Philippines

Individual - Other taxes

Last reviewed - 20 December 2019

Social taxes

The maximum annual social tax payable by a foreign national employee is PHP 15,681.40 for tax year 2019. Social taxes consist of contributions to the Social Security System (SSS) and Philippine Health Insurance Corporation (Philhealth). 

Foreign nationals who are working in the Philippines are no longer required to contribute to the Home Development Mutual Fund (HDMF).

Employers are required to match the employees' contributions.

Consumption taxes

Value-added tax (VAT)

A 12% VAT is imposed on services performed in the exercise or practice of profession or calling, including entertainers, musical, radio, movie, and television and stage directors; and professional athletes, as well as services rendered by customs, real estate, stock, immigration, and commercial brokers. The VAT is based on the gross receipts representing the contract price, compensation, service fee, rental, or royalty, including the amount charged for materials supplied with the services and deposits and advanced payments actually or constructively received during the taxable period/quarter for the services performed or to be performed for another person, excluding VAT.