Corporate Income Tax Rates - RR No. 007 - 2025

The CIR has issued Revenue Regulations (RR) No. 007 - 2025 on February 27, 2025, Implementing the Amendments to Sections 27, 28, and 34 of the National Internal Revenue Code of 1997, as amended by Republic Act No. 12066.

In Section 2 of these regulations, it stated of the Corporate Income Tax Rates for domestic and resident foreign corporations pursuant to Sections 27 and 28 of the Tax Code, as amended by RA No. 12066 as follows:

A. DOMESTIC CORPORATIONS:

B. RESIDENT FOREIGN CORPORATIONS:

Please click the link: https://bir-cdn.bir.gov.ph/BIR/pdf/RR%20No.%207-2025.pdf of the full text of RR No. 007 - 2025.

Individual Taxpayers Who Are Not Entitled To Avail Of The Optional Standard Deductions (OSD)

In Section 5. B. of Revenue Regulations (RR) No. 2-2014, stated that Individual taxpayers who are not entitles to avail of the Optional Standard Deductions (OSD) and thus use only the itemized deduction method are as follows:

1. Those exempt under the Tax Code, as amended, and other special laws with no other taxable income [e.g. Barangay Micro Business Enterprise (BMBE)];

2. Those income subject to special/preferential tax rates ; and 

3. Those with income subject to income tax rate under Section 24 of the Tax Code, as amended, and also with income subject to special/preferential tax rates.

Please refer http://www.bir.gov.ph/images/bir_files/old_files/pdf/82202RR%20No%20%202-2014.pdf of the full text of RR No. 2-2014 and http://www.bir.gov.ph/index.php/tax-code.html#outline of the Tax Code.

Corporations, Partnerships And Other Non-Individuals Who Are Not Entitled To Avail The Optional Standard Deductions (OSD)

In Section 5. A. of Revenue Regulations (RR) No. 2 -2014, stated that Corporations, partnerships and other non-individuals are mandated to use the itemized deductions in the following cases:

1. Those exempt under the Tax Code, as amended (Section 30 and those exempted under Section 27(C) and other special laws, with no other taxable income;

2. Those with income subject to special/preferential tax rates; and 

3. Those with income subject to income tax rate under Section 27(A) and 28(A)(1) of the Tax Code, as amended, and also with income subject to special/preferential tax rates.

Judicial entities whose taxable base is the gross revenue or receipts (e.g., non-resident foreign international carriers) are not entitled to the itemized deductions nor to the optional standard deduction (OSD) under Section 34(L) of the Tax Code, as amended.

Please refer http://www.bir.gov.ph/images/bir_files/old_files/pdf/82202RR%20No%20%202-2014.pdf the full text of RR No. 2-2014. and http://www.bir.gov.ph/index.php/tax-code.html and full text of the Tax Code.