INDIVIDUAL
A. Taxpayer and Tax Base
1. Citizen
a. Resident Citizen (RC) – RR 31-2013 - Taxable on all income derived from WITHIN and WITHOUT the Philippines
b. Non-resident Citizen (NRC) - Taxable only on income derived from sources within the Philippines
2. Alien
a. Resident Alien (RA) - Taxable only on income derived from sources within the Philippines
b. Non-resident Alien
1. Engaged in Trade or Business - Taxable only on income derived from sources within the Philippines
*Considered as engaged if:
i. NRA is Engaged in trade or business;
ii. NRA is in the practice of profession;
iii. NRA came to the Philippines and stayed for an AGGREGATE period of more than one hundred eighty (180) days during any CALENDAR YEAR.
2. Not Engaged in Trade or Business-Taxable only on income derived from sources within the Philippines
c. Special Types of Alien
Tax on aliens employed by regional operating headquarters of multinationals, offshore banking units, petroleum service contractor or subcontractor
CORPORATION
A. Classification
1. Domestic Corporation
2. Foreign Corporation
a. Resident Foreign - Taxable only on income derived from sources within the Philippines
b. Non-resident Foreign - Taxable only on income derived from sources within the Philippines
B. Income taxes
1. Regular corporate income tax
2. Minimum corporate income tax (RR 9-98, 12-2007; RMC 4-2003, 24-2008)
3. Optional corporate income tax
4. Improperly accumulated earnings tax (RR 2-2001; RMC 35-2011)
C. Special corporations
1. Domestic (proprietary educational institution, non-profit hospitals, government owned or controlled corporation, etc.)
2. Resident foreign (international carriers, offshore banking units, regional operating headquarters of multinationals, branch profits remittances) RR 15-2013
Non-resident foreign (lessors of equipment, aircraft and machinery; owners of vessels chartered by Philippine nationals, lessor, distributor or owner of cinematographic films)
A. Taxpayer and Tax Base
1. Citizen
a. Resident Citizen (RC) – RR 31-2013 - Taxable on all income derived from WITHIN and WITHOUT the Philippines
b. Non-resident Citizen (NRC) - Taxable only on income derived from sources within the Philippines
2. Alien
a. Resident Alien (RA) - Taxable only on income derived from sources within the Philippines
b. Non-resident Alien
1. Engaged in Trade or Business - Taxable only on income derived from sources within the Philippines
*Considered as engaged if:
i. NRA is Engaged in trade or business;
ii. NRA is in the practice of profession;
iii. NRA came to the Philippines and stayed for an AGGREGATE period of more than one hundred eighty (180) days during any CALENDAR YEAR.
2. Not Engaged in Trade or Business-Taxable only on income derived from sources within the Philippines
c. Special Types of Alien
Tax on aliens employed by regional operating headquarters of multinationals, offshore banking units, petroleum service contractor or subcontractor
CORPORATION
A. Classification
1. Domestic Corporation
2. Foreign Corporation
a. Resident Foreign - Taxable only on income derived from sources within the Philippines
b. Non-resident Foreign - Taxable only on income derived from sources within the Philippines
B. Income taxes
1. Regular corporate income tax
2. Minimum corporate income tax (RR 9-98, 12-2007; RMC 4-2003, 24-2008)
3. Optional corporate income tax
4. Improperly accumulated earnings tax (RR 2-2001; RMC 35-2011)
C. Special corporations
1. Domestic (proprietary educational institution, non-profit hospitals, government owned or controlled corporation, etc.)
2. Resident foreign (international carriers, offshore banking units, regional operating headquarters of multinationals, branch profits remittances) RR 15-2013
Non-resident foreign (lessors of equipment, aircraft and machinery; owners of vessels chartered by Philippine nationals, lessor, distributor or owner of cinematographic films)