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Philippines vs Italy
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

๐Ÿ‡ต๐Ÿ‡ญ Philippines
vs
๐Ÿ‡ฎ๐Ÿ‡น Italy
Tax Year:

๐Ÿ’ฐ Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country โ€” side by side.

Enter your annual income above to see your personal tax comparison โ†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0โ€“35%
Final TRAIN phase; potential review by Congress
No change
23โ€“43%
3-bracket IRPEF reform targeting completion
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
12%
12% standard; no change
No change
4โ€“22%
Digital economy VAT rules tightening
No change
Corporate Tax Rate
Corporate Tax Rate
20โ€“25%
25% large; 20% small; Pillar Two for qualifying MNCs
No change
24%
Investment incentive rate (20%) extended
No change
Capital Gains Tax
Capital Gains Tax
6โ€“15%
6%/15% maintained
No change
26%
Flat 26% maintained
No change
Social Security & Payroll
Social Security / Payroll
~16%
Universal health coverage push increasing PhilHealth rates
No change
~40%
Pension reform adjustments continuing
No change
State, Regional & Local Taxes

๐Ÿ‡ต๐Ÿ‡ญ Philippines โ€” Local Government Unit (LGU) Taxes

The Philippines' 82 provinces, 146 cities, and 1,488 municipalities levy business taxes (1%โ€“2% 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.

๐Ÿ‡ฎ๐Ÿ‡น Italy โ€” Regional & Municipal Income Taxes

Italy's 20 regions levy addizionale regionale at 0.7%โ€“3.33%. Municipalities add addizionale comunale up to 0.9%. Sicily, Sardinia, and Trentino-Alto Adige have special autonomous status. IRAP (regional business tax) at ~3.9% applies to businesses. Local property tax (IMU) is set by municipalities on investment properties. Cumulative marginal rates can exceed 50%.

โš ๏ธ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025โ€“2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Philippines vs Italy: Key Tax Differences (2026)

๐Ÿ’ฐ Income Tax: ๐Ÿ‡ฎ๐Ÿ‡น Italy has a higher top income tax rate (0โ€“35% vs 23โ€“43%). ๐Ÿ‡ต๐Ÿ‡ญ Philippines is more favourable for high earners.

๐Ÿ›’ VAT/Sales Tax: Italy has a higher consumption tax (12% vs 4โ€“22%).

๐Ÿข Corporate Tax: ๐Ÿ‡ฎ๐Ÿ‡น Italy offers a lower corporate rate (24% vs 25%), which can influence business location decisions.

๐Ÿ“ˆ Capital Gains: ๐Ÿ‡ต๐Ÿ‡ญ Philippines taxes investment gains at a lower rate (15% vs 26%), benefiting investors.

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