Question & AnswerQ&A (Republic Act No. 5431)
The tax rate for domestic corporations with taxable net income not exceeding 100,000 pesos is 25%.
The tax rate is 35% on the amount by which the taxable net income exceeds 100,000 pesos.
No, private educational institutions (other than those exempt under Section 27(e)) shall pay a tax of 10% of their taxable net income.
Building and loan associations operating under the General Banking Act shall pay a tax of 12% on their taxable net income.
They shall pay a tax equal to 35% of the gross income received from all sources within the Philippines.
Domestic life insurance companies are taxed at 8.75% on net investment income and are exempt from income tax for three years from issuance of their certificate of authority.
It is the portion of their gross world investment income proportional to their total Philippine reserve relative to total world reserve, less the proportional portion of investment expenses.
No, general professional partnerships are not subject to corporate income tax; the individual partners are liable for income tax in their individual capacities.
The obligor must withhold a tax equal to 25% of the interest or payment.
They must file a duplicate return of income showing gross income, deductions, and names, addresses, and shares of the partners, except income exempt under Section 29(b).
Taxes withheld must be covered by a quarterly return and paid within 25 days from the close of each calendar quarter.
Withholding is not required if the individual files a signed notice claiming exemption under Section 23 before February 1.
Only 25% of such dividends shall be returnable for purposes of tax in the paragraphs of Section 24(a).
The term 'corporation' includes partnerships, joint stock companies, joint accounts, associations, or insurance companies, but excludes duly registered general co-partnerships and general professional partnerships.