TAXATION 1

corporate income tax of domestic corporation, resident foreign, and non resident foreign corporations

25% effective july 1, 2025

Interest from any currency bank deposit, and yield or any other monetary benefit from deposit substitutes and from trust funds and similar arrangements; Royalties.

Domestic- 20%

Resident foreign- 20%

Non-resident foreign- 25%

Interest income from a depository bank under the Expanded Foreign Currency Deposit System (EFCDS)

Domestic- 15%

Resident foreign- 15%

Non-resident foreign- exempt

Cash and/or property dividends actually or

constructively received from a domestic

corporation or from a joint stock company,

insurance, mutual fund companies and

regional operating headquarters of multi-

national corporations;

Domestic- exempt

Resident foreign- exempt

Non-resident foreign- 15% * 20%

royalties fore domestic, resident and non resident

domestic- 20%

resident- 20%

non-resident- 25%

Sale of land/buildings (capital asset, not inventory) for domestic

6% of gross selling price or FMV (whichever is higher)

Sale of shares (not traded/listed in PH Stock Exchange) for DC, RFC, NRFC

15% of net capital gain

Proprietary Educational Institutions/Non-Profit Hospitals Income tax rate

10% (1% temp)