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Income Tax Appendices

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Khemgee Espedosa
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5 views2 pages

Income Tax Appendices

Uploaded by

Khemgee Espedosa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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SUMMARY OF FINAL TAX UNDER THE NIRC, AS AMENDED

INDIVIDUAL
ALIEN CORPORATION
CITIZEN NON-RESIDENT FOREIGN
RC NRC RA ETB NETB DC RFC NRFC
INTEREST INCOME
Local Currency Deposit:
Short term interest or yield 20% 20% 20% 20% 25% 20% 20% 20%
Long term interest or yield exempt exempt exempt exempt 25% 20% 20% 25%
Pre-termination interest rate
- Less than 3 years 20% 20% 20% 20% 25% 20% 20% 25%
- 3 to less than 4 years 12% 12% 12% 12% 25% 20% 20% 25%
- 4 to less than 5 years 5% 5% 5% 5% 25% 20% 20% 25%

Foreign Currency Deposit:


Interest income from FCDUs/EFCDUs 15% exempt 15% exempt exempt 15% 15% exempt
Interest income of FCDUs/EFCDUs 10% exempt 10% exempt exempt 10% 10% exempt
Interest income on foreign loans N/A N/A N/A N/A 25% N/A N/A 20%
Tax-free covenant bonds 30% 30% 30% 30% 30% RIT* RIT* 25%

DIVIDEND INCOME
From domestic corporations, in general 10% 10% 10% 20% 25% exempt exempt 15%**
From real estate investment trust or REIT 10% exempt 10% <10%^ <10%^ exempt exempt <10%^
From foreign corporations Regular income tax (RIT) rules applies

SHARE IN NET INCOME of taxable 10% 10% 10% 20% 25% RIT RIT 25%
partnership, joint venture, and co-
ownership

ROYALTIES
Passive royalties:
In general 20% 20% 20% 20% 25% 20% 20% 25%
Passive royalties from cinematographic 20% 20% 20% 25% 25% 20% 20%
films and similar works
Passive royalties from books, literary 10% 10% 10% 10% 25% 20% 20% 25%
works, and musical compositions
Active royalties Regular tax 25% RIT 25%

TAXABLE PRIZES, amounting to:


P10,000 and below Regular tax 25% RIT 25%
Above P10,000 20% 20% 20% 20% 25% RIT 25%

WINNINGS
In general 20% 20% 20% 20% 25% RIT 25%
PCSO & lotto winnings > P10,000 20% 25% 20% 25%
PCSO & lotto winnings < P10,000 Exempt 25% Exempt 25%

INFORMER’S TAX REWARD 10%

NOTE:
*Except when it qualifies as deposit substitute where it will be subjected to 20% final tax
**Subject to the tax sparing rule; otherwise, taxable at 25%
^Subject to preferential tax rate under applicable tax treaty

Owned by Khemgee P. Espedosa


COMPREHENSIVE SUMMARY OF RULES ON DIVIDENDS

Recipient taxpayer Source of dividends


Domestic corporation Foreign corporation
Individuals
- Citizens and residents 10% final tax Regular tax
- NRA-ETB 20% final tax Regular tax
- NRA-NETB 25% final tax 25% final tax
Corporations
- Domestic Corporation Exempt Regular tax
- RFC Exempt Regular tax
- NRFC 15% final tax 25% final tax

SUMMARY RULES OF PRIZES AND WINNINGS: INDIVIDUAL TAXPAYERS

Prizes: Earned from sources


Within Abroad
- P10,000 and below Regular tax Regular tax
- More than P10,000 Final tax Regular tax

Winnings: Earned from sources


Within Abroad
- PCSO winnings, exceeding P10,000 Final tax N/A
- PCSO winnings, not exceeding P10,000 Exempt N/A
- Winnings from other sources Final tax Regular tax

SUMMARY RULES OF PRIZES AND WINNINGS: CORPORATE TAXPAYERS

Prizes: Earned from sources


Within Abroad
- Prizes (regardless of amount) Regular tax Regular tax
- PCSO winnings, exceeding P10,000 Final tax N/A
- PCSO winnings, not exceeding P10,000 Exempt N/A
- Winnings from other sources Regular tax Regular tax

TAXABLE PARTNERSHIP AND TAXABLE JOINT VENTURE OR CO-OWNERSHIP

If partner, venturer, or co-owner is a/an: Place organized or constituted


Philippines Abroad
- Individual 20% final tax Regular tax
- Corporation Regular tax Regular tax

REVISED INCOME TABLES FOR INDIVIDUAL TAXPAYERS

Year 2018 to Year 2022

Taxable Income Tax Due


P250,000 and below None (0%)
Above P250,000 to P400,000 20% of excess above P250,000
Above P400,000 to P800,000 P30,000 + 25% of excess over P400,000
Above P800,000 to P2,000,000 P130,000 + 30% of excess over P800,000
Above P2,000,000 to P8,000,000 P490,000 + 32% of excess over P2,000,000
Above P8,000,000 P2,410,000 + 35% of excess over P8,000,000

Year 2023 Onwards

Taxable Income Tax Due


P250,000 and below None (0%)
Above P250,000 to P400,000 15% of excess above P250,000
Above P400,000 to P800,000 P22,500 + 20% of excess over P400,000
Above P800,000 to P2,000,000 P102,500 + 25% of excess over P800,000
Above P2,000,000 to P8,000,000 P402,500 + 30% of excess over P2,000,000
Above P8,000,000 P2,205,500 + 35% of excess over P8,000,000

Owned by Khemgee P. Espedosa

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