Taxes in the Philippines

Tax	When is it paid?
a.) Income Tax – This would depend in the set-up of the business. i. Sole Proprietorship – Graduated income tax from 20% to 35% depending on the net income. ii. Partnerships and Corporations – Corporate Income Tax of 30% of the Net Income or Minimum Corporate Income Tax of 2% of the Gross Revenue.	Quarterly
b.) Value-added Tax (VAT) – 12% *Businesses with annual gross revenue not exceeding Php 3,000,000.00 is not required to register as a VAT entity, however, they will be required to pay for Percentage Tax of 3% of the Gross Revenue.	Monthly
c.) Local Government Business Taxes – This depends on the industry that the business is into. Usually it is 0.65% of the Annual Gross Revenue.	January of every year
d.) Real Property Taxes – This is paid for owning a real property in the Philippines, the usual rate is 2% of the assessed value of the property.	January of every year

Businesses are also required to withhold taxes on its employees salaries, this shall be remitted to the BIR on a monthly basis.

Read This : Tax Incentive in the Philippines

Capital Gains Tax – 6% of the Zonal Value or the Fair Market Value of the Property, whichever is higher.
Donor’s Tax – 6% of the amount of the donation.
Estate Tax – 6% of the value of the estate.