Philippines — Tax: Corporate Tax

Why this matters

Understanding Philippine corporate tax can significantly impact a business's profitability and overall success in the country.

Key facts

• Combined statutory corporate income tax rate (national plus sub-national): 25% (2026)
• Central government rate: 25% (2026)

Steps

1. Step 1: Determine Tax Residency — To determine tax residency, the corporation must be present in the Philippines for at least 183 days in a calendar year. This can be physical presence or through a resident agent.
2. Step 2: Calculate Taxable Income — The corporation must calculate its taxable income based on its gross income, minus allowable deductions and exemptions.
3. Step 3: Apply Tax Rates and Withholding Taxes — The corporation must apply the applicable tax rates and withholding taxes on its taxable income, considering the type of corporation and its income level.

Costs

• Annual Corporate Tax Return Filing Fee: varies by type of corporation (e.g., P1,500-5,000 for domestic corporations)

Timelines

• Filing Deadline for Annual Corporate Tax Return: April 15 of the following year

Required documents

• Business Registration Certificate
• Taxpayer Identification Number (TIN) Certificate
• Annual Corporate Tax Return (BIR Form 1701 or 1701-A)

Common mistakes

• Failure to file the annual corporate tax return on time
• Incorrect calculation of taxable income or tax rates

What this figure does not cover

This is the headline statutory rate. Deductions, reduced rates for particular sectors or regions, minimum taxes, local business taxes, withholding taxes and registration or filing procedures are not covered here. Check the national tax authority for your situation.