type of taxes paper
TRANSCRIPT
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TYPE
OF
TAXES
COUNTRIES
PHILIPPINES CHINA VIETNAM TH
INCOM
E TAX
Income of the residents of the Philippines is
taxed progressively up to the rate of 32%
TaxableIncome Tax
RatePhP 0 - PhP 10,000: -
5%PhP 10,000 - PhP 30,000: PhP
500 10%PhP 30,000 - PhP 70,000: PhP
2,500 15%PhP 70,000 - PhP 140,000: PhP
8,500 20%PhP 140,000 - PhP 250,000: PhP
22,500 25%PhP 250,000 - PhP 500,000: PhP
50,000 30%Over PhP 500,000: PhP
125,000 32%
The above rates also apply to individualswho derive income from business (including
capital gains from the sale transfer orexchange of shares in a foreign corporation)
or from the practice of a profession.
Individuals occupying managerial and highly
Income of the residents of the CHINA is taxed
progressively up to the rate of 32%
CHINA INDIVIDUAL INCOME TAX(montly)Taxable Income Tax Rate %
CNY 0-500 5%
CNY 501-2,000 10%CNY 2,001-5,000 15%CNY 5,001-20,000 20%CNY 20,001-40,000 25%CNY 40,001-60,000 30%CNY 60,001-80,000 35%CNY 80,001-100,000 40%Above CNY 100,000 45%
* Monthly taxable income =salaries/wages/allowances fixed monthlydeduction.
* Monthly tax payable = [(taxable income tax rate) quick calculation deduction].* Personal fixed monthly deduction to
individual Chinese taxpayer is Rmb 2,000(Rmb 1,600 before 1 March 2008).
* Those taxpayers who are not domiciled inChina but derive wages and salaries from
VIETNAM INDIVIDUAL INCOME TAX
Taxable Income per year (VND)
Tax
rate
VND 0 - 60,000,000
5
%
VND 60,000,000 - 120,000,000 10%
VND 120,000,000 - 216,000,000 15%
VND 216,000,000 - 384,000,000 20%
VND 384,000,000 - 624,000,000 25%
VND 624,000,000 - 960,000,000 30%
Above VND 960,000,000 35%
Residents - Other tax rates on residentindividualsIncome from capital investment,
THAILAND INDIVID
TAX(annual)Taxable Income (B
0 - 150,000
150,001 - 500,000
500,001 - 1,000,00
1,000,001 -
4,000,000
4,000,001 and ove
Basis Thailanonresidents Thailand-souresidents ar
foreignsourceincome is brou
the year it is delater years is ex
inco
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technical positions employed by RHQs,ROHQs, multinational companies, offshore
business units and petroleum servicecontractors/subcontractors are taxed at 15%
on their gross income.TAXABLE INCOME
RESIDENT CITIZENSResident citizens of the Philippines are taxedon all their net income derived from sources
within and without the Philippines.
ALIEN INDIVIDUALSAn alien individual, whether a resident or notof the Philippines, is taxable only on incomederived from sources within the Philippines.
Resident aliens are taxed in the samemanner as resident citizens on income
sourced within the Philippines.
Tax is generally withheld in sufficientamounts from salary and wages to satisfy
the final tax liability. If not, then the balancemust be paid when filing the return, which is
required on or before 15 April of the yearfollowing the year of income. In some cases,income tax liability may be paid in two equal
installments.
