Taxation
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.