This document outlines creditable withholding tax rates that apply to various types of income payments in the Philippines. It provides withholding tax rates for professional fees, talent fees, rentals, contractors, income distributions, partnership income, real estate sales, additional government personnel income, credit card payments, supplier payments, interest income, and REIT income. It also lists some exemptions from creditable withholding tax, such as socialized housing projects, certain non-profit corporations, joint construction ventures, and low-income individuals. The withholding tax rates range from 1% to 15% depending on the type of income and amount.

1. INCOME PAYMENT SUBJECT TO CREDITABLE WITHHOLDING TAX
To resident individuals and corporations
Income payment to: Rate
1. Professional fees, talent fees, etc. for services
rendered by:
2. engaged in the practice of profession
3. Professional entertainers (actors, emcees
4. Professional athletes
5. directors and producers in movies, radio, television
and musical productions
6. Insurance agents and insurance adjusters
7. Management and technical consultants;
8. Bookkeeping agents and agencies;
9. Other recipients of talent fees;
10. directors who are not employees of the company
paying such fees, whose duties are confined to
attendance at and participation in the meetings of the
board of directors
11. certain brokers and agents
12. Commissions of independent and/or exclusive sales
representatives, and marketing agents of companies
Individual payees (before TRAIIN = 5%)
If the current year’s gross
income exceeds P720,000
5%
If gross income is more than
₱3M
10%
Non individual payees / taxable juridical
entities (before TRAIN = 10%)
If the current year’s gross
income is P720,000 and below
10%
If the current year’s gross
income exceeds P720,000
15%
Individual/
non
individual
payees
Higher % rule shall apply if:
1. the payee failed to provide the withholding agent of the
required declaration
2. the income payment exceeds 3M or 720K despite
receiving the sworn declaration from the income payee
Rentals
1. Real/Personal properties
2. Poles, satellites and transmission facilities
3. Billboards
4. Cinematographic film rentals and other payments
5%
Prime/sub contractors  General engineering contractors, General Building
contractors, Specialty Contractor
2%
Income distribution to the beneficiaries of estates and trusts (excluding those
subject to FWT)
15%
Income payments to partners of GPP Current year’s gross income is
P720,000 and below
10%
Current year’s gross income exceeds
P720,000
15%
Sale, exchange, or transfer of real
property classified as ordinary asset
 Seller is habitually engaged in the real
estate business
 Seller is not habitually engaged in the
real estate business
Sales of real property by a corporation
registered by (HLURB) or (HUDCC) as
engaged in socialized housing project
Exempt
Selling price: 500,000 or less 1.5%
More than 500,000 - 2M 3%
More than 2M 5%
6%
Additional income payments to government personnel from importers, shipping
and airline companies, or their agents
15%
Income payments made by credit card companies ½ of 1%
Income payment made by the government, TWA to:
Top Withholding agent Large taxpayers
Top 20,000 private corp
Top 5,000 individuals
Taxpayers identified and included as Medium Taxpayers, and
those under the Taxpayer Account Management Program (TAMP).
Supplier
of goods
1%
Supplier
of services
2%
Cumulative gross
sales/receipt
Complied w/ requirements
Don’t complied with
requirements (IF SILENT)
250,000 and below Exempt – no withholding
All amount subject to
withholding
Exceed 250,000 Excess of 250,000 subject to
withholding
Gross processing/tolling fees paid for the conversion of molasses to its by-products
and raw sugar to refined sugar
5%
Gross payments made by pre-need companies to funeral parlors for funeral
services rendered; embalmers for embalming services rendered to funeral
companies
1%
Income payments made to suppliers of
agricultural products
in excess of the cumulative
amount of ₱300,000 within the
same taxable year
1%
Income payments on purchases of minerals,
mineral products and quarry resources (silver,
gold, marble, granite, gravel, sand, boulders,
etc)
BSP, is required to withhold and
remit to government
5%
1%
 Income payments made by political parties and candidates of local and national
elections on all their purchase of goods and services related to campaign
expenditures
 Income payments made by individuals or juridical persons for their purchases of
goods and services intended to be given as campaign contributions to political
parties and candidates
5%
Interest income derived from any other debt instruments not within the coverage
of ‘deposit substitutes’
20%
Income payments to Real Estate Investment Trust (REIT) 1%
Exemption from Creditable Withholding Tax
1. Sales of real property by a corporation which is registered with and certified by the
Housing and Land Use Regulatory Board (HLURB) or the Housing and Urban
Development Coordinating Council (HUDCC) as engaged in socialized housing project
2. Corporations which are exempt from the income tax, and government-owned or
controlled corporations exempt from income tax: (GSIS), (SSS), (PHILHealth); and the
Local Water Districts (LWD). However, the income payments arising from any activity
which is conducted for profit or income derived from real or personal property shall be
subject to withholding tax as prescribed in these regulations
3. Joint ventures or consortium formed for the purpose of undertaking construction
projects or engaging in PEGCO
4. Individuals who earn ₱250,000.00 and below from a only income payor upon
compliance with requirements