Philippines Income Tax Rates
Philippines Income Tax Rates
Income of residents in Philippines is taxed progressively up to 32%.
Philippines
Income Tax Rate 32%
Philippines
Corporate Tax Rate 30%
Philippines
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.
TAXABLE INCOME
RESIDENT CITIZENS Resident citizens of the Philippines are taxed on all their net
Income of residents in Philippines is taxed progressively up to 32%.
Philippines
Income Tax Rate 32%
Philippines
Corporate Tax Rate 30%
Philippines
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.
TAXABLE INCOME
RESIDENT CITIZENS Resident citizens of the Philippines are taxed on all their net