Income Tax

Description
Income Tax is a tax on a person's income, emoluments, profits arising from
property, practice of profession, conduct of trade or business or on the
pertinent items of gross income specified in the Tax Code of 1997 (Tax Code),
as amended, less the deductions and/or personal and additional exemptions,
if any, authorized for such types of income, by the Tax Code, as amended, or
other special laws.

Tax Rate
A. For Individuals Earning Purely Compensation Income and
Individuals Engaged in Business and Practice of Profession
Amount of Net Taxable Income Rate
Over But Not Over
P10,000 5%
P10,000 P30,000 P500 + 10% of the Excess over P10,000
P30,000 P70,000 P2,500 + 15% of the Excess over P30,000
P70,000 P140,000 P8,500 + 20% of the Excess over P70,000
P140,000 P250,000 P22,500 + 25% of the Excess over P140,000
P250,000 P500,000 P50,000 + 30% of the Excess over P250,000
P500,000 P125,000 + 32% of the Excess over P500,000 in 2000 and onward
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 15 of the same year at on or before July
the Authorized Agent Bank (AAB) within the jurisdiction of the Revenue
District Office (RDO) where the taxpayer is registered.
Tax Rate Taxable Base
1. Domestic Corporations:
a. In General 30% (effective Jan. 1, Net taxable income from all sources
2009)
b. Minimum Corporate Income Tax* 2% Gross Income
c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income
2. Proprietary Educational Institution 10% Net taxable income provided that the gross
income from unrelated trade, business or other
activity does not exceed 50% of the total gross
income
3. Non-stock, Non-profit Hospitals 10% Net taxable income provided that the gross
income from unrelated trade, business or other
activity does not exceed 50% of the total gross
income
4. GOCC, Agencies & Instrumentalities
a. In General 30% Net taxable income from all sources
b. Minimum Corporate Income Tax* 2% Gross Income
c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income
5. National Gov't. & LGUs
a. In General 30% Net taxable income from all sources
b. Minimum Corporate Income Tax* 2% Gross Income
c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income
6. Taxable Partnerships
a. In General 30% Net taxable income from all sources
b. Minimum Corporate Income Tax* 2% Gross Income
c. Improperly Accumulated Earnings 10% Improperly Accumulated Taxable Income
7. Exempt Corporation
a. On Exempt Activities 0%
b. On Taxable Activities 30% Net taxable income from all sources
8. General Professional Partnerships 0%
9. Corporation covered by Special Laws Rate specified under
the respective special
laws
10. International Carriers 2.5% Gross Philippine Billings
11. Regional Operating Head 10% Taxable Income
12. Offshore Banking Units (OBUs) 10% Gross Taxable Income On Foreign Currency
Transaction

