🇵🇭 Philippines Tax Guide - Income Tax, Corporate Tax & Special Regimes

Top income tax 35.0% Worldwide system

Corporate tax 25.0%

VAT 12.0% standard rate

Tax residency 180 days 44 tax treaties

Philippines tax profile

Data year: 2026

Tax system: Worldwide Resident citizens are taxed on worldwide income. Resident aliens are taxed on Philippine-sourced income only. Non-resident aliens are generally taxed on Philippines-sourced income at graduated rates (if engaged in trade or business) or flat rates on compensation and final-tax items.
Top PIT rate: 35.0%
Corporate tax rate: 25.0%
VAT: 12.0%
Capital gains tax: 15.0% Listed shares: stock transaction tax of 0.6%. Unlisted shares: 15% on net capital gain. Real property: 6% of selling price or fair market value (creditable against income tax in some cases).
Social security (employee): 5.0%
Social security (employer): 10.0%
Social security cap (annual): PHP 420,000
Dividend withholding: 25.0%
Interest withholding: 20.0%
Royalty withholding: 25.0%
Inheritance tax: 6.0%
Treaty count: 44

Personal income

Personal income brackets
Bracket min	Bracket max	Rate	USD equivalent
PHP 0	PHP 250,000	0.0%	$0 – $4,400
PHP 250,000	PHP 400,000	15.0%	$4,400 – $7,000
PHP 400,000	PHP 800,000	20.0%	$7,000 – $14,000
PHP 800,000	PHP 2,000,000	25.0%	$14,000 – $35,000
PHP 2,000,000	PHP 8,000,000	30.0%	$35,000 – $140,000
PHP 8,000,000	and above	35.0%	$140,000 +

Special regimes
Name	Type	Rate/amount	Duration	Status
8% tax on gross sales or receipts Optional 8% tax on gross sales, receipts and other non-operating income above PH...	Flat rate	8.0%	Duration not recorded	Active

Digital Services Tax

Days threshold: 180 days
Residency rules: A non-resident alien present in the Philippines for more than 180 days in a calendar year is treated as engaged in trade or business in the Philippines. Resident aliens are individuals who live in the Philippines without a definite intention as to length of stay. Resident citizens remain taxable on worldwide income regardless of physical presence.
Exit tax: No
CFC rules: No

Republic Act No. 10963 (TRAIN Law) (accessed Oct 9, 2026) Graduated PIT table, 8% gross-income option, 6% estate tax, fringe benefit tax
PwC Worldwide Tax Summaries - Philippines (accessed Oct 9, 2026) PIT, CIT, VAT, withholding, residency, social taxes, group taxation (no CFC rules), tax treaties
SSS contribution table (accessed Oct 9, 2026) 15% of Monthly Salary Credit (5% employee, 10% employer), MSC cap PHP 35,000 from January 2025
Bureau of Internal Revenue (accessed Oct 9, 2026) National tax authority; filing and compliance reference

Oct 9, 2026
- Income tax brackets updated
- Special tax regimes updated
verified PIT brackets and 8% option against RA 10963; updated data year, verification date, SSS employer rate and cap, treaty count, USD brackets, and 8% special regime (https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html, https://taxsummaries.pwc.com/philippines, https://www.sss.gov.ph/sss-contribution-table/).

AL Albania Unique Permit for Digital Mobile Workers	$610/mo
EC Ecuador Digital Nomad Visa (Visa Nómada)	$1,446/mo
ME Montenegro Digital Nomad Residence Permit	$1,460/mo
MU Mauritius Premium Visa	$1,500/mo

GE Georgia Small Business Status (1% Tax)	1%
JE Jersey High Value Resident (HVR)	1%
UZ Uzbekistan IT Park Resident Status	1%
SO Somalia Presumptive Tax Regime (PTR)	1.5%