PERSONS,

PROPERTIES,
OR ENTITIES
SUBJECT TO
TAXATION
 Who 1. Individuals
should 2. Corporations
pay taxes? 3. State under judicial
settlement
4. Trust irrevocable both
as to the trust property
and as to the income
1. Individuals a. Resident – taxable on all income derived from
sources within and without the Philippines

b. Non-resident - taxable only on income

derived from sources within the Philippines

c. Resident aliens - an individual whose

residence is within the Philippines and who is not a
citizen thereof.

d. Non-resident aliens - an individual whose

residence is not within the Philippines and who is not a
citizen thereof.
2. Corporations a.Domestic corporations - an income tax
of thirty-five percent (35%) is hereby imposed upon the
taxable income derived during each taxable year from
all sources within and without the Philippines by every
corporation, as defined in Section 22(B) of this Code
and taxable under this Title as a corporation, organized
in, or existing under the laws of the Philippines:

b.Foreign corporations - a corporation

organized, authorized, or existing under the laws of
any foreign country, engaged in trade or business
within the Philippines, shall be subject to an income tax
equivalent to thirty-five percent (35%) of the taxable
income derived in the preceding taxable year from all
sources within the Philippines
 Who or • Article VI Section 28 Paragraph 3

what are
Charitable institutions, churches, parsonages or
convents appurtenant thereto, mosques, and on

exempted in profit cemeteries and all lands, buildings and

improvement actually, directly and exclusively
paying use for religious, charitable or educational
purposes.
taxes? • Article XVI Section 4
Non-stock nonprofit educational institutions use
actually, directly and exclusively for educational
purposes
 • Exempted to tax as stated in the Article 283 of
Who or Rules an Regulation Implementing Local

what are Government Code of 1991(RA 7160):

exempted in
Local water districts
Cooperatives duly registered under RA 6938,
paying otherwise known as the cooperative Code of the
Philippines
taxes? Non-stock nonprofit hospitals and educational
institutions
Printer and/or publisher of books or other
reading materials prescribed by DepEd as
school texts ore references insofar as receipts
from the printing and/or publishing thereof are
concerned
Properties 1. Income Tax on Individual Citizen and Individual
Resident Alien of the Philippines.

subject to 2. Certain Passive Income :

taxation
a) Interests, Royalties, Prizes, and Other Winnings
b) Cash and/or Property Dividends
c) Capital Gains from Sale of Shares of Stock not Traded
in the Stock Exchange
d) Capital Gains from Sale of Real Property.
Income tax
rates