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Dividend tax in Philippines 2026
Dividends from Philippine companies and mutual funds are settled with a 10% final withholding — nothing more to file on that income.
Foreign dividends join the 0-35% scale for resident citizens, but resident aliens owe nothing on them at all.
At a glance
- top rate
- 10% final on domestic dividends
- entry band
- 0% on foreign dividends for resident aliens
- tax year basis
- Withheld per payment
- filing deadline
- None for final-taxed dividends
- residency basis
- Domestic dividends at source; foreign dividends only for citizens
- regime flag
- PERA-held investments earn dividends tax-free
Rates
How dividends are taxed (2026)
| Rate | Base | Applies to |
|---|---|---|
| 10% | Gross dividend | Cash and property dividends from domestic companies and mutual-fund companies — final, for citizens and resident aliens |
| 0-35% | Gross dividend | Foreign dividends of resident citizens — ordinary income |
| 0% | — | Foreign dividends of resident aliens and non-residents — outside the Philippine net |
| 25% | Gross | Philippine dividends of short-stay non-resident foreigners (under 180 days) |
Residency
Residency trigger
The 10% is withheld at source whoever the resident holder is; citizenship decides whether foreign dividends are taxed at all.
Non-resident treatment
Longer-stay non-resident foreigners follow resident-style rules on Philippine dividends; short-stay non-residents lose a flat 25%, subject to treaty relief.
Notes
- Dividends inside a Personal Equity and Retirement Account (PERA) are exempt as part of the account's tax-free investment income.
- Directors' fees are not dividends — non-executive directors face a creditable 5% or 10% withholding depending on whether fees pass PHP 3 million.
- Partners' shares in ordinary partnerships are treated like corporate dividends at 10%; professional-partnership shares flow through at the graduated rates.
FAQ
What is the dividend tax in the Philippines?
10%, withheld at source as a final tax on dividends from Philippine companies.
Are foreign dividends taxed in the Philippines?
Only for resident citizens, at the 0-35% scale. Resident foreigners pay 0% on dividends from abroad.
Figures: tax year 2026, compiled from public sources. Not tax advice.