Philippines MOF Announces Refined Proposal on Bill to Simplify Passive Income Taxes

The Philippine Department of Finance Feb. 14 announced a refined proposal on a bill to simplify passive income taxes. The announcement includes measures to: 1) harmonize the interest income tax at 20 percent while maintaining the existing taxation of royalties until 2027, with a subsequent harmonization and decrease to 15 percent in 2028; 2) continue the dividend income tax unchanged until 2027, with a proposed harmonization at 10 percent in 2028; 3) begin, in 2028, the gradual decrease to 7.5 percent from 12.5 percent on property insurance policies, fidelity bonds, and other insurance policies; 4) continue existing tax rates on ...