Quarterly Percentage Tax Rates Table

Coverage Taxable Base Tax Rate

Non-VAT registered persons under Gross sales or receipts 3%
Section 109 (BB)
Domestic carriers and keepers of Gross receipts 3%
garages

International air/shipping carriers doing Gross receipts on transport of cargo from the 3%
business in the Philippines Philippines to a foreign country

Franchise grantees: Gross receipts 2%

Gas and water utilities

Radio and television broadcasting

companies whose annual gross receipts Gross receipts 3%
of the preceding year do not exceed
Php10,000,000 and did not opt to
register as VAT taxpayer
Overseas dispatch, message or Amount paid for the service 10%
conversation originating from the
Philippines

Banks and non-bank financial Interest, commissions and discounts from lending activities as
intermediaries performing quasi-banking well as income from financial leasing, on the basis of
functions remaining maturities of instruments from which receipts are
derived:

• If maturity period is five years or less 5%

• If maturity period is more than five years 1%

Other non-bank financial intermediaries
Dividends and equity shares and net income of 0%
subsidiaries
Royalties, rentals of property, real or personal, 7%
profits from exchange and all other items
treated as gross income under Sec. 32 of the
Tax Code, as amended
Net trading gains within the taxable year of 7%
foreign currency, debt securities, derivatives
and other similar financial instruments
Interest, commissions, discounts and all other 5%
items treated as gross income under the Tax
Code, as amended
Interest, commissions, discounts from lending activities, as
well as income from financial leasing on the basis of remaining
maturities of instruments from which such receipts are derived:

• If maturity period is five years or less 5%

• If maturity period is more than five years 1%

 Coverage Taxable Base Tax Rate
Life Insurance Total premiums collected 2%
Company/Agent/Corporation (except
purely cooperative companies or
associations)
Agents of foreign insurance companies (except reinsurance premium):
Insurance agents authorized under the Total premiums collected 10%
Insurance Code to procure policies of
insurance for companies not authorized
to transact business in the Philippines
Owners of property obtaining insurance Total premiums paid 5%
directly with foreign insurance
companies
Proprietor, lessee or operator of the following:
Cockpits Gross receipts 18%
Cabarets, Night or Day Clubs, videoke Gross receipts 18%
bars, karaoke bars, karaoke televisions,
karaoke boxes and music lounges
Boxing exhibitions (except when the Gross receipts 10%
World or Oriental Championship is at
stake in any division, provided further
that at least one of the contenders for
World Championship is a citizen of the
Philippines and said exhibitions are
promoted by a citizen/s of the
Philippines or by a corporation/
association at least 60% of the capital of
which is owned by said citizen/s)
Professional basketball games (in lieu of Gross receipts 15%
all other percentage taxes of whatever
nature and description)
Jai-alai and race track Gross receipts 30%
Winnings on horse races  Winnings or 'dividends' 10%
 Winnings from double forecast/quinella 4%
and trifecta bets
 Prizes of owners of winning race horses 10%
 Percentage Tax for Transactions Involving Shares Rates Table

Coverage Basis Tax Rate

Sale, barter, exchange or other Gross selling price or gross value in money 6/10 of 1%
disposition of shares of stock listed and
traded through the Local Stock
Exchange other than the sale by a
dealer of securities
Sale, barter or exchange or other Gross selling price or gross value in money
disposition through:
Proportion of disposed shares to total outstanding shares after
Initial Public Offering (IPO) – the issuing the listing in the local stock exchange:
corporation shall pay the imposed tax

Secondary Public Offering – the seller

shall pay the imposed tax
 Up to 25% 4%
 Over 25% but not over 33 1/3% 2%
 Over 33 1/3% 1%
 EXCISE TAX RATES:

A. ALCOHOL PRODUCTS

PARTICULARS Remarks 2018 onwards

A. DISTILLED SPIRITS, AD VALOREM & SPECIFIC TAX
1) AD VALOREM TAX RATE - Based on the Net 20%
Retail Price (NRP) per proof (excluding the excise
and value-added taxes); and
2) SPECIFIC TAX - Per proof liter Effective 1/1/2016, the specific tax rate shall be
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:
Php500.00 or less
More than Php500.00
2) Still wines and carbonated wines containing
14% of alcohol by volume or less
3) Still wines and carbonated wines containing Effective 1/1/2014, the specific tax rate shall be
more than 14% (of alcohol by volume) but not increased by 4% every year thereafter
more 25% of alcohol by volume
4) Fortified wines containing more than 25% of
alcohol by volume
C. FERMENTED LIQUORS , per liter of volume capacity
1) If the NRP (excluding excise and VAT) per liter of
volume capacity is:
Php 50.60 and below Effective 1/1/2018, the specific tax rate shall be
More than Php 50.60 increased by 4% every year thereafter
2) If brewed and sold at microbreweries or small
establishments such as pubs and restaurants, Effective 1/1/2014, the specific tax rate shall be
regardless of the NRP increased by 4% 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

PARTICULARS Remarks 2018 onwards

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 than the ordinary mode of drying and Effective 1/1/2014, the specific tax rate shall be
curing; increased by 4% every year thereafter
(b) Tobacco prepared or partially prepared
with or without the use of any machine or
instrument or without being pressed or
sweetened; and
(c) Fine-cut shorts and refuse, scraps,
clippings, cuttings, stems, midribs and
sweepings of tobacco;
2. Chewing tobacco unsuitable for use in any other
manner
B. CIGARS, per cigar
3. Cigars

