Corporate Income Tax
A domestic corporation is taxed on its net income (gross income less allowable deductions) from all sources at the rate of 30 per cent. A resident foreign corporation, such as a branch, is taxed only on its net income from Philippine sources at 30 per cent, the same rate as a domestic corporation.
A non-resident foreign corporation is subject to final withholding tax on its gross income (without the benefit of deductions) from Philippine sources at the rate of 30 per cent.
A foreign corporation is considered a resident when it is engaged in trade or business in the Philippines and is licensed by the Philippine Securities and Exchange Commission (SEC) to engage in trade or business in the Philippines.