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.
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%
- 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
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.
Sources (1)
Frequently asked
What is the income tax rate in Philippines?
The top marginal personal income tax rate in Philippines is 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.
What is the corporate tax rate in Philippines?
The headline corporate income tax rate is 25%.
Does Philippines tax capital gains?
Capital gains for individuals: 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..