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Impostos a les Filipines

Tax Rates

Consumption Taxes

Nature of the Tax
VAT (Value-Added Tax)
Tax Rate
12%
Reduced Tax Rate
Certain items are zero-rated, including export sales; sale of goods, supplies, equipment and fuel to persons engaged in international shipping or international air transport operations (conditions apply); services performed by subcontractors and/or contractors in processing, converting, or manufacturing goods for an enterprise whose export sales exceed 70% of total annual production; transport of passengers and cargo by domestic air or sea vessels from the Philippines to a foreign country; sale of power or fuel generated through renewable sources of energy, etc.
A 3% sales tax on gross sales or receipts also applies to persons who are not VAT-registered because their annual sales or receipts do not exceed PHP 3 million.
Other Consumption Taxes
Excise taxes are levied on wines and spirits, beer, cigarettes and tobacco products, lubricating oils and grease (including similar preparations and additives), processed gas, waxes, denatured alcohol, cinematographic films, saccharine, coal and coke, cars, non-essential goods (jewellery, yachts and other pleasure vessels), mineral products, naphtha and other similar products of distillation, asphalt, and petroleum and other fuel products.
In addition to real estate taxes, local governments impose a tax on nearly all businesses operating within their jurisdictions. Rates vary but are usually a small percentage of gross annual sales.

On top of the regular customs duty, an additional 10% tax is levied on imports of crude oil and refined petroleum products in order to finance the fund to fight the COVID-19 epidemic.

 
Find out more about Taxes and Accounting in the Philippines on GlobalTrade.net, the Directory for International Trade Service Providers.
 

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Corporate Taxes

Company Tax
The rate is 25% on net income but there are some preferential rates and exemptions (educational institutions and non-profit hospitals: 10%)
Tax Rate For Foreign Companies
A domestic corporation is subject to tax on its worldwide income, whereas a foreign resident corporation is subject to tax only on Philippine-source income (at the same rates as local companies).
Non-resident foreign corporations are generally taxed on gross income received from sources within the Philippines, at the standard corporate tax rate. Interest on foreign loans is taxed at 20%.
Capital Gains Taxation
Capital gains are generally subject to ordinary income tax rates. Capital gains arising from the sale of unlisted shares are subject to a withholding tax of 15% (for foreign corporations, a rate of 5% applies on the first PHP 100,000 of gains, and 10% on gains in excess of PHP 100,000) while those resulting from the sale of listed shares are taxed at a rate of 0.6% of the gross selling price (conditions apply). Capital gains from the sale of bonds, debentures, or other certificates of indebtedness with a maturity of more than five years are exempt from tax. Capital gains from the sale of real estate used for non-commercial purposes are subject to a final withholding tax of 6% of the highest of the sale price or fair value.
For further details, consult the dedicated page on the website of the Bureau of Internal Revenue.
Main Allowable Deductions and Tax Credits
Corporations can choose between itemised deductions or an optional standard deduction computed at 40% of gross income.

Bad debts are deductible expenses when written-off (conditions apply). The allowable deduction for interest expense is reduced by an amount equal to 33% of interest income that is subject to final tax. Start-up expenses are deductible when incurred.
Charitable contributions can normally be deducted up to 5% of taxable income, although those made to certain institutions are 100% deductible, subject to conditions.

A Philippine corporation can claim a deduction for royalties, management service fees, and interest charges paid to foreign affiliates, provided such amounts are equal to what it would pay an unrelated entity, and the appropriate withholding taxes are withheld and remitted. A resident foreign corporation is allowed to claim allocated head office expenses as a deduction (conditions apply). To be deductible, entertainment, amusement, and recreation expenses should not exceed 0.5% of net sales for taxpayers engaged in the sale of goods or properties, or 1% of net revenue for taxpayers engaged in the sale of services.

Special deductions are allowed for certain businesses (e.g. insurance, mining, petroleum, and real estate investment trust).

Net operating losses can be carried forward up to three years unless the company enjoys a tax incentive or a tax exemption. Losses cannot be carried forward in the case of a significant change in the ownership structure of the company. The carryback of losses is not permitted.
Taxes can generally be deducted, except for corporate income tax, donor's taxes, taxes imposed by authorities of any foreign country.

