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Philippines vs United Kingdom
Tax Rate Comparison

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

🇵🇭 Philippines
vs
🇬🇧 United Kingdom
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–35%
Final TRAIN phase; potential review by Congress
No change
0–45%
Thresholds remain frozen; fiscal drag continuing
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
12%
12% standard; no change
No change
0–20%
Standard 20% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
20–25%
25% large; 20% small; Pillar Two for qualifying MNCs
No change
19–25%
25% main rate; possible future reform discussions
No change

Capital Gains Tax

Capital Gains Tax
6–15%
6%/15% maintained
No change
18–24%
Post-Oct 2024 rates in full effect
No change

Social Security & Payroll

Social Security / Payroll
~16%
Universal health coverage push increasing PhilHealth rates
No change
~28.3%
15% employer NI; lower secondary threshold remains
No change
State, Regional & Local Taxes

🇵🇭 PhilippinesLocal Government Unit (LGU) Taxes

The Philippines' 82 provinces, 146 cities, and 1,488 municipalities levy business taxes (1%–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.

🇬🇧 United KingdomDevolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically £1,200–£4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

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

Philippines vs United Kingdom: Key Tax Differences (2026)

💰 Income Tax: 🇬🇧 United Kingdom has a higher top income tax rate (0–35% vs 0–45%). 🇵🇭 Philippines is more favourable for high earners.

🛒 VAT/Sales Tax: United Kingdom has a higher consumption tax (12% vs 0–20%).

🏢 Corporate Tax: Corporate rates are similar in both countries (20–25% vs 19–25%).

📈 Capital Gains: 🇵🇭 Philippines taxes investment gains at a lower rate (15% vs 24%), benefiting investors.

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