Non-resident aliens not engaged in trade or business

Under the Tax Code or the National Internal Revenue Code of the Philippines, one of the different kinds of taxpayers are those Non-resident Alien Not Engaged in Trade or Business or NRANETB.

Explanation:

In Republic Act No. 8424 (NIRC), Section 25 (b) Tax on Nonresident Alien Individual, NRANETB are taxed on the following income received within the Philippines is subject to a flat rate25%in:

1. Interest

2. Cash and/or property dividends 3. Rents

4. Salaries

5. Wages

6. Premiums

7. Annuities

8. Compensation

9. Remuneration

10. Emoluments

11. Fringe benefits

12. Other fixed or determinable annual or periodic or casual gains, profits, and income, and capital gains

While tax on NRANETB is the same under Section 24(c) and (d) for:

13. Capital gains on the sale of non-exchange-traded stock

Not over P100,000 -5%

Over P100,000 -10%.

14. Capital Gains from the Sale of Real Property is 6% of the gross selling price or the current fair market whichever is higher.

Answer rating: 100% (QA)

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