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Tax Review - - Coggle Diagram

- - - - Pre-Terminated
        
        GR - 5-12-20% Less than 3 years, 20%, 3-4 12, 4-5, 5
        
        XCPN - Non-resident alien not engaged - 25%
    - - Within PH
        
        Citizens (Inc. resident alien)- Tax bracket or, 8%
        
        Aliens -
        2a. If engaged, 20% FT
        2b. Not engaged - 25% FT
      - Without - Only resident citizens, 8% or tax bracket
  - - - More than -
        
        GR - 20%
        
        XCPN - NRNETB 25%
      - Less than -
        
        GR - Tax Bracket or 8%
        
        XCPN - NRNETB 25%
  - - - Foreign Corp in PH -
        
        GR - Tax Bracket or 8%
        
        XCPN - NRNETB - 25%
      - Foreign corp outside PH -
        
        Citizens -RT/8%
        
        Aliens - Exempt
  - - - In General - 6% FT
      - Sold to Government - 6% FT OR 8% Gross Sales OR Tax Bracket
      - Acquire new Principal Residence - Once every 10 tears only, with proceeds to be used within 18 months from date of disposition
        
        GR - Exempt
        
        XCPN - Non-resident aliens, 6%
  - - - Tax Rate prior to Create -
        
        34% in 1998
        
        33% in 1999
        
        32% in 2000-2005
        
        35 % in 2006-2008
        
        30% in 2009 & thereafter
        
        Special Corporations
        
        Domestic
        
        Private Schools/Non-profit Hospitals =
        
        Proprietary Stock/Non-Profit - 10% Income tax (Now 1% under CREATE)
        
        Proprietary Non-Stock/Profit OR Stock/Profit - 30% (Now 25% under CREATE)
        
        Exempt -
        
        Govt Educational institution
        
        non-Stock-Non-Profit - Exempt IF actually, directly, exclusively related with educ purpose.
        
        GOCCs/Instrumentalities
        
        Instrumentalities - exempt
        
        GOCCs - Exempt if, GSIS, SSS, PHIC, HDMF, LWD, otherwise 30%
        
        Resident Foreign Corporations
        
        International Carriers -
        
        GR - 2.5% on Gross PH Billings FT
        
        XCPN - Tax Treaty/Intl Agreement or Reciprocity provides for exemption.
        
        Offshore Banking Units (OBUs)/ Foreign Currency Deposit Units (FCDU) - Same rate as resident foreign, 20/25%
        
        Regional or Area Headquarters (RHQ) and Regional Operating Headquarters (ROHQ) -
        
        RHQ - Exempt
        
        ROHQ - 25% Income tax
        
        ROHQ v. RHQ
        
        Regional or Area Headquarters (RHQ) - Does not earn/derive income in the PH - A branch established in the Philippines by multinational companies and which headquarters do not earn or derive income from the Philippines and which act as supervisory, communications an coordinating center for their affiliates, subsidiaries, or branches in the Asia-Pacific Region and other foreign markets.
        
        Regional Operating Headquarters (ROHQ) - Multiinational derives/earns income in PH
        A branch established in the Philippines by multinational companies which are engaged in any of the following services: general administration and planning; business planning and coordination; sourcing and procurement of raw materials and components; corporate finance advisory services; marketing control and sales promotion; training and personnel management; logistic services; research and development services and product development; technical support and maintenance; data processing and communication; and business development.
        Sumisingil ako, earning siya.
        
        POGOs - 25% Income Tax
        
        Non-Resident Foreign Corporation -
        
        Exclusions Gross income of a non-resident foreign corporation DOES NOT include:
        
        Reinsurance premiums
        
        Capital Gains from Sale of Shares of Stock Not Traded in the Stock Exchange
        
        Special Rules:
        
        Nonresident Cinematographic Film Owner, Lessor or Distributor - 25% of gross income
        
        Nonresident Owner or Lessor Chartered by Philippine Nationals - 4.5% tax on gross rentals, lease or charter fees from leases or charters to Filipino citizens or corporations, as approved by the Maritime Industry Authority.
        
        Nonresident Owner or Lessor of Aircraft, Machineries and Other Equipment - 7.5% tax on gross rentals and fees
      - MCIT - Not available to NRFC
        
        1% (July 1 2020 - June 30, 2023) --> becomes 2% any other time.
      - BPRT - Applies only to resident-foreign,
        
        15% IF remitted connected to business OR applicable tax treaty
        
        Otherwise, 25% regular taxation
    - - Interest Income -
        
        Int. on any currency bank deposit/similar arrangements
        
        Interest FROM FCDU
        
        Interest from Foreign Loans
        
        Interest received by FCDU
        
        Interest Received by OBU
        
        Currency Bank Deposit/Any other monetary benefit from deposit substitutes -
        
        GR - 20%
        
        XCPN - NRFC, 25% Gross
        
        From FCDU -
        
        Domestic - 15%
        
        Resident Foreign - 15% (2021) / 7.5 FT prior
        
        Foreign Loans - Only NRFC, 25% Gross
        
        Received by FCDU -
        
        Received by OBU - OBU treated as RFC
      - Royalties -
        
        GR - 20% FT
        
        XCPN - Non-resident 30-34 (1998-2009) or, 25% General Rate
      - Dividends
        
        Domestic Sourced -
        
        GR - Exempt
        
        XCPN - Non-resident, General rate 25% effective Jan 1 2021 OR 15% FT
        
        Foreign-Sourced
        
        GR - Domestic - 0-34 (1998-2009) or, regular rate
        
        XCPN - Exempt if RR-5-2021
        
        RR-5-2021
        
        Domestic corporation must own at least 20% of the foreign corporation abroad for at least 2 years at the time of distribution → EXEMPT
        
        If foreign corporation has been in existence for less than 2 years, 20% since its existence
        
        Foreign Dividend na 10m pumasok 2021, dapat magamit ko by 2022 as reinvestment in the domestic corporation → EXEMPT
        
        If di ko magamit, TAXABLE IN YEAR OF RECEIPT 2021 → may penalty na.
      - Capital Gains
        
        Stock
        
        Ordinary Assets (Through local stock exchange) - 6/10 of 1%
        
        Capital Assets -
        
        GR - 15%, effective April 11 2021
        
        XCPN - prior to 2021, 5/10%
        
        Land
        
        Domestic - 6% FT
        
        Aliens - Subject to regular taxation