BPRT · NIRC §28(A)(5) · 2026 Rates

Branch Profit Remittance Tax Calculator Philippines

Compute Philippine Branch Profit Remittance Tax under NIRC §28(A)(5), applying the standard 15% rate or treaty-reduced rates where applicable to profits remitted by foreign branches to their non-resident head offices.

What Branch Profit Remittance Tax Calculator Does?

The Branch Profit Remittance Tax Calculator Philippines simplifies the computation of tax obligations by processing three financial inputs. The Branch Profit Remittance Tax Calculator Philippines requires users to enter the amount of profit intended for remittance to a foreign head office, the applicability of any tax treaty reductions, and the source of the profit.

The Branch Profit Remittance Tax Calculator Philippines applies the appropriate tax rate (the standard 15% or a reduced rate under a tax treaty) and calculates the final tax liability. When the profit originates from a PEZA-registered activity, the Branch Profit Remittance Tax Calculator Philippines reflects a zero tax obligation and indicates an exemption. The Branch Profit Remittance Tax Calculator Philippines converts raw financial data into a compliant tax figure ready for filing with the Bureau of Internal Revenue.

Inputs Branch Profit Remittance Tax Calculator Accepts

The Branch Profit Remittance Tax Calculator Philippines requires three inputs to compute tax liability: profit amount being remitted, home-country tax treaty applicability, and source of profit. Users enter the profit amount being remitted to the foreign head office, specify whether a tax treaty applies that may reduce the standard rate, and indicate the source of the profit, distinguishing between regular business operations and PEZA-registered activities.

The three inputs let the Branch Profit Remittance Tax Calculator Philippines apply the correct tax rate or exemption logic, which produces a precise tax computation. The three required inputs are described in the subsections below.

Profit Amount Being Remitted: The peso amount of after-tax profit a Philippine branch intends to remit to its foreign head office.
Home-Country Tax Treaty Applicability: Whether the head office is in a country with a bilateral treaty that reduces the standard 15% BPRT rate.
Source of Profit: Regular business operations (subject to BPRT) or PEZA-registered activity (may qualify for full exemption).

Profit Amount Being Remitted to Foreign Head Office

The Profit Amount Being Remitted to Foreign Head Office field captures the peso amount of after-tax profit that a Philippine branch intends to remit to its foreign head office. The Branch Profit Remittance Tax Calculator Philippines uses the Profit Amount figure as the base to apply the applicable Branch Profit Remittance Tax (BPRT) rate and calculates the tax due on the remitted amount.
Home-Country Tax Treaty (Reduced Rate Applicability)

The Home-Country Tax Treaty field indicates whether a foreign head office is located in a country with a bilateral tax treaty with the Philippines. The Home-Country Tax Treaty field lets the Branch Profit Remittance Tax Calculator Philippines apply a reduced branch profit remittance tax rate, often lower than the standard 15%, based on the treaty's provisions and required documentation.
Source of Profit (Regular Business Versus PEZA-Registered Activity)

The Source of Profit field in the Branch Profit Remittance Tax Calculator Philippines identifies whether the profits being remitted originate from regular business operations or from activities registered with the Philippine Economic Zone Authority (PEZA). The Source of Profit distinction matters because profits from PEZA-registered activities may qualify for tax exemptions, while profits from regular business operations are subject to the standard 15% branch profit remittance tax.

How to Read Branch Profit Remittance Tax Calculator Result

The Branch Profit Remittance Tax Calculator Philippines result provides a line-by-line breakdown of the tax due on profits remitted to a foreign head office. The output includes the remittance amount (the base for calculations), the applicable tax rate (the percentage applied), and the tax due (the calculated Branch Profit Remittance Tax).

Any treaty-adjusted rate or exemption is noted and explains deviations from the standard tax rate. The detailed output lets users verify the accuracy of the applied rates and any applicable treaty relief or exemptions.

Formula

The NIRC §28(A)(5) Branch Profit Remittance Tax Formula

The Branch Profit Remittance Tax (BPRT) in the Philippines is calculated by applying a tax rate to the profits remitted by a branch to its foreign head office. Under Section 28(A)(5) of the National Internal Revenue Code (NIRC), the standard tax rate is 15%. The 15% rate can be reduced if a valid tax treaty between the Philippines and the branch's home country provides for a lower rate.

The formula equals BPRT = Remittable Profit × Applicable Rate, where the applicable rate is either the statutory 15% or the treaty-reduced rate. The BPRT is due when profits are remitted, earmarked, or otherwise made available to the foreign entity.

Applying Tax Treaty Reductions for Treaty-Resident Branches

When a branch's home country has a tax treaty with the Philippines, the Branch Profit Remittance Tax Calculator Philippines applies the reduced treaty rate. The treaty-rate application begins by selecting the applicable treaty rate from the input options.

The Branch Profit Remittance Tax Calculator Philippines substitutes the treaty rate for the standard 15% rate, provided the branch can substantiate eligibility under the treaty. The rate substitution lowers the overall tax liability on profits remitted to the foreign head office and preserves compliance with international tax agreements.

When PEZA-Registered Branches Are Exempt From BPRT

PEZA-registered branches are exempt from Branch Profit Remittance Tax (BPRT) when the profits being remitted stem from activities registered under the Philippine Economic Zone Authority (PEZA). The PEZA exemption applies to profits derived from registered activities and lets the PEZA-registered branches remit profits to foreign head offices without the standard 15% tax.

The practical consequence is that qualifying remittances can be transferred abroad in full, provided all compliance requirements under the PEZA incentive regime are met.

BIR Form 1601-FQ and Tax Treaty Relief Application (TTRA)

BIR Form 1601-FQ is the Quarterly Remittance Return of Final Income Taxes Withheld. Philippine branches remitting profits to foreign head offices file BIR Form 1601-FQ. BIR Form 1601-FQ reports and remits the 15% final withholding tax, or a treaty-reduced rate, on profits set for remittance.

To claim a reduced tax rate under a tax treaty, branches must also submit a Tax Treaty Relief Application (TTRA). The TTRA requires supporting documentation to prove treaty residence and entitlement to preferential rates. The filing and payment for both BIR Form 1601-FQ and the TTRA are due on or before the last day of the month following the end of each calendar quarter.

Tax Treaty Reduced BPRT Rates by Country

The Philippines has established bilateral tax treaties with multiple countries to lower the standard 15% Branch Profit Remittance Tax (BPRT) rate. The bilateral treaties reduce the BPRT rate to between 10% and 15%, depending on the agreement. Countries such as Japan, Singapore, and the United States are common treaty partners and offer preferential rates for branches of foreign corporations residing in those nations.

To benefit from the reduced rates, branches file a Tax Treaty Relief Application (TTRA) with the Bureau of Internal Revenue (BIR) and provide proof of tax residency from the home country's tax authority. The rates and conditions are published in the BIR's tax treaty database, which preserves transparency and compliance.

Japan 10%
Singapore 10–15%
United States 15%
Germany 10%
Netherlands 10%
Canada 15%

How to Compute Branch Profit Remittance Tax in the Philippines

Computing the Branch Profit Remittance Tax (BPRT) in the Philippines follows five steps based on the National Internal Revenue Code (NIRC) §28(A)(5). The five steps are listed below.

01

Determine the Profit Amount

Calculate the total profit amount being remitted to the foreign head office. The Profit Amount figure serves as the base for tax computation.
02

Apply the Standard Tax Rate

Multiply the remitted profit by the standard 15% BPRT rate as stipulated in NIRC §28(A)(5). The 15% rate applies unless a tax treaty provides a reduced rate.
03

Consider Tax Treaty Provisions

When a tax treaty exists between the Philippines and the home country of the branch, apply the reduced tax rate specified in the treaty. Confirm the branch qualifies for the reduced rate by meeting all treaty conditions.
04

PEZA-Registered Branches

For branches registered with the Philippine Economic Zone Authority (PEZA), verify whether the profits derive from PEZA-qualified activities. PEZA-qualified profits may be exempt from BPRT.
05

Final Calculation

Adjust the final tax amount based on the applicable rate or exemptions. When no treaty reduction or PEZA exemption applies, the standard 15% rate remains.

