MANAGEMENT

Detailed explanation-1: -In general, profits remitted abroad by a branch office are subject to a 15% tax rate, based on the total profits applied or earmarked for remittance, without any deduction for the tax component thereof. A lower rate may apply under certain tax treaties.

Detailed explanation-2: -Interest on bank savings, time deposits, deposit substitutes, and money market placements received by domestic or resident foreign corporations from a domestic corporation are subject to a final tax of 20%, while interest income derived from FCDU deposits is subject to a final tax of 15%.

Detailed explanation-3: -US tax law imposes a 30% branch profits tax on a foreign corporation’s US branch earnings and profits for the year that are effectively connected with a US business, to the extent that they are not reinvested in branch assets.

Detailed explanation-4: -A citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines.