Philippines's headline corporate income tax (CIT) rate is 25.
The headline personal income tax (PIT) rate is 35.
The standard VAT/GST (or equivalent consumption tax) rate is 12. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
Under Section 23 of the National Internal Revenue Code, an individual is a Philippine tax resident if present for more than 183 days in a calendar year or if they intend to reside permanently in the Philippines. Residents are taxed on worldwide income; non-residents only on Philippine-source income. Aliens deriving foreign-source income are not permitted a Philippine tax credit for foreign income taxes paid.
The Philippines has no Controlled Foreign Company regime.
The Philippines has no formal thin capitalization rules or regulations, though the tax authority (BIR) has identified thin capitalization and earnings stripping as tax-avoidance patterns it monitors. A separate "tax arbitrage rule" reduces the allowable interest expense deduction by an amount equal to 20% of interest income that has already been subjected to final withholding tax (reduced to 33% in some formulations - confirm the current percentage before relying on it, as this rate has been adjusted over time). This limitation does not apply to domestic corporations qualifying for the lower 20% CIT rate.
The Philippines has approximately 40-44 double tax agreements in force per BIR and PwC data, with 10 additional treaties reported under active negotiation or in various stages of finalization as of mid-2026 (including a renegotiated treaty with Japan). Treaty relief is not automatic - taxpayers must file a Tax Treaty Relief Application (TTRA) or comply with BIR withholding-agent procedures (RMO 14-2021) before claiming reduced treaty rates.