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Board of Investments
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Registration for
incentives availment
under
EO 226
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Main
Fees to be Paid
(In
Pesos)
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Filing Fees for
Application for Registration (under Book 1):
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Project Costs not
exceeding P 4 million
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1,500.00
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Project Costs exceeding
P 4 million but not over P 20 million
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3,000.00
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Project Costs exceeding
P 20 million but not over P 50 million
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4,500.00
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Project Costs exceeding
50 million
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6,000.00
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Fee for Certificate of
Registration
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1/10
of 1% of project cost but not less than P3,000.00 and not to exceed P
15,000.00
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*/ Subject to increase
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Department of Trade and Industry (DTI)
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Business Name
Registration
(Bureau
of Trade Regulation and consumer Protection -- BTRCP)
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Main
Fees to be Paid
(In
Pesos)
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Application Fee
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315.00
to 515.00
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Single Proprietorship
Partnership/Corporation
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300.00
500.00
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Documentary stamp
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15.00
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Sole
Proprietorship under FIA
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5,800.00
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Business
Name Registration Fee
Filing Fee
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300.00
500.00
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FIA Registration Fee
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5,000.00
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Clark Development CorporatioN (CDC)
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1. Registration of
Enterprises
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Project Cost not
exceeding P 4 million
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P 2,000.00
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Certificate of
Registration & Tax Exemptions
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P
2,000.00
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Permit to Operate
(Annually)
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P
1,000.00
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Temporary Permit to
Operate
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P
500.00
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2. Processing and
issuance of Environmental Compliance Certificate (ECC)
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P
300.00
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3. Construction
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In
accordance with the
National
Building Code by CDC
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Note: Regular fees including
Clark Special Economic Zone Locations Association shall also be charged to
cover expenses for security, road lighting, garbage collection, etc.
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Philippine Economic Zone Authority (PEZA)
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I. APPLICATION
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1. Registration of
Ecozone Enterprises
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a. Application for New
Project (non-pioneer)
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P
3,600.00
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b. Application for New
Project (pioneer)
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P
6,000.00
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c. application for any
Amendments in Registration
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P
1,200.00
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d. Application for
Conversion from Non-Pioneer to Pioneer
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P
2,400.00
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e. Application for
Expansion for Production Capacity
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P
2,400.00
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2. Registration Fees
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a. Registration for New
Projects
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P
6,000.00
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b. Registration for Expansion
of Project - New Project
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P
3,600.00
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c. Telecom Services and
Other Utilities
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P
6,000.00 + 10% of monthly gross revenues from operations
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d. All other Services
Enterprise
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P
3,600.00
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II. PROCESSING FEES
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Availment of Incentives
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a. Endorsement of 5%
Gross Income Tax and of Income Tax Holiday
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P
1,200.00
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b. Extension of ITH
Entitlement Period
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P
1,200.00
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III. CERTIFICATION /
TRUE COPIES
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1. Certificate of
Registration
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P
120.00
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2. Filing approval of
application
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P
120.00
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3. Other Documents
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P
120.00
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TAX RATES
Taxation in the Philippines
The country's taxation
system is governed by the Tax Reform Act 1997, passed into law on December
11, 1997 and became effective on 01 January 1998. The law was aimed at the
expanding the country's tax base and maintaining the healthy fiscal standing
of the government.
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Corporate Income Tax
Rates
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Domestic/Resident
Foreign Corporation
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Non-resident
Foreign Corporation
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Taxable income not
subject to special tax rates
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35%
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35%
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Interest from deposits
and yield from deposit substitutes/trust funds and royalties
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20%
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35%
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Interest on foreign
loans
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N/A
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20%
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Interest income derived
by a domestic corporation from a depository bank under the expanded foreign
currency deposit system
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7.5%
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N/A
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Dividends from domestic
corporations
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0
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15%
/ 35%
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Gains on sales of shares
of stock not traded in the Stock Exchange
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5%
/ 10%
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5%
/ 10%
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NOTES:
The rates of tax applicable for corporations entitled to special tax
privileges are set out below:
1.
The corporate
tax rate was increased from 32% to 35% with effect from 1 July 2005 but will
be reduced to 30% effective 1 January 2009.
2.
The rate is
reduced to 7.5% for interest income derived by a domestic corporation from a
depository bak under the expanded foreign currency deposit system.
3.
The rate of
15% applies if the host country exempts the dividend from tax or permits
a 20% or greater credit for underlying corporation tax paid by the company
paying the dividend.
4.
The 5% rate
applies to the first P100,000 of gains annually, with the 10% rate
applying to the excess. Stocks of shares in listed companies are
subject to a 0.5% tax on the sale proceeds.
