The Revenue Regulations 12-2007 was issued by the bureau as amended with regards to Minimum Corporate Income Tax on Domestic Corporations:
1. Imposition of Tax - A minimum corporate income tax of two percent (2%) of the gross income as of the end of the taxable year, beginning of the fourth taxable year immediately following the year in which such corporation commenced its business operations, when the minimum income tax is greater than normal income tax.
2. Carry Forward of Excess Minimum Tax - any excess of the minimum corporate income tax over the normal income tax shall be carried forward and credited against the normal income tax four the three (3) immediately succeeding taxable years.
But the minimum corporate income tax shall not be imposed upon any of the following:
1. Domestic corporations operating as proprietory educational institutions subject to tax at ten percent (10%) on their taxable income; or
2. Domestic corporations engaged in hospital operations which are nonprofit subject to tax at ten (10%) on their taxable income; and
3. Corporations engaged in business as depository banks under expanded foreign currency deposits system, otherwise known as Foreign Currency Deposit Units
4. Firms that are taxed under a special income tax regime
Please refer ftp://ftp.bir.gov.ph/webadmin1/pdf/37123rr%20no.%2012-2007.pdf of the full text of Revenue Regulations 12-2007.
