MANAGEMENT

Detailed explanation-1: -Non-resident citizens and aliens, whether or not resident in the Philippines, are taxed only on income from sources within the Philippines. Rates of tax on income of aliens, resident or not, depend on the nature of their income (i.e. compensation income, income subject to final tax, or other income).

Detailed explanation-2: -A domestic corporation is subject to tax on its worldwide income. On the other hand, a foreign corporation is subject to tax only on income from Philippine sources.

Detailed explanation-3: -A representative office must have an initial minimum inward remittance of USD 30, 000 to cover its operating expenses. A branch is a foreign corporation organized and existing under foreign laws that carries out business activities of the head office and derives income from the host country.

Detailed explanation-4: -Under the CTRP, an MCIT equivalent to two percent (2%) of gross income is imposed beginning the fourth (4th) taxable year immediately following the taxable year in which such corporation started its business operations.