2010 tax matrix - corporations

8/3/2019 2010 Tax Matrix - Corporations

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RESIDENT NON-RESIDENT

DOMESTIC FOREIGN FOREIGNDefinition Sec 22 (B) & (C ) Sec 22 (H) Sec 22 (I)

Applies to corporation

created or organizedin the Philippines or

under its laws

Applies to foreign

corporation engagedin trade or business

within the Philippines

Applies to a foregin

corporation notengaged in trade or

business within the

Philippines

Tax Code Reference Sec 27 Sec 28 (A) Sec 28 (B)

Tax Base taxable income from

all sources within

and without the

Philippines

taxable income from

all sources within

the Philippines

gross income from

all sources within t

Philippines

Tax Rates - In general 34% in 1998

33% in 199932% in 2000-2005

35 % in 2006-2008

30% in 2009 &

thereafter

34% in 1998

33% in 199932% in 2000-2005

35 % in 2006-2008

30% in 2009 &

thereafter

34% in 1998

33% in 199932% in 2000-2005

35 % in 2006-2008

30% in 2009 &

thereafter

Interest on any currency bank deposit and

yield or any other monetary benefit from

deposit substitutes and from trust funds

and similar arragements

20% FT 20% FT 34% in 1998

33% in 1999

32% in 2000-2005

35 % in 2006-2008

30% in 2009 &

thereafter

Interest on foreign currency deposit system 7.5% FT 7.5% FT EXEMPT

Interest Income on Foreign Loans

contracted on or after August 1, 1986

N/A N/A 20% FT

Income derived by a depository bank under

the expanded foreign currency deposit

system from foreign currency transactions

with nonresidents, offshore banking

units in the Philippines, local

commercial banks including branches

of foreign banks that may be authorized

by the Bangko Sentral ng Pilipinas (BSP) to

transact business with foreign currency

deposit system

EXEMPT [RA No.

9294]

EXEMPT [RA No.

9294]

N/A

INCOME TAXATION OF CORPORATIONS

CORPORATIONS

Tax Rates - on Passive Income (Subject to Final Tax [FT])

Interest Income received by a FCDU


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DOMESTIC FOREIGN FOREIGN


CORPORATIONS

Interest income from foreign currency loans

granted by such depository banks under

said expanded system to residents otherthan offshore banking units in the

Philippines or other depository banks

under the expanded system

10% FT 10% FT N/A

Income derived by a depository bank under

the expanded foreign currency deposit

system from foreign currency transactions

with nonresidents, offshore banking

units in the Philippines, local

commercial banks including branchesof foreign banks that may be authorized

by the Bangko Sentral ng Pilipinas (BSP) to

transact business with foreign currency

deposit system

N/A EXEMPT [RA No.

9294]

N/A

Interest income from foreign currency loans

granted to residents other than offshore

banking units or local commercial

banks , including local branches of

foreign banks that may be authorized

by BSP to transact with offshore

banking units

N/A 10% FT N/A

Royalties 20% FT 20% FT 34% in 1998

33% in 1999

32% in 2000-2005

35 % in 2006-2008

30% in 2009 &

thereafter

Dividends EXEMPT EXEMPT 15% FT (conditiona

Tax Rates - on capital gains

On shares of stock not traded (based on

net capital gains)

5% / 10% FT 5% / 10% FT 5% / 10% FT

On Land or Buildings (classified as capital

assets)

6% FT

based on gross

selling price or FMV

whichever is higher

34% in 1998

33% in 1999

32% in 2000-2005

35 % in 2006-2008

30% in 2009 &

thereafter

34% in 1998

33% in 1999

32% in 2000-2005

35 % in 2006-2008

30% in 2009 &

thereafter

Tax Rate - Minimum Corporate Income Tax

(MCIT)

2% 2% N/A

Interest Income received by an OBU


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DOMESTIC FOREIGN FOREIGN


CORPORATIONS

Tax Rate - Branch Profit Remittance Tax

(BPRT)

N/A 15% N/A

Tax Rate - Improperly AccumulatedEarnings Tax (Sec 29)

10% 10% N/A

Atty. Marissa O. Cabreros (Ateneo School of Law)

2010 tax matrix - corporations

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