Section 2
SEC. 2. Section 22 of the said Code is hereby amended to read as follows: "SEC. 22. Tax on non-resident alien individuals.—(a) Non-resident aliens engaged in trade or business within the Philippines. (1) In general.—Non-resident aliens engaged in trade or business in the Philippines shall be subject to tax in the same manner as resident citizens and aliens on taxable compensation income and/or other taxable net income received from all sources within the Philippines, except capital gains realized from buying and/or selling shares of stock of Philippine corporations listed in the dollar or any foreign currency board of stock exchange: Provided, That for purposes of this Title, a non-resident alien individual who shall come to the Philippines and stay therein for an aggregate period of more than one hundred eighty days during any calendar year shall be deemed a non-resident alien, doing business in the Philippines, the provision of Section 20 (g) of this Code to the contrary notwithstanding. "(2) Dividends, share in the net profits of a taxable partnership, interest, royalties, prizes and other winnings, etc.—Dividends from a domestic corporation, share in the net profits of a partnership taxable under Section 24 (a), interest, royalties (in any form) and prizes (except prizes amounting to P3,000 or less which shall be subject to tax under paragraph (b) of Section 21) and other winnings (except Philippine Charity Sweepstakes winnings), shall be subject to a final tax of thirty per centum (30%) on the total amount thereof, which shall be collected and paid as provided in Sections 53 and 54 of this Code. "(b) Non-resident alien not engaged in trade or business within the Philippines.—There shall be levied, collected and paid for each taxable year upon the entire income received from all sources within the Philippines by every non-resident alien individual not engaged in trade or business within the Philippines as interest, dividends, rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments, or other fixed or determinable annual or periodical or casual gains, profits, and income, and capital gains (except capital gains realized from buying and/or selling shares of stock of Philippine corporations listed in the dollar or any acceptable foreign currency board of any stock exchange), a tax equal to thirty per centum (30%) of such income. "(c) Aliens employed by regional or area headquarters of multinational corporations.—There shall be levied, collected and paid for each taxable year upon the gross income received by every alien individual employed by regional or area headquarters established in the Philippines by multinational corporations as salaries, wages, annuities, compensations, remunerations and other emoluments, such as honoraria and allowances, from such regional or area headquarters a tax equal to fifteen per centum (15%) of such gross income: Provided, That the activities of the said regional headquarters or area headquarters shall be limited to acting as supervisory, communications and coordinating center for their affiliates, subsidiaries or branches of such multinational corporations. For purposes of this chapter, the term 'multinational corporation' means a foreign firm or entity engaged in international trade with affiliates or subsidiaries or branch offices in the Asia Pacific Region. "(d) Aliens employed by offshore banking units.— There shall be levied, collected and paid for each taxable year upon the gross income received by every alien individual employed by offshore banking units established in the Philippines as salaries, wages, annuities, compensations, remunerations and other emoluments, such as honoraria and allowances, from such offshore banking units a tax equal to fifteen per centum (15%) of such gross income. "(e) Aliens employed by petroleum service contractors and subcontractors.—Aliens who are permanent residents of a foreign country but who are employed and assigned in the Philippines by service contractors or by subcontractors engaged in petroleum operations in the Philippines shall be liable to a final income tax equal to fifteen per centum (15%) of the salaries, wages, annuities, compensations, remunerations and other emoluments such as honoraria and allowances, received from such contractors or subcontractors. Any income earned from all other sources within the Philippines by the said alien employees shall be subject to the income tax imposed under the National Internal Revenue Code."