Preamble
"SEC. 21. Rates of tax on citizens or residents.— (a) On taxable compensation income.—A tax is hereby imposed upon the taxable compensation income as determined in Section 28 (a) received during each taxable year from all sources by every individual, whether a citizen of the Philippines or alien residing in the Philippines, determined in accordance with the following schedule: Not over P2.500 0% Over P 2,500 but not over P 5,000 1% Over P 5,000 but not over P 10,000 P 25 + 3% of excess over P 5,000 Over P 10,000 but not over P 20,000 P 175 + 7% of excess over P 10,000 Over P 20,000 but not over P 40,000 P 875 + 11% of excess over P 20,000 Over P 40,000 but not over P 60,000 P 3,075 + 15% of excess over P 40,000 Over P 60,000 but not over P 100,000 P 6,075 + 19% of excess over P 60,000 Over P100.000 but not over P 250,000 P 13,675 + 24% of excess over P 100,000 Over P250.000 but not over P 500,000 P 49,676 + 29% of excess over P250.000 Over P500.000 P122,175 + 35% of excess over P500.000 "(b) On taxable net income.—A tax is hereby imposed upon the taxable net income as determined in Section 29 (a) received during each taxable year from all sources by every individual, whether a citizen of the Philippines, or an alien residing in the Philippines determined in accordance with the following schedule: Not over P 10,000 5% Over P 10,000 but not over P 30,000 P 500 + 15% of excess over P 10,000 Over P 30,000 but not over P 150,000 P 3,500 +30% of excess over P 30,000 Over P150.000 but not over P 500,000 P 39,500 + 45% of excess over P150,000 Over P 500,000 P197.000 + 60% of excess over P 500,000 " (c) On royalties, prizes and other winnings.—Royalties, prizes (except prizes amounting to Three thousand pesos or less which shall be subject to tax under paragraph (b)) and other winnings (except Philippine Charity Sweepstakes winnings) received by citizens and resident alien individuals shall be subject to a final tax at the rate of fifteen per centum (15%) on the total amount thereof, which shall be collected and paid as provided in Sections 53 and 54 of this Code. "(d) On interest from bank deposits and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangements.—Interest from Philippine Currency Bank deposits and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangements whether received by citizens of the Philippines or by resident alien individuals, shall be subject to the final tax as follows: (a) fifteen per centum (15%) of the interest on savings deposits, and (b) twenty per centum (20%) of interest on time deposits and yield or any other monetary benefit from deposit substitutes and from trust fund and similar arrangements, which shall be collected and paid as provided in Sections 53 and 54 of this Code: Provided, That no tax shall be imposed if the aggregate amount of the interest on all Philippine Currency deposit accounts maintained by a depositor alone or together with another in any one bank at any time during the taxable period does not exceed One thousand pesos (P1,000.00) a year or Two hundred fifty pesos (P250.00) per quarter: Provided, further, That if the recipient of such interest is exempt from income taxation, no tax shall be imposed and that, if the recipient is enjoying preferential income tax treatment, then the preferential tax rates so provided shall be imposed. "(e) On dividends and share of individual partner in the net profits of taxable partnership.—Dividends received by an individual who is a citizen of the Philippines or resident alien from a domestic corporation and the share of an individual partner in a partnership subject to tax under Section 24 (a) shall be subject to a final tax at the rate of fifteen per centum (15%) on the total amount thereof, which shall be collected and paid as provided in Sections 53 and 54 of this Code. "(f) On adjusted gross income—A tax is hereby imposed upon the adjusted gross income derived by a non-resident citizen from all sources without the Philippines during each taxable year computed in accordance with the following schedule: If the amount subject to tax is: Not over U.S. $6,000.00 1% Over U.S. $6,000.00 but not over U.S. $20,000.00 U.S. $60 plus 2% of excess over U.S. $6,000 Over U.S. $20,000 U.S. $340 3% of excess over U.S. $20,000 For purposes of this paragraph, 'adjusted gross income' means the gross income from all sources without the Philippines less the following: "(1) An allowance for personal exemption in the amount of Two thousand dollars ( U.S. $ 2,000), if the person making the return is a single or a married person legally separated from his or her spouse; or Four thousand dollars (U.S. 4,000), if the person making the return is married or head of the. family, as defined in Section 23 of this Code and "(2) The total amount of the national income tax actually paid to the government of the foreign country of his residence. "Every non-resident citizen availing of the special rates provided herein is required to support his declaration of gross income, exemption and deductions claimed by attaching to his Philippine income tax return a copy of the income tax return he has filed with the government of the foreign country of his residence."