Section 5Sec./Art. 5

Section 25 of the National Internal Revenue Code of 1997, as amended, is hereby further amended to read as follows:

"Section 25. Tax on Nonresident Alien Individual. -

(A) Nonresident Alien Engaged n Trade or Business Within the Philippines. -

(1) In General. - A nonresident alien individual engaged in trade or business in the Philippines shall be subject to income tax under Section 24 of this Code on taxable income received from all sources within the Philippines. A nonresident alien individual who shall come to the Philippines and stay therein for an aggregate period of more than one hundred eighty (180) days during any calendar year shall be deemed a 'nonresident alien doing business in the Philippines', Section 22(G) of this Act notwithstanding.

(2) Cash and/or Property Dividends from a Domestic Corporation or Joint Stock Company, or Insurance or Mutual Fund Company or Share in the Distributable Net Income of a Partnership (Except a General Professional Partnership), Joint Account, Joint Venture Taxable as a Corporation or Association. - Cash and/or property dividends from a domestic corporation, joint stock company, insurance or mutual fund company, or the share of a nonresident alien individual in the distributable net income after tax of a partnership (except a general professional partnership) of which he is a partner, or the share of a nonresident alien individual in the net income after tax of an association, joint account, or joint ventures taxable as a corporation of which he is a member or a co-venturer shall be subject to an income tax of twenty-percent (20%) on the total amount thereof.

(3) Nonresident Cinematographic Film Owner, Lessor, or Distributor, - Cinematographic films and similar works shall be subject to the tax provided under Section 28 of this Code.

(B) Nonresident Alien Individual 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 nonresident alien individual not engaged in trade or business within the Philippines, such as interest, cash and/or property dividends, rents, salaries, wages, premiums, annuities, compensation, remuneration, emoluments, or other fixed or determinable annual or periodic or casual gains, profits, and income, a final tax equal to twenty-five percent (25%) of such income.

Capital gains realized by a nonresident alien individual not engaged in trade or business in the Philippines from the sale, exchange, or other disposition of shares of stock not traded in a local or foreign stock exchange and real property shall be subject to the income tax prescribed under Subsections (B)(3) and (B)(4) of Section 24.

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