Basis Resident citizens are taxed onworldwide income; resident aliens and
nonresidents pay tax only on Philippine
sources in China are entitled to a totalstatutory deduction of Rmb 4,800 per
monthBUSINESS INCOME
Net income derived from production andbusiness operations by industrial or
commercial households (i.e. annual grossincome less business costs, expenses andlosses) shall be taxable at the following
rates:
Annual taxable income (Rmb) Tax rate(%)
0 5,000 55,001 10,000 1010,001 30,000 2030,001 50,000 3050,001 or above 35
OTHER TAXABLE INCOME FOR IITPURPOSE
(a) Net income derived from royalties,remuneration for labour services or
manuscripts, and income from lettingproperty. That is:
(i) Where the income from a singlepayment does not exceed Rmb 4,000(ii) Net income = Gross income Rmb
800
copyright and franchiseactivities 5%Income from transfer ofcapital
20%Income from transfer of realestate
25%
Non-residents - Other tax rates on non-resident individualsIncome from business and productionofgoods 1%Income from business and productionofservices 5%Manufacturing, construction, transport
and other activities 2%Salary andwages
20%Income from capitalinvestment
5%Transfer ofcapital
0.1%Transfer of realestate
2%
Residence An in Thailand for ppurposes if presmore in a given
Tax Filing status
may opt for aassessment on eIf the wife derivmust be includreturn even if t
file se
Taxable incomincome, includin
related benepersonal incomefrom the carry
profession genethe personal i
Dividends and isource at a raterespectively. An
not to reportincome on th
income tax retuBasis Thailanonresidents Thailand-souresidents ar
foreignsource
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source income. However, foreign individualscan avail themselves of preferential tax
treatment or may be exempt from incometax under applicable tax treaties, subject to a
confirmatory ruling from the BIR.
Residence All citizens are ordinarily
considered resident unless they meet therequirements to be deemed nonresident.
The residence of foreign workers is generallyestablished when the aggregate length of
stay in any calendar year exceeds 180 days.
Tax Filing status Married couples in thePhilippines who do not derive income purelyfrom compensation always must file a joint
income tax return.
Taxable income Taxable personal income
is all income less allowable deductions andpersonal exemptions. It includes
compensation, business income, capitalgains (arising from the sale of real propertyand share transactions), dividends, interest,rents, royalties, annuities, pensions and a
partner's distributive share of the net incomeof general professional partnerships.
Minimum wage earners (MWEs) are exemptfrom the payment of income tax on their
taxable income. Holiday pay, overtime pay,night shift differential pay and hazard pay
received by such MWEs also is exempt.
(iii) Where the income from a singlepayment exceeds Rmb 4,000
(iv) Net income = Gross income 80%.(b) Net income derived from the assignmentof property (i.e. the gain from assignmentless the original value of the property and
reasonable expenses).
(c) Gross income derived from interest,dividends and bonuses, or contingency
income and other income. Such income istaxed at a flat rate of 20%.
Basis A resident individual, i.e. anindividual "domiciled" in the Chinese
Mainland, is subject to individual income taxon his/her worldwide income. Most
nonresidents or residents of less than 1 yearare subject to personal tax only on income
sourced in China. Non-domiciled individualsstaying in China for more than 1 year butless than 5 consecutive full tax years are
subject to individual income tax onChinasource income, plus foreign income
actually borne by Chinese entities orestablishments.
Non-domiciled individuals staying in Chinafor more than 5 consecutive full tax years
are taxed on worldwide income.
Residence
The test for residence in China
Copyright and franchiseactivities
5%Lottery wins, inheritance and giftswhich are securities, capital orassets 10%
All residents and non-residents aresubject to Personal Income Tax inVietnam.
A resident is liable to pay tax on incomesourced in Vietnam as well as on theportion of income from foreign sources(except for non-taxable income,includingincome from real estate transferredbetween a husband, wife and blood-relations,
scholarships, and overseasremittances).
Deductions are available for familyconsiderations for residents, comprisingchildrenunder 18, unemployed spouses andelderly and unemployed parents.
Individuals are responsible for self-declaration and payment of tax.
Tax Basis
Vietnamese residents are
income is brouthe year it is delater years is ex
inco
Residence An in Thailand for p
purposes if presmore in a given
Tax Filing statusmay opt for a
assessment on eIf the wife derivmust be includreturn even if t
file se
Taxable incom
income, includinrelated bene
personal incomefrom the carry
profession genethe personal i
Dividends and isource at a raterespectively. An
not to reportincome on th
income tax retu
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is whether an individual is usually orhabitually residing in China due to
household, family or economic involvement.
Filing status Each individual must file aseparate return; joint filing is not permitted.
All individuals, except for PRC nationals,generally must register with the Chinese taxauthorities as soon as they become liable to
individual income tax.