30% On Taxable Income other than Foreign

Currency Transaction

13. Foreign Currency Deposit Units (FCDU) 10% Gross Taxable Income On Foreign Currency
Transaction

30% On Taxable Income other than Foreign

Currency Transaction

*Beginning on the 4th year immediately following the year in which such
corporation commenced its business operations, when the
minimum corporate income tax is greater than the tax computed using the
normal income tax.
Passive Income
1. Interest from currency deposits, trust funds and deposit substitutes 20%
2. Royalties (on books as well as literary & musical composition) 10%
- In general 20%
3. Prizes (P10,000 or less ) 5%
- In excess of P10,000 20%
4. Winnings (except from PCSO and lotto) 20%
5. Interest Income of Foreign Currency Deposit 7.5%
6. Cash and Property Dividends
- To individuals from Domestic Corporations 10 %
- To Domestic Corporations from Another Domestic Corporations 0%
7. On capital gains presumed to have been realized from sale, exchange or other disposition
6%
of real property (capital asset)
8. On capital gains for shares of stock not traded in the stock exchange
- Not over P100,000 5%
- Any amount in excess of P100,000 10%
9. Interest Income from long-term deposit or investment in the form of savings, common or
individual trust funds, deposit substitutes, investment management accounts and other
investments evidenced by certificates
Exempt
Upon pretermination before the fifth year , there should be imposed on the entire income from
the proceeds of the long-term deposit based on the remaining maturity thereof:
Holding Period
- Four (4) years to less than five (5) years 5%
- Three (3) years to less than four (4) years 12%
- Less than three (3) years 20%
B. For Non-Resident Aliens Engaged in Trade or Business
1. Interest from currency deposits, trust funds and deposit substitutes 20%
2. Interest Income from long-term deposit or investment in the form of savings, common or
individual trust funds, deposit substitutes, investment management accounts and other
investments evidenced by certificatesUpon pretermination before the fifth year, there should Exempt
be imposed on the entire income from the proceeds of the long-term deposit based on the
remaining maturity thereof:Holding Period:
-Four (4) years to less than five (5) years 5%
-Three (3) years to less than four (4) years 12%
-Less than three (3) years 20%
3. On capital gains presumed to have been realized from the sale, exchange or other
6%
disposition of real property
4. On capital gains for shares of stock not traded in the Stock Exchange
- Not over P100,000 5%
- Any amount in excess of P100,000 10%
C) For Non-Resident Aliens Not Engaged in Trade or Business
1. On the gross amount of income derived from all sources within the Philippines 25%
2. On capital gains presumed to have been realized from the exchange or other disposition of
6%
real property located in the Phils.
3. On capital gains for shares of stock not traded in the Stock Exchange
- Not Over P100,000 5%
- Any amount in excess of P100,000 10%
D) On the gross income in the Philippines of Aliens Employed by
Regional Headquarters (RHQ) or Area Headquarters and Regional
Operating Headquarters (ROH), Offshore Banking Units (OBUs),
Petroleum Service Contractor and Subcontractor
On the gross income in the Philippines of Aliens Employed by Regional Headquarters (RHQ) 15%
or Area Headquarters and Regional Operating Headquarters (ROH), Offshore Banking Units
(OBUs), Petroleum Service Contractor and Subcontractor
E) General Professional Partnerships
General Professional Partnerships 0%
F) Domestic Corporations
1) a. In General on net taxable income 30%
b. Minimum Corporate Income Tax on gross income 2%
c. Improperly Accumulated Earnings on improperly accumulated taxable income 10%
2) Proprietary Educational Institution and Non-profit Hospitals 10%
- In general (on net taxable income) 10%
- If the gross income from unrelated trade, business or other activity exceeds 50% of the
30%
total gross income from all sources
4) GOCC, Agencies & Instrumentalities
a. In General - on net taxable income 30%
b. Minimum Corporate Income Tax on gross income 2%
c. Improperly Accumulated Earnings on improperly accumulated taxable income 10%
5) Taxable Partnerships
a. In General on net taxable income 30%
b. Minimum Corporate Income Tax on gross income 2%
c. Improperly Accumulated Earnings on improperly accumulated taxable income 10%
6) Exempt Corporation
a. On Exempt Activities 0%
b. On Taxable Activities 30%
8) Corporation covered by Special Laws Rate specified under
the respective special
laws
G) Resident Foreign Corporation
1) a. In General on net taxable income 30%
b. Minimum Corporate Income Tax on gross income 2%
c. Improperly Accumulated Earnings on improperly accumulated taxable income 10%
2) International Carriers on gross Philippine billings 2.50%
3) Regional Operating Headquarters on gross income 10%
4) Corporation Covered by Special Laws Rate specified under
the respective special
laws
5) Offshore Banking Units (OBUs) on gross income 10%
6) Foreign Currency Deposit Units (FCDU) on gross income 10%

Personal Exemptions:
For single individual or married individual judicially decreed as legally
separated with no qualified dependentsP
50,000.00
 For head of familyP 50,000.00
For each married individual *P 50,000.00
Note: In case of married individuals where only one of the spouses is
deriving gross income, only such spouse will be allowed to claim the
personal exemption.
Additional Exemptions:

For each qualified dependent, an P25,000 additional exemption

can be claimed but only up to 4 qualified dependents

Capital Gains Tax

Description
Capital Gains Tax is a tax imposed on the gains presumed to have been
realized by the seller from the sale, exchange, or other disposition of capital
assets located in the Philippines, including pacto de retro sales and other
forms of conditional sale.

Tax Rates

a) Real Properties - 6 %
b) For Shares of Stocks not Traded in the Stock Exchange, on the net Capital
Gains
- Not over P100,000 - 5%
- Any amount in excess of P100,000 - 10%

Estate Tax

Description
Estate Tax is a tax on the right of the deceased person to transmit his/her
estate to his/her lawful heirs and beneficiaries at the time of death and on
certain transfers, which are made by law as equivalent to testamentary
disposition. It is not a tax on property. It is a tax imposed on the privilege of
transmitting property upon the death of the owner. The Estate Tax is based
on the laws in force at the time of death notwithstanding the postponement
of the actual possession or enjoyment of the estate by the beneficiary.

