sec. 25 (B)
NIRC NIRC Sec. 27 (D) (5) Sec. 28 (A)
Sec. 25 (A) NIRC NIRC
NIRC

Except:

a. Sale of principal Exempt from Exempt from CGT Exempt from Exempt from Exempt from
residence CGT (0%) if: (0%) if: CGT (0%) if: CGT (0%) if: CGT (0%) if:

a. Historical a. Historical a. Historical a. Historical a. Historical

cost/adjusted cost/adjusted cost/adjusted cost/adjuste cost/adjusted
basis of basis of property basis of d basis of basis of
property sold sold is carried property sold is property property sold
is carried over over to the new carried over to sold is is carried over
to the new principal the new carried over to the new
principal residence; principal to the new principal
 residence; b. CIR is notified residence; principal residence;
b. CIR is within 30 days b. CIR is notified residence; b. CIR is
notified from date of within 30 days b. CIR is notified within
within 30 days disposition of from date of notified 30 days from
from date of TP’s intention to disposition of within 30 date of
disposition of avail of the tax TP’s intention days from disposition of
TP’s intention exemption; to avail of the date of TP’s intention
to avail of the C. Tax exemption tax exemption; disposition to avail of the
tax can only be C. Tax of tax
exemption; availed once exemption can TP’s exemption;
C. Tax every 10 years; only be availed intention to C. Tax
exemption d. Unutilized once every 10 avail of the exemption can
can only be portion of the years; tax only be
availed once proceeds is d. Unutilized exemption; availed once
every 10 subject to CGT of portion of the C. Tax every 10
years; 6% (TB: portion proceeds is exemption years;
d. Unutilized of gross selling subject to CGT can only be d. Unutilized
portion of the price/zonal value, of 6% (TB: availed once portion of the
proceeds is whichever is portion every 10 proceeds is
subject to CGT higher) of gross selling years; subject to CGT
of 6% (TB: price/zonal d. Unutilized of 6% (TB:
portion value, portion of portion
of gross whichever is the proceeds of gross selling
selling higher) is subject to price/zonal
price/zonal CGT of 6% value,
value, (TB: portion whichever is
whichever is of gross higher)
higher) selling
price/zonal
value,
whichever is
higher)

5. Salaries & wages RT: 0% - 35% RT: 0% - 35% RT: 0% - 35% RT: 0% - 35% RT: 25%
received from RHQ, ROHQ,
OBU and Petroleum TB: NI from TB: NI from TB: NI from TB: NI from TB: GI from
contractors and WI and WO; WI; Option for WI; Option for WI; Option WI
subcontractors Option for 8% FT if <3M (for 8% FT if <3M for 8% FT if
8% FT if <3M self-employed (for <3M (for Sec. 25 (B)
(for and/or self-employed self-employe NIRC
self-employed professionals) and/or d and/or
and/or professionals) professionals
professionals) )
Sec. 24 (A)(1)(a)
Sec. 24 NIRC and RMO Sec. 24 (A)(1)(a)
(A)(1)(a) NIRC 23-2018 NIRC and RMO Sec. 24
and RMO 23-2018 (A)(1)(a)
23-2018 NIRC and
RMO
 23-2018

6. proprietary educational RT: 10% RT: 30% RT: 30%

institutions TB: NI, from
WI TB: NI from TB: GI from
WI WI
Sec. 27 (B) Sec. 28 (A)(1) Sec. 28 (A)(1)
NIRC NIRC NIRC

The 10% The 10%

preferential tax preferential tax
rate only rate only applies
applies to to domestic
domestic corporations.
corporations.

