Asia-Pacific · PHP
Philippines
Reviewed 2026-06-21
Top income tax
35%
Self-employed SS
Yes
VAT
12%
Capital gains
15%
Exit tax
No
Nomad visa
Yes
58
/ 100
Tax efficiency37
Ease to enter68
Ease to exit77
Cost of living88
Internet21
English100
The Philippines taxes resident citizens on worldwide income at progressive rates from 0% up to 35%, while resident foreigners are generally taxed only on Philippine-source income. It is a relatively low cost base with widespread English use, a 12% VAT, a 25% corporate rate, and flat 6% estate and gift taxes, but no wealth tax, no exit tax, and no CFC rules. A digital nomad visa framework was created by Executive Order 86 in 2025, though detailed eligibility and income rules are still being finalized.
Personal income tax
Income tax structureProgressive
Top income tax rate35%
Entry income tax rate0%
Top rate threshold$140,000
Taxation basisWorldwide
Local/state income taxNo
Social security
Self-employed social securityYes
Employee SS rate5%
Employer SS rate10%
Indirect & other taxes
VAT standard rate12%
Capital gains rate15%
Long-hold CGT exemptionNo
Wealth taxNo
Inheritance/gift taxYes
Inheritance top rate6%
Property taxNo
Exit & residency
Exit taxNo
EU/EEA deferralNo
Days to trigger residency180 days
Corporate
Corporate income tax rate25%
WHT on dividends10%
CFC rulesNo
Incentives & special regimes
Special expat regimeNo
Immigration & setup
Digital nomad visaYes
DNV monthly income requirement$2,000
Entrepreneur visaNo
Ease of setup2 / 5
Lifestyle
Cost of living index35
Internet speed100 Mbps
English proficiencyHigh
Civil liberties55
Sources
- PwC Worldwide Tax Summaries — Philippines Individual: Taxes on personal income
- PwC Worldwide Tax Summaries — Philippines Individual: Residence and Income determination
- PwC Worldwide Tax Summaries — Philippines Corporate: Taxes on corporate income
- PwC Worldwide Tax Summaries — Inheritance and gift tax rates quick chart
- Numbeo — Cost of Living in Manila
Informational only. Nothing here is tax, legal, or financial advice. Tax rules change often and vary by personal circumstance. Verify every figure against an official source and a qualified adviser before acting. Figures are re-expressed from public sources and cited per country.