Top income tax
35.0%
Worldwide system
Corporate tax
25.0%
VAT
12.0%
standard rate
Tax residency
180 days
43 tax treaties
Philippines tax profile
Data year: 2025
- Tax system
- Worldwide Worldwide income taxation for resident citizens. Resident aliens taxed only on Philippine-sourced income. Non-resident aliens taxed at 25% on Philippines-sourced income.
- 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.
- Social security (employee)
- 5.0%
- Social security (employer)
- 8.5%
- Dividend withholding
- 25.0%
- Interest withholding
- 20.0%
- Royalty withholding
- 25.0%
- Inheritance tax
- 6.0%
- Treaty count
- 43
Income tax brackets
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| PHP 0 | PHP 250,000 | 0.0% |
| PHP 250,000 | PHP 400,000 | 15.0% |
| PHP 400,000 | PHP 800,000 | 20.0% |
| PHP 800,000 | PHP 2,000,000 | 25.0% |
| PHP 2,000,000 | PHP 8,000,000 | 30.0% |
| PHP 8,000,000 | and above | 35.0% |
Tax flags
Digital Services Tax
Tax residency
- Days threshold
- 180 days
- Residency rules
- Resident alien if not a citizen who has stayed in the Philippines for an aggregate of more than 180 days in a calendar year. Resident citizens taxed on worldwide income regardless of presence.
- Exit tax
- No
- CFC rules
- No
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- April 15
Sources
- PwC Worldwide Tax Summaries - Philippines (accessed Mar 23, 2026) PIT, CIT, VAT, withholding rates