Philippines Tax Treaty

Share this Article
Facebook Icon LinkedIn Icon Twitter Icon


United States-Philippines Tax Treaty

Philippines International Tax Compliance Rules

Quick Summary.  Located off the southeastern coast of Asia in the Pacific Ocean, the Republic of the Philippines is an archipelagic country with its capital at Manila.  The Philippines is located on the Pacific Ring of Fire and is the hold’s fifth largest island country.  

The Philippines is a constitutional republic with a presidential system.  Its constitution provides for a bicameral parliament composed of a Senate and House of Representatives.  The judiciary serves as an independent branch and judicial power is vested in a Supreme Court.    

The tax of the Philippines are primarily derived from the National Internal Revenue Code of 1997 and regulations, as well as the Local Government Code of 1991, and the Tariff and Customs Code.

U.S.-Philippines Tax Treaty

The Philippines is a member of the United Nations and World Trade Organization.  

Philippines Tax Treaty. Convention between the Government of the United States of America and the Government of the Republic of the Philippines with Respect to Taxes on Income, signed at Manila on October 1, 1976

Currency.  Philippine Peso (PHP)

Common Legal Entities.  Corporation , partnership, sole proprietorship, regional headquarters , regional operating headquarters, and branches.  

Tax Authorities.  Bureau of Internal Revenue

Tax Treaties.  The Philippines is party to approximately 43 tax treaties.  

Corporate Income Tax Rate.  30%

Individual Tax Rate35%

Corporate Capital Gains Tax Rate.  Generally subject to ordinary income rates; however, certain exceptions exist.  

Individual Capital Gains Tax Rate. Generally subject to ordinary income rates; however, certain exceptions exist.

Residence.  Citizens are generally deemed tax residents.  In addition, residence is established generally when an individual is physically present for more than 180 days.  

Withholding Tax.

            Dividends. 30%

            Interest. 20%

            Royalties. 30%

Transfer Pricing.  The Philippines generally follows OECD guidelines.  

CFC Rules.  No.  

Hybrid Treatment.  No.  

Inheritance/estate taxNo.  

Tax Treaty Network – International Tax Attorneys

Our international tax expertise allows us to guide clients through tax planning and compliance so that they can focus on what matters most. At Freeman Law, our clients are engaged in an interconnected business environment that spans across the globe.  From supply chains to markets, cross-country taxation impacts every global business.

Do you have questions about PhilippinesTax Treaties? Schedule a consultation with one of Freeman Laws International Tax Experts Today!