Republic of the Philippines PALAWAN STATE UNIVERSITY College of Business and Accountancy
Puerto Princesa City
WITHHOLDING TAX RATES
MONTHLY REMITTANCE RETURN OF CREDITABLE INCOME TAXES WITHHELD (EXPANDED): BIR Form No. 1601-E/2307
DESCRIPTION TAX
RATES Gross Income below P720,000:
Licensed Professionals (PRC/SC) fees whether individuals/juridical persons including Mgnt./technical consultants; Insurance agents/adjusters; Business/bookkeeping agents/agencies
Professional entertainers; athletes; radio/TV/stage directors and producers; Other recipients of talent fees
Fees of directors who are not employees of the company
Payments for medical/dental/veterinary services thru Hospitals/ Clinics/Health Maintenance Orgs.
Payment by the GPP to its partners, including medical practitioners
10%
Gross Income above P720,000:
Licensed Professionals (PRC/SC) fees whether individuals/juridical persons including Mgnt./technical consultants; Insurance agents/adjusters; Business/bookkeeping agents/agencies
Professional entertainers; athletes; radio/TV/stage directors and producers; Other recipients of talent fees
Fees of directors who are not employees of the company
Payments for medical/dental/veterinary services thru Hospitals/ Clinics/Health Maintenance Orgs.
Payment by the GPP to its partners, including medical practitioners
15%
Rentals- film, real/personal properties, poles, satellites & transmission facilities, billboards –
Individual/Corporate 5%
Income payments to prime contractors/sub-contractors - Individual/Corporate 2% Income distribution to beneficiaries of estates and trusts 15% Gross commission or service fees of custom, insurance, stock, real estate, immigration and
commercial brokers & fees of agents of professional entertainers - Individual/Corporate 10% Payments made by credit card companies – Individual/Corporate ½ of 1% Income payments made by the government to its local/resident suppliers of goods -
Individual/Corporate 1%
Income payments made by the government to its local/resident suppliers of service -
Individual/Corporate 2%
Income payments made by top 20,000 private corporations to their local/resident suppliers of goods - Individual/Corporate
1% Income payments made by top 20,000 private corporations to their local/resident suppliers
of services - Individual/Corporate
2% Addt’l payments to gov’t. personnel from importers, shipping and airline companies/agents
for overtime services 15%
Commission, rebates, discounts and other similar considerations paid/granted to independent & exclusive distributors, medical/technical & sales representatives &
marketing agents & sub-agents of multi-level marketing companies – Individual/Corporate
10% Gross payments to embalmers by funeral parlors; Payments made by pre-need
companies-Individual/Corporate 1%
Tolling fee paid to refineries - Individual/Corporate 5% Income payments made to suppliers of Agricultural prod.- Individual/Corporate 1% Income payments on purchases of minerals, mineral products & quarry resources -
Income payments on purchases of gold by BSP from gold miners/suppliers under PD 1899,
as amended by RA No. 7076- Individual/Corporate 5% On gross amount of refund given by Meralco to customers with active contracts as
classified by Meralco - Individual/Corporate
25% On gross amount of refund given by Meralco to customers with terminated contracts as
classified by Meralco - Individual/Corporate
30% Withholding on gross amount of interest on the refund of meter deposit whether paid
directly to the customers or applied against customer's billing – Residential/Non-residential and General Service customers whose monthly electricity consumption exceeds 200 kwh as classified by MERALCO other DU - Individual/Corporate
10% Withholding on gross amount of interest on the refund of meter deposit whether paid
directly to the customers or applied against customer's billing - Non-Residential customers whose monthly electricity consumption exceeds 200 kwh as classified by other electric Distribution Utilities (DU) - Individual/Corporate
20%
Income payments made by the top five thousand (5,000) individual taxpayers to their local/resident suppliers of goods other than those covered by other rates of withholding tax-Individual/Corporate
1% Income payments made by the top five thousand (5,000) individual taxpayers to their
local/resident suppliers of services other than those covered by other rates of withholding tax- Individual/Corporate
2% Income payments made by political parties and candidates of local and national elections of
all their purchase of goods and services as campaign expenditures, and income payments made by individuals or juridical persons for their purchases of goods and services intended to be given as campaign contribution to political parties and candidates
-Individual/Corporate
5%
Income payments received by Real Estate Investment Trust (REIT) 1% Interest income derived from any other debt instruments not within the coverage of deposit
substitutes and Revenue Regulations No. 14-2012 subject to Creditable/ Expanded Withholding Tax - Individual/Corporate
20%
MONTHLY REMITTANCE RETURN OF VALUE-ADDED TAX AND OTHER PERCENTAGE TAXES WITHHELD:
BIR Form No. 1600/2306
DESCRIPTION TAX
RATES FWVAT on payments for purchases of Goods/Services 5% Lease or use of properties or property rights owned by non-residents (Private/Government
Withholding Agent) 12%
Other services rendered in the Philippines by non-residents (Private/Government
Withholding Agent) 12%
Tax on carriers and keepers of garages; life insurance premiums 3% Franchise Tax on Gas and Water Utilities; Radio/TV broadcasting co. whose GR is less than
P10M (Non-VAT) 2%
Persons exempt from VAT under Sec. 109(v) (creditable)-Government Withholding Agent 3% Tax on overseas dispatch, message or conversation originating from the Philippines 10% Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions.
On interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities of instruments from which such receipts are derived: - Maturity period is five years or less
5%
Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions. On interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities of instruments from which such receipts are derived: - Maturity is more than five years
1%
Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions.
On dividends and equity shares and net income of subsidiaries 0% Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking Functions.
On royalties, rentals of property, real/personal, profits from exchange and all other items
treated as GI under the Code. On net trading gains w/in the taxable year on FOREX, debt securities, derivatives, and other similar financial instruments
Tax on Other Non-Banks Financial Intermediaries Not Performing Quasi-Banking Functions. On interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of the remaining maturities of instrument from which such receipts are derived: - Maturity period is five years or less
5%
Tax on Other Non-Banks Financial Intermediaries Not Performing Quasi-Banking Functions. On interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of the remaining maturities of instrument from which such receipts are derived: - Maturity is more than five years
1%
Tax on Other Non-Banks Financial Intermediaries Not Performing Quasi-Banking Functions. On all other items treated as gross income under the Code
5% Business Tax on Agents of foreign insurance co. - insurance agents 4% Business Tax on Agents of foreign insurance co. - owner of the property 5%
Tax on International Carriers 3%
Tax on amusement places, such as cockpits, cabaret, night or day clubs, videoke bars, karaoke bars, karaoke television, karaoke boxes, music lounges and other similar establishments
18%
Tax on boxing exhibitions 10%
Tax on professional basketball games 15%
Tax on jai-alai & race tracks 30%
Tax on sale, barter or exchange of shares of stocks listed and traded through the Local Stock Exchange
½ of 1% Tax on shares of stock sold or exchanged through IPO and secondary PO - Not over 25% 4% Tax on shares of stock sold or exchanged through IPO and secondary PO - Over 25% but not
exceeding 33 1/3% 2%
Tax on shares of stock sold or exchanged through IPO and secondary PO - Over 33 1/3% 1% VAT Withholding on Purchase of Goods/Services w/ waiver of privilege to claim input tax
credit (creditable/final) 12%
Persons exempt from VAT under Section 109v (final/creditable) - Private Withholding Agent 3%
MONTHLY REMITTANCE RETURN OF FINAL INCOME TAXES WITHHELD BIR Form No. 1601-F/2306
DESCRIPTION TAX
RATES Interest on foreign loans payable to non-resident foreign corporations (NRFCs) 20% Interest and other income payments on foreign currency transactions/loans payable to
OBUs/FCDUs 10%
Cash/Property dividend payments by domestic corporation to citizens and resident aliens 10% Cash/Property dividend payment by domestic corporation to NRFC 30% Cash/Property dividend payment by domestic corporation to Non-Resident Foreign
Corporations whose countries allow tax deemed paid credit (subject to tax sparing rule)
15% Cash/Property dividend payment by domestic corporation to NRAETB; including partner’s
share of NRAETB in distributable NI after tax from partnership
20% On other payments to non-resident foreign corporations (NRFCs) 30% Distributive share of individual partners in a taxable partnerships/assoc./ joint account/joint
venture/consortium 10%
All kinds of royalty payments to RC, NRC, NRAETB, DC, RFC (other than WI 380 and WI 341) 20% On prizes exceeding P10,000 and other winnings paid to individuals 20% Branch profit remittances by all corporations except PEZA/SBMA/CDA registered 15% On gross rentals, lease and charter fees derived by non-resident owner or lessor of foreign
