Philippines

Paying Taxes in

Philippines

Below is a detailed summary of the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures of administrative burden in paying taxes.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in 2013 (January 1, 2013 – December 31, 2013).

Compare Philippines to 188 other economies.

Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% profit) Notes on TTR
Corporate income tax 1 online filing 42 30% taxable profit 20.46
Local business tax 1 0.5% previous year turnover 8.84
Employer paid - Social security contributions 1 online filing 38 2.89% to 6.50% gross salaries 6.06
Real property tax 1 2% assessed property value 4.44
Employer paid - Health insurance 12 online filing 1.16% to 1.19% gross salaries 1.24
Employer paid - Housing development fund 12 online filing 2% or P100 per worker gross salaries 0.56
Tax on interest 1 online filing 20% interest 0.51
Employer paid - Employer's compensation 0 paid jointly P 30 per employee per month 0.17
Community tax certificate 1 P 10,500 fixed fee 0.08
Environmental tax 1 P 10,000 fixed fee 0.08
Vehicle tax 1 basic fee + 24% vehicle weight 0.04
BIR certificate 0 paid jointly P 500 fixed fee 0.00
Value added tax (VAT) 1 online filing 113 12% value added 0.00 not included
Tax on check transactions 1 online filing P 1.5 per check number of checks 0.00 small amount
Tax on insurance contracts 1 online filing P 0.5 per each P 4 insurance premium 0.00 small amount
Stamp duty 1 online filing various rates contract value 0.00 small amount
Employee paid - Social security contributions 0 paid jointly 1.33% to 2.98% gross salaries 0.00 withheld
Employee paid - Payroll tax 0 paid jointly 1.16% to 1.19% per employee per month 0.00 withheld
Employee paid - Housing development fund 0 paid jointly 2% or P 100 per worker gross salaries 0.00 withheld
Totals: 36.0 193.0 42.5

Notes:
Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

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