Personal Tax in the Philippines
- 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.
|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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Learning how to approach certain tasks as a foreign manager in the Philippines with greater cultural sensitivity and skill will help you get the job done.
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