PH
8% tax on gross sales or receipts
Active
Flat rate
Philippines · special tax regime
Flat rate
8.0%
Duration
—
Prior non-residency
—
required before applying
Standard top income tax
35.0%
Philippines, without the regime
Overview
- Regime
- 8% tax on gross sales or receipts
- Country
- Philippines
- Type
- Flat rate
- Status
- Active
- Effective from
- Jan 1, 2018
- Expires on
- —
Details
- Summary
- Optional 8% tax on gross sales, receipts and other non-operating income above PHP 250,000 in lieu of graduated income tax and percentage tax for qualifying self-employed individuals and professionals.
- Eligibility
- Self-employed individuals and/or professionals whose gross sales or receipts and other non-operating income do not exceed the VAT threshold (PHP 3 million); must not be VAT-registered.
- Benefits
- 8% flat tax on gross income above PHP 250,000 instead of graduated rates and 3% percentage tax.
- Requirements
- Must opt in on the annual return; not available if VAT-registered.
- Limitations
- Only for income within the VAT threshold; VAT-registered taxpayers must use graduated rates; business tax still applies if VAT-registered.
- Income types covered
- Gross sales, receipts and other non-operating income of self-employed individuals and professionals
- Duration details
- Annual election; irrevocable for the taxable year once chosen
View source RA 10963 Section 24(A)(2)(b)