Tax Rates
Effective January 1, 1998 up to Present
If the Net Estate is
Over But not Over The Tax Shall be Plus Of the Excess Over
 P 200,000.00 Exempt
P 200,000.00 500,000.00 0 5% P 200,000.00
500,000.00 2,000,000.00 P 15,000.00 8% 500,000.00
2,000,000.00 5,000,000.00 135,000.00 11 % 2,000,000.00
5,000,000.00 10,000,000.00 465,000.00 15 % 5,000,000.00
10,000,000.00 1,215,000.00 20 % 10,000,000.00

Donors Tax

Description
Donors Tax is a tax on a donation or gift, and is imposed on the gratuitous
transfer of property between two or more persons who are living at the time
of the transfer. It shall apply whether the transfer is in trust or otherwise,
whether the gift is direct or indirect and whether the property is real or
personal, tangible or intangible.

Tax Rates
Effective January 1, 1998 to present (Republic Act No. 8424)

Net Gift Over But not Over The Tax Shall be Plus Of the Excess Over

100,000.00 exempt

100,000.00 200,000.00 0 2% 100,000.00

200,000.00 500,000.00 P 2,000.00 4% 200,000.00

500,000.00 1,000,000.00 14,000.00 6% 500,000.00

1,000,000.00 3,000,000.00 44,000.00 8% 1,000,000.00

3,000,000.00 5,000,000.00 204,000.00 10% 3,000,000.00

5,000,000.00 10,000,000.00 404,000.00 12% 5,000,000.00

10,000,000.00 and over 1,004,000.00 15% 10,000,000.00

Notes:
1. Rate applicable shall be based on the law prevailing at the time of
donation.
2. When the gifts are made during the same calendar year but on
different dates, the donor's tax shall be computed based on the total net
gifts during the year.
 Donation made to a stranger is subject to 30% of the net gift. A stranger
is a person who is not a:

brother, sister (whether by whole or half blood), spouse, ancestor

and lineal descendants; or
relative by consanguinity in the collateral line within the fourth
degree of relationship.

Donations are tax exempt under the following situations:

A. In the Case of Gifts made by a Resident (Sec. 101 (A), NIRC as amended)

Dowries or donations made on account of marriage before its

celebration or within one year thereafter, by parents to each of their
legitimate, recognized natural, or adopted children to the extent of the first
P10,000
Gifts made to or for the use of the National Government or any
entity created by any of its agencies which is not conducted for profit, or to
any political subdivision of the said Government
Gifts in favor of an educational and/or charitable, religious,
cultural or social welfare corporation, institution, accredited non-government
organization, trust or philantrophic organization or research institution or
organization, provided not more than 30% of said gifts will be used by such
donee for administration purposes
B. In the Case of Gifts Made by a Nonresident not a Citizen of the
Philippines (Sec. 101 (B), NIRC as amended)

Gifts made to or for the use of the National Government or any

entity created by any of its agencies which is not conducted for profit, or to
any political subdivision of the said Government
Gifts in favor of an educational and/or charitable, religious,
cultural or social welfare corporation, institution, accredited non-government
organization, trust or philantrophic organization or research institution or
organization, provided not more than 30% of said gifts will be used by such
donee for administration purposes
C. Tax Credit for Donor's Taxes Paid to a Foreign Country (Sec. 101 (C), NIRC
as amended)

In General. - The tax imposed by this Title upon a donor who was
a citizen or a resident at the time of donation shall be credited with the
amount of any donor's tax of any character and description imposed by the
authority of a foreign country.
Limitations on Credit. - The amount of the credit taken under this
Section shall be subject to each of the following limitations:
 - The amount of the credit in respect to the tax paid to any country
shall not exceed the same proportion of the tax against which such
credit is taken, which the net gifts situated within such country
taxable under this Title bears to his entire net gifts; and
- The total amount of the credit shall not exceed the same proportion
of the tax against which such credit is taken, which the donor's net
gifts situated outside the Philippines taxable under this title bears to
his entire net gifts.

Documentary Stamp Tax

Description
Documentary Stamp Tax is a tax on documents, instruments, loan
agreements and papers evidencing the acceptance, assignment, sale or
transfer of an obligation, right or property incident thereto.

