PhilippineBusiness.com.ph: Guide To Doing Business: Income Tax Rates for Special Corporations

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Income Tax Rates for Special Corporations
Source:
"How to Invest in the Philippines" by PricewaterhouseCoopers Philippines (printed with permission from author)

Entity	Rate	Taxable Base
International carriers	2.5%	Gross Philippine Billings originating from the Philippines
Nonresident foreign corporation	• 33% (1999) • 32% (effective 2000)	Gross income from Philippine sources
Nonresident owner or lessor of aircraft, machinery and other equipment	7.5%	Gross rentals or fees
Nonresident owner or lessor of vessels chartered by Philippine nationals as approved by MARINA	4.5%	Gross rentals, lease or charter fees within the Philippines
Nonresident cinematographic film owners, lessors or distributors	25%	Gross income from Philippine sources
Offshore banking units (OBUs) and foreign currency deposit units (FCDUs) authorized by the BSP	10%	Income from foreign currency transactions with local commercial banks, including branches of foreign banks that may be authorized by the BSP to transact business with OBUs and FCDUs, including any interest income from foreign currency loans granted to residents
Subcontractors engaged in petroleum operations	8% final tax	Gross income from service contract
Regional operating headquarters	10%	Taxable income from authorized activities

Note:

Reinsurance premiums are exempt; interest on foreign loan contracted on or after August 1, 1986 is taxed at 20% capital gains on disposition of shares of stock of domestic corporation are subject to ½%, 5% or 10% tax, as in the case of ordinary corporations.

Source:
• PricewaterhouseCoopers Philippines