Other Percentage Taxes

Transaction/Entity Tax Rate Tax Base

Any person whose sales or receipts are exempt/not VAT-registered 3% Gross quarterly sales/receipts
Cooperatives 3% Gross receipts
Domestic carriers by land (except owners of bancas and animal drawn vehicle) and
3% Gross quarterly receipts
keepers of garage
International air carriers of cargo doing business in the Philippines from Philippines to
3% Gross quarterly receipts
another country
International shipping carriers of cargo doing business in the PH from PH to another
3% Gross quarterly receipts
country
Tax on Franchise
1. On radio and/or television broadcasting companies (annual gross receipts not
Gross receipts
exceeding 10M) 3%
2. On gas and water utilities 2%
Tax on overseas dispatch, message or conversation transmitted from the Philippines by
telephone, telegraph, wireless and other communication equipment services 10% Amount paid for the service
Exceptions: government, diplomatic services, international organizations, news services
Tax on banks and non banks financial intermediaries performing quasi-banking
functions:
1. Interest, commissions and discounts from lending activities as well as income
from financial leasing
Maturity is 5 yrs or less 5%
Gross receipts derived from
Maturity is more than 5 years 1%
sources within the Philippines
2. Dividends and equity shares in net income of subdiaries 0%
3. Royalties, rentals of property, real or personal profits from exchange and all
other items treated as gross income under Sec.32 7%
4. Net trading gains within the taxable year on foreign currency, debt securities,
derivatives and other similar financial instruments 7%
Tax on other non-bank finance intermediaries doing business in the Philippines, from
5% Gross receipts
interest, commissions and discounts from lending activities
Income from financial leasing
Maturity is 5 yrs or less 5% Gross receipts
Maturity is more than 5 yrs 1%
Tax on every person, company or corporation doing life insurance business in the
2% Total premium collected
Philippines
Tax on fire, marine or miscellaneous insurance agent authorized under the Insurance
Code to procure policies of insurance as he may have previously been legally
4% Total premium collected
authorized to transact on risks located in the Philippines for companies not authorized
to transact business in the Philippines
Owners of property obtaining insurance directly with foreign companies 5% Premiums paid
Amusement Taxes
1. Cockpits 18%
2. Cabarets, night or day clubs 18% Gross receipts of the proprietor,
3. Boxing exhibitions 10% lessee or operator of the
Where World or Oriental Championship in any division is at stake and at amusement place (may include
least 1 of the contender is a Filipino and the exhibitions are promoted by Exempt income from television, radio
a citizen or corporation at least 60% is Filipino owned and motion picture rights)
4. Professional basketball games 15%
5. Jail-Alai and racetracks 30%
Tax on Winnings
Amount of winnings (actual
1. Winnings or dividends in horse races 10%
amount paid to him after
2. Winnings from double, forecast/quinella and trifecta bets 4%
deducting the cost of the ticket)
3. Winnings of owners of winning race horses 10%
Tax on Sale, Barter or Exchange of Shares of Stock
1. Stocks listed and traded through the local stock exchange 0.5%
2. Stocks sold or exchanged through Initial Public Offering (IPO) in closely held
corporations Gross selling price or gross
value in money
Up to 25% of the total outstanding shares 4%
Over 25% but not over 33 1/3% 2%
Over 33 1/3% 1%
 Documentary Stamp Tax
Transaction Tax Rate Tax Base
Stamp tax on original issue of shares of stock
Par value
Par value shares 0.5%
Actual consideration for
No par value shares 0.5%
the issuance of the share
Stamp tax on sales, agreements to sell, memoranda of sale, deliveries or transfer of shares
Par value
Par value shares 0.375%
Documentary stamp tax
No par value shares 25%
paid upon original issue
Stamp tax on bonds, debentures, certificates of stock or indebtedness issued in foreign
countries
Stamp tax for certificates on profits or interest in property or accumulation of any
0.25% Face value of the certificate
company or corporation, association and on all transfers of such certificates
Stamp tax on bank checks, drafts, certificates of deposit not bearing interest, others P1.50 per instrument
Issue price of every
Stamp tax on all debt instruments 0.5%
instrument
# of days
If the term of the debt instrument is less than 1 yr Issue price
/365 days
Stamp tax on all bills of exchange or drafts 0.15% Face value of the bill/draft
Stamp tax upon acceptance of bills of exchange and others to be drawn in a foreign
0.15% Face value of the bill/order
country but payable in the Philippines
Face value of the bill/letter
Stamp tax on foreign bills of exchange and letters of credit 0.15%
of credit
Stamp tax on life insurance policies
Not exceeding P100,000 Exempt
Exceeds P100,000 but does not exceed P300,000 P10.00
Exceeds P300,000 but does not exceed P500,000 P25.00 Amount of the insurance
Exceeds P500,000 but does not exceed P750,000 P50.00
Exceeds P750,000 but does not exceed P1,000,000 P75.00
Exceeds P1,000,000 P100.00
Stamp tax on indemnity bonds 7.5% Premium charged
Stamp tax on certificates P15.00 Per certificate
Stamp tax on warehouse receipts P15.00 Per warehouse receipt
Stamp tax on Jai-Alai, Horse Race Tickets, Lotto or authorized number games
On each ticket P0.10
[plus] if the cost of the ticket exceeds P1.00, for every additional P1.00 P0.10
Stamp tax on bills of lading or receipts
On each set of bills of
Value of goods exceeds P100 but does not exceed P1,000 P1.00
lading/receipts
Value of goods exceed P1,000 P10.00
Stamp tax on proxies P15.00 Per proxy
Stamp tax on powers of attorney P5.00 Per POA
Stamp tax on leases and other hiring agreements
Amount of the contract per
First P2,000 P3.00
year
[plus] For every additional P1,000 P1.00
Stamp tax on mortgages, pledges and deeds of trust
Amount secured by the
Amount secured not exceeding P5,000 P20.00
mortgage, pledge or trust
[plus] for every P5,000 in excess of P5,000 P10.00
Stamp tax on deeds of sale and conveyance of real property Consideration contracted
Does not exceed P1,000 P15.00 to be paid for the realty or
[plus] for every additional P1,000 in excess of P1,000 of the consideration/value P15.00 its FMV, whichever higher
Same as
Stamp tax on assignments and renewals of certain instruments the original
issue