Taxable income Taxable income comprisesemployment income; production and
business income; income derived fromcontracting for, or leasing operations of,enterprises or institutions; dividends andbonuses; interest income (except interest
from bank deposits); royalty income;
income from leasing property; income fromthe assignment or transfer of property;contingency income; unemployment
insurance premiums paid by an enterprise inexcess of the premium rates specified by
law; and other income specified as taxableby the finance department of the State
Council
taxed on their worldwide income;nonresidents are taxed only onVietnamese-source income.
Residence An individual is resident ifhe/she: (1) spends 183 days or more inthe aggregate in a 12-month period in
Vietnam starting from the date theindividual arrives in Vietnam; (2)maintains a residence in Vietnam; or (3)has leased a residence for 90 days ormore in a tax year.
Tax Filing status Individuals must fileseparate tax returns; joint tax filing isnot permitted.
Taxable income Employment income,including most employment benefits, is
taxable. As from 1 January 2009,dividends (except for governmentbonds), interest (except for bankdeposits and life insurance), capitalgains from securities trading, privatebusiness income and other income fromfranchising, inheritance, the transfer ofland use rights, and gifts/winnings orprizes are taxable in Vietnam. Profitsderived from the carrying on of a tradeor profession generally are taxed in thesame way as profits derived by
companies.
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Corpor
ate
Tax
Philippines Corporate Tax
Corporate income tax rate both for domesticand resident foreign corporations inPhilippines is 30%.
Company tax is payable by domestic
companies on all income derived fromsources within and without the Philippines.Foreign corporations, whether resident ornonresident, are taxable only on incomederived from sources within the Philippines.
However, non-resident foreign corporationsare, in certain circumstances, subject to afinal withholding tax on passive (investment)incomes at rates generally higher than theapplicable tax rates applying to domestic andresident foreign corporations. Resident
companies are those that are created ororganised under the laws of the Philippinesor foreign companies duly licensed toengage in trade or business in thePhilippines.
The corporate income tax rate both fordomestic and resident foreign corporations is30% based on net taxable income. Excludedfrom the income tax are dividends receivedfrom domestic corporations; interest onPhilippine currency bank deposit and yield or
any other monetary benefit from deposit
China Corporate Tax
The standard corporate income tax rate inChina is 25%. A special tax rateof20% applies to small-scale enterprises,also a special 15% tax rate applies tostate-encouraged new high-technology
enterprises.
FEDERAL TAXES AND LEVIES
ENTERPRISE INCOME TAX (EIT)
The passage of the Unified CorporateIncome Tax Law ('the New Law') on 16March 2007 unified the income tax rate fordomestic enterprises and foreign investedenterprises (FIEs) and streamlined tax
incentives effective from 1 January 2008. AllFIEs (i.e. sino-foreign joint ventures andwholly owned foreign enterprises) andforeign enterprises (FEs) with or withoutestablishments in China are now taxed atthe same as domestic enterprises.Enterprise Income Tax is charged at therate 25% on taxable profits in a calendaryear.
Subject to a preferential tax rate of 20% forqualified enterprises with small profits, both
domestic companies and foreign invested
Vietnam Corporate Taxation
The general corporate income tax ratein Vietnam is 25%.
Tax rate for enterprises operating in theoil and gas and other precious natural
resources sectors ranges from 32% to50%, depending on the project.
In 2009, small and medium sizedenterprises (with charter capital of lessthan VND10 billion or fewer than 300employees) were entitled to a reductionof 30% of their Corporate Income Tax.Other exemptions or reductions inCorporate Income Tax are as stipulatedin the relevant legal documents.
Residence
"Residence" is not defined,but a corporation is generallyunderstood to be resident if it isincorporated in Vietnam.
Tax Basis Residents are taxed onworldwide income; nonresidents aretaxed only on Vietnamese-sourceincome. Foreign-source income derivedby residents is subject to corporationtax in the same way as Vietnamese-source income.
Thailand Corp
Thailand corpis 30% for ne
Certain public limsmall and m
companies areprogressive rateamount of ne
Small compa- Net profit not baht15%- Net profit ovenot exceedibaht - Net profit e
baht
Companies lExchange of - Net profit fobaht
- Net profit exceeding baht
Companies new
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substitutes and from trust funds and similararrangements; and other passive incomepreviously subject to final taxes.
