Philippines Corporate Income Tax
Detailed corporate income tax rates and rules for Philippines in 2026.
The Philippines' regular corporate income tax (RCIT) rate is 25% for most corporations. Domestic corporations with net taxable income not exceeding PHP 5 million and total assets not exceeding PHP 100 million enjoy a reduced rate of 20%. A Minimum Corporate Income Tax (MCIT) of 2% of gross income applies if greater than the RCIT, beginning in the fourth year of business. The CREATE MORE Act provides enhanced incentives for registered business enterprises in economic zones.
Standard Rate
25%
Small Business Rate
20%
Additional Notes
Special Economic Zone (PEZA) registered enterprises may benefit from income tax holidays of 4-7 years followed by a 5% gross income tax (in lieu of all national and local taxes). The CREATE MORE Act enhanced these incentives. Foreign corporations are taxed at 25% on Philippine-sourced income. Branch profits remitted abroad are subject to 15% withholding tax, reduced under tax treaties.
How Philippines Corporate Tax compares
Philippines’s corporate tax rate of 25% is the 69th highest of 203 countries TaxAtlas tracks, above the global average of 22.2% and Asia’s regional average of 19.7%.
