Income of taxpayers, with distinction based on the amount of income subject to tax, or applicable tax rates, or both are classified as follows:

A. Individuals:

1. Citizens of the Philippines:

     a. Residents of the Philippines [Secs. 23 (A) and 24 (A)]

        i. Filipinos residing in the Philippines

        ii. Filipinos living abroad but without intention of residing there permanently. [Sec. 22 (E)]

     b. Not Residents of the Philippines [Secs. 23 (B) and 24 (A)]

        i. One has intention to reside permanently abroad

     c. OFW and Seaman [Sec. 23 (C) and 24 (A)]

2. Aliens

     a. Residents of the Philippines

     b. Not Residents of the Philippines [Secs. 22 (G); 23 (D); 25 (A) and (B)

        i. Non-resident alien engaged engaged in trade and business in the Philippines

        ii. Non- resident alien engaged in trade or business in the Philippines

     c. Aliens employed by multinational companies, offshore banking units and petroleum contractors and subcontractors.

3. Estates and Trusts

B. Corporations:

1. Domestic Corporations (Sec. 27)

Domestic Corporations are liable to pay corporate income tax from sources within or without.

2. Foreign Corporations

     a. Resident Corporations - foreign corporations engaged in  trade or business in the Philippines;

     b. Non- resident corporations - foreign corporations not engaged in business or trade in the Philippines.

3. Partnerships

     a. Taxable Partnership

     b. Exempt Partnership

        1. General Professional Partnership (GPP)

        2. Joint Venture or Consortium undertaking construction activity, or engaged in petroleum operations with operating contract with the government.


Classification of Taxpayers