Income of residents in Philippines is taxed progressively up to 32%. Philippines
Income Tax Rate32%
Corporate Tax Rate 30%
Sales Tax / VAT Rate 12%
Taxable Income Tax Rate PhP 0 - PhP 10,000: - 5% PhP 10,000 - PhP 30,000: PhP 500 10% PhP 30,000 - PhP 70,000: PhP 2,500 15% PhP 70,000 - PhP 140,000: PhP 8,500 20% PhP 140,000 - PhP 250,000: PhP 22,500 25%
PhP 250,000 - PhP 500,000: PhP 50,000 30% Over PhP 500,000: PhP 125,000 32%
The above rates also apply to individuals who derive income from business (including capital gains from the sale transfer or exchange of shares in a foreign corporation) or from the practice of a profession. Individuals occupying managerial and highly technical positions employed by RHQs, ROHQs, multinational companies, offshore business units and petroleum service contractors/subcontractors are taxed at 15% on their gross income. Income is divided into the following three categories which are taxed separately, as summarized below. Compensation employment income: This income is taxed at progressive rates on gross income after deduction of personal and additional exemptions but without deductions for expenses. Passive income: This income (i.e. dividends, certain interest, royalties, etc.) is subject to final withholding tax only. Business income and professional income: This income is taxed at progressive rates on net business income, or income from the practice of a profession, i.e. after deduction of certain specified expenses and any excess of personal and additional exemptions over compensation income.
Resident citizens of the Philippines are taxed on all their net income...