OPTIONAL STANDARD DEDUCTION

Basis
Rate
Cost of Sales/Services
Cost of OSD (irrevocable)
Submission of Financial
Statements
Keeping of Records
Hybrid Method (partly
itemized, partly OSD)

Computation of taxable
net income using OSD

Corporation

General Professional
Partnership

Gross Income
40%
Deducted

Gross Income
40%
Deducted

To be signified in the return To be signified in the return

Required

Required

Required pertaining to gross Required pertaining to gross

income
income
Not allowed
GS/GR
xx
Less: R&A
xx
Disc.
Xx (xx)
Net Sales
xx
Less: COS
(xx)
GI from oprtn
xx
Other income
xx
Gross income
xx
Less: OSD
(xx)
Taxable Income xx

Not allowed
GS/GR
xx
Less: R&A
xx
Disc.
Xx (xx)
Net Sales
xx
Less: COS
(xx)
GI from oprtn
xx
Other income
xx
Gross income
xx
Less: OSD
(xx)
Taxable Income xx

OSD = Gross Income x 40% OSD = Gross Income x 40%

Individuals
Net Sales/Receipts
40%
Not Deducted
To be signified in the return
Not Required
Required pertaining to gross
sales/receipts
Not allowed
GS/GR
xx
Less: R&A
xx
Disc.
Xx (xx)
Net Sales
xx
Other income
xx
Gross income
xx
Less: OSD
xx
BPE
xx
APE
xx (xx)
Taxable Income xx
OSD = Net Sales x 40%

PERSONAL EXEMPTION
INDIVIDUAL
TAXPAYER

Income
Within

Income
Without

BPE

AE

Resident Citizen
Resident Alien (>
1 year in PH)

Taxable

Taxable

Allowed

Allowed

Taxable

Not Taxable

Allowed

Allowed

Taxable

Not Taxable

Allowed

Allowed

Non-resident
Alien ETB (>180
days stayed in the
PH)

Taxable

Allowed
Allowed (Reciprocity
(Reciprocity Not Taxable - Whichever is lower
Whichever is lower
PH vs. Foreign)
PH vs. Foreign)

Non-resident
Alien NETB ( 180
days stayed in the
PH)

Taxable

Not Taxable

Non-resident
Citizen ( 183 days
outside the PH)

Not Allowed

Not Allowed

Health Insurance
Premium
Allowed
Allowed

Allowed

Not Allowed

Not Allowed

REGULAR RATES

RES/CIT
Sec. 24 (A)

NRA-ETB
Sec. 24 (A)

NRA-NETB
Sec. 25 (B)

DOM
30%

PASSIVE INCOME
Interest in any currency bank deposit
Yield or any other monetary benefit from deposit
substitute
Yield or any other monetary benefit from trust
funds and similar arrangements
Royalties in General
Royalties on books and other literary works
(printed) and composition
Royalties on books sold on E-copies or CDs
Royalties on cinematographic films
Prizes(except P10,000 or less which shall be
subject to Sec 24 (A) for RES/CIT and NRA-ETB)

20%

20%

25%

20%

20%

20%

25%

20%

20%

20%

25%

20%

20%

20%

25%

20%

10%

10%

25%

20%
20%

20%
25%

20%
25%

20%

20%

20%

25%

Reg. Rate

Reg. Rate

Other winnings (except PH Charity Sweepstakes

and Lotto winnings)

20%

20%

25%
(including
PCSO and
Lotto)

Interest income received from depository bank

under Expanded Foreign Currency Deposit
System (EFCDS)

7.5%
(NRC Exempt)

Exempt

Exempt

7.50%

Interest income from LONG-TERM DEPOSIT or

investment in the form of savings, trust funds,
deposit substitutes and other investments
evidenced by certificates prescribed by BSP

Exempt

Exempt

25%

Reg. Rate

If preterminated before 5th year:

4-5 years
3-4 years
>3 years

5%
12%
20%

5%
12%
20%

25%
25%
25%

Reg. Rate
Reg. Rate
Reg. Rate

Dividend from Domestic Corporation

10%

20%

25%

Exempt

Share of an individual in the distributable in net

income after tax of a partnership of which he is a
partner (Other than a General Professional
Partnership)

10%

20%

25%

Income derived by a depository bank from

foreign currency transactions with non-residents,
OBUs in the Philippines, local commercial bank
including branches of foreign bank

Exempt

Interest income from foreign currency loan

granted by depository banks under ES to
residents other than OBUs in the PH and other
depository banks

10%

Exempt

Exempt

10%

20%

25%

Any income of non-residents from transactions

with depository banks under ES
Interest on foreign loans contracted on or after
August 1, 1986
Share of an individual in the distributable in net
income after tax of an association, a joint
account or a joint venture or consortium taxable
as a corporation of which he is a member or coventurer

RFC
30%

NRFC
30%

20%

30%

20%

30%

20%

30%

20%

30%

20%

25%

Reg. Rate

30%

Reg. Rate

30%

7.50%

Exempt

Reg. Rate

30%

Reg. Rate
Reg. Rate
Reg. Rate

30%
30%
30%

Exempt

15% (tax
sparing rule)
or 30% (no
tax sparing
rule)

Exempt

Exempt

10%

Exempt

Exempt

20%

CAPITAL GAINS TAX

Sale of shares of stock NOT
TRADED in LSE
Sale, barter, transfer or
assignment of shares of stock of
publicly-listed companies not in
compliant with mandatory
minimum public ownership (10%
exclusive of T/S)
Sale of real property classified
as capital asset (located in PH)

RES/CIT
5% and
10%

5% and
10%

NRA-ETB NRA-NETB
5% and
5% and
10%
10%

5% and
10%

5% and
10%

DOM
5% and
10%

RFC
5% and
10%

5% and
10%

5% and
10%

6% of GSP 6% of GSP 6% of GSP 6% of GSP

or FMV
or FMV
or FMV
or FMV
whichever whichever whichever whichever
is higher
is higher
is higher
is higher

NRFC
5% and
10%

5% and
10%

GRADUATED TAX TABLE

OVER
10,000
30,000
70,000
140,000
250,000
500,000

BUT NOT OVER

10,000
30,000
70,000
140,000
250,000
500,000

TAX

RATE

500
2,500
8,500
22,500
50,000
125,000

5%
10%
15%
20%
25%
30%
32%

OF THE
EXCESS OVER
10,000
30,000
70,000
140,000
250,000
500,000

DONOR'S TAX TABLE

OVER
100,000
200,000
500,000
1,000,000
3,000,000
5,000,000
10,000,000

BUT NOT OVER

100,000
200,000
500,000
1,000,000
3,000,000
5,000,000
10,000,000

TAX

RATE

OF THE
EXCESS OVER

EXEMPT
2,000
14,000
44,000
204,000
404,000
1,004,000

2%
4%
6%
8%
10%
12%
15%

100,000
200,000
500,000
1,000,000
3,000,000
5,000,000
10,000,000