Showing posts with label gross philippine billings. Show all posts
Showing posts with label gross philippine billings. Show all posts

Sunday, October 19, 2014

Special Corporations

SPECIAL CORPORATIONS

Taxpayer

Tax Base
Tax Rate
·        Proprietary educational institution and non-profit hospital

Taxable income from all sources
10%




·         Resident international carrier

Gross Philippine Billings
2 ½ %
· Regional Operating headquarters of multinational corporation

Philippine Taxable Income
10%




·         Nonresident owner or lessor of vessel


Gross rentals, lease and charter fees from the Philippines.
·         Only from charters or leases of the vessels to Filipino citizens or corporations approved by the Maritime Industry Authority.
4 ½ %
·    Nonresident cinematographic film owner, lessor or distributor

Gross income from the Philippines
25%
·     Nonresident lessor of aircraft, machinery   and other equipment

Gross rentals, charges and other fees from Philippine sources
7 ½ %
· Regional Operating headquarters of multinational corporation

Philippine taxable income
10 %

REMINDER:
-        MCIT is not applicable to Special Corporations
-  If the Gross income of a proprietary educational institution or hospital fromunrelatedtrade, business, or other activity exceeds 50% of the total gross income derived from all sources, such educational institution or hospital will be taxed as an ordinary corporation.
-     Nonresident owners of vessels are treated as special corporations only from charters or leases of the vessels to Filipino citizens or corporations approved by the Maritime Industry Authority.
-  All revenues of non-stock, non-profit educational institutions used actually, directly and exclusively for educational purposes shall be exempt from taxes.

Gross Philippine Billings
For international Air carrier
Refers to the amount of gross revenue derived from carriage of persons, excess baggage, cargo or mail originating from the Philippines in a continuous and uninterrupted flight, irrespective of the place of sale or payment of the ticket or passage document.


For International Shipping
Means gross revenue whether for passenger, cargo, or mail originating from the Philippines up to final destination, regardless of the place of sale or payment of freight documents.

Private Educational Institutions and Hospitals:
·         If their gross income from unrelated trade or business exceed 50% of their gross income from all sources the rule on ordinary corporation (30% rates) shall apply.

For Non-Resident Corporations:

·         Unless, otherwise, provided a foreign corporation not engaged in trade or business in the Philippines shall pay a tax equal to 30% of the gross income received during the taxable year from all sources within the Philippines such as interests, rents, salaries, premium (except reinsurance premiums), annuities, emoluments, or other fixed or determinable annuities. Periodical or casual gains, profits and income and capital gains, except income subject to Capital gains tax.