Income Payment	Tax Rate	Payee
Interest from peso bank deposit	20%	Citizen or resident alien individual Non-resident alien engaged in trade or business Domestic corporation Resident foreign corporation
	25%	Non-resident alien not engaged in trade or business
	33% in 1999 32% in 2000 and thereafter	Non-resident foreign corporation
Interest income from a depository bank under the foreign currency deposit system	7.5%	Resident citizen or alien individual Domestic corporation Resident foreign corporation
	Exempt	Non-resident alien Non-resident foreign corporation
Yield from deposit substitutes and trust funds; royalties, in general; prizes exceeding P10,000; other winnings, except PCSO and lotto winnings	20%	Citizen or resident alien individual Non-resident alien engaged in trade or business Domestic corporation Resident foreign corporation
	25%	Non-resident alien not engaged in trade or business
	33% in 1999; 32% in 2000 and thereafter	Non-resident foreign corporation
Royalties on books, other literary works and musical compositions	10%	Citizen or resident alien individual Non-resident alien engaged in trade or business
Interest income from long-term deposit or investment in savings, trust funds, deposit substitutes based on the length of time instrument was held by taxpayer	More than 5 years - Exempt 4 to 5 yrs. - 5% 3 to less than 4 yrs. - 12% Less than 3 yrs. - 20%	Citizen or resident alien individual Non-resident alien engaged in trade or business
Cash and/or property dividends from domestic corporation, joint stock company, insurance or mutual fund companies or share in distributable net income of partnership	6% in 1998; 8% in 1999 10% in 2000 and thereafter	Citizen or resident alien individual
	20%	Non-resident alien engaged in trade or business
	25%	Non-resident alien not engaged in trade or business
	33% in 1999; 32% in 2000 and thereafter	Non-resident foreign corporation
Sale, exchange or other disposition of real property located in the Philippines classified as capital asset	6% on the gross selling price or fair market value, whichever is higher	Citizen or resident alien Non-resident alien engaged in trade or business Non-resident alien not engaged in trade or business Domestic corporation
Compensation income, except income subject to fringe benefit tax	15%	Alien employees and Filipinos employees occupying the same position as those of alien employed by Regional or area headquarters Regional Operating headquarters Representative offices Offshore banking units Foreign Petroleum Service Contractors and Sub-contractors
Income derived from foreign currency transactions with residents, including local commercial banks, branches of foreign banks, and other FCDUs/OBUs	10%	FCDUs OBU
Profit remitted by Philippine branch, except those registered with PEZA, SBMA and CDA.	15%	Head office of foreign corporation
Gross income from all sources within the Philippines	25%	Non-resident cinematographic film owners, lessors or distributors
Gross rentals, lease and charter fees	4.5%	Non-resident owner of lessor of vessels from leases or charters to Filipino citizens or corporations
Gross rentals, charter and other fees	7.5%	Non-resident lessor of aircraft, machinery and other equipment
Interest on foreign loans contracted on or after August 1, 1986	20%	Non-resident foreign corporation
Dividends from a domestic corporation	15%	Non-resident foreign corporation
Fringe benefits granted or furnished by the employer	34% in 1998; 33% in 1999; 32% in 2000 and thereafter	Citizen or resident alien individual Non-resident alien engaged in trade or business
	25%	Non-resident alien not engaged in trade or business
Fringe benefits granted or furnished by the employer	15%	Alien employees and Filipinos employees occupying the same position as those of alien employed by Regional or area headquarters Regional Operating headquarters Representative offices Offshore banking units Foreign Petroleum Service Contractors and Sub-contractors
Informer’s reward	10%	Persons instrumental in the discovery of violations of Tax Code and discovery and seizure of smuggled goods

Income Payment/Payee	Tax Rate
Professional, promotional and talent fees for the services rendered by the following individuals Individuals engaged in the practice of profession Professional entertainers Professional athletes Directors in movies, stage, radio, television and musical productions Insurance agents and insurance adjusters Management and technical consultants Bookkeeping agents and agencies Other recipients of talent fees Fees of directors who are not employees of the company paying such fees, whose duties are confined to attendance at and participation in the meetings of the board of directors. (These payments were previously not subject to withholding.)	10%
Professional fees, talent fees or other forms of remuneration to taxable juridical persons	5%
Rentals paid to lessors of real property used in business (Previous minimum lease of P5,000 was deleted.)	5%
Cinematographic film rentals and other payments to resident individuals and corporate cinematographic film owners, lessors or distributors	5%
Gross payments to General engineering contractors General building contractors Specialty contractors Other contractors filling, demolition and salvage work contractors and operators of drilling apparatus operators of dockyards persons engaged in the installation of water system, and gas or electric light, heat or power operators of stevedoring, warehousing or forwarding establishments transportation contractors printers, bookbinders, lithographers and publishers messengerial, janitorial, private detective and/or security agencies, credit and/or collection agencies and other business agencies advertising agencies independent producers of television, radio and stage performances or shows independent producers of "jingles" labor recruiting agencies	1%
persons engaged in the installation of elevators, air conditioning units, computer machines and other equipment and machineries and maintenance services thereon; persons engaged in the sale of computer services, landscaping services and collection and disposal of garbage TV and radio station operators on sale of TV and radio airtime TV and radio blocktimers on sale of TV and radio commercial spots.
Income distribution to beneficiaries of estates and trusts, except such income subject to final withholding tax and tax-exempt income	15%
Gross commissions to customs, insurance, real estate and commercial brokers and fees of agents of professional entertainers	5%
Drawings, advances, sharings, allowances, stipends and other payments made by a general professional partnership to its partners	10%
Professional fees paid to medical practitioners by hospitals and clinics or by patients through the hospital or clinic	10%
Gross selling price or total amount of consideration for the sale, exchange or transfer of real property, other than capital assets, by an individual, corporation, estate, trust, trust fund or pension fund
if habitually engaged in the real estate business P500,000 or less	1.5%
More than P500,000 but not exceeding P2 M	3.0%
More than P 2 Million	5.0%
Not habitually engaged in the real estate business	7.5%
Additional income payment to government personnel for overtime services from importers, shipping and airline companies, or their agents	15%
Gross amounts paid by credit card company to any business entity, natural or juridical person, representing sales of goods/services made to cardholders	½%
Income payments made by any of the top 5,000 corporations to their local supplier of goods	1%
Income payments made by a government office on their purchases of goods from local suppliers, except any single purchase which is P10,000 and below	1%