Tax Rates
Tax Document Taxable Unit Tax Due Per % of Taxable Base
Code Unit Unit
Section
174 Original Issue of Shares of P200.00 or fraction 1.00 .5% Par value of shares of
Stock with par value thereof stocks

Original Issue of Shares of Actual consideration for the

Stock without par value P200.00 or fraction 1.00 .5% issuance of shares of stocks
thereof
Actual value represented by
each share

Stock Dividend

P200.00 or fraction 1.00 .5%

thereof
175 Sales, Agreements to Sell, P200.00 or fraction .75 3.75% Par value of such stock
Memoranda of Sales, thereof
Deliveries or Transfer of
Shares or Certificates of
Stock

Stock without par value DST paid upon the original

25% issuance of said stock.
176 Bonds, Debentures, Certificate P200.00 or fraction .75 3.75% Par value of such bonds,
of Stock or Indebtedness thereof debentures, Certificate of
issued in foreign Countries Stock or Indebtedness
177 Certificate of Profits or Interest P200.00 or fraction .50 .25% Face value of such
 in Property or Accumulation thereof certificate / memorandum
178 Bank Checks, Drafts, On each Document 1.50
Certificate of Deposit not
bearing interest and other
Instruments
179 All Debt Instruments P200.00 or fraction 1.00 .5% Issue price of any such
thereof instruments
180 All Bills of Exchange or Drafts P200.00 or fraction .30 .15% Face value of any such bill
thereof of exchange or draft
181 Acceptance of Bills of P200.00 or fraction .30 .15% Face value of such bill of
Exchange or order for the thereof exchange or order or the
payment of money purporting Philippine equivalent of
to be drawn in a foreign such value, if expressed in
country but payable in the foreign currency
Philippines
182 Foreign Bills of Exchange and P200.00 or fraction .30 .15% Face value of such bill of
Letters of Credit thereof exchange or letter of credit
or the Philippine equivalent
of such value, if expressed
in foreign currency
183 Life Insurance Policies If the amount of exempt Amount of Insurance
insurance does not
exceed P100,000.00

If the amount of Amount of Insurance

insurance exceeds 10.00
P100,000.00 but does
not exceed
P300,000.00
Amount of Insurance
If the amount of
insurance exceeds 25.00
P300,000.00 but does
not exceed
P500,000.00 Amount of Insurance

If the amount of
insurance exceeds 50.00
P500,000.00 but does
not exceed Amount of Insurance
P750,000.00

If the amount of
insurance exceeds 75.00
P750,000.00 but does Amount of Insurance
not exceed
P1,000,000.00
 If the amount of
insurance exceeds 100.00
P1,000,000.00
184 Policies Of Insurance upon P4.00 premium or .50 12.5% Premium charged
Property fraction thereof
185 Fidelity Bonds and other P4.00 premium or .50 12.5% Premium charged
Insurance Policies fraction thereof
186 Policies of Annuities or other P200.00 or fraction .50 .25% Premium or installment
instruments thereof payment or contract price
collected

Premium or contribution
collected
P200.00 or fraction .20 .10%
Pre-Need Plans thereof
187 Indemnity Bonds P4.00 or fraction thereof.30 7.5% Premium charged
188 Certificates of Damage or Each Certificate 15.00
otherwise and Certificate or
document issued by any
customs officers, marine
surveyor, notary public and
certificate required by law or by
rules and regulations of a
public office
189 Warehouse Receipts (except if Each Receipt 15.00
value does not exceed
P200.00)
190 Jai-alai, Horse Race Tickets, P1.00 cost of ticket .10 10% Cost of the ticket
lotto or Other Authorized
Number Games Cost of the ticket
Additional P0.10 on
every P1.00 or fraction
thereof if cost of ticket
exceeds P1.00
191 Bills of Lading or If the value of such 1.00 Value of such goods
Receipts(except charter party) goods exceeds P100.00
and does not exceed
P1,000.00

