How are dividends taxed in the Philippines?

Cash and property dividends from a domestic corporation are subject to a final withholding tax, so they are taxed at source and you do not add them to your annual income tax return. The standard rate is 10% for resident citizens and resident aliens, applied directly to the gross dividend.

What rate applies to non-residents?

Non-resident alien individuals engaged in trade or business in the Philippines are withheld at 20%, while those not so engaged are withheld at 25%. Non-resident foreign corporations face a 25% rate, which can drop to 15% under the tax-sparing rule if their home country grants a credit, or lower under an applicable tax treaty.

Are dividends between domestic corporations taxed?

No. Inter-corporate dividends received by one domestic corporation from another domestic corporation are exempt from tax to avoid double taxation. The final withholding tax applies to individual shareholders and foreign recipients, not to domestic corporate shareholders.

Is the final tax the end of my obligation?

Yes. Because it is a final withholding tax, the company deducts it before paying you and remits it to the BIR. You receive the net amount and do not declare the dividend again or pay additional income tax on it in your annual return.

Does this calculator store my data?

No. All figures are computed locally in your browser and nothing is uploaded, so you can estimate your net dividend privately.

Philippines Dividend Tax Calculator

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This Philippines dividend tax calculator computes the final withholding tax on cash dividends and your net take-home amount. Because dividend tax in the Philippines is a final tax deducted at source, the rate that applies depends only on your taxpayer category — and that is exactly what this tool selects for you.

How it works

Dividends from a domestic corporation are taxed by final withholding, so the company deducts the tax before paying you. The rate is set by your category:

Resident citizen / resident alien — 10%
Non-resident alien engaged in trade or business — 20%
Non-resident alien not engaged in trade — 25%
Non-resident foreign corporation — 25% (or 15% under the tax-sparing rule)

Net dividend = gross dividend × (1 − rate). Inter-corporate dividends between two domestic corporations are exempt entirely.

Example

A resident citizen receiving a PHP 100,000 cash dividend has 10% (PHP 10,000) withheld, leaving a net of PHP 90,000. A non-resident foreign corporation receiving the same PHP 100,000 under the 15% tax-sparing rate keeps PHP 85,000, while one taxed at the default 25% keeps PHP 75,000.

Notes

A tax treaty between the Philippines and the recipient’s country can reduce the non-resident rate below the statutory figure, but treaty relief usually requires a BIR confirmation or filing. The final-tax treatment means you do not report the dividend again on your annual return. This tool is an estimate, not formal tax advice.