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8.1.2. Other Taxes

The following table provides an overview of other taxes that may be imposed on a company doing business in the country.

Tax Type Rate(s) Notes
Capital Duty NIL There is no capital duty in the Philippines.
Payroll Tax NIL There is no payroll tax separately due by companies on their total payroll expenditure. Employers are required to withhold income tax and social security premiums on behalf of their employees under the PAYE system.
Social Security Employer Contribution ~10.5% Employers are required to make contributions for social security based on the employee's salary bracket. Employers contribute at the rate of 8.5% of the gross salary up to PHP 2,155 (including employees’ compensation of PHP 30), based on a monthly salary ranging from PHP 3,000 up to PHP 25,000 towards Social Security System and PHP 425 towards mandatory provident fund. Employers are also required to contribute PHP 100 to the Home Development Mutual Fund, and 2% of the gross salary up to PHP 1,600, based on a monthly salary ranging from PHP 10,000 up to PHP 80,000 to the Philippines Health Insurance Corporation.
Social Security Employee Contribution ~6.5% Employees are required to make contributions for social security. The actual contribution amounts are based on the employee's salary bracket. Employees contribute 4.5% of the gross salary up to PHP 1,125, based on a monthly salary ranging from PHP 3,000 up to PHP 25,000 towards the Social Security System and PHP 225 towards the mandatory provident fund. Employees are also required to contribute PHP 100 to the Home Development Mutual Fund, and 2% of the gross salary up to PHP 1,600, based on a monthly salary ranging from PHP 10,000 up to PHP 80,000 to the Philippines Health Insurance Corporation. The maximum contribution by a foreign national employee towards the Social Security System and the Philippines Health Insurance Corporation is PHP 24,300 for the tax year 2021. Foreign nationals working in the Philippines are not required to contribute towards Home Development Mutual Fund.
Property Tax 1% or 2% A real property tax is imposed by local government units at a rate of 1% for property located in the provinces and 2% for property located in Metro Manila. The tax is imposed on the assessed value of the property, which is the fair market value adjusted by an assessment level of up to 80%, depending on the type and fair market value of the property.
Transfer Tax 0.50% -0.75% The transfer of real property is subject to a transfer tax of up to 0.5% on the higher of the consideration paid or the fair market value of the property. The rate varies by location. For Metro Manila, the tax may be up to 0.75%. The transfer of securities listed on a local stock exchange is subject to a transaction tax of 0.6%.
Stamp Duty Varies Various rates of stamp duty apply depending on the type of document.
Excise Taxes Varies Excise taxes are levied on alcohol products, tobacco products, petroleum products, minerals and mineral products, motor vehicles, jewelry, yachts, and other vessels. In response to the COVID-19 pandemic, the Philippines exempted the importation of personal protective equipment (PPEs), COVID-19 test kits, medical and laboratory equipment, and devices, consumable medical supplies, medicines, and other supplies as may be identified by the Department of Health from excise tax, duties, and fees, as applicable. Further, effective 1 January 2021, the procurement, importation, donation, storage, transport, deployment, and administration of COVID-19 vaccines are exempt from excise taxes provided it is carried out by the national government, political subdivisions of the state, private entities, and international humanitarian organizations. The exemption is subject to the condition that the vaccines are not intended for resale or other commercial use and must be distributed without consideration from the persons to be vaccinated. Further, a refund can be claimed if excise tax is paid on the exempt COVID-19 vaccine.
Customs Duty Varies Custom duties are levied at various rates on goods imported into the Philippines. In response to the COVID-19 pandemic, effective 1 January 2021, the procurement, importation, donation, storage, transport, deployment, and administration of COVID-19 vaccines are exempt from customs duty. The exemption is subject to the condition that the vaccines are not intended for resale or other commercial use and must be distributed without consideration from the persons to be vaccinated.
Fringe Benefits Tax 35%/ 25% Fringe benefits tax is payable by the employer on the grossed-up monetary value of fringe benefits provided by employers to managerial or supervisory personnel. A tax at the rate of 35% applies where the employee is a citizen, a resident alien, or a non-resident alien engaged in trade or business in the Philippines. A tax at the rate of 25% applies where the employee is a non-resident alien not engaged in trade or business within the Philippines. Exemptions apply in certain cases.
Percentage Tax 2% to 7% Percentage tax is levied at rates ranging from 2% to 7% on the gross receipts of certain business types, including banks, finance companies, insurance companies, and common carriers transporting passengers by land.