MANAGEMENT

Detailed explanation-1: -Tax rates for income subject to final tax For resident and non-resident aliens engaged in trade or business in the Philippines, the maximum rate on income subject to final tax (usually passive investment income) is 20%. For non-resident aliens not engaged in trade or business in the Philippines, the rate is a flat 25%.

Detailed explanation-2: -I. Prizes of not more than P10, 000 received by citizens, residents and non-resident aliens engaged in trade or business are exempt from income tax.

Detailed explanation-3: -Royalties received by domestic or resident foreign corporations from a domestic corporation are subject to a final tax of 20%. However, if the royalties are derived from the active conduct of business, they shall be subject to 25% CIT.