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    Taxation Garcia/Tamayo TX-602: Corporation (Income Tax Rates)

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    Jun Saint
    The document outlines corporate income tax rates in the Philippines. It discusses the general tax rates of 35% for domestic and nonresident foreign corporations from 2005 to 2008, reducing to 30% from 2009 onwards. It also details an optional corporate tax rate of 15% of gross income. There is a minimum corporate income tax of 2% of gross income for domestic and resident foreign corporations. It concludes by covering capital gains taxes, outlining rates of 5-10% for domestic and resident foreign corporations on capital gains from the sale of shares.

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    Taxation Garcia/Tamayo TX-602: Corporation (Income Tax Rates)

    Uploaded by

    Jun Saint
    20 views2 pages
    The document outlines corporate income tax rates in the Philippines. It discusses the general tax rates of 35% for domestic and nonresident foreign corporations from 2005 to 2008, reducing to 30% from 2009 onwards. It also details an optional corporate tax rate of 15% of gross income. There is a minimum corporate income tax of 2% of gross income for domestic and resident foreign corporations. It concludes by covering capital gains taxes, outlining rates of 5-10% for domestic and resident foreign corporations on capital gains from the sale of shares.

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    The document outlines corporate income tax rates in the Philippines. It discusses the general tax rates of 35% for domestic and nonresident foreign corporations from 2005 to 2008, reducing to 30% from 2009 onwards. It also details an optional corporate tax rate of 15% of gross income. There is a minimum corporate income tax of 2% of gross income for domestic and resident foreign corporations. It concludes by covering capital gains taxes, outlining rates of 5-10% for domestic and resident foreign corporations on capital gains from the sale of shares.

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    Download as docx, pdf, or txt
    20 views2 pages

    Taxation Garcia/Tamayo TX-602: Corporation (Income Tax Rates)

    Uploaded by

    Jun Saint
    The document outlines corporate income tax rates in the Philippines. It discusses the general tax rates of 35% for domestic and nonresident foreign corporations from 2005 to 2008, reducing to 30% from 2009 onwards. It also details an optional corporate tax rate of 15% of gross income. There is a minimum corporate income tax of 2% of gross income for domestic and resident foreign corporations. It concludes by covering capital gains taxes, outlining rates of 5-10% for domestic and resident foreign corporations on capital gains from the sale of shares.

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    TAXATION GARCIA/TAMAYO

    TX-602: Corporation (Income Tax Rates)


    1. TAX RATES
    a. In general
    Tax rate Sec. 27 (A) DOMESTIC Sec. 28 (A) (1) Sec. 28 (B) (1)
    NONRESIDENT FC NONRESIDENT FC
    35% - 35% - 35% -
    November November November
    1,2005 to 1,2005 to 1,2005 to
    December 31, December 31, December 31,
    2008 30% - 2008 30% - 2008 30% -
    January 10009) January 10009) January 10009)

    Tax base Net income within and Net income within Gross income within
    without

    b. Optional corporate tax


    Sec. 27 (A) DOMESTIC Sec. 28 (A) (1) NONRESIDENT FC
    NONRESIDENT FC
    Tax rate 15% 15%
    Tax base Gross income Gross income

    c. Minimum corporate income tax


    Sec. 27 (E) DOMESTIC NONRESIDENT FC
    Sec, 28 (A) (2)
    RESIDENT FC

    2% of gross income 2% of gross income


    within and without within

    d. On certain passive income derived from the Philippines sources


    DC and RFC Sec. 27 NRFC Sec.
    (D) Sec.28 (A) (7) 28(B)(1)
    Interest in any currency bank deposit 20% final tax 30% final tax
    20% final tax 30% final tax
    Yield or any monetary benefit from deposit substitute
    Yield or any monetary benefit from trust fund and other similar 20% final tax 30% final tax
    arrangements
    Royalties 20% final tax 30% final tax
    Interest income derived from depository bank under EFCDS 7 ½% final tax Exempt
    e. Capital gains taxes
    Corporation Tax base Tax rate
    1. Capital gains from Domestic corporation Net capital gain 5% - First P100,000
    sale of shares of Sec. 27 (D) (5) 10% - Amount in
    stock snot traded/in excess of P1000, 000
    the local stock
    exchange
    2. Capital gains from
    sale, barter, transfer Resident foreign 5% - First P100,000
    and/or assignment corporation Net capital gain 10% - Amount in
    of shares of stock of Sec. 28 (A), (5) (c) excess of P1000, 000
    publicly-listed
    companies, not
    complaint with
    mandatory
    minimum public
    ownership (10% of
    the publicly listed
    companies' issued
    and outstanding
    shares, exclusive of
    any treasury shares)
    (RR No. 18- 2012)

    Resident foreign 5% - First P100,000


    corporation Net capital gain 10% - Amount in
    Sec. 28 (A), (7) (c) excess of P1000, 000
    3. Gains realized from Domestic corporation Capital asset - on
    sale or exchange or Sec. 27 (D) (5) gross selling price or 6% final tax
    disposition of land fair market value
    and/or building whichever is higher
    Ordinary asset (not
    habitually engaged in 6% creditable
    real estate business) withholding tax
    on selling price

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