If the value exceeds Value of such goods

P1,000.00 10.00

Freight tickets covering

goods, merchandise or
effects carried as Exempt
accompanied baggage
of passengers on land
 and water carriers
primarily engaged in the
transportation of
passengers
192 Proxies(except proxies issued Each proxy 15.00
affecting the affairs of
associations or corporations,
organized for religious,
charitable or literary purposes)
193 Powers of Attorney(except acts Each Document 5.00
connected with the collection
of claims due from or accruing
to the Government of the
Republic of the Philippines, or
the government of any
province, city or Municipality)
194 Lease and other Hiring First 2,000 or fractional 3.00 .15%
agreements or memorandum part thereof
or contract for hire, use or
rent of any land or tenements For every P1,000 or
or portions thereof fractional part thereof in 1.00 .1%
excess of the first
P2,000 for each year of
the term of the said
contract or agreement
195 Mortgages Pledges of lands, First 5,000 20.00 .4% Amount Secured
estate, or property and Deeds
of Trust Amount Secured
On each P5,000 or 10.00 .2%
fractional part thereof in
excess of 5,000
196 Deed of Sale, instrument or First 1,000 15.00 1.5% Consideration or Fair Market
writing and Conveyances of Value, whichever is higher
Real Property (except grants, (if government is a party,
patents or original certificate of basis shall be the
the government) consideration)

Consideration or Fair Market

Value, whichever is higher
(if government is a party,
basis shall be the
For each additional 15.00 1.5% consideration)
P1,000 or fractional part
thereof in excess of
P1,000
197 Charter parties and Similar 1,000 tons and below P500.00 for the Registered gross tonnage
Instruments first 6 months
Plus P50 each
 month or fraction
thereof in excess
of 6 months

P1,000 for the

first 6
1,001 to 10,000 tons months Plus Registered gross tonnage
P100 each
month or fraction
thereof in excess
of 6 months

P1,500 for the

first 6
months Plus
Over 10,000 tons P150 each Registered gross tonnage
month or fraction
thereof in excess
of 6 months
198 Stamp Tax on Assignments At the same rate
and Renewals or Continuance as that imposed
of Certain Instruments on the original
instrument.

Value-Added Tax

Description

Value-Added Tax is a form of sales tax. It is a tax on consumption levied on the sale,
barter, exchange or lease of goods or properties and services in the Philippines and
on importation of goods into the Philippines. It is an indirect tax, which may be
shifted or passed on to the buyer, transferee or lessee of goods, properties or
services.

Tax Rates
On sale of goods and properties - twelve percent (12%) of the gross
selling price or gross value in money of the goods or properties sold,
bartered or exchanged
On sale of services and use or lease of properties - twelve percent
(12%) of gross receipts derived from the sale or exchange of services,
including the use or lease of properties
On importation of goods - twelve percent (12%) based on the total
value used by the Bureau of Customs in determining tariff and customs
duties, plus customs duties, excise taxes, if any, and other charges, such as
tax to be paid by the importer prior to the release of such goods from
customs custody; provided, that where the customs duties are determined
 on the basis of quantity or volume of the goods, the VAT shall be based on
the landed cost plus excise taxes, if any.
On export sales and other zero-rated sales - 0%

Withholding Tax

Description
Withholding Tax on Compensation is the tax withheld from income
payments to individuals arising from an employer-employee relationship.
Expanded Withholding Tax is a kind of withholding tax which is
prescribed on certain income payments and is creditable against the
income tax due of the payee for the taxable quarter/year in which the
particular income was earned.
Final Withholding Tax is a kind of withholding tax which is prescribed
on certain income payments and is not creditable against the income tax
due of the payee on other income subject to regular rates of tax for the
taxable year. Income Tax withheld constitutes the full and final payment
of the Income Tax due from the payee on the particular income subjected
to final withholding tax.
Withholding Tax on Government Money Payments (GMP) -
Percentage Taxes - is the tax withheld by National Government
Agencies (NGAs) and instrumentalities, including government-owned and
controlled corporations (GOCCs) and local government units (LGUs),
before making any payments to non-VAT registered
taxpayers/suppliers/payees
Withholding Tax on GMP - Value Added Taxes (GVAT) - is the tax
withheld by National Government Agencies (NGAs) and instrumentalities,
including government-owned and controlled corporations (GOCCs) and
local government units (LGUs), before making any payments to VAT
registered taxpayers/suppliers/payees on account of their purchases of
goods and services.