The five-step approach preserves compliance with Philippine tax regulations and supports the remittance process for foreign branches operating in the country.

Beyond BPRT, the branch's local employees pay individual income tax separately. To plan that personal computation, head to our Tax Calculator Philippines.

How Tax Treaty Reductions Lower the 15% BPRT Rate

Tax treaty reductions lower the standard 15% Branch Profit Remittance Tax (BPRT) rate in the Philippines. When a bilateral tax treaty exists between the Philippines and a foreign branch's home country, the treaty includes provisions for a reduced withholding rate on branch profits. The reduced rates can range from 5% to 10%, depending on the treaty terms.

To benefit from the reduced rate, a branch files a Tax Treaty Relief Application (TTRA) with the Bureau of Internal Revenue (BIR) and demonstrates that the head office qualifies as a resident of the treaty country. The TTRA process produces lower tax liabilities on profits remitted to the foreign head office, which grows cash flow and reduces overall tax burdens.

When Are PEZA-Registered Branches Exempt From BPRT?

PEZA-registered branches are exempt from the Branch Profit Remittance Tax (BPRT) when profits originate from activities covered by PEZA incentives. The PEZA exemption applies to profits generated from qualified, incentive-covered activities and lets PEZA-registered branches avoid the standard 15% BPRT on remittances.

The practical consequence is a substantial reduction in the tax burden for PEZA-registered branches, which grows financial efficiency compared to non-PEZA-registered branches.

PEZA-registered branches still face VAT on non-qualified local sales, even when BPRT is exempt. For that 12% computation, use our VAT Calculator.

How BPRT Differs From Dividend Withholding Tax on Subsidiaries

Branch Profit Remittance Tax (BPRT) and Dividend Withholding Tax serve similar purposes but apply differently. BPRT is imposed on profits remitted by a foreign branch operating in the Philippines to the head office, regardless of whether the profits are declared as dividends.

Dividend Withholding Tax applies to dividends distributed by a Philippine subsidiary to its foreign parent corporation, taxing profits that have already been subject to corporate income tax and are then formally declared as dividends. The BPRT-versus-Dividend Withholding distinction reflects legal structure differences: branches are extensions of the foreign entity, while subsidiaries are separate legal entities.

How Much BPRT Should Foreign Branches Pay in 2026?

Foreign branches in the Philippines pay a 15% Branch Profit Remittance Tax (BPRT) on profits remitted to the head office in 2026. The 15% tax is applied to the total amount of profits earmarked for remittance. The exact tax liability varies depending on whether a tax treaty exists between the Philippines and the branch's home country, which may reduce the rate.

Under certain bilateral agreements, the rate may be lowered to 10% or less. Branches registered with the Philippine Economic Zone Authority (PEZA) that remit profits from qualified activities may qualify for full tax exemption. Without treaty relief or PEZA registration, the standard 15% rate applies to all profits designated for remittance abroad.

What Is Branch Profit Remittance Tax (BPRT)?

Branch Profit Remittance Tax (BPRT) is a tax imposed by the Philippines on the profits of a foreign corporation's branch that are sent back to the head office abroad. BPRT is applied at a rate of 15% on the total profits earmarked for remittance. BPRT keeps profits repatriated from the Philippines taxed before leaving the country, similar to dividend withholding tax on domestic subsidiaries.

Under certain circumstances, such as applicable tax treaties or when the branch is registered with the Philippine Economic Zone Authority (PEZA) conducting qualified activities, the BPRT rate may be reduced or fully exempted.

How Branch Profit Remittance Tax (BPRT) Differs From Dividend Withholding Tax on Subsidiaries of Foreign Corporations

Branch Profit Remittance Tax (BPRT) and dividend withholding tax differ in their application to different business structures. BPRT applies to profits remitted by a Philippine branch of a foreign corporation to its head office abroad. Dividend withholding tax applies to dividends distributed by a Philippine subsidiary to its foreign shareholders.