7. International carriers RT: 30% RT: 2.5% RT: 30%

TB: GI from WI
TB: NI from (GPB) TB: GI from
WI and WO WI

Sec. 27 (A) Sec. 28 (A) (3) Sec. 28 (A)(1)

NIRC NIRC NIRC

The 2.5 %
preferential tax
rate only applies
to resident
foreign
corporations

8. Offshore Banking Units RT: 30% Exempt, in RT: 30%

(OBU) general
TB: NI from TB: GI from
WI and WO WI
Exception
Sec. 27 (A) Sec. 28 (A)(1)
NIRC RT: 10% NIRC

TB: interest The exception to

income derived OBUs (and the
from foreign 10% preferential
currency loans tax rate in
specific case)
granted to
only applies to
residents other resident foreign
than offshore corporations.
banking units
or local
commercial
banks,
 including local,
branches of
foreign banks
that may be
authorized by
the BSP to
transact
business with
OBUs

Sec. 28 (A) (4)

NIRC

9. Branch Profit Remittance RT: 30% RT: 15% RT: 30%

TB: NI from TB: total TB: GI from

WI and WO WI
profits applied
Sec. 27 (A) or earmarked
Sec. 28 (A)(1)
NIRC for remittance NIRC
to head office,
except those The 15% BPRT
activities rate only applies
registered with to resident
PEZA foreign
corporations.

Sec. 28 (A) (5)

NIRC

10. Regional Headquarters RT: 30% Exempt - 0% RT: 30%

(RHQ)
TB: NI from Sec. 28 (A) (6) TB: GI from
WI and WO WI
NIRC
Sec. 27 (A) Sec. 28 (A)(1)
NIRC NIRC

The tax
exemption to
RHQs applies
only to resident
foreign
corporations.
11. Regional Operating RT: 30% RT: 10% RT: 30%
Headquarters (ROHQ) TB: NI from WI
TB: NI from TB: GI from
WI and WO WI
Sec. 28 (A) (6)
Sec. 27 (A) NIRC
Sec. 28 (A)(1)
NIRC NIRC

The 10%
preferential tax
rate for RHQUs
only applies to
resident foreign
corporations.

12. Cinematographic firm RT: 0% - 35% RT: 0% - 35% RT: 0% - 35% RT: 0% - 35% RT: 25% RT: 30% RT: 30% RT: 25%
owner, lessor, distributor TB: GI from WI
TB: NI from TB: NI from TB: NI from TB: NI from TB: GI from TB: NI from TB: NI from
WI and WO; WI; Option for WI; Option for WI; Option WI WI and WO WI Sec. 28 (B)(2)
Option for 8% FT if <3M (for 8% FT if <3M for 8% FT if
8% FT if <3M self-employed (for <3M (for Sec. 25 (B) Sec. 27 (A) Sec. 28 (A)(1)
(for and/or self-employed self-employe NIRC NIRC NIRC
self-employed professionals) and/or d and/or
and/or professionals) professionals The 25%
professionals) ) preferential tax
Sec. 24 (A)(1)(a) rate only
Sec. 24 NIRC and RMO Sec. 24 (A)(1)(a) applies to
(A)(1)(a) NIRC 23-2018 NIRC and RMO Sec. 24 non-resident
and RMO 23-2018 (A)(1)(a) foreign
23-2018 NIRC and corporations.
RMO
23-2018

13. Owner or lessor of RT: 0% - 35% RT: 0% - 35% RT: 0% - 35% RT: 0% - 35% RT: 25% RT: 30% ​RT: 30% RT: 4.5%
vessels chartered by TB: GI from WI
Philippine nationals TB: NI from TB: NI from TB: NI from TB: NI from TB: GI from TB: NI from TB: NI from
WI and WO; WI; Option for WI; Option for WI; Option WI WI and WO WI Sec. 28 (B)(3)
Option for 8% FT if <3M (for 8% FT if <3M for 8% FT if
8% FT if <3M self-employed (for <3M (for Sec. 25 (B) Sec. 27 (A) Sec. 28 (A)(1)
(for and/or self-employed self-employe NIRC NIRC NIRC
self-employed professionals) and/or d and/or
and/or professionals) professionals The 4.5%
professionals) ) preferential tax
Sec. 24 (A)(1)(a) rate only
Sec. 24 NIRC and RMO Sec. 24 (A)(1)(a) applies to
(A)(1)(a) NIRC 23-2018 NIRC and RMO Sec. 24 non-resident
and RMO 23-2018 (A)(1)(a) foreign
23-2018 NIRC and corporations.
RMO
23-2018
14. Owner or lessor of RT: 0% - 35% RT: 0% - 35% RT: 0% - 35% RT: 0% - 35% RT: 25% RT: 30% ​RT: 30% RT: 7.5%
aircraft, machineries and TB: GI from WI
other equipment TB: NI from TB: NI from TB: NI from TB: NI from TB: GI from TB: NI from TB: NI from
WI and WO; WI; Option for WI; Option for WI; Option WI WI and WO WI Sec. 28 (B)(4)
Option for 8% FT if <3M (for 8% FT if <3M for 8% FT if NIRC
8% FT if <3M self-employed (for <3M (for Sec. 25 (B) Sec. 27 (A) Sec. 28 (A)(1)
(for and/or self-employed self-employe NIRC NIRC NIRC
self-employed professionals) and/or d and/or
and/or professionals) professionals The 7.5%
professionals) ) preferential tax
Sec. 24 (A)(1)(a) rate only
Sec. 24 NIRC and RMO Sec. 24 (A)(1)(a) applies to
(A)(1)(a) NIRC 23-2018 NIRC and RMO Sec. 24 non-resident
and RMO 23-2018 (A)(1)(a) foreign
23-2018 NIRC and corporations.
RMO
23-2018

