Personal Tax in the Philippines

Overview by
Tax Base For Residents and Non-Residents
Resident citizens are taxed on all of their income, while foreign residents and non residents are only taxed on their Filipino income.

Tax Rate

Income Tax Rates vary between 0 and 32% (higher rate for revenues over PHP 500 000) according to the income of natural persons.
From PHP 0 to 10,000 5%
From PHP 10,000 to 30,000 10%
From PHP 30,000 to 70,000 15%
From PHP 70,000 to 140,000 20%
From PHP 140,000 to 250,000 25%
From PHP 250,000 to 500,000 30%
Over PHP 500,000 32%
Tax on capital income 6% (real estate); 5% up to 100 000 PHP then 10% (earnings from shares not exchanged on the Stock Exchange); 1% of the sale price (earnings from shares exchanged on the Stock Exchange).
Property Tax Varies according to the location, less than 3%
Tax on inheritance and property Between 5 and 20%
Social contributions Vary from 33.30 to 500 PHP, according to the salary
Allowable Deductions and Tax Credit
Taxpayers benefit in the Philippines from various deductions according to their status (marriage, child).
Special Expatriate Tax Regime
There is no special tax regime for expatriates. Non resident foreigners not involved in business are taxed at a preferential rate of 25% of their Philippine income.
Capital Tax Rate
On the sale of real estate, tax of 6%; on the sale of shares not exchanged on the Stock Exchange, tax of 5% on net earnings up to 100 000 PHP and 10% on the remainder; on shares exchanged on the Stock Exchange, tax of 1% of the sale price.

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