Interest income derived from the expandedforeign currency deposit is subject to a finaltax of 7.5%. All other interest earned by
domestic and resident foreign corporations issubject to a 20% final withholding tax.
Regional operating headquarters are taxedat 10% on taxable income.
Special economic zone enterprises dulyregistered with the Philippines EconomicZone Authority are taxed at the rate of 5%on gross income in lieu of national and localtaxes, except real property tax. The term'gross income' refers to gross sales or gross
revenue derived from the business activitywithin the Ecozone, net of sales discount,sales returns and allowances, less the cost ofsales or direct costs but before deduction ismade for administrative expenses andincidental losses during the taxable period.
Philippines tax year runs for the calendaryear although approval of the Commissionerof Internal Revenue can be obtained for theadoption of a fiscal year. Tax is payable infour quarterly instalments, with every
corporation filing quarterly income tax
enterprises will be assessed at a unified taxrate of 25%. All FIEs (and those foreignenterprises having their head offices inChina) are subject to Enterprise Income Taxon their worldwide profits. Foreignenterprises which have their permanentestablishments (PEs) in China are subject to
Enterprise Income Tax on profits derivedfrom the permanent establishments. Foreignenterprises without any permanentestablishment in China are subject toEnterprise Income Tax on China-sourceincome only.
The New Law introduces a wider concept ofmanagement in determining tax residency.A company will be recognised as a China taxresident if it is incorporated in China or itsplace of effective control and management
is in China. The tax year in China is thecalendar year (i.e. year ended 31December).
Taxable income Tax is imposed on acompany's profits, to include the profitsof affiliates and branches (dependentunits). Taxable revenue includes incomefrom the sale of products, the provisionof services, the leasing or sale of assets,the transfer of shares, joint venture
operations with other economic entitiesand financial operations.
Taxation of dividends Dividends paidby a company in Vietnam to itscorporate shareholders are not subjectto tax.
Capital gains tax There is no separatecapital gains tax; gains are taxed at thestandard corporate tax rate of 25%.The transfer value is based on the
actual price according to the transfercontract. A deemed fair market valuewill be used if no contract price isavailable or if the price stated in thecontract is deemed to be not at arm'slength.
Exchange of - Profit
Company newlyAlternative I
- Net Profaccounting
- Net Profit afteperiods30%
Bank derivinInternational Ba- Profit
Foreign compinternational - receipts
Foreign companbusiness in dividends - receipts
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returns for the first three quarters and taxbeing payable 60 days following the end ofeach quarter. A final return covering the fullyear is required to be lodged 105 days afteryear end at which time the balance of tax,after deducting the prior three instalmentsand creditable withholding tax, is payable.
Any excess is refundable or can be claimedas tax credit against future tax payments.
MINIMUM CORPORATE INCOME TAX
A minimum corporate income tax of 2%based on the gross income is imposedbeginning on the fourth taxable yearimmediately following the commencement ofthe business operation of the corporation.Any excess of the minimum corporate
income tax over the normal income tax maybe carried forward and credited against thenormal income tax for the three taxableyears immediately succeeding. Thecomputation and the payment of MCIT shalllikewise apply at the time of filing of thequarterly corporate income tax. The term'gross income' for the purpose of applyingthe minimum corporate income tax shallmean the gross sales less sales returns,discounts and allowances and cost of goodssold.
Foreign companbusiness in Thatypes of incomefrom - receipts
Foreign compaout o- disposed
Profitable associ- receipts
10%
Residence A considered reincorporated registered as a Ministry o
Basis Resideworldwide incom
taxed only o
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The Secretary of Finance, however, maysuspend the imposition of the minimumcorporate income tax on any corporationwhich suffers losses on account of prolongedlabour dispute, or because of force majeureor because of legitimate business reverses.
CAPITAL GAINS TAX ON SHARES OF STOCK
The net capital gains from the sale of sharesof stock of a domestic corporation not listedand traded through the Philippine StockExchange are taxed on a per transactionbasis at the rate of 5% on the first PhP100,000 and 10% in excess of said amount.On the other hand, the sale of shares ofstock of a domestic corporation through thePhilippine Stock Exchange or through the
initial public offering is subject to apercentage tax on the transaction at the rateof 1/2 of 1% of the selling price. Any gain orloss from said transaction is not consideredfor income tax purposes.
