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Tax in the Philippines

Your tax guide for the Philippines

The content in this tax guide is provided by EY.

Going to or leaving the Philippines

Local tax information for the Philippines

Local information Details

Tax authority

Bureau of Internal Revenue (BIR)

Website

www.bir.gov.ph

Tax year

1 January to 31 December

Tax return due date

15 April

Is joint filing possible?

Yes

Are tax return extensions possible?

No

Local tax information for the Philippines

Local information

Tax authority

Details

Bureau of Internal Revenue (BIR)

Local information

Website

Details

www.bir.gov.ph

Local information

Tax year

Details

1 January to 31 December

Local information

Tax return due date

Details

15 April

Local information

Is joint filing possible?

Details

Yes

Local information

Are tax return extensions possible?

Details

No

2020 national income tax rates

2020 national income tax rates.

Taxable income band PHP Tax rates

1 to 250,000

0%

250,001 to 400,000

20%

400,001 to 800,000

25%

800,001 to 2,000,000

30%

2,000,001 to 8,000,000

32%

8,000,001 +

35%

2020 national income tax rates.

Taxable income band PHP

1 to 250,000

Tax rates

0%

Taxable income band PHP

250,001 to 400,000

Tax rates

20%

Taxable income band PHP

400,001 to 800,000

Tax rates

25%

Taxable income band PHP

800,001 to 2,000,000

Tax rates

30%

Taxable income band PHP

2,000,001 to 8,000,000

Tax rates

32%

Taxable income band PHP

8,000,001 +

Tax rates

35%

Net taxable compensation and business income of resident and non-resident citizens, resident aliens, and non-resident aliens engaged in a trade or business are consolidated and taxed at the above rates.

For non-resident aliens engaged in a trade or business in the Philippines, dividends, shares in profits of partnerships taxed as corporations, interest, royalties, prizes in excess of PHP 10,000 and other winnings are subject to final withholding tax at a rate of 20% of the gross amount. Royalties on musical compositions, books and other literary works are subject to a final withholding tax at a rate of 10%.

Non-resident aliens not engaged in a trade or business in the Philippines are subject to a final withholding tax of 25% on gross income, including fringe benefits, from all sources in the Philippines.

Expat tax guides

Read tax guides for expats provided by EY.

Additional information

The Tax Navigator section is provided by EY in accordance with their Terms and Conditions (PDF). EY accepts no responsibility for the accuracy of this information. By using this information, you are accepting the terms under which EY is making the content available to you based on the legislation and practices of the country concerned as of 15/09/21 by EY and published in its Worldwide Personal Tax Guide, 2020-21.

Tax legislation and administrative practices may change, and this content is a summary of potential issues to consider. This content is provided for guidance purposes only; it is not meant for direct implementation of transactions or reliance upon when considering entering into transactions. It should not be used as a substitute for professional tax, legal, financial, accounting, consulting, regulatory or other professional advice and you should seek professional advice before taking any action. It is your responsibility to ensure you make all relevant disclosures to the relevant tax authorities and that you are compliant with local tax legislation. EY accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.

HSBC accepts no responsibility for the accuracy of this information.

This information does not constitute advice and no liability is accepted to recipients acting independently on its contents. The views expressed are subject to change.

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