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Philippines vs Bahamas
