Philippines tax rates
Asia · headline statutory rates, 2025 · Above average
In Philippines, the top statutory personal income tax rate is 35% (ranked #43 of 96 countries), the headline corporate income tax rate is 25%, and the standard VAT/GST rate is 12%. Capital gains for individuals are treated as: 6% on real property; 15% on unlisted shares. Overall it reads as a above average jurisdiction on headline rates — headline rates above the global middle. These are statutory top rates, not the effective tax most people pay, and not tax advice — verify with Philippines's official tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Philippines tax rates at a glance
| Tax | Philippines |
|---|---|
| Top personal income tax rate | 35% |
| Corporate income tax rate | 25% |
| Standard VAT / GST | 12% |
| Capital gains (individuals) | 6% on real property; 15% on unlisted shares |
| Employee social security | Employee SSS ~4.5% |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Headline statutory rates (2025), compiled from PwC Worldwide Tax Summaries and cross-checked against OECD / Tax Foundation data. Rates change — confirm with the official tax authority before relying on them. This is not tax advice.
What these Philippines rates mean
The figures above are headline statutory rates: the top marginal personal income tax rate, the standard (not reduced) VAT/GST rate, and the main corporate rate. The top 35% income tax rate only bites on income above the highest bracket — the effective rate an average earner pays is lower. Consumption is taxed through VAT/GST at 12%, usually with reduced rates on essentials. Always layer in social security (Employee SSS ~4.5%) and any local taxes for a full picture.
How Philippines ranks
| Measure | Philippines | Rank (1 = highest) |
|---|---|---|
| Top personal income tax | 35% | #43 of 96 |
| Corporate income tax | 25% | #30 of 96 |
| Standard VAT/GST | 12% | #65 of 87 |
Countries with a similar tax level to Philippines
The five countries closest to Philippines on overall headline tax level:
| Country | Top income tax | Corporate tax | VAT/GST |
|---|---|---|---|
| Philippines (this country) | 35% | 25% | 12% |
| Bangladesh | 30% | 27.5% | 15% |
| Poland | 32% | 19% | 23% |
| Lithuania | 32% | 17% | 21% |
| Cyprus | 35% | 15% | 19% |
| Indonesia | 35% | 22% | 12% |
Frequently asked questions
What is the income tax rate in Philippines?
The top statutory personal income tax rate in Philippines is 35%. This is the highest marginal rate, which only applies above the top income threshold — most taxpayers pay less. It ranks #43 of 96 countries in our dataset by top rate. Headline rate as of 2025; verify with the official tax authority.
What is the corporate tax rate in Philippines?
Philippines's headline corporate income tax rate is 25%, ranking #30 of 96 by headline corporate rate. Effective rates can differ with incentives, surcharges and local taxes. Verify with the official authority.
Does Philippines have VAT or sales tax?
Yes — the standard VAT/GST rate in Philippines is 12%. Reduced rates often apply to food, medicine and other essentials.
Is Philippines a high-tax or low-tax country?
On headline statutory rates, Philippines looks like a above average jurisdiction — headline rates above the global middle. This is a rough signal from top rates only, not the effective tax an average person or company pays. Tax residency, deductions and treaties change the real picture. Not tax advice.
Keep exploring
Sources & accuracy
Headline rates for Philippines from PwC Worldwide Tax Summaries, cross-checked with the OECD and Tax Foundation. Data as of June 2026; reflects roughly the 2025 tax year. These are statutory headline rates, not effective rates, and this page is general information, not tax advice — verify with Philippines's official tax authority and a qualified adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-20