vessels 4.5%
On the gross rentals/ lease/charter fees derived by non-resident lessor of aircraft,
On payments to oil exploration service contractors and subcontractors (OESS) -
NRAETB/NRFC-ETB 8%
Payments to Filipinos/alien individuals employed by Foreign Petroleum Service
Contractors/Subcontractors, OBUs and Regional/ Area HQs and Regional Operating HQs of Multinational Companies occupying executive/managerial and technical positions
15% Payments to NRANETB except on sale of shares in domestic corporation and real property 15% Royalties/payments to non-resident individual/foreign co. cinematographic film owners/
lessors/distributors 25%
Final tax on interest or other payments upon tax-free covenant bonds, mortgages, deeds of trust or other obligations under Sec. 57C of the NIRC of 1997
30% Royalties paid to citizens, resident aliens and NRAETB on books, other literary works and
musical composition 10%
Informer's cash reward paid to individuals/juridical persons 10% Cash or property dividends paid by a Real Estate Investment Trust (REIT) to
individuals/corporations 10%
REMITTANCE RETURN OF PERCENTAGE TAX ON WINNINGS AND PRIZES WITHHELD BY RACE TRACK OPERATORS
BIR Form No. 1600-WP/2306
DESCRIPTION TAX
RATES Tax on Winnings from double, forecast/quinella and trifecta bets on horse races paid by
government/private withholding agent
4% Tax on Winnings or prizes paid to winners of winning horse race tickets other than double,
forecast/quinella and trifecta bets; and owners of winning race horses paid by government/private withholding agent
10%
QUARTERLY REMITTANCE RETURN OF FINAL INCOME TAXES WITHHELD BIR Form No. 1603/2306
DESCRIPTION TAX
RATES Alien/ Filipino employed/occupying the same position as those of aliens employed in
selected multinational co’s. 15%
Others in general 32%
MONTHLY REMITTANCE RETURN OF FINAL INCOME TAXES WITHHELD BIR Form No. 1602/2306
DESCRIPTION TAX
RATES From bank deposits - Savings/Time; TBs and Gov’t. Securities; deposit substitutes, trust
funds and other similar arrangements – Individual/Corporate
20% On foreign currency deposits Resident - Individual/Corporate 7.5% Interest payments to taxpayers enjoying preferential tax rates (i.e. PEZA Registered
Enterprises) 5%
On interest income from long-term deposit in the form of savings trust funds, deposit substitutes which was pre-terminated by the holder before the 5th year - individual (Less than 3 years)
20% On interest income from long-term deposit in the form of savings trust funds, deposit
substitutes which was pre-terminated by the holder before the 5th year - individual (3 years to less than 4 years)
12% On interest income from long-term deposit in the form of savings trust funds, deposit
substitutes which was pre-terminated by the holder before the 5th year - individual ( 4 years to less than 5 years)
5%
WITHHOLDING TAX REMITTANCE RETURN FOR ONEROUS TRANSFER OF REAL PROPERTY OTHER THAN CAPITAL ASSETS
DESCRIPTION RATESTAX Registered w/ HLURB/HUDCC engaged in socialized housing pursuant to RA 7279
Not over P180,000 (MM and other highly urbanized areas) Not over P150,000 (other areas)
0% NOT Registered w/ HLURB/HUDCC engaged in socialized housing pursuant to RA 7279 but
habitually engaged in RE business Not over P500,000
1.5% NOT Registered w/ HLURB/HUDCC engaged in socialized housing pursuant to RA 7279 but
habitually engaged in RE business Over P500,000 – P2,000,000
3% NOT Registered w/ HLURB/HUDCC engaged in socialized housing pursuant to RA 7279 but
habitually engaged in RE business Over P2,000,000
5% NOT Registered w/ HLURB/HUDCC engaged in socialized housing pursuant to RA 7279 NOT