CAPITAL GAINS TAX ON SALE OF REALPROPERTY
The sale of land, building and other realproperties classified as capital asset is
subject to 6% final capital gains tax based
income. Foreiderived by ressubject to corpothe same masource income.branches and taxed, but only
income. Non-rega taxable preseare taxed in thlimited compasource
Taxable incometax is imposed profits, which business/tradingincome and cExpenses that
generating profor the businededucted in deteprofits.
Taxation of divpaid by a limanother limitedexempt from cocertain conditiOtherwise, 50%subject to corpo
the normal rate.
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on the gross selling price, current fair marketvalue or zonal value at the time of sale,whichever is higher.
IMPROPERLY ACCUMULATED EARNINGSTAX
The 10% improperly accumulated earningstax (IAET) is imposed on improperlyaccumulated taxable income earned byclosely-held corporations. The term'closelyheld corporation' refers tocorporations where at least 50% of thecapital stock or voting power is owneddirectly or indirectly by or for not more than20 individuals.
The tax base of the 10% IAET is the taxable
income of the current year plus incomeexempt from tax, income excluded fromgross income, income subject to final tax,and the amount of net operating loss carry-over deducted. It is reduced by income taxpaid for the current year, dividends actuallyor constructively paid, and amount reservedfor the reasonable needs of the business.
The IAET does not apply to the followingcorporations:(a) Banks and other nonbank financial
intermediaries
the payment ofbe used to offseincome tax duethe relevant tacases, dividendforeign affiliatefurther corpora
Thailand.
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(b) Insurance companies(c) Publicly-held corporations(d) Taxable partnerships(e) General professional partnerships(f) Non-taxable joint ventures,(g) Duly registered enterprises located withinthe special economic zones declared by law
which enjoy payment of special tax rate ontheir registered operations or activities in lieuof other taxes, national or local.
VAT Sales taxes / Value Added Tax (VAT)
A 12% value added tax (VAT) of the grossselling price or gross value in money of thegoods is imposed to all importation, sale,barter, exchange or lease of goods orproperties and sale of services.
'Gross selling price' means the total amountof money or its equivalent that the purchaserpays or is obligated to pay to the seller inconsideration of the sale, barter or exchangeof the goods or properties, excluding thevalue added tax. The excise tax, if any, onsuch goods or properties shall form part ofthe gross selling price
China Value Added Tax
Rates - The VAT standard rate is 17%, witha lower rate of 13% applying to certainfoods, goods, books and utilities. As from 1January 2010, a 3% rate applies under thesmallscale taxpayer scheme (reduced from
6% or 4%). Lower rates apply to certaintransactions involving used goods. Exportsare generally zero-rated. As from 1 January2009, input VAT incurred on thepurchase/construction of fixed assets maybe credited against output VAT.
Registration A company is required toregister with the local tax authorities at thetime of incorporation to have its statusrecognised. If the taxpayer's status isapproved, VAT taxpayers (other than small-
scale VAT taxpayers) must register for VAT
Vietnam vat (Value Added Tax)Rates
The general rate of VAT in Vietnamwhich applies to goods and servicesis 10%. A reduced rate of 5% alsoapplies to certain goods and services.
Other than Value Added Tax, Vietnamalso levies a Special Sales Tax (SCT)which is applicable to goods andservices classified as luxury. The ratesare from 10% to 70% for SCT (refer to'Special Sales Tax' section above).
The VAT rate is calculated based on theselling price (exclusive of tax).
Taxable transactions VAT and SpecialConsumption Tax (SCT) are levied on
Thailand vat (Rates
The standard Vis 7%. A 0%exported good
At the Sept 22 athe Bank of Twas made to raito 10%, in ordrevenues. This depending circumstances.
Taxable transacton the sale oprovision
VAT Registratio
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purposes with the tax authorities. A non-Chinese resident company is not allowed toregister for VAT.
Filing and payment VAT returns must befiled each calendar month and submittedbefore the 15th of the following month
Taxpayers importing goods must pay taxwithin 15 days after the issuance of the taxpayment certificate by Customs.
