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Philippines Tax Guide
AsiaLast verified June 2026Territorial system
- Top income tax
- 35%
- Capital gains
- 0-15%
- Corporate
- 25%
- VAT / GST
- 12%
- Residency test
- 180 days
Progressive 0-35%
In short
- The Philippines combines near-universal English, a low cost of living and accessible retiree residency.
- No newcomer tax regime: the standard rates above apply to new residents.
- Watch out: Typhoons, traffic, uneven internet and patchy healthcare outside Metro Manila make daily life demanding.
Verified June 2026 · 3 sources
Recent changes
No changes logged since the last full verification.
Full change logBest for
- Zero capital gains
No CGT on investment, property, or crypto disposals (subject to "investor" classification).
- Foreign income exempt
Territorial system — overseas income generally outside the local tax net.
- No wealth tax
No annual tax on net worth or assets.
- No inheritance tax
Estate and lifetime transfers not subject to inheritance tax.
- Crypto-friendly
0% CGT plus favorable foreign-income treatment make this strong for crypto holders.
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes+
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimesTax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
15% on real estate; exempt on securities under conditions
Wealth & Inheritance
Special Regimes
Practical Notes
English widely spoken. Growing economy. Various special economic zones.
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treaties+
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treatiesCorporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- CREATE MORE EDR 20%
- SCIT 5% on gross
- PEZA incentives
- Various economic zones
OECD Pillar Two (15% global minimum tax)
No Pillar Two legislation enacted. CREATE MORE Act (Nov 2024) focused on domestic CIT reform, not GloBE rules.
See full implementation trackerTax Treaty Network
US-Philippines treaty in force. No US totalization.
See full treaty matrixBeyond tax
Living in Philippines
The Philippines combines near-universal English, a low cost of living and accessible retiree residency.
- Expat hub
- Manila (Makati / BGC)
- Monthly budget
- ~$1,700
- Climate
- Tropical, 28°C
- Time zone
- UTC+8
- Tax70
- Cost of living$$
- Safety50
- Healthcare60
- English90
- Internet95 Mbps
- Warm climate100
- Residency access65
- Scores 0-100, higher is better. Editorial composite ratings; see method.
Ways to get residency
- Special Resident Retiree's Visa (SRRV)Age 50+ with a deposit at a designated bank (amount depends on age and pension)
- Special Investor Resident Visa (SIRV)US$75,000 investment in qualifying Philippine assets
Watch out: Typhoons, traffic, uneven internet and patchy healthcare outside Metro Manila make daily life demanding.
See how Philippines ranks for remote workers, retirees and familiesData Sources
Last verified: June 2026. Always check official sources before making a decision.
FAQ
What is the personal income tax rate in Philippines?
+
Philippines has a top personal income tax rate of 35%. The tax structure is: Progressive 0-35%. See the detailed breakdown above and verify with official sources.
Do I need to pay tax on foreign income in Philippines?
+
Philippines uses a territorial system for foreign income. Non-resident citizens taxed on Philippine-source income only
What are the residency requirements for Philippines?
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Tax residency in Philippines generally requires 180 days of physical presence. 180 days establishes residency. Always verify current rules with official sources.
Is there a wealth tax in Philippines?
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No, Philippines does not have a wealth tax. No wealth tax
What is the corporate tax rate in Philippines?
+
The corporate tax rate in Philippines is 25%. 25% standard CIT. Registered Business Enterprises (RBEs) under the Enhanced Deductions Regime (EDR) can elect a reduced 20% rate on income from registered activities (CREATE MORE Act, RA 12066, signed 11 Nov 2024). Alternative: 5% Special Corporate Income Tax (SCIT) on gross income. SCIT/EDR incentive periods extended to 17 or 27 years depending on impact tier.
US citizen moving to Philippines? Read this first.
Philippines uses a territorial system for foreign income. For US citizens this often combines well with FEIE.
- •Foreign-source income may be exempt or only taxed on remittance in Philippines, but the US still taxes US citizens worldwide. FEIE (~$130k earned income) plus FTC on any Philippines tax paid is the standard combination.
- •Self-employment tax (15.3%) is owed in full — Philippines has no totalization agreement with the US.
- •Carefully document whether income is "Philippines-source" or foreign-source. The classification drives both Philippines and US tax outcomes; getting it wrong is the #1 audit risk in this category.
- •Residency requires 180 days. Special regimes may further reduce Philippines tax — check the country page for current options.
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