MANAGEMENT

Detailed explanation-1: -It is important to note that foreign corporations, whether resident or nonresident, are taxable only on income derived from sources within the Philippines. 15%.

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: -Corporate-Corporate residence A domestic corporation is a corporation that is created or organised under Philippine laws. A foreign corporation that is duly licensed to engage in trade or business within the Philippines is referred to as a ‘resident foreign corporation’.

Detailed explanation-4: -The foreign income i.e. income accruing or arising outside India in any financial year is liable to income-tax in that year even if it is not received or brought into India. There is no escape from liability to income-tax even if the remittance of income is restricted by the foreign country.

Detailed explanation-5: -If you deal with them, take note that for such income, you are responsible for withholding taxes thereon. An NRFC is generally taxable at 25% final withholding tax (FWT) and at 12% final withholding value-added tax (FWVAT).