Title II — TAX ON INCOME
corporation not engaged in trade or business in the Philippines shall
pay a tax equal to thirty-five percent (35%) of the gross income
received during each taxable year from all sources within the
Philippines, such as interests, dividends, rents, royalties, salaries,
premiums (except reinsurance premiums), annuities, emoluments or
other fixed or determinable annual, periodic or casual gains, profits
and income, and capital gains, except capital gains subject to tax
under subparagraph 5(c): Provided, That effective January 1, 2009,
the rate of income tax shall be thirty percent (30%).
(2) Nonresident Cinematographic Film Owner, Lessor or Distributor. — A
cinematographic film owner, lessor, or distributor shall pay a tax of
twenty-five percent (25%) of its gross income from all sources within
the Philippines.
(3) Nonresident Owner or Lessor of Vessels Chartered by Philippine
Nationals. — A nonresident owner or lessor of vessels shall be
subject to a tax of four and one-half percent (4 ½%) of gross rentals,
lease or charter fees from leases or charters to Filipino citizens or
corporations, as approved by the Maritime Industry Authority.
(4) Nonresident Owner or Lessor of Aircraft, Machineries and Other
Equipment. — Rentals, charters and other fees derived by a
nonresident lessor of aircraft, machineries and other equipment shall
be subject to a tax of seven and one-half percent (7 ½%) of gross
rentals or fees.
(5) Tax on Certain Incomes Received by a Nonresident Foreign Corporation.
—
(a) Interest on Foreign Loans. — A final withholding tax at the rate
of twenty percent (20%) is hereby imposed on the amount of
interest on foreign loans contracted on or after August 1, 1986;
(b) Intercorporate Dividends. — A final withholding tax at the rate
of fifteen percent (15%) is hereby imposed on the amount
of cash and/or property dividends received from a domestic
corporation, which shall be collected and paid as provided
in Section 57(A) of this Code, subject to the condition that
the country in which the nonresident foreign corporation is
domiciled, shall allow a credit against the tax due from the
nonresident foreign corporation taxes deemed to have been
paid in the Philippines equivalent to twenty percent (20%),
which represents the difference between the regular income
tax of thirty-five percent (35%) and the fifteen percent (15%)
National Internal Revenue Code of 1997 (as amended by the TRAIN Law, RAs 11256, 11346 and 11467)
35
Select target paragraph3
Connect to a paragraph
Connect to an entity
Disable highlights
Add to table of contents