1. Corporateincome tax(taxonprofit)is 30%.
  2. Excisetaxislevied(minimum10%)onselectedlocalorimportedproducts.
  3. Turnovertaxat2%forprioritysectorssuchastractors,combineharvesting,grainmilletc.and10%onother sectors.
  4. Customsdutyonnon-exempted importsrangesfrom0-35%.
  5. Incometaxrangesfrom10-35%onmonthlyincomesof$16.50andabove.
  6. Withholdingtaxispayableonimportsat3%ofcost,insuranceandfreight.15%VATis payable onbusinesses withaturnover above$54,000
  7. Dividendtax(on incomederivedfromdividendsfromasharecompanyor withdrawals ofprofits fromaprivatelimitedcompany)at10%.
  8. Royaltytax(onincome derivedfromtechnologyandintellectualproperty rights) at5%.
  9. Capitalgainstax-shareofcompanies30%;business,factoryoroffice buildings 15%;residences 0%.
  10. Rental income tax (on annual rental income) between 0% and 35% dependent on level of rental income.
  11. Stamp duty-Leasing0.5%ofvalue;registeringtitletoproperty2%of value;contractofemployment 1% salary; bonds1% ofvalue,etc.
  12. Taxtreatiestoavoiddoubletaxpaymentweresignedwithseveral countries, alongwithbilateraltreatiesfortheprotectionandpromotionofinvestments.
  13. Foreign contractorwithholdingtaxranging from10%to30%.

The following are excluded from the computation of taxable income in accordance with Article 13 of the Income Tax Proclamation No. 286/2002 and Article 13 of the Regulations No. 78/2002:

  1. Medical treatment;
  2. Transportation allowance;
  3. Hardship allowance;
  4. Reimbursement of travelling expenses incurred on duty;
  5. Per diem and travelling expenses on joining and completion of employment, provided that such payments are made pursuant to specific provisions of the contract;
  6. Board members’ and board secretaries’ allowances; the income of persons employed for domestic duties;
  7. The contribution of the employer and the employee to the retirement or provident fund and all forms of benefits contributed by employers that do not exceed 15% of monthly salary; and
  8. Payments made to a person as compensation in relation to injuries suffered by that person or the death of another person.
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