Tax Types
Learn about different types of taxes in the Philippines. Guides covering income tax, VAT, property tax, and more.
Updated June 12, 2026
Find your way around the Philippine tax system with our guides to each tax type. From income tax to VAT, capital gains tax to estate tax, we explain what each tax is, who pays it, how it's computed, and when it's due.
Each tax type guide includes rates, filing requirements, deadlines, related BIR forms, and frequently asked questions. Whether you're an individual taxpayer, business owner, or tax professional, these guides provide the information you need for compliance.
Most common tax types
- Capital Gains TaxTax on disposing of real property (flat 6%) and unlisted shares (flat 15% of net capital gain) under the NIRC.
- Income TaxIncome tax in the Philippines is a progressive annual tax on individual and corporate income, with individual rates from 0% to 35% under the TRAIN Law and a 25% corporate rate under CREATE. Individuals file BIR Form 1700, 1701, or 1701A; corporations file Form 1702.
- Value Added TaxPhilippine VAT is a 12% consumption tax on goods and services. File BIR Form 2550Q quarterly, within 25 days of quarter-end.
- Withholding TaxTax deducted at source by employers and payors, remitted to BIR on your behalf.
All tax types
Income-Based Taxes
Taxes on income from employment, business, or profession
- Fringe Benefits Tax35% final tax on grossed-up value of fringe benefits for managerial staff. Remitted by employers on BIR Form 1603Q each quarter.
- Income TaxIncome tax in the Philippines is a progressive annual tax on individual and corporate income, with individual rates from 0% to 35% under the TRAIN Law and a 25% corporate rate under CREATE. Individuals file BIR Form 1700, 1701, or 1701A; corporations file Form 1702.
- Withholding TaxTax deducted at source by employers and payors, remitted to BIR on your behalf.
Business Taxes
Taxes on business operations and transactions
- Excise TaxTax on alcohol, tobacco, fuel, and other sin goods. Specific or ad valorem rates. File monthly via eBIR.
- Percentage Tax3% tax on gross sales for non-VAT businesses, filed quarterly with BIR Form 2551Q.
- Value Added TaxPhilippine VAT is a 12% consumption tax on goods and services. File BIR Form 2550Q quarterly, within 25 days of quarter-end.
Property & Transfer Taxes
Taxes on property ownership and transfer
Estate & Gift Taxes
Taxes on inheritance and the transfer of estates
Common questions
What are the main types of taxes in the Philippines?
The most common are income tax, value-added tax (VAT), percentage tax, withholding tax, capital gains tax, and estate and donor's tax. Each is governed by the National Internal Revenue Code as amended by the TRAIN and CREATE Laws.
Who has to pay value-added tax (VAT)?
Businesses with annual gross sales above ₱3,000,000 must register for and charge 12% VAT. Those below the threshold generally pay the 3% percentage tax instead, unless they opt to register as VAT taxpayers.
How do I know which taxes apply to me?
Your tax obligations depend on your taxpayer type and income source. Browse our taxpayer-type guides or use the relevant calculator to see which taxes apply to employees, freelancers, sole proprietors, and corporations.
Related sections
- Tax CalculatorsCalculate your taxes accurately with our free BIR-compliant tax calculators. Updated for 2026 tax regulations and easy to use for all taxpayers.
- Filing & ComplianceStep-by-step guides on how to file taxes, register with BIR, and comply with Philippine tax requirements.
- Taxpayer TypesFind tax information specific to your situation. Guides for employees, self-employed, freelancers, small businesses, and corporations.
