Philippines
Corporate Tax Guide
Time of Update: 4/06/2026
With the Philippine government's friendly posture toward foreign investors, the Philippines is committed to creating conditions to attract foreign investment and open foreign investment policies and regulations. Most Filipinos can speak English as an office language, which makes doing business in the Philippines much easier. Philippine company registration cycle is short, we provide Philippine company registration, bank account opening and other integrated services.
Philippines Tax Brief
Time of Update 4/06/2026
Philippines Corporate Income Tax (CIT)
General CIT Rate:
25%
CIT Return Due Date:
Quarterly return: Within 60 days from the close of each of the first three quarters. Annual return: On or before the 15th day of the fourth month following the close of the taxable year.
CIT Payment Due Date:
On the 15th day of the fourth month following the close of the taxable year.
CIT Estimated Payment Due Date:
Quarterly instalments paid within 60 days after each quarter.
Philippines Withholding Tax (WHT)
Resident Withholding Tax (Dividend/Interest/Royalty):
25/20/25
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/20/25
Philippines Value-Added Tax (VAT)
General VAT Rate:
12
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Philippines Capital Gain Tax (CGT)
General Capital Gain Tax Rate:
If the net capital gain is within P100,000, the applicable tax rate is 5%, and the excess is 10%.
Philippines Effective Tax Rate (ETR)
Composite Effective Average Tax Rate:
Composite Effective Marginal Tax Rate:
Additional info
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TKEG Expat ™ Philippines Corporate Tax Guide
1.
Philippines Corporate Income Tax
- In general, on net income from all sources, 25%.
- On net income from all sources of domestic corporations with total assets not exceeding 100 million Philippine pesos (PHP) and total net taxable income not exceeding PHP 5 million, 20%.
- Minimum corporate income tax (MCIT) on gross income, beginning in the fourth taxable year following the year of commencement of business operations. MCIT is imposed where the CIT at 25% is less than 2% MCIT on gross income, 2%.
- Proprietary educational institutions and non-profit hospitals, on net income if gross income from unrelated trade, business, and other activities does not exceed 50% of the total gross income from all sources, 10%.
2.
Philippines VAT
Overview of VAT in the Philippines:
Philippines VAT tax is equivalent to a uniform rate of 12%
Philippines VAT tax is equivalent to a uniform rate of 12%
3.
Philippines Withholding taxes
Interest from Philippine currency deposits paid to a domestic corporation or a resident foreign corporation is subject to a 20% withholding tax. Interest paid to a resident individual or an NRA-ETB is subject to a 20% withholding tax, and for an NRA-NETB, the rate is 25%.
4.
Payroll Taxes
The compensation and benefits of employees of employers are subject to WHT based on graduated rates. The employer shall be the designated withholding agent of the government.
5.
Social security contributions
Corporations doing business in the Philippines must be registered with social institutions.
Employment of any employee and prior to the due date of the remittance of any social contributions.
Employee contributions for social security are deducted from the employee’s salary payments.
Employment of any employee and prior to the due date of the remittance of any social contributions.
Employee contributions for social security are deducted from the employee’s salary payments.