(a) Based on the NRP per cigar (excluding the Effective 1/1/2014, the specific tax rate shall be
excise and value-added taxes), and increased by 4% every year thereafter

(b) Per cigar

C. CIGARETTES , per pack

PARTICULARS January 1, 2024 onwards
1. Cigarettes packed by hand

2. Cigarettes packed by machine Effective 1/1/2024, the specific tax rate shall be
increased by 4% every year thereafter

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 EFFECTIVITY (RA 10963-TRAIN Law)

January 1, January 1, January 1,
2018 2019 2020

(a) Lubricating oils and greases, including but not

limited to base stock for lube 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, per liter
and kilogram respectively, of volume capacity or
weight
(a.1) Locally produced or imported oils previously Php8.00 Php9.00 Php10.00
taxed but are subsequently reprocessed, re-
refined or recycled, per liter and kilogram of
volume capacity or weight.
(b)Processed gas, per liter of volume capacity
(c)Waxes and petrolatum, per kilogram
(d)Denatured alcohol to be used for motive
power , per liter of volume capacity
(e)Asphalt, per kilogram
(f)Naphtha, regular gasoline, pyrolysis gasoline
and other similar products of distillation, per liter
of volume capacity Php7.00 Php9.00 Php10.00
(g)Unleaded premium gasoline, per liter of
volume capacity
(h)Kerosene, per liter of volume capacity Php3.00 Php4.00 Php5.00
(i)Aviation turbo jet fuel, aviation gas, per liter of
volume capacity
(j)Kerosene when used as aviation fuel, per liter Php4.00 Php4.00 Php4.00
of volume capacity
(k)Diesel fuel oil, and on similar fuel oils having
more or less the same generating power, per liter
of volume capacity Php2.50 Php4.50 Php6.00
(l)Liquified petroleum gas used for motive power,
per kilogram
(m)Bunker fuel oil, and on similar oils having
more or less the same generating power, per liter
of volume capacity
(n)Petroleum coke, per metric ton
(o)Liquified petroleum gas, per kilogram Php1.00 Php2.00 Php3.00
(p)Naphtha and pyrolysis gasoline, when used as Php0.00 Php0.00 Php0.00
raw material in the production of petrochemical
products or in the refining of petroleum products,
or as replacement fuel for natural-gas-fired-
combined cycle power plant, in lieu of lacally-
extracted natural gas during the non-availability
thereof, per liter of volume capacity
(q)Liquified petroleum gas, when used as raw
material in the production of petrochemical
products, per kilogram
(r)Petroleum coke when used as feedstock to any
power generating facility, per metric ton
D. MINERALS AND MINERAL PRODUCTS
PRODUCT TYPE
Coal and coke (Domestic and Imported)
Nonmetallic Minerals and Quarry Resources
(Locally extracted or produced)
Nonmetallic Minerals and Quarry Resources
(Imported)
Locally-extracted natural gas and liquefied natural
gas
All Metallic Minerals (locally extracted or produced
copper, gold, chromite and other metallic
minerals)
On indigenous petroleum
Php0.00 Php0.00 Php0.00
TAX RATES (RA 10963-TRAIN Law)
January 1, 2018 - Php50.00
January 1, 2019 - Php100.00
January 1, 2020 - Php150.00 and onwards
Four percent (4%) based on the actual market
value of the gross output thereof at the time of
removal
Four percent (4%) based on the value used by the
Bureau of Customs (BOC) in determining tariff and
customs duties, net of excise tax and value-added
tax
Exempt
Four percent (4%) based on the actual market
value of the gross output thereof at the time of
removal
Six percent (6%) of the fair international market price
thereof, on the first taxable sale, barter, exchange or
such similar transaction, such tax to be paid by the
buyer or purchaser before removal from the place of
production. The phrase “first taxable sales, barter,
exchange or similar transaction’' means the transfer of
indigenous petroleum in its original, state to a first
taxable transferee. The fair international market price
shall be determined in consultation with appropriate
government agency. For the purpose of this
Subsection, “indigenous petroleum” shall include
locally-extracted mineral oil, hydrocarbon gas, bitumen,
crude asphalt. mineral gas and all other similar or
naturally associated substances with the exception of
coal, peat, bituminous shale and/or stratified mineral
deposits."
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

NET MANUFACTURER'S PRICE/IMPORTER'S SELLING PRICE TAX RATES (RA 10963 (TRAIN
Law)
OVER UP TO RATE
0 Php600,000 4%
Php600,000 Php1,000,000 10%
Php1,100,000 Php4,000,000 20%
Php4,000,000 over 50%

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

G. SWEETENED BEVERAGES (RA 10963-TRAIN Law)

PRODUCT TAX RATE

Per Liter of Volume Capacity
Using purely caloric sweeteners, and purely non- Php6.00
caloric sweeteners, or a mix of caloric and non-
caloric sweeteners
Using purely high fructose corn syrup or in Php12.00
combination with any caloric or non-caloric
sweetener
Using purely coconut sap sugar and purely steviol Exempt
glycosides

H. INVASIVE COSMETIC PROCEDURES - (RA 10963-TRAIN Law)

SERVICE Tax Rate

Performance of Services on Invasive Cosmetic 5%
Procedures