Amendments to Corporate Tax Rates

Non-resident corporations not engaged in business in the Philippines taxed at 35% on gross income from Philippine sources.
Excludes reinsurance premiums from premiums.
Resident foreign corporations engaged in business in the Philippines taxed like domestic corporations under subsection (a).

Life insurance companies taxed under the subsection yielding the higher tax.
Domestic companies taxed 8.75% on net investment income (gross investment income less investment expenses).
Exemption from income tax granted for three years from certificate issuance.
Foreign life insurance companies taxed 8.75% on net investment income from Philippine sources, calculated via a ratio of Philippine to world reserves.
Gross investment income includes rents, dividends, interest, and income outside the life insurance business.
Investment expenses include real estate expenses, depreciation (except related to underwriting), interest except on certain exempt indebtedness, and ordinary necessary investment expenses.

All corporations except those specifically exempt must pay tax rates as prescribed in this section.
Corporations, agencies, instrumentalities owned or controlled by the government, including GSIS and SSS, are subject to the tax except educational institutions.

Members of duly registered general co-partnerships or general professional partnerships are liable only in their individual capacity.
Their share of profits, distributed or not, must be declared and taxed accordingly.

Includes all income except those excluded under the law.
For dividends received by domestic corporations from other domestic corporations, only 25% of such dividends is taxable.

Insurance companies may deduct required reserve fund additions and sums paid on policy and annuity contracts.
Released reserves treated as income in the year of release.
Domestic life insurance companies and resident foreign life insurance companies must pay tax under Section 24(a) to claim these deductions.
Mutual marine insurance companies report gross premiums less reinsurance paid and may deduct returned premiums with associated interest.
Assessment insurance companies may deduct deposits made as guarantee or reserve funds.

Registered general co-partnerships or general professional partnerships must file income returns in duplicate.
Returns include gross income, allowed deductions, and partners' names, addresses, and shares.

Bonds or similar obligations with provisions for obligor to pay taxes require 25% withholding on interest or payments to nonresident aliens or citizens/residents.
Exemption possible for certain residents or citizens upon written claim.
Nonresident aliens not engaged in business subject to 25% withholding on income from Philippine sources except in certain dividend cases.
Nonresident foreign corporations not engaged in business subject to 35% withholding, including on remunerations for technical services.
Some exemptions for reinsurance premiums with foreign insurers not engaged in Philippine business.

Withholding agents must file quarterly returns and pay taxes withheld within 25 days post calendar quarter.
Taxes withheld treated as trust fund for the government.
Commissioner of Internal Revenue may require more frequent payments.
Annual statements to income recipients must be furnished by January 1 following the year.
Annual returns with summary of withholding and copies of statements must be submitted by January 31.
Returns may be verified with written declaration under penalty of perjury.
Income recipients include withheld income in returns, crediting withheld tax against their liability, with provisions for refund or payment of differences.
If tax is paid by recipient, it cannot be recollected from withholding agent, and penalties do not apply unless fraud is involved.

Includes partnerships, joint stock companies, joint accounts, associations, or insurance companies.
Excludes duly registered general co-partnerships or general professional partnerships.
General professional partnerships are formed solely for practicing a profession and derive no income from trade or business.