Solution: 10
businesses (real business in the Philippines eg. Insular Life)
subject to other percentage taxes and their percentage
rates.
- International carriers doing business in the Philippines – 2.5%
of gross billings from carriage originating from the Philippines.
Lower rates are available under tax treaties. Exemption applies on
condition of reciprocity;
- Expanded foreign currency deposit units of banks – 10% on
onshore interest income;
- Offshore banking – 10% on onshore interest income;
- Regional operating headquarters of multinational companies –
10% of taxable income;
- Regional or area headquarters of multinational companies –
exempt.
These entities are not allowed to generate income from
Philippine sources nor solicit or market goods and services on
behalf of their head office or affiliates. They are authorised to
act as supervisory, communications and coordinating centres for
their affiliates;
- Contractors and subcontractors engaged in petroleum exploration
– 8% of gross income in lieu of all other taxes;
- Non-resident foreign owners, lessors or distributors of motion
pictures – 25% of gross income;
- Non-resident owners of vessels – 4.5% of gross rental, lease or
charter fees from citizens; and
- Non-resident foreign lessors of aircraft, machinery and other
equipment – 7.5% on rentals, charter fees and other fees from
Philippine sources.
- arriers of passenger on land – 3%;
- International carriers on carriage of cargoes – 3%;
- Franchisees of gas and water utilities – 2%;
- Banks and non-bank financial firms – 1%, 5% or 7%;
- Life insurance companies and agents of foreign insurance firms
– 5% of the premiums; and
- Sale of shares through initial public offerings – one-half of
1% of the selling price.