Philippines vs Germany
Tax Rate Comparison
Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.
๐ฐ Personal Income Tax Calculator
Enter your income to see your estimated annual tax liability in each country โ side by side.
๐ต๐ญ Philippines โ Local Government Unit (LGU) Taxes
The Philippines' 82 provinces, 146 cities, and 1,488 municipalities levy business taxes (1%โ2% of gross receipts), real property tax, and fees. Cities can levy local business taxes at their own rates within national caps. The local business tax is a major compliance burden for businesses operating across multiple LGUs. The BIR (Bureau of Internal Revenue) administers national taxes. The Create Act (2021) significantly reformed corporate income tax rates.
๐ฉ๐ช Germany โ Trade Tax (Gewerbesteuer) & Church Tax
Germany's 16 Bundeslรคnder apply federal income tax rates uniformly โ no state income tax variation. Municipalities levy Gewerbesteuer (trade tax) on business profits at ~7โ17% effective. Church tax (Kirchensteuer) of 8โ9% of income tax applies to registered members. The solidarity surcharge (Soli) now only applies to the top ~10% of earners.
Philippines vs Germany: Key Tax Differences (2026)
๐ฐ Income Tax: ๐ฉ๐ช Germany has a higher top income tax rate (0โ35% vs 14โ45%). ๐ต๐ญ Philippines is more favourable for high earners.
๐ VAT/Sales Tax: Germany has a higher consumption tax (12% vs 7โ19%).
๐ข Corporate Tax: ๐ต๐ญ Philippines offers a lower corporate rate (25% vs 29%), which can influence business location decisions.
๐ Capital Gains: ๐ต๐ญ Philippines taxes investment gains at a lower rate (15% vs 25%), benefiting investors.