Title II — TAX ON INCOME
share of a nonresident alien individual in the net income after tax
of an association, a joint account, or a joint venture taxable as a
corporation of which he is a member or a co-venturer; interests;
royalties (in any form); and prizes (except prizes amounting to
Ten thousand pesos (P10,000) or less which shall be subject to tax
under Subsection (B)(1) of Section 24); and other winnings (except
Philippine Charity Sweepstakes and Lotto winnings), shall be subject
to an income tax of twenty percent (20%) on the total amount
thereof: Provided, however, That royalties on books as well as other
literary works, and royalties on musical compositions shall be subject
to a final tax of ten percent (10%) on the total amount thereof:
Provided, further, That cinematographic films and similar works
shall be subject to the tax provided under Section 28 of this Code:
Provided, furthermore, That interest income from long-term deposit
or investment in the form of savings, common or individual trust
funds, deposit substitutes, investment management accounts and
other investments evidenced by certificates in such form prescribed
by the Bangko Sentral ng Pilipinas (BSP) shall be exempt from the
tax imposed under this Subsection: Provided, finally, That should
the holder of the certificate pre-terminate the deposit or investment
before the fifth (5th) year, a final tax shall be imposed on the entire
income and shall be deducted and withheld by the depository bank
from the proceeds of the long-term deposit or investment certificate
based on the remaining maturity thereof:
Four (4) years to less than five (5) years
5%
Three (3) years to less than four (4) years
12%
Less than three (3) years
20%
(3) Capital Gains. — Capital gains realized from sale, barter or exchange
of shares of stock in domestic corporations not traded through the
local stock exchange, and real properties shall be subject to the tax
prescribed under Subsections (C) and (D) of Section 24.
(B)
24
Nonresident Alien Individual Not Engaged in Trade or Business
Within the Philippines. — There shall be levied, collected and paid for
each taxable year upon the entire income received from all sources within
the Philippines by every nonresident alien individual not engaged in
trade or business within the Philippines as interest, cash and/or property
dividends, rents, salaries, wages, premiums, annuities, compensation,
remuneration, emoluments, or other fixed or determinable annual or
periodic or casual gains, profits, and income, and capital gains, a tax
Isla Lipana & Co., the Philippine member firm of the PwC network
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