Other China imposes 2 other notableindirect taxes: the Business Tax and theConsumption Tax. The Business Tax is anon-recoverable turnover tax imposed onthe provision of certain services, theassignment of intangible assets and the saleof immovable property within China. TaxRates are 3%-5% withheld at source for
most services, although a 20% rate appliesto entertainment.
Once the taxpayer's tax status has beenapproved by the tax authorities, thecompany should register as a Business Taxpayer.
Returns must be filed each calendar monthand submitted before the 15th of thefollowing month.
The Consumption Tax applies to alcohol,
the sale of goods and the provision ofservices.
Registration All organisations andindividuals carrying on the production ortrading of taxable goods and services inVietnam must register for VAT. Each
branch or outlet of an enterprise mustregister separately and declare tax onits own activities. Transfers of goodsbetween branches may be subject toVAT. Registration for tax payment isrequired within 10 days of acorporation's establishment date. VATpayable by a corporation is calculatedby the tax credit method or calculateddirectly on the basis of added value.
Filing and payment Monthly filing and
payment of outstanding VAT must bemade on or before the 20th of thefollowing month.
revenue threshexceed THB 1.8 tax period. Nothat are carryimore than a teregister.
Filing and VAT payable by the following that inIn cases in whicof VAT output payment of cnonresidents (proyalties on righthe VAT is payamonth followingthe actual payme
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cosmetics, diesel fuel, fireworks, jewellery,motorcycles, motor vehicles, petrol, luxurywatches, tobacco, tires, golf equipment,yachts, etc., at rates ranging from 3%-45%of the value of the goods. Once thetaxpayer's tax status has been approved bythe tax authorities, the vendor should
register as a Consumption Tax payer.Returns must be filed each calendar monthand submitted before the 15th of thefollowing month.
WITHHOLDI
NGTAX
WITHHOLDING TAX
NON-RESIDENT FOREIGN CORPORATIONS
Interests on foreign loans, royalties anddividends paid to non-resident foreign
corporations are subject to withholding tax
at source at the time of their accrual in thetaxpayer's books. The only exemption to this
rule is when, at the time of the accrual ofthe income, there is a governmentalrestriction which prevents the actual
remittances of the income due to the non-resident.
DIVIDENDSDividends received by non-resident foreigncorporations from domestic corporations aresubject to a final tax of 30%. However, tax
is withheld at the reduced rate of 15% in
Withholding tax:
Dividends A 10% withholding tax isimposed on dividends paid to a nonresidentcompany unless the rate is reduced under a
tax treaty.
Interest
A 10% withholding tax applies tointerest paid to nonresidents unless the rate
is reduced under a tax treaty. A 5%business tax also may be imposed.
Royalties A 10% withholding tax appliesto royalties paid to a nonresident unless the
rate is reduced under a tax treaty. A 5%business tax is also applicable, but may be
waived when royalties are paid for thetransfer of technology.
Withholding tax:
Dividends No tax is imposed ondividends remitted overseas unless paidto individuals, where a 5% withholding
tax is imposed.Interest Interest paid to nonresidents
is subject to a 10% withholding taxunless the rate is reduced under an
applicable tax treaty.Royalties Royalties paid to
nonresidents are subject to a 10%withholding tax unless the rate is
reduced under an applicable tax treaty.Branch remittance tax No
Withh
Dividends another Thai
subject to a 10%exempt if certamet. Dividends
companies arewithholding taxresident or non
are taxed at a 1considered final.can obtain a div
they may chodividends in the
the relev
Interest InteThailand com
considered a fi
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certain circumstances.
INTERESTInterest received by non-resident foreign
corporations is subject to the following finalwithholding tax:
(a) 20% on interest paid or accrued from
foreign loans contracted on or after 1 August1986
(b) 30% on other interest.
ROYALTIESRoyalties received by non-resident foreign
corporations are subject to a finalwithholding tax of 30%. However, said taxrate may be reduced under applicable tax
treaties.
TECHNICAL ASSISTANCE AND SERVICE
FEESTechnical assistance and service feesreceived by non-resident foreign
corporations are subject to the finalwithholding tax of 30%.
