Philippines

Philippines applies a top marginal personal income tax rate of 35% and a corporate income tax rate of 25%. The tax burden is moderate-to-high, though various deductions and treaty networks may reduce effective rates. Capital gains are taxed at a relatively low rate of 15%, making Philippines reasonably attractive for investors and those with portfolio income. Philippines operates a territorial tax system, meaning only income sourced within the country is subject to taxation. Foreign-sourced income — including overseas business profits, rental income, and investment returns — is generally exempt. This is particularly advantageous for digital nomads and location-independent entrepreneurs who earn income from international clients. Philippines permits dual citizenship, which provides flexibility for tax planning through establishing residency in a second jurisdiction without forfeiting existing citizenship rights.