Philippines

The Philippines uses a progressive income tax system with six brackets, ranging from 0% on annual income up to PHP 250,000 to 35% on income above PHP 8,000,000. The TRAIN Law (Tax Reform for Acceleration and Inclusion) simplified the system and reduced rates for many earners. Social security contributions include SSS (Social Security System) at 4.5% employee / 9.5% employer (on maximum salary credit of PHP 30,000), PhilHealth at 2.25% each (on maximum salary base of PHP 100,000), and Pag-IBIG (housing fund) at 1-2% each (capped at PHP 100 monthly for employee under PHP 1,500). The Philippines has a 13th month pay requirement (mandatory bonus of at least one month's salary). Tax-exempt benefits include de minimis benefits (rice subsidy, clothing allowance, medical allowance within limits). The Philippine Economic Zone Authority (PEZA) provides tax incentives for companies in special economic zones. Capital gains on real property are taxed at 6%, while gains on shares are taxed at 15% (not traded) or 0.6% of selling price (stock exchange). VAT is 12%. The corporate tax rate is 25% (20% for domestic companies with net taxable income under PHP 5 million and total assets under PHP 100 million).