15. Interest on foreign RT: 0% - 35% RT: 0% - 35% RT: 0% - 35% RT: 0% - 35% RT: 25% RT: 30% RT: 30% RT: 20%
loans
TB: NI from TB: NI from TB: NI from TB: NI from TB: GI from TB: NI from TB: NI from TB: amount of
WI and WO; WI; Option for WI; Option for WI; Option WI WI and WO WI interest on
Option for 8% FT if <3M (for 8% FT if <3M for 8% FT if foreign loans
8% FT if <3M self-employed (for <3M (for Sec. 25 (B) Sec. 27 (A) Sec. 28 (A)(1)
(for and/or self-employed self-employe NIRC NIRC NIRC Sec. 28 (B)(5)(a),
self-employed professionals) and/or d and/or NIRC
and/or professionals) professionals The 20%
professionals) ) preferential
Sec. 24 (A)(1)(a) final tax rate
Sec. 24 NIRC and RMO Sec. 24 (A)(1)(a) only applies to
(A)(1)(a) NIRC 23-2018 NIRC and RMO Sec. 24 non-resident
and RMO 23-2018 (A)(1)(a) foreign
23-2018 NIRC and corporations.
RMO
23-2018

16. Fringe Benefits Tax Fringe benefit defined: ​“Fringe benefit” means any good, service, or other benefit, furnished or granted in cash or in kind by an employer to an
individual employee (except rank and file employees). Sec. 33 (B) NIRC

a. Exempt - 0% Exempt - 0% Exempt - 0% Exempt - 0% RT: 25%

Rank-and-file
Exemption up Exemption up to Exemption up Exemption TB: GI from
to P90,000 P90,000 only to P90,000 only up to WI
only P90,000 only
Sec. 33 (A) R.A. Sec. 33 (A) R.A. Sec. 25 (B)
Sec. 33 (A) 10963 10963 Sec. 33 (A) NIRC
R.A. 10963 R.A. 10963

Sec. 25 (A)(1)
NIRC
 b. RT: 35% FT RT: 35% FT RT: 35% FT RT: 35% FT RT: 25%
Supervisory/
Managerial TB: TB: Grossed-up TB: Grossed-up TB: TB: GI from
Grossed-up monetary value monetary value Grossed-up WI
monetary of fringe benefit of fringe benefit monetary
value of fringe value of Sec. 25 (B)
benefit Sec. 33 (A) R.A. Sec. 33 (A) R.A. fringe NIRC
10963 10963 benefit
Sec. 33 (A)
R.A. 10963 Sec. 33 (A)
R.A. 10963

17. Improperly RT: 10% RT: 10%

Accumulated Earnings Tax TB: TB: Improperly
Improperly accumulated
accumulated taxable income
taxable
income Sec. 29 (A)
NIRC
Sec. 29 (A)
NIRC

Instructions for Part I: FILL UP THE MATRIX BY INDICATING:

Rate of Tax (RT) - ie 0%-35%, 10%, not subject/exempt; Final Tax (FT)
Tax Base (TB) – ie. Net Income (NI), Gross Income (GI), etc…
Whether taxed on income from within and/or without (WI, WO)
(See examples printed on matrix)
Provide the definitions of words or terms, as indicated.