What are the different Income Tax Rates in the Philippines.

Hi! In relation to the recently ended filing season, here are the different Income Tax rates used in the Philippines. This might also be of help to students who are enrolled this summer classes with subject on taxation.

The rates are also available inthe BIR website under the Tax Information, Income Tax, Tax Rates links.

Income Tax Rates used by Individual Taxpayers 
(Employees and self-employed individuals including those with registered businesses and practicing professionals likes lawyers, doctors, professional entertainers, engineers and many more.):

Amount of Net Taxable Income		Rate
Over	But Not Over
	P10,000	5%
P10,000	P30,000	P500 + 10% of the Excess over P10,000
P30,000	P70,000	P2,500 + 15% of the Excess over P30,000
P70,000	P140,000	P8,500 + 20% of the Excess over P70,000
P140,000	P250,000	P22,500 + 25% of the Excess over P140,000
P250,000	P500,000	P50,000 + 30% of the Excess over P250,000
P500,000		P125,000 + 32% of the Excess over P500,000 in 2000 and onward

Income Tax Rates used by registered domestic corporations, partnership, associations, organizations and other juridical person:

	Tax Rate	Taxable Base
1. Domestic Corporations:
a. In General	30% (effective Jan. 1, 2009)	Net taxable income from all sources
b. Minimum Corporate Income Tax*	2%	Gross Income
c. Improperly Accumulated Earnings	10%	Improperly Accumulated Taxable Income
2. Proprietary Educational  Institution	10%	Net taxable income provided that the gross income from unrelated trade, business or other activity does not exceed 50% of the total gross income
3. Non-stock, Non-profit Hospitals	10%	Net taxable income provided that the gross income from unrelated trade, business or other activity does not exceed 50% of the total gross income
4. GOCC, Agencies & Instrumentalities
a. In General	30%	Net taxable income from all sources
b. Minimum Corporate Income Tax*	2%	Gross Income
c. Improperly Accumulated Earnings	10%	Improperly Accumulated Taxable Income
5. National Gov't. & LGUs
a. In General	30%	Net taxable income from all sources
b. Minimum Corporate Income Tax*	2%	Gross Income
c. Improperly Accumulated Earnings	10%	Improperly Accumulated Taxable Income
6. Taxable Partnerships
a. In General	30%	Net taxable income from all sources
b. Minimum Corporate Income Tax*	2%	Gross Income
c. Improperly Accumulated Earnings	10%	Improperly Accumulated Taxable Income
7. Exempt Corporation
a. On Exempt Activities	0%
b. On Taxable Activities	30%	Net taxable income from all sources
8. General Professional Partnerships	0%
9. Corporation covered by Special Laws	Rate specified under the respective special laws
10. International Carriers	2.5%	Gross Philippine Billings
11. Regional Operating Head	10%	Taxable Income
12. Offshore Banking Units (OBUs)	10%	Gross Taxable Income On Foreign Currency Transaction
	30%	On Taxable Income other than Foreign Currency Transaction
13. Foreign Currency Deposit  Units (FCDU)	10%	Gross Taxable Income On Foreign Currency Transaction
	30%	On Taxable Income other than Foreign Currency Transaction

Passive Income

1. Interest from currency deposits, trust funds and deposit substitutes	20%
2. Royalties (on books as well as literary & musical composition)	10%
- In general	20%
3. Prizes (P10,000 or less )	5%
- In excess of P10,000	20%
4. Winnings (except from PCSO and lotto)	20%
5. Interest Income of Foreign Currency Deposit	7.5%
6. Cash and Property Dividends
- To individuals from Domestic Corporations	10 %
- To Domestic Corporations from Another Domestic Corporations	0%
7. On capital gains presumed to have been realized from sale, exchange or other disposition of real property (capital asset)	6%
8. On capital gains for shares of stock not traded in the stock exchange
- Not over P100,000	5%
- Any amount in excess of P100,000	10%
9. Interest Income from long-term deposit or investment in the form of savings, common or individual trust funds, deposit substitutes, investment management accounts and other investments evidenced by certificates	Exempt
Upon pretermination before the fifth year , there should be imposed on the entire income from the proceeds of the long-term deposit based on the remaining maturity thereof:
Holding Period
-       Four (4) years to less than five (5) years	5%
-       Three (3) years to less than four (4) years	12%
-       Less than three (3) years	20%

I hope this data give you added information.