RENTAL AND LEASING INCOMERental and leasing income received by non-resident foreign corporations is subject to
the following final withholding tax:- 25% of the gross amount on film rentals
from sources within the Philippines
subject to withholding tax,
as a credit corporate inco
accounting periononresident com15% final withh
rate is reduced tax
Interest paidnonresident indi
15% withholdconsidered a
ins
Royalties RoyaThailand compa3% advance wi
may be used asfinal corporatethe accounting p
to a nonreside15% final withhrate is reduced
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- 4.5% of the gross amount on charter feeror rentals in respect of foreign vessels
- 7.5% of the gross amount on rentals andother fees in respect of aircraft, machinery
and other equipment.
NON-RESIDENT ALIENS
The following income received by non-resident aliens (not engaged in trade or
business in the Philippines) are subject to afinal withholding tax of 25% of the gross
amount of:(a) Dividends, interest and royalties
(b) Technical assistance and service fees (notax is withheld in certain circumstances)
(c) Rental and leasing income(d) Capital gains (special rules apply toresidents of double tax treaty states).
FINAL WITHHOLDING TAX
The following income received by Philippinecitizens and resident aliens are subject to afinal withholding tax of 20% of the gross
amount of:(a) Interest
(b) Royalties, except royalties on books,literary works and musical compositions
which are subject to 10%(c) Technical assistance and service fees.
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STAMP
TAX
DOCUMENTARY STAMP TAXDocumentary stamp tax is imposed on
certain documents including sharescertificates, bank cheques, bonds, sales
documents of real properties and mortgages.
RATES-.10%-10%
STAMP TAX (ST)
Stamp Tax is levied on various contractsincluding purchase and sale contracts,
property leasing, loan contracts, documentsfor the transfer of property rights,engineering and design contracts,
construction and installation, commoditytransportation, storage, property insurance
contracts, etc. Tax rates range from 0.005%to 0.1%. A fixed amount of Rmb 5 is
charged on certificates evidencing rightsand licenses.
Stamp duty Rates of 0.5%-15% applyon the transfer of property.
Stamp duty Sapplies at a rate
the hire of woshares/debentu
THB 10
Inheritance/estatetax
Inheritance/estate tax Tax is imposed onthe net estate of both residents and
nonresidents at rates between 5% and 20%.Net wealth/net worth tax No
Inheritance/estate tax Inheritances andgifts are subject to income tax at special
rates
Inheritance/estate tax Inheritancesand gifts are subject to income tax at
special rates
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TYPE OF TAXES COUNTRIES REMARKS
Philippines China Vietnam Thai land
-VAT 12% 17% 10% 7% IT ONLY IMPLIES THAT CHINA RELIES CHIE
THE HIGHEST REVENUE INCOM
-Enterprise Income
Tax/corporate income tax
30% 25% 25% 30% PRC&VIETNAM HAS LOW RATE FOR IT E
INVESTMENTS
-Individual Income Tax 5%-32% 5%-45% 5%-35% 5-37% COMPARED TO THE OTHER COUNTRIES, P
RATE HAVING 8-10% AHE
Estate tax 5-20% Subject to income
tax
subject to income tax at a
special rate
n/a ALL THE OTHER COUNTRIES HAVE INCLUD
THEIR INCOME TAX. EXCEPT F
-Stamp .10%-10% 0.005%-0.4% 0%-5% 0.1% PH. HAS THE HIGHEST RATE DEPENDING O
-Deed 6% 3%-5%(depends
on the location of
the property)
1%(Land use right
registration fee)
-Customs Duties 3%-505% 0-270% (Imports)
20-70% (Exports)
150%(of the PR rate) 0-100% LESSER TAX FOR THOSE WHO ARE PART OF
AGREEMENT.
Excise tax 1% - 45% 10%-75% THE DIFFERENT EXCISE RATE WILL ALLOW P
PRODUCTION COST AND REDUSE TAXAB
COUNTRY INTENDED CONSUMP
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GROUP REPORT IN PA 207
COMPARATIVE ANALYSIS OF TAXES
(PHILIPPINES, CHINA, VIETNAM, THAILAND)
GROUP 2
LEI MADELINE MOHAMMAD
ALLEN REBOLLOS
VENICE JANE LLEDO
AIVEL AIZON
PRESENTED TO:
Dr. LOYDA A. BANGAHAN