a) Proprietary educational institutions and non-profit hospitals are subject to 10% tax on net taxable income.
b) Foreign currency deposit units (FCDUs) and offshore banking units (OBUs) are exempt from all taxes on income from foreign currency transactions with nonresidents, and other FCDUs and OBUs, local commercial banks, and branches of foreign banks duly authorized by the Bangko Sentral ng Pilipinas (the Philippines’ Central Bank). Interest income of FCDUs and OBUs from foreign currency loans granted to residents other than FCDUs and OBUs are subject to a final tax of 10%.
c) International carriers are subject to 2.5% final tax on Gross Philippine Billings but they would be exempted if their home countries would provide a similar tax exemption to Philippine carriers.
d) Regional or area headquarters of multinational companies are exempt from income tax while regional operating headquarters of multinational companies are subject to 10% tax on net taxable income.
e) Tax incentives like income tax holiday or preferential tax rates (5% on gross income) are available for enterprises in the Ecozones, the Subic Bay Freeport and Special Economic Zone, and the Clark Special and Economic Zone.
2. Branch Profit Remittance Tax (BPRT)
Remittances by branches of foreign corporations in the Philippines (except those activities registered with the Philippine Economic Zone Authority and other companies within the special economic zones such as the Subic Bay Metropolitan Authority and Clark Development Authority) to their head offices are subject to 15% BPRT.
3. Tax on Non-resident Corporations
Generally, non-resident foreign corporations are taxed at 30% of the gross amount of Philippine source income such as dividends, rents, royalties, compensation, and remuneration for technical services. This tax is withheld at source. There are preferential income tax rates for some types of non-resident corporations, as well as those entities that fall within the scope of specific tax treaty rates entered into by the Philippines.