Southeast Asia
Philippines: tax at a glance
Progressive personal tax up to 35%. The corporate rate was cut to 25% under CREATE, and standard VAT sits at 12%. Resident aliens are taxed only on Philippine-source income.
Worldwide (residence-based)
Last verified
Ways to relocate to Philippines
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 35%Progressive, with a top rate of 35% above PHP 8m under the TRAIN Law. Resident citizens are taxed on worldwide income, while aliens are taxed only on Philippine-source income.
- Corporate income
- 25%
- Capital gains
- 6% on real property, based on gross value or fair market value. Unlisted shares are taxed at 15%, and listed shares carry a 0.6% stock transaction tax.
- VAT
- 12%
- Dividends (WHT)
- 10% for resident individuals. Non-residents pay 25%, reduced to 15% under tax sparing.
- Interest (WHT)
- 20% final withholding for residents.
- Royalties (WHT)
- 20%
- Social security (employee)
- Around 4.5% for SSS, plus PhilHealth and Pag-IBIG contributions.
- Social security (employer)
- Around 10% for SSS, plus PhilHealth and Pag-IBIG contributions.
- Wealth tax
- None
- Inheritance / estate
- A flat 6% estate tax.
- Property tax
- Real property tax of around 1-2% of assessed value, set locally.
- Other
- A 6% donor's (gift) tax, and a 3% percentage tax for non-VAT taxpayers.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
A special regime for new arrivals
Resident aliens and non-resident citizens are taxed only on Philippine-source income. Only Philippine citizens residing in the Philippines are taxed on worldwide income. That makes the Philippines genuinely territorial for foreign residents.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.