FINAL WITHHOLDING
- 1. FINAL WITHHOLDING TAX ON PASSIVE INCOME RC NRC RA NRA- ETB NRA- NETB DC RFC NRFC Interest from currency deposits, trust funds and deposit substitutes(from atlst 20 persons), gov’t debt instrument (T bills) 20% (if not within the coverage, RIT) 25% 20% 20% 30% Interest income issued by bank from ST investment 20% 25% 20% 30% LT investment E E E E 25% 20% 30% HOLDING PERIOD RULE Pretermination of LT investments For Individuals only (RC NRA-ETB) 4yrs-less than 5yrs 5% 3yrs-less than 4yrs 12% Less than 3yrs 20% Interest Income from a (foreign currency deposit) Depository Bank under the Expanded Foreign Currency Deposit System (joint account on forex ½) 15% E 15% E E 15% 7.5% E Interest income from foreign banks, (bank or non bank) RIT E RIT E E RIT E Depository banks earn interest income from its own operation/forex transaction FCDU – division of domestic bank EFCDU – division of D/RF bank authorized EFCDS OBU – division of foreign bank FCDT Source Resident OBU, FCDU Resident, other banks Off shore/NR Income fr forex transactions E 10% E Income fr non forex transactions RCIT Royalties w/in (RIT if w/o) - book, literary & musical comp 10% 25% 20% 30% - not book 20% 25% 20% 30% Prizes - P10,000 or less RIT 25% - Over P10,000 sources within, if w/o -RIT 20% 25% RIT (di pa withheld) 30% Winnings sources within, if without RIT (PCSO and Lotto – dati exempt) 20% 25% RIT (di pa withheld) 30% Dividends from – Domestic Corp (except stock and liquidating dividends) Share in Net income of taxable JV Share in Net income of taxable Partnership 10% 20% 25% E E 15% 30% – RFC RIT E E E RIT E E Capital Gains fr sale of real prop in the Phil as cap ass 6% 6% RIT Net capital gains from sale of share directly to buyer 15% 5% and 10% 15% 5% and 10% Tax informer’s reward (violation of NIRC/discover smuggled goods) 10% of revenues, fees, imposed or 1M - LOWER