Applicable cash or property dividend tax

In the case of a foreign corporation or an individual who is a resident of a treaty country, the applicable tax rate on dividends under the treaty shall apply. This is provided that all supporting documents have been submitted.

Non-resident foreign corporation/individual that is a resident of a treaty country

Cash and property dividends received from a domestic corporation by a non-resident foreign corporation are subject to a final withholding tax of 25%. The 25% rate for dividends paid to a non-resident foreign corporation may be reduced to 15% subject to the conditions that the country in which the non-resident foreign corporation is domiciled allows a credit against the tax due from the non-resident foreign corporation. This is provided that all supporting documents have been submitted.

If there is an existing tax treaty between the Philippines and the country where the other party to the transaction resides, the applicable preferential tax rates under the treaty shall apply. Conversely, in the absence of such a treaty, the ordinary rates under Philippine tax laws particularly the Philippine Tax Code of 1997 shall apply.

Any availment of the tax treaty relief shall be preceded by an application covered by BIR Form No. 0901 ("Application for Relief from Double Taxation"). The application shall be filed at least fifteen (15) days before the proposed transaction. It shall be accompanied by supporting documents justifying the relief. Note that this is only applicable for tax on dividends.