Tax knowledge of immigrating to the Philippines

The Philippines is a country dominated by indirect taxes, with a central and local hierarchical tax system. At present, the main taxes are: enterprise income tax, personal income tax, value-added tax and so on. business income tax

1997, the Philippines passed the tax reform bill, which made major changes to the domestic income code. The bill came into effect on 1998 1. The bill includes fringe benefits tax, minimum corporate income tax and foreign currency savings income tax. In 2004-2005, the Philippine government passed three important tax bills to increase fiscal revenue. Among them, No.9337 * * * and the Enterprise Income Tax Law of People's Republic of China (PRC) were mainly revised as follows: since June 2005 165438+ 10/day, the enterprise income tax rate has been increased from 32% to 35%, but since June 2009, it has been 65438+.

Domestic companies pay taxes on all net income in the Philippines and abroad; The net income earned in the Philippines by resident foreign companies (more than 180 days) is taxed; Non-resident foreign companies pay taxes on their gross income in the Philippines.

The current enterprise income tax rate is 30% of the taxable amount.

If the taxable income of the company is zero or negative, or the minimum enterprise income tax exceeds the income tax payable by ordinary companies, it can be levied at the minimum enterprise income tax rate of 2% from the fourth year of the company's establishment. Chartered educational institutions and non-profit hospitals are levied at 10% of taxable income.

individual income tax

The Philippines levies taxes on the domestic and foreign income of its residents and citizens. Non-resident citizens and foreigners, whether they live in the Philippines or not, are only taxed on their income originating in the Philippines. Non-resident foreigners who come to the Philippines and stay for more than 183 days in a calendar year will be regarded as non-resident foreigners engaged in trade and business in the Philippines. If he stays in the Philippines for no more than 183 days in a calendar year, the individual is not regarded as a non-resident foreigner engaged in trade and business in the Philippines. Foreigners sent to work in the Philippines for a period of time are usually regarded as non-residents engaged in trade and business in the Philippines.

A foreigner, whether he is a resident of the Philippines or not, should pay taxes in the Philippines for the remuneration he receives for providing services in the Philippines, no matter where the money is paid or whether it is remitted to the Philippines. Non-resident citizens who provide services outside the Philippines are not taxed in the Philippines. Social security and union dues paid by employees are not included in the total income and are tax-free.

Residents, non-resident residents, permanent foreigners and non-resident foreigners engaged in business and trade in the Philippines are subject to individual income tax at an excessive progressive rate of 5% to 32%. Foreigners who are not engaged in business and trade in the Philippines are taxed at the rate of 25% (such as interest and investment income).

value-added tax

According to the 9337 amendment, the VAT rate was increased from 1 in February 2006 to 12%. Some transactions are exempt from VAT. The transactions exempted from VAT mainly include: agricultural products, aquatic products, seeds, seedlings, fry, feed, educational services provided by certified private educational institutions, services provided by individuals, sales of agricultural cooperatives registered in the Cooperative Development Bureau to their members, imported machinery and equipment directly used for agricultural inputs, including spare parts, and sales, import or lease of cabins, cargo holds and aircraft, including engines, equipment and spare parts.

consumption tax

Consumption tax is mainly levied on specific commodities (such as cigarettes, alcohol, motor vehicles, etc.). ) manufactured in the Philippines for domestic sales or consumption and other purposes. Consumption tax also applies to some imported goods that need to pay value-added tax and customs duties. From 20 1 3,65438+10,1,the Philippine government began to levy tobacco? Sin tax? This is the first time that the Philippines has adjusted the tobacco consumption tax since 15, and the price of tobacco in the Philippines has nearly doubled.

stamp tax

The scope of stamp duty collection includes documents, contracts, securities, loan agreements, and certificates of acceptance, signing and sales transfer of responsibilities, rights or assets. The object of collection is the producer, signatory, receiver or transferor.

tariff

Goods imported into the Philippines are generally subject to customs duties. Determine the applicable tax rate according to the classification of goods in customs duties and customs codes. Special goods can be imported duty-free, such as goods entering the customs duty-free warehouse. Importers and their agents shall keep the records of imported goods for 3 years from the date of import. During this period, the customs department has the right to audit the importer's/agent's records afterwards to confirm whether they meet the customs regulations and evaluate whether they have underpaid the customs duties. Is it estimated that there is less traffic clearance fee?

local tax

According to the local government law, local governments have the right to tax certain special acts or commercial acts within their jurisdiction, except those exempted by law. Local governments also have the right to levy taxes on real estate every year, such as the renovation of land, buildings and machinery, as well as the sale, donation, barter or any other form of transfer of real estate. But local governments have no right to collect income tax, customs duties, stamp duty, property tax and gift tax.