The key distinction sits in the legal structure: branches are extensions of the foreign entity, while subsidiaries are separate legal entities. BPRT is triggered by remittances to the home office, while dividend withholding tax is triggered by dividend declarations to stockholders.

Branches selling Philippine real property also face a separate 6% capital gains tax outside the dividend/BPRT framework. For property-sale computation, see our Capital Gains Tax Calculator.

How Does Branch Profit Remittance Tax (BPRT) Work?

Branch Profit Remittance Tax (BPRT) in the Philippines functions as a withholding tax applied when a branch of a foreign corporation transfers after-tax profits to its foreign head office. The branch acts as the withholding agent, responsible for calculating, deducting, and remitting the tax to the Bureau of Internal Revenue (BIR) before transferring the profits.

BPRT is triggered at the point of remittance and requires the branch to compute the applicable tax rate, which is 15% unless a reduced rate applies due to a tax treaty. The branch must file the required tax returns, such as BIR Form 1601-FQ, and pay the tax on or before the specified deadline to preserve compliance. The withholding process keeps tax obligations met before profits are sent abroad and maintains fiscal accountability.

What is the importance of Branch Profit Remittance Tax (BPRT)?

The Branch Profit Remittance Tax (BPRT) matters for keeping foreign corporations operating in the Philippines through branch offices contributing to the country's tax revenue. BPRT directly affects the amount of profit a foreign branch can remit to the head office after accounting for Philippine tax liabilities.

BPRT maintains tax parity between branch offices and locally incorporated subsidiaries, which are subject to dividend withholding tax. Without BPRT, branches could exploit a tax advantage by bypassing the additional layer of taxation and could undermine government revenue collection efforts. Compliance with BPRT matters for protecting the branch's legal standing in the Philippines and avoiding penalties or enforcement actions by the Bureau of Internal Revenue (BIR).

Beyond BPRT obligations, branches employing Filipino workers also fund retirement benefits under RA 7641. For the tax-exempt employee payout, use our Retirement Pay Tax Calculator.

What Are the Types of Branch Profit Remittance Tax (BPRT)?

Branch Profit Remittance Tax (BPRT) in the Philippines is categorized into two primary types based on the applicable tax rate: Standard 15% BPRT and Tax-Treaty-Reduced Rates. The two types are defined by the standard taxation framework and potential reductions under international agreements. The two BPRT types are listed below.

Standard 15% Branch Profit Remittance Tax Rate: Applies to most foreign branches remitting profits to head offices abroad. Standard 15% is the default rate imposed unless defined conditions for a reduced rate are met.
Tax-Treaty-Reduced Rates Under Bilateral Agreements: Some branches qualify for lower rates through bilateral tax treaties between the Philippines and the branch's home country. The treaties aim to prevent double taxation and encourage international business activities.

The two classifications keep foreign branches taxed appropriately based on the branch's circumstances and international agreements.

Standard 15% Branch Profit Remittance Tax Rate

The standard 15% Branch Profit Remittance Tax (BPRT) rate applies to profits remitted by a foreign branch to its non-resident head office in the Philippines. The Branch Profit Remittance Tax Calculator Philippines uses the 15% rate by default unless a bilateral tax treaty specifies a reduced rate for the branch's home country. The 15% rate is mandated under NIRC §28(A)(5) and applies to all foreign branches not exempt under special regimes such as the Philippine Economic Zone Authority (PEZA) incentive framework.
Tax-Treaty-Reduced Rates Under Bilateral Agreements

The Branch Profit Remittance Tax Calculator Philippines uses the home-country tax treaty selection to determine if a reduced rate applies. When the foreign head office is in a treaty country, the Branch Profit Remittance Tax Calculator Philippines applies the lower tax rate specified in the bilateral agreement. The rate adjustment reduces the standard 15% rate under the NIRC and lowers the tax liability for the branch.

Who Pays or Needs Branch Profit Remittance Tax (BPRT)?