Tax Rates
REVISED WITHHOLDING TAX TABLES
Effective January 1, 2009
DAILY 1 2 3 4 5 6 7 8
Exemption 0.00 0.00 1.65 8.25 28.05 74.26 165.02 412.54
Status (000P) +0% over +5% over +10% over +15% over +20% over +25% over +30% over +32% over
A. Table for employees without qualified dependent
1. Z 0.0 1 0 33 99 231 462 825 1,650
2. S/ME 50.0 1 165 198 264 396 627 990 1,815
B. Table for single/married employee with qualified dependent child(ren)
1. ME1 / S1 75.0 1 248 281 347 479 710 1,073 1,898
2. ME2 / S2 100.0 1 330 363 429 561 792 1,155 1,980
3. ME3 / S3 125.0 1 413 446 512 644 875 1,238 2,063
4. ME4 / S4 150.0 1 495 528 594 726 957 1,320 2,145

WEEKLY 1 2 3 4 5 6 7 8
Exemption 0.00 0.00 9.62 48.08 163.46 432.69 961.54 2,403.85
Status +0% over +5% over +10% over +15% over +20% over +25% over +30% over +32% over
A. Table for employees without qualified dependent
1. Z 0.0 1 0 192 577 1,346 2,692 4,808 9,615
2. S/ME 50.0 1 962 1,154 1,538 2,308 3,654 5,769 10,577
B. Table for single/married employee with qualified dependent child(ren)
1. ME1 / S1 75.0 1 1,442 1,635 2,019 2,788 4,135 6,250 11,058
2. ME2 / S2 100.0 1 1,923 2,115 2,500 3,269 4,615 6,731 11,538
3. ME3 / S3 125.0 1 2,404 2,596 2,981 3,750 5,096 7,212 12,019
4. ME4 / S4 150.0 1 2,885 3,077 3,462 4,231 5,577 7,692 12,500

SEMI-MONTHLY 1 2 3 4 5 6 7 8
Exemption 0.00 0.00 20.83 104.17 354.17 937.50 2,083.33 5,208.33
Status +0% over +5% over +10% over +15% over +20% over +25% over +30% over +32% over
A. Table for employees without qualified dependent
1. Z 0.0 1 0 417 1,250 2,917 5,833 10,417 20,833
2. S/ME 50.0 1 2,083 2,500 3,333 5,000 7,917 12,500 22,917
B. Table for single/married employee with qualified dependent child(ren)
1. ME1 / S1 75.0 1 3,125 3,542 4,375 6,042 8,958 13,542 23,958
2. ME2 / S2 100.0 1 4,167 4,583 5,417 7,083 10,000 14,583 25,000
3. ME3 / S3 125.0 1 5,208 5,625 6,458 8,125 11,042 15,625 26,042
4. ME4 / S4 150.0 1 6,250 6,667 7,500 9,167 12,083 16,667 27,083

MONTHLY 1 2 3 4 5 6 7 8
Exemption 0.00 0.00 41.67 208.33 708.33 1,875.00 4,166.67 10,416.67
Status +0% over +5% over +10% over +15% over +20% over +25% over +30% over +32% over
A. Table for employees without qualified dependent
1. Z 0.0 1 0 833 2,500 5,833 11,667 20,833 41,667
2. S/ME 50.0 1 4,167 5,000 6,667 10,000 15,833 25,000 45,833
B. Table for single/married employee with qualified dependent child(ren)
1. ME1 / S1 75.0 1 6,250 7,083 8,750 12,083 17,917 27,083 47,917
2. ME2 / S2 100.0 1 8,333 9,167 10,833 14,167 20,000 29,167 50,000
3. ME3 / S3 125.0 1 10,417 11,250 12,917 16,250 22,083 31,250 52,083
4. ME4 / S4 150.0 1 12,500 13,333 15,000 18,333 24,167 33,333 54,167
 Legend: Z-Zero exemption S-Single ME-Married Employee 1;2;3;4-Number of
qualified dependent children
S/ME = P50,000 EACH WORKING EMPLOYEE Qualified Dependent Child =
P25,000 each but not exceeding four (4) children
USE TABLE A FOR SINGLE/MARRIED EMPLOYEES WITH NO QUALIFIED
DEPENDENT
1. Married Employee (Husband or Wife) whose spouse is unemployed.
2. Married Employee (Husband or Wife) whose spouse is a non-resident
citizen receiving income from foreign sources
3. Married Employee (Husband or Wife) whose spouse is engaged in
business
4. Single
6. Zero Exemption for employees with multiple employers for their 2nd,
3rd..employers (main employer claims personal & additional exemption
7. Zero Exemption for those who failed to file Application for Registration
USE TABLE B FOR THE FOLLOWING SINGLE/MARRIED EMPLOYEES WITH
QUALIFIED DEPENDENT
1. Employed husband and husband claims exemptions of children
2. Employed wife whose husband is also employed or engaged in
business; husband waived claim for dependent children in favor of the
employed wife
3. Single with qualified dependent children

Excise Tax

Description

Excise Tax is a tax on the production, sale or consumption of a commodity in a country.

