FINAL WITHHOLDING

1. FINAL WITHHOLDING TAX ON PASSIVE INCOME
RC NRC RA NRA-
ETB
NRA-
NETB
DC RFC NRFC
Interest from currency deposits, trust funds and
deposit substitutes(from atlst 20 persons), gov’t debt
instrument (T bills)
20% (if not within the coverage, RIT) 25% 20% 20% 30%
Interest income issued by bank from ST investment 20% 25% 20% 30%
LT investment E E E E 25% 20% 30%
HOLDING PERIOD RULE  Pretermination of LT
investments
For Individuals only (RC  NRA-ETB)
4yrs-less than 5yrs 5%
3yrs-less than 4yrs 12%
Less than 3yrs 20%
Interest Income from a (foreign currency deposit)
Depository Bank under the Expanded Foreign
Currency Deposit System (joint account on forex ½)
15% E 15% E E 15% 7.5% E
Interest income from foreign banks, (bank or non
bank)
RIT E RIT E E RIT E
Depository banks earn interest income from its own
operation/forex transaction
FCDU – division of domestic bank
EFCDU – division of D/RF bank authorized  EFCDS
OBU – division of foreign bank  FCDT
Source
Resident OBU, FCDU Resident, other banks Off shore/NR
Income fr forex
transactions
E 10% E
Income fr non forex
transactions
RCIT
Royalties w/in (RIT if w/o) - book, literary & musical
comp
10% 25% 20% 30%
- not book 20% 25% 20% 30%
Prizes - P10,000 or less RIT 25%
- Over P10,000 sources within, if w/o -RIT 20% 25% RIT (di pa withheld) 30%
Winnings sources within, if without RIT
(PCSO and Lotto – dati exempt)
20% 25% RIT (di pa withheld) 30%
Dividends from – Domestic Corp
(except stock and liquidating dividends)
 Share in Net income of taxable JV
 Share in Net income of taxable Partnership
10% 20% 25% E E
15%
30%
– RFC RIT E E E RIT E E
Capital Gains fr sale of real prop in the Phil as cap ass 6% 6% RIT
Net capital gains from sale of share directly to buyer 15% 5% and 10% 15% 5% and 10%
Tax informer’s reward (violation of NIRC/discover
smuggled goods)
10% of revenues, fees, imposed or 1M -
LOWER