Other Corporate Taxes
Local authorities impose local business taxes, which are generally based on the gross sales or gross receipts of the prior year (the rate varies depending on the location but generally shall not exceed 3%), and real property taxes, which are levied annually on the basis of a fixed proportion of the value of the real property (rate up to 1% for real property located in a province and 2% if located in a city).
A local transfer tax on real property is levied at a rate of 0.5% to 0.75% on the gross sales price or the fair market value of the property (whichever is higher) upon the transfer or sale of the property.
A final tax of 35%, payable by the employer, is imposed on the grossed-up monetary value of fringe benefits granted by the employer to managerial or supervisory personnel (including holiday and vacation expenses, housing, foreign travel expenses, expense accounts, vehicles of any kind, household personnel, interest on loans at lower than market rates, membership dues for social and athletic clubs, educational assistance, insurance). An improperly accumulated earnings tax of 10% is imposed on improperly accumulated income (corporate surplus accumulation).
Gratuitous transfers of property are subject to a donor’s tax at 6% of the fair market value of the property at the time of the donation (for the amount in excess of PHP 250,000).
A documentary stamp tax (DST) is payable at varying rates on several documents and transactions.
Social security contributions are composed of the Social Security System (SSS - capped at PHP 2,155/month), Home Development Mutual Fund (HDMF - generally up to PHP 100/month), and Philippine Health Corporation (PHIC - generally up to PHP 900/month).
Other Domestic Resources
Bureau of Internal Revenue
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Philippines (the) East Asia & Pacific United States Germany
Number of Payments of Taxes per Year 13.0 23.4 10.6 9.0
Time Taken For Administrative Formalities (Hours) 171.0 195.1 175.0 218.0
Total Share of Taxes (% of Profit) 43.1 33.8 36.6 48.8

Source: Doing Business, Latest available data.

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Individual Taxes

Tax Rate

Income Tax Rates vary between 5% and 35%
From PHP 0 to 250,000 0%
From PHP 250,000 to 400,000 20% (15% from 2023)
From PHP 400,000 to 800,000 25% (20% from 2023)
From PHP 800,000 to 2 million 30% (25% from 2023)
From 2 million to 8 million 32% (30% from 2023)
Over PHP 8 million 35%
Fringe Benefit tax
(levied on benefits furnished to managerial and supervisory-level employees)
35% (25% for non-resident aliens not engaged in trade or business)
Tax on business income If an individual's gross sales/receipts and other non-operating income are below PHP 3,000,000, he/she may opt to be taxed 8% tax on gross sales/receipts and other non-operating income in excess of PHP 250,000 in lieu of the standard graduated income tax rates
Allowable Deductions and Tax Credits
Non-deductible items for income tax purposes include: home mortgage interest, medical expenses, contributions, and other personal expenses. In any case, social security contributions, up to the prescribed amount of maximum mandatory contributions, are excluded from gross income. Minimum wage earners are exempt from the payment of income tax on their compensation income, same as for holiday pay, overtime pay, night shift differential pay, and hazard pay.

Aliens, whether residents or not, who are receiving only salary or compensation income are not allowed any deduction against such income.

Several expenses are allowed as deductions from gross income for individuals engaged in business or the practice of a profession, including all ordinary and necessary expenses paid or incurred during the taxable year in connection with their activity; bad debts, losses, certain taxes, etc. However, the taxpayer (except for non-resident aliens) can opt for a standard deduction not exceeding 40% of the gross business or professional income in lieu of allowable deductions. Such decision is irrevocable for the tax year for which the return is made.
Special Expatriate Tax Regime
Resident citizens are taxed on all of their income. Non-resident citizens and aliens (whether resident in the Philippines or not) are taxed only on Philippines-source income.
The applicable fringe benefit tax rate for non-residents is 25%.

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Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
List of double tax agreements signed by the Philippines
Withholding Taxes
Dividends: 0 (resident company)/10% (resident individual)/15% (if the country of the foreign corporate recipient allows a tax credit of 15%; otherwise 20%)/20% (non-resident individual engaged in a trade or business)/25% (non-resident individual engaged in a trade or business)
Interest: 20% (paid to a resident individual or a non-resident individual engaged in a trade or business)/25% (non-resident individual engaged in a trade or business)
Royalties: 20% (resident corporation)/30% (non-resident corporation)/20% (individuals)/10% (royalty payments to individuals from books, literary works, and musical compositions)/25% (non-resident individual engaged in a trade or business).
Bilateral Agreement
Spain and the Philippines signed a Double Taxation Treaty .

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Find out more about Taxes and Accounting in the Philippines on GlobalTrade.net, the Directory for International Trade Service Providers.

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Actualitzacions: May 2022

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