Domestic Corporation, Foreign Corporation, Government Owned and Controlled Corporation (GOCCs) and Cooperatives

Domestic Corporation

-         Is a corporation created or organized in the Philippines or under its laws.

Foreign Corporation

-         A corporation which is not domestic, and may be a resident (engaged in business in the Philippines) or nonresident corporation (not engaged in business in the Philippines.

Government Owned and Controlled Corporations (GOCCs)

-         All corporations, agencies, or instrumentalities owned or controlled by the Government, shall pay such tax rate of tax upon their taxable income as are imposed upon corporations or associations engaged in similar business, industry or activity, except the following:

a.        Government Service Insurance System (GSIS)

b.       Social Security System (SSS)

c.        Philippine Health Insurance Corporation (PHIC); and

d.       Philippine Charity Sweepstakes Office (PCSO)

COOPERATIVES

-  A duly registered association of persons with common bond of interest, who have voluntarily joined together to achieve a lawful common social or economic end, making equitable contributions to the capital required and accepting a fair share of the risks and benefits of the undertaking in accordance with universally accepted cooperative principles.  (RA 6938)

TAX EXEMPT	1.       Income tax on income from operations. 2.       Output VAT on sale 3.       3% percentage tax 4.       Donors tax to duly accredited charitable research and educational institutions, and re-investment to socio-economic projects within the area of operation of the cooperatives. 5.       Excise tax 6.       Annual registration fee of P500.
TAXABLE	1.       20% final tax on interest in any currency bank deposit, yield or any monetary benefit from deposit substitute and from trust fund and other similar arrangements and royalties from sources within the Philippines. 2.       7.5% Interest income derived from depository bank under expanded foreign currency deposit system. 3.       Capital gains tax on sales or exchanges of real property classified as capital assets or shares of stocks. 4.       Documentary stamp taxes on transactions of cooperatives dealing with non-members when the accumulated reserves and undivided net savings on such cooperatives exceed P10,000,000; and 5.       Vat on purchases of goods and services.