Type of Taxes Paper

7/30/2019 Type of Taxes Paper

1/17

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


2/17

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


3/17

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


4/17

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.


5/17

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


11/17

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


12/17

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


13/17

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


14/17

- 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


16/17

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

Type of Taxes Paper

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