TYPES OF EXCISE TAX:

Specific Tax refers to the excise tax imposed which is based on
weight or volume capacity or any other physical unit of measurement
Ad Valorem Tax refers to the excise tax which is based on selling
price or other specified value of the goods/articles

[return to index]

EXCISE TAX RATES:

A. ALCOHOL PRODUCTS
NEW TAX RATES based on Republic Act No. 10351 Remarks
PARTICULARS 2018
2013 2014 2015 2016 2017

A. DISTILLED SPIRITS, AD VALOREM & SPECIFIC TAX

1) AD VALOREM TAX RATE - 15% 15% 20% 20% 20% 20%
Based on the Net Retail Price
(NRP) per proof (excluding
the excise and value-added
taxes);
and
Effective
1/1/2016, the
specific tax rate
2) SPECIFIC TAX - Per proof
Php20 Php20 Php20 Php20.80 Php21.63 shall be
liter
increased by 4%
every year
thereafter
B. WINES, per liter of volume capacity
1) Sparkling wines/
champagnes, where the NRP
(excluding the excise and VAT)
per bottle of 750ml volume
capacity, regardless of proof is:
Effective
Php500.00 or less Php250 Php260 Php270.40 Php281.22 Php292.47 1/1/2014, the
More than Php500.00 Php700 Php728 Php757.12 Php787.40 Php818.90 specific tax rate
shall be
2) Still wines and carbonated increased by 4%
wines containing 14% of alcohol Php30.00 Php31.20 Php32.45 Php33.75 Php35.10 every year
by volume or less thereafter

3) Still wines and carbonated

wines containing more than 14%
Php60.00 Php62.40 Php64.90 Php67.50 Php70.20
(of alcohol by volume) but not
more 25% of alcohol by volume

4) Fortified wines containing

more than 25% of alcohol by Taxed as distilled spirits
volume

C. FERMENTED LIQUORS , per liter of volume capacity

1) If the NRP (excluding excise Effective
and VAT) per liter of volume 1/1/2018, the
capacity is: specific tax rate
shall be
Php 50.60 and below Php15.00 Php17.00 Php19.00 Php21.00 Php23.50
increased by 4%
every year
More than Php 50.60 Php20.00 Php21.00 Php22.00 Php23.00 Php23.50 thereafter
Effective
2) If brewed and sold at 1/1/2014, the
microbreweries or small specific tax rate
establishments such as pubs Php28.00 Php29.12 Php30.28 Php31.50 Php32.76 shall be
and restaurants, regardless of increased by 4%
the NRP every year
thereafter
NOTE:
IN CASE OF FERMENTED LIQUORS AFFECTED BY THE "NO DOWNWARD RECLASSIFICATION " PROVISION,
THE 4% INCREASE SHALL APPLY TO THEIR RESPECTIVE APPLICABLE TAX RATES
B. TOBACCO PRODUCTS
Remarks
NEW TAX RATES based on Republic Act No. 10351 2018
PARTICULARS onwards

2013 2014 2015 2016 2017

A. TOBACCO PRODUCTS, per kilogram

1. Tobacco Products
(a) Tobacco twisted by hand or
reduced into a condition to be
consumed in any manner other Php1.75 Php1.82 Php1.89 Php1.97 Php2.05
than the ordinary mode of drying
Effective
and curing;
1/1/2014, the
(b) Tobacco prepared or partially specific tax rate
prepared with or without the use of shall be
any machine or instrument or Php1.75 Php1.82 Php1.89 Php1.97 Php2.05 increased by 4%
without being pressed or every year
sweetened; and thereafter

(c) Fine-cut shorts and refuse,

scraps, clippings, cuttings, stems, Php1.75 Php1.82 Php1.89 Php1.97 Php2.05
midribs and sweepings of tobacco;

