Source-cited draft: corporate income tax for Philippines (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
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Every figure is drawn from this Tax Guide and cited to its source.
Regular corporate income tax rate
25% of net taxable incomeNIRC Section 27(A), as amended by CREATE Act (RA 11534)View source ↗
Reduced rate for small domestic corporations
20% for domestic corporations with net taxable income not over PHP 5,000,000 AND total assets not over PHP 100,000,000 (excluding land on which the business is situated)NIRC Section 27(A), as amended by CREATE Act (RA 11534)
Resident foreign corporation rate
25% on Philippine-source net taxable incomeNIRC Section 28(A), as amended by CREATE Act (RA 11534)
Non-resident foreign corporation rate
25% final tax on gross Philippine-source incomeNIRC Section 28(B), as amended by CREATE Act (RA 11534)
Minimum corporate income tax (MCIT)
2% of gross income, from the 4th taxable year of operations, when it exceeds the regular CITNIRC Section 27(E), as amended by CREATE Act (RA 11534)
Tax base
Net taxable income (gross income less allowable deductions); resident corporations may elect the 40% Optional Standard Deduction in lieu of itemized deductionsNIRC Sections 31, 34
Dividends between domestic corporations
Dividends received by a domestic or resident foreign corporation from a domestic corporation are exempt from income taxNIRC Section 27(D)(4)
Withholding tax on dividends to non-resident foreign corporations
25% final WHT, reduced to 15% if the recipient's home country allows a tax-sparing credit (or does not tax the dividend)NIRC Section 28(B)(5)(b)View source ↗
Withholding tax on dividends to non-resident individuals
25% (NRA not engaged in trade/business); 20% for NRA engaged in trade or businessNIRC Sections 25(A)(2), 25(B)
Final tax on interest income
20% final tax on interest from ANY currency bank deposit, deposit substitute, trust fund or similar arrangement — standardised by RA 12214 (CMEPA), effective 1 July 2025. This INCLUDES foreign-currency (FCDU) deposits, which were previously taxed at 15%: a real rate increase for exporters and corporate treasury, not just peso deposits.RA 12214 (CMEPA); RR 21-2025. Corrected by Jonathan I. Ruiz (CPA, Philippines)
Final tax on royalties
20% final tax on royalties earned as passive income (domestic corporations)NIRC Section 27(D)(1)
Branch profit remittance tax
15% on profits remitted by a Philippine branch to its foreign head office. Settled — unchanged by CREATE, CREATE MORE and CMEPA. Treaty relief may reduce the rate where the head office is resident in a country with an applicable Philippine tax treaty.NIRC s.28(A)(5). Corrected by Jonathan I. Ruiz (CPA, Philippines)
Annual income tax return deadline
15th day of the 4th month after the close of the taxable year (15 April for calendar-year filers), BIR Form 1702-RT/1702-MX/1702-EXNIRC Section 52(C); BIR Form 1702
Quarterly corporate returns
BIR Form 1702Q filed within 60 days after the close of each of the first three quartersNIRC Section 75; BIR Form 1702Q
Rendered from the canonical facts model · method attested Jul 13, 2026 (covers the method, not the currency of individual figures). General reference only — confirm with a qualified professional before acting.
Corporate income tax is governed by the NIRC as amended by the CREATE Act (RA 11534) and CREATE MORE (RA 12066). The regular rate is 25%, with a reduced 20% rate for qualifying smaller domestic corporations.
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Review status
Accountant-reviewed
Reviewed by a named licensed practitioner against the stated sources, as general reference material.
Accountant-reviewed
Reviewed by Jonathan I. Ruiz CPA · 13 July 2026
Applicable period: 2025
A named accountant reviewed this complete Guide version within the stated scope. It is not a guarantee.
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