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Philippines

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Tax authorities

Bureau of Internal Revenue
BIR National Office Bldg, BIR Road, Diliman, Quezon City, Philippines
Tel: +63 981 8888
Email: contact_us@cctr.bir.gov.ph
Website: www.bir.gov.ph

Tax rates at a glance

(As of September 2012)

Corporate income 30%
Capital gains 30% (b)
Branch tax 30% (a)(d)
Withholding tax
Dividends 15%/30% (e)
Interest 20%
Royalties 20%/30% (f)
Technical Services fee 30%
Branch remittance fee 15%
Net operating losses
Carryback 0
Carryforward 3 years (c)
  1. Philippine corporations are taxed on worldwide income; nonresident companies are taxed only on Philippine-sourced income. A foreign corporation with a branch in the Philippines is taxed on Philippine-sourced income.
  2. Capital gains are generally taxed as income. However, gains on the sale of shares not traded on the stock exchange are subject to a 5% withholding tax on the first PHP 100,000 and 10% thereafter. Gains on the sale of shares listed and traded on the stock exchange are taxed at one-half of 1% of the gross selling price. Gains derived from the sale of real property not used in a business are subject to a 6% final withholding tax based on the sales price or fair market value, whichever is higher.
  3. Losses may be carried forward for 3 years unless the taxpayer benefits from a tax incentive or exemption. Losses may not be carried forward where the business undergoes a substantial change in ownership.
  4. The corporate income tax rate for regional operating headquarters is 10%.
  5. Dividends distributed by a Philippine company to a nonresident are taxed at 15%, provided the country of the nonresident foreign corporation allows a tax credit of 15%. Otherwise, the dividends are taxed at 30%.
  6. Royalty payments made to a nonresident are subject to a 30% withholding tax, unless the rate is reduced under a tax treaty, subject to a confirmatory ruling from the BIR. A 20% final withholding tax is levied on royalty payments made to a domestic or resident foreign corporation.

Tax

Since Kim Jacinto-Henares' appointment as commissioner of internal revenue in 2010, she has come to be known among tax practitioners for her iron fist and zero tolerance for tax evasion. Under this environment, the outlook for taxpayers who are subjected ... [more]

Manabat Sanagustin is known as the local firm of the KPMG network. The tax team is led by Emmanuel Bonoan. With seven partners and 80 tax professionals, the team provides advice on all areas of indirect and direct tax matters. A client says: "Their level ... [more]

SyCip Gorres Velayo & Co is part of Ernst & Young's global network. Emmanuel Alcantara leads one of the largest local tax teams with 22 partners and 336 tax professionals. A large part of the team work in corporate tax and tax disputes, though the team ... [more]

Fredieric Landicho leads the tax team at Deloitte and is supported by Richard Lapres and 35 professionals. The team is smaller than other Deloitte tax teams around the region but it is still capable of providing corporate tax management, international ... [more]

Quisumbing Torres is a member firm of the Baker & McKenzie network. The tax team comprises of five dedicated practitioners under the leadership of Dennis Dimagiba, who is highly experienced in dealing with tax controversies and business restructuring ... [more]

Salvador & Associates – Taxand's tax practice is led by Serafin Salvador. The team is made up of four partners, two of counsel and 13 other fee earners. The entire team is qualified to handle tax matters and commercial law, an attribute that companies ... [more]

As a full service law firm, Zambrano & Gruba Law Offices advises clients on contentious and non-contentious tax matters. More than half of the entire firm's work deals with tax. Antero Jose Caganda and Angelo Patrick Advincula lead the tax services ... [more]

Founding partner Carlos Baniqued co-manages the tax practice of Baniqued & Baniqued with Laura Victoria Yuson- Layug and Terence Conrad Bello. The tax team comprises 12 professionals and advises on corporate tax, international tax, tax litigation, wealth ... [more]

Highly regarded for his corporate tax expertise, particularly in financial services, Benedicta Du-Baladad leads the Du-Baladad and Associates tax team. The team is rapidly expanding their presence and strength in the market after becoming a fully fledged ... [more]

See also

Philippines
Asia-Pacific

Firm contact details