2. Chewing tobacco unsuitable for

Php1.50 Php1.56 Php1.62 Php1.68 Php1.75
use in any other manner
B. CIGARS, per cigar
3. Cigars Effective
1/1/2014, the
(a) Based on the NRP per cigar
specific tax rate
(excluding the excise and value- 20% 20% 20% 20% 20%
shall be
added taxes), and
increased by 4%
every year
(b) Per cigar Php5.00 Php5.20 Php5.41 Php5.62 Php5.85
thereafter
C. CIGARETTES , per pack
Effective
1/1/2018, the
specific tax rate
1. Cigarettes packed by hand Php12.00 Php15.00 Php18.00 Php21.00 Php30.00 shall be
increased by 4%
every year
thereafter
2. Cigarettes packed by machine,
where the NRP (excluding excise
and VAT) per pack is:
(a) Php11.50 and below Php12.00 Php17.00 Php21.00 Php25.00 Php30.00
(b) More than Php11.50 Php25.00 Php27.00 Php28.00 Php29.00 Php30.00
INSPECTION FEE - There shall be collected inspection fees on leaf tobacco,
scrap, cigars, Cigarettes and other manufactured tobacco and tobacco
products as follows:
PRODUCT TYPE INSPECTION FEE
(1) Cigars P 0.50 per thousand pieces or fraction thereof
(2) Cigarettes P 0.10 per thousand sticks or fraction thereof
(3) Leaf Tobacco P 0.02 per kilogram or fraction thereof
(4) Scrap and other manufactured tobacco P 0.03 per kilogram or fraction thereof
C. PETROLEUM PRODUCTS
PRODUCT TYPE TAX RATES
Lubricating oils and greases, including but not limited to base stock for lube P 4.50 per liter
oils and greases, high vacuum distillates, aromatic extracts and other similar
preparations, and additives for lubricating oils and greases, whether such
additives are petroleum based or not
Processed gas P 0.05 per liter
Waxes and petrolatum P 3.50 per kilogram
Denatured alcohol, if used for motive power [i.e. one hundred eighty (180) P 0.05 per liter
proof ninety percent (90%) absolute alcohol]. Provided, that unless otherwise
provided by special laws, if the denatured alcohol is mixed with gasoline, the
excise tax which has already been paid, only the alcohol content shall be
subject to tax
Naphtha, regular gasoline and other similar products of distillation P 4.35 per liter
Naphtha used as raw material in the production of petrochemical products or P 0.00 per liter
as replacement fuel for natural gas-fired combined cycle power plant, in lieu of
locally-extracted natural gas during the non-availability thereof
Leaded premium gasoline P 5.35 per liter
Unleaded premium gasoline P 4.35 per liter
Aviation turbo jet fuel P 3.67 per liter
Kerosene P 0.00 per liter
Kerosene used as aviation fuel P 3.67 per liter
Diesel fuel oil, and on similar fuel oils having more or less the same P 0.00 per liter
generating power
Liquefied Petroleum Gas ; Provided, that if used for motive power, it shall be P 0.00 per liter
taxed at the equivalent rate as the Excise Tax on diesel fuel oil
Asphalt P 0.56 per kilogram
Bunker fuel oil, and on similar fuel oils having more or less the same P 0.00 per liter
generating power
D. MINERALS AND MINERAL PRODUCTS
PRODUCT TYPE TAX RATES
On coal and coke Ten Pesos (P10.00) per metric ton
All mineral and mineral products (non-metallic), quarry Two percent (2%) bases on the actual market value, in
resources the case of those locally-extracted or produced; and, in
 the case of importation or the value used by the
Bureau of Customs in determining tariff and customs
duties, net of Excise Tax and Value-Added Tax.
On locally-extracted natural gas and liquefied natural gas P0.00
On indigenous petroleum Three percent (3%) of the fair international market
price thereof
NOTE:
In the case of mineral concentrates not traded in commodity exchanges in the Philippines or abroad, such as copper
concentrate, the actual market value shall be the world price quotations of the refined mineral products content
thereof prevailing in the said commodity exchanges, after deducting the smelting, refining and other charges incurred
in the process of converting the mineral concentrates into refined metal traded in those commodity exchanges.

On minerals and mineral products sold or consigned abroad, the actual cost of ocean freight and insurance shall be
deducted from the tax base.
E. AUTOMOBILES AND OTHER MOTOR VEHICLES
OVER UP TO RATE
0 P 600,000 2%
P600,000 P 1,100,000 P 12,000 + 20% in excess of P 600,000
P1,100,000 P2,100,000 P112,000+ 40% in excess of P1,100,000
P2,100,000 over P512,000 + 60% in excess of P2,100,000
F. NON-ESSENTIAL GOODS

Twenty percent (20%) based on the wholesale price or the value

of importation used by the Bureau of Customs in determining Tariff and
Customs Duties, net of Excise and Value-Added taxes