Branch Profit Remittance Tax (BPRT) is paid by Philippine branches of foreign corporations when they remit profits to the head office abroad. A branch of a U.S. technology company operating in the Philippines must remit BPRT when sending profits back to headquarters in the United States. A Japanese manufacturing branch in Manila transferring earnings to its Tokyo head office is obligated to pay BPRT.

The branch calculates, withholds, and remits the tax before the profit transfer, which preserves compliance with Philippine tax regulations.

U.S. Branches: A U.S. technology company's Philippine branch must remit BPRT when sending profits back to U.S. headquarters.
Japanese Branches: A Japanese manufacturing branch in Manila transferring earnings to its Tokyo head office is obligated to pay BPRT.
Other Foreign Branches: Any Philippine branch of a foreign corporation withholds and remits BPRT before transferring profits abroad.

Branches employing local staff in the Philippines also remit SSS contributions for those workers as part of payroll obligations. To verify the employer remittance schedule, run our SSS Contribution Calculator at the 2026 rates.

Compliance

How BIR Enforces Branch Profit Remittance Tax Compliance

The Bureau of Internal Revenue (BIR) enforces Branch Profit Remittance Tax compliance through several mechanisms. Audits are a primary method, triggered by discrepancies in reported remittances or failure to file BIR Form 1601-FQ. The BIR examines documentation, such as remittance records and tax treaty relief applications, to confirm accuracy and legitimacy.

Non-compliance can result in penalties, including a 25% surcharge on unpaid taxes and 12% annual interest on deficiencies. Taxpayers must maintain thorough records, including profit calculations and certificates of residence from foreign tax authorities, to substantiate claims and avoid penalties.

How is the branch profit tax calculated?

The branch profit tax is calculated by applying the applicable tax rate to the total profits earmarked for remittance to the foreign head office. Under NIRC §28(A)(5), the standard rate is 15%, applied to the gross remittable profit after corporate income tax has been paid.

When a tax treaty exists between the Philippines and the branch's home country, a reduced rate may apply, contingent on treaty terms. Branches registered under the Philippine Economic Zone Authority (PEZA) and qualifying for exemptions may remit profits without incurring the branch profit remittance tax.

What is the tax rate of branch profit remittance tax: a 10% b 15% c 5% d 20%?

The branch profit remittance tax rate in the Philippines is 15%. The 15% rate is mandated under Section 28(A)(5) of the National Internal Revenue Code (NIRC) of 1997, as amended, and applies to profits remitted by a branch to its foreign head office.

The 15% rate remains effective for remittances made in 2026 and beyond unless a tax treaty provides a lower rate.

What is the branch tax in the Philippines?

The branch tax in the Philippines, known as the Branch Profit Remittance Tax (BPRT), is a tax imposed on profits remitted by a Philippine branch office of a foreign corporation to the head office abroad. BPRT is applied at a rate of 15% on the profits designated for remittance, which keeps income generated in the Philippines by branches of foreign corporations taxed similarly to dividends from domestic subsidiaries.

The BPRT rate may be reduced under applicable tax treaties, and branches registered with the Philippine Economic Zone Authority (PEZA) may remit profits from qualified activities tax-exempt.

Branch Profit Remittance Tax (BPRT) in the Broader Philippine Foreign-Investment and Cross-Border Taxation Framework

The Branch Profit Remittance Tax (BPRT) is a core component of the Philippines' foreign-investment and cross-border taxation framework. BPRT functions as a withholding tax on profits remitted by a foreign corporation's Philippine branch to its head office abroad. BPRT complements corporate income tax regulations by keeping profits taxed before leaving the country.

BPRT works alongside the dividend withholding tax applied to subsidiaries, which supports tax parity and reduces arbitrage opportunities between different business forms. BPRT interacts with incentives provided by the Philippine Economic Zone Authority (PEZA) and benefits from bilateral tax treaties, which can reduce the effective tax burden on cross-border profit flows. The BPRT framework collectively shapes foreign investment decisions regarding whether to establish branches or subsidiaries in the Philippines.