Basic corpoarte income tax in the Philippines.

1. Income Taxation of Corporate Taxpayers (Courtesy: www.philtaxation.blogspot.com )

14. Summary of corporate applications Income DC RFC NRFC Taxable income W/in & W/out Within Within Cost of sales Yes Yes No Allowable deductions/OSD Yes Yes No MCIT Yes Yes No Foreign tax credits Yes Yes, if w/in n/a Optional GIT 15% 15% n/a IAET 10% 10% n/a

15. Summary of corporate applications Income DC RFC NRFC CGT-share 5/10% 5/10% 5/10% CGT-RP 6% 6% 30% Stock transaction tax ½ of 1% ½ of 1% ½ of 1% Profit remittance tax n/a 15% n/a Inter corporate dividends Exempt Exempt 15% reciprocity law or 30% Interest on foreign loans 32/35/30% 32/35/30% 20%

17. Special Domestic Corporations (Courtesy: www.pinoytaxation.com ) Nature Tax Rate Others Proprietary educational institutions Private schools 10% of TNI, except if unrelated income exceeds 50% Capital expenditure expensed at option Non-profit hospitals hospitals 10% of TNI GOCC’s Public/ privatized NCIT SSS, GSIS, PHIC, PCSO Government institutions Tax exempt

18. Special Resident Foreign Corps. Nature Tax Rate Others International carrier Shipping/airline 2 ½% of gross Phil. billing Offshore banking units Branch of foreign banks 10% of gross income Regional area headquarters (RAHQ) Phil. Admin office Tax exempt Not allowed to earn income Regional operating headquarters (ROHQ) Local operation in Phils. 10% of gross

19. Special Non-resident Foreign Corps. Nature Tax Rate Others Cinematographic film rentals 25% gross income Lessor of machinery, equipment, aircraft and others 7.5% gross income Lessor of vessels chartered by Philippine nationals 4.5% gross income Bareboat charter Agreement