DOMESTIC CORPORATION

NIRC TRAIN
Category
Rate Example Rate Example
Taxable income rom all sources Taxable income rom all sources
A Net Income Tax WITHIN and WITHOUT by a 30% SMDC 's rental earnings WITHIN and WITHOUT by a 30% SMDC's rental earnings
corporation existing under PH Laws corporation existing under PH Law
Preferential rate on their taxable Preferential rate on their taxable UST's earnings from
UST's earnings from matriculation
income except under 27(D); income except under 27(D); matriculation
Proprietary Educational
B provided that gross income from 10% provided that gross income from 10%
Institutions and Hospitals (NIT) UST Hospital's earnings from out- UST Hospital's earnings from
unrelated activity is NOT > 50% of unrelated activity is NOT > 50% of
patients out-patients
their total gross income their total gross income
GR: Subject to income tax 30% NAPOCOR GR: Subject to income tax 30% NAPOCOR
C GOCCs (NIT) EXCEPT: GSIS, SSS, PHIC, LWDs,
EXEMPT Tanza Water District EXCEPT: GSIS, SSS, PHIC, and LWDs EXEMPT Tanza Water District
PCSO

Final tax on interst income on bank

Final tax on intersts on bank
deposits/deposit subs./trust funds 20% SMDC's 1B-peso deposit in BDO 20% SMDC's 1B-peso deposit in BDO
deposits/deposit subs./trust funds
from sources within
Interests from Deposits

Final tax on Interst income from a Final tax on Interst income from a
7.5% SMDC's $100M deposit in BDO 15% SMDC's $100M deposit in BDO
foreign currency deposit foreign currency deposit
SMDC's royalties from its SMDC's royalties from its
Final tax on royalties from souces Final tax on royalties from souces
Royalties 20% patented utility model of light 20% patented utility model of light
within within
boxes boxes
Capital Gains from sale of shares of Not Over P100,000 = 5%
D Final Tax on net capital gains from SMDC's sale of 500K shares in Final Tax on net capital gains from SMDC's sale of 500K shares in
stock NOT traded in the stock 15%
sale, etc. of shares of stock in DC Ayala Corp. sale, etc. of shares of stock in DC Ayala Corp.
exchange In Excess of P100,00 = 10%

Dividends received by a DC from SMDC's dividends from Ayala Dividends received by a DC from SMDC's dividends from Ayala
Intercorporate Dividends EXEMPT EXEMPT
another DC Corp. another DC Corp.

Final tax on the gain presumed to Final tax on the gain presumed to
have been realized on sale, etc. of have been realized on sale, etc. of
Capital gains from sale of land/buildings NOT actually used in SMDC sold a building never used land/buildings NOT actually used in SMDC sold a building never
6% 6%
lands/buildings the business and are capital assets, in its business the business and are capital assets, used in its business
based on GSP or FMV, w/c ever is based on GSP or FMV, w/c ever is
higher. higher.
Tax on gross income on the 4th Tax on gross income on the 4th
Suppose SMDC commenced Suppose SMDC commenced
taxable year immediately following taxable year immediately following
operations in 2012. In 2017, its operations in 2012. In 2017, its
E MCIT the year in w/c the corporation 2% the year in w/c the corporation 2%
income tax due is 30M when NIT income tax due is 30M when
commenced its operation, when commenced its operation, when
but 40M when MIT NIT but 40M when MIT
MCIT is > than NIT MCIT is > than NIT
SMDC's undistributed URE of SMDC's undistributed URE of
29 IAET In addition to other income taxes 10% In addition to other income taxes 10%
Php30B Php30B