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ENTITY
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RATES
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TAX
BASE
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Proprietary educational
institutions and non-profit hospitals
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10%
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Taxable income
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Certain enterprises
registered with the Philippine Economic Zone Authority
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5%
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Gross income
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Non-resident owner or
lessor of aircraft, machinery and other equipment
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7.5%
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Gross Philippine
rentals, lease, charter fees
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Non-resident owners of
vessels chartered by Philippine nationals and approved by the Maritime
Industry Authority
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4.5%
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Gross Philippine
rentals, lease, charter fees
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Non-resident
cinematographic film owners, lessors or distributors
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25%
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Gross
Philippine source income
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Foreign international
carriers (air and sea)
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2.5%
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Gross Philippine
billings
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Offshore banking units
(OBUs) and foreign currency deposit units (FCDUs) authorized by the Bangko
Sentral ng Pilipinas
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10%
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Income from foreign
currency transactions with residents
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Regional operating
headquarters
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10%
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Taxable income
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1.2 Income Tax Rates as
Passive Income of Domestic/Resident Corporation
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Dividends received from
domestic corporations
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Not
subject to tax
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Interest on any currency
bank deposit and yield or other monetary benefit from deposit substitutes
and from trust fund and similar arrangements
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20%
of final tax
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Interest from foreign
currency deposits with foreign currency deposit units (FCDUs)
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7
1/2% of final tax
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gains from sale or
exchange of shares of stock not listed and traded in the local stock
exchange
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5%
capital gains tax (CGT) on net gains not exceeding P 100,00 and 10% on the
excess.
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Gains from sale or
exchange of land or buildings not actually used in business and treated as
capital issue
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6%
CGT on gross selling price or fair market value, whichever is higher
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Royalties
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20%
final tax
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1.3 New Taxes for
Corporation Under the Tax Reform Act of 1997
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Minimum Corporate Income
Tax (MCIT)
- A 2% MCIT on gross income on an annual basis is imposed on corporations
whose regular corporate income tax liability is less than the MCIT
beginning the fourth taxable year following the year they commenced
business operation. Any excess of the MCIT over the normal tax shall be
carried forward and credited against the normal tax for the three (3) immediately
succeeding taxable years.
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Fringe Benefits Tax - Fringe benefits
granted to supervisory and managerial employees are subject to 32% tax on
the grossed-up monetary value of the fringe benefit. Fringe benefits given
by OBUs regional operating headquarters of multinational companies,
petroleum contractors and subcontractors to qualified alien employees and
in certain cases, to Filipino employees, are taxed at 15% of the grossed-up
monetary value of the fringed benefit.
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Improperly Accumulated
Earnings Tax
- a 10% tax is imposed on the improperly accumulated earnings of a
corporation, except in the case of publicly held corporations, banks, and
other non-bank financial intermediaries and insurance companies. When a
corporation allows its earnings or profits to accumulate beyond its
reasonable needs, it shall be assumed that the purpose is to avoid tax on
stockholders, unless proven to the contrary.
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1.5 Individual Taxation
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Non-resident aliens not
engage in trade and business flat income tax rate
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25%
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Resident citizens/aliens
(gainfully employed) Graduated income tax rates
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0%-35%
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Who Shall File:
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1. An individual whose gross
compensation income does not exceed his total personal and additional
exemptions;
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2. An individual whose compensation
derived from one year employer does not exceed P60,000 and the income tax
on which has been correctly withheld;
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3. An individual whose income has been
subjected to final withholding tax (alien employee as well as Filipino
employee occupying the same position as that of the alien employee of
regional or area headquarters and regional operating headquarters of
multinational companies, petroleum service contractors and sub-contractors,
and offshore banking units, non-resident alien not engaged in trade or
business), and
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4. An individual who is
exempt from income tax.
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Married individuals
shall file single return for the taxable year to include the income of both
spouses, separately computing their individual income tax based on their
respective taxable income. Where it is impracticable for the spouses to
file one return, each spouse may file a separate return.
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Tax
Table for individuals earning purely compensation income and individuals
engaged in business and practice of profession
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If
Taxable Income is:
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Tax
Due is:
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If
Taxable Income is:
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Tax
Due is:
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Not over P10,000
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5%
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Over P10,000 but not
over P30,000
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P500+10% of the excess
over P10,000
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Over P140,000 but not
over P250,000
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P22,500+25% of the
excess over P140,000
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Over P30,000 but not
over P70,000
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P2,500+15% of the excess
over P30,000
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Over P250,000 but not
over P500,000
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P50,000+30% of the
excess over P250,000
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Over P70,000 but not
over P140,000
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P8,500+20% of the excess
over P70,000
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Over 500,000
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P125,000+34% of the
excess over P500,000
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Note: Effective January 1, 1999, the maximum rate shall be
thirty-three percent (33%) and thirty-two percent 32% on January 1, 2000.
Note: When the tax due exceeds P2,000.00, the taxpayer
may elect to pay in two equal installments, the first installment to be
paid at the time the return is filed and the second installment on or
before July 15 of the same year at the Authorized Agent Bank (AAB) within the
jurisdiction of the Revenue District Office (RDO) where the taxpayer is
registered.
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1.6 Value Added Tax (VAT)
|
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Sale of goods, other
properties, and services in the Philippines, as well as importation of
goods to the Philippines, are subject to the 12% VAT. VAT is imposed on the
gross selling price (in case of sale of goods) and gross receipts (in case
of sale of services).
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1.7 Stock Transaction Tax
|
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1/2 of 1% of gross
selling price is imposed on the sale, barter, exchange or other disposition
of shares through the facilities of stock exchange.
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