• All other taxable income earned by domestic and resident foreign corporations is subject to a 20% final withholding tax. However, Regional operating headquarters are taxed at 10% on taxable income. Special economic zone enterprises duly registered with the Philippines Economic Zone Authority are taxed at the rate of 5% on gross income.
• The net capital gains from the sale of shares of stock of a domestic corporation are taxed on a per transaction basis at the rate of 5% on the first PhP 100,000 and 10% in excess of said amount. On the other hand, the sale of shares of stock of a domestic corporation through the Philippine Stock Exchange or through the initial public offering is subject to a percentage tax on the transaction at the rate of 0.5% of the selling price.
• The sale of land, building and other real properties classified as capital asset is subject to 6% final capital gains tax based on the gross selling price.
• Any branch profit to be remitted to the Head Office is additionally taxed at the rate of 15%.
Value Added Tax/ Sales Tax
A 12% value added tax (VAT) of the gross selling price is imposed to all importation, sale, barter, exchange or lease of goods or properties and sale of services.
The term ‘Gross selling price’ means the total amount of money or its equivalent that the purchaser pays or is obligated to pay to the seller in consideration of the sale, barter or exchange of the goods or properties, excluding the value added tax. 3 Dividends received by non-resident foreign corporations from domestic corporations are subject to a final tax of 30 %.