What is the regular corporate income tax rate in the Philippines?

Under the CREATE Act (Republic Act 11534), the regular corporate income tax (RCIT) rate is 25% on net taxable income. This applies to all domestic and resident foreign corporations that do not qualify for the reduced rate.

Who qualifies for the 20% reduced corporate tax rate?

Domestic corporations qualify for the 20% rate if they meet BOTH conditions: (1) net taxable income does not exceed PHP 5 million, AND (2) total assets do not exceed PHP 100 million, excluding the value of land on which the particular business entity's office, plant, and equipment are situated.

Does this calculator cover minimum corporate income tax (MCIT)?

No. The MCIT (2% of gross income, applicable from the 4th taxable year of operations) is a separate computation. This tool calculates regular RCIT only. If MCIT exceeds RCIT, you pay MCIT instead.

What is net taxable income for Philippine corporate tax purposes?

Net taxable income is gross income minus allowable deductions (ordinary and necessary business expenses, depreciation, interest, etc.) as defined under the Tax Code. Enter the BIR-adjusted figure, not your accounting profit, for an accurate result.

Are branch profits of foreign corporations taxed differently?

Yes. Non-resident foreign corporations are taxed differently and may face branch profit remittance tax. This calculator is designed for domestic corporations and resident foreign corporations subject to RCIT.

When did the CREATE Act rates take effect?

Republic Act 11534 (CREATE Act) was signed on March 26, 2021, and the reduced RCIT rates are retroactively effective from July 1, 2020. The 25% regular rate and 20% MSME rate are the current standard rates.

Philippines Corporate Tax Calculator

Enter your net taxable income and corporation type to instantly calculate Philippines corporate income tax under the CREATE Act.

Corporation Details

Net Taxable Income (PHP)

₱

Corporation Type

Regular Corporation — 25% Large corporations; net taxable income > PHP 5M or total assets > PHP 100M

Qualifying MSME Domestic Corporation — 20% Net taxable income ≤ PHP 5M AND total assets ≤ PHP 100M (ex. land)

Enter your taxable income and click Calculate Tax to see results.

Copied to clipboard!

Summary

The Philippines Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act reduced the regular corporate income tax (RCIT) from 30% to 25% for large corporations. Domestic corporations with net taxable income not exceeding PHP 5 million AND total assets not exceeding PHP 100 million (excluding land) qualify for the 20% reduced rate. This calculator applies the correct rate, shows tax payable, after-tax income, and effective rate for quick financial planning.

How it works

Enter your company's net taxable income in Philippine Pesos (PHP).
Select your corporation type — Regular (25%) or qualifying MSME domestic corporation (20%).
The calculator instantly applies the applicable CREATE Act rate.
Review the breakdown: tax payable, after-tax income, and effective tax rate.
Use "Copy Summary" to save the result for your records.

Use cases

Estimate annual corporate income tax liability for BIR filing.
Compare tax burden between regular and MSME-qualifying corporate structures.
Plan retained earnings and dividend distributions after-tax.
Model CREATE Act savings versus the pre-2021 30% RCIT rate.
Prepare financial projections for investors or board presentations.
Verify in-house tax estimates for compliance review.

Frequently Asked Questions

Last updated: 2026-06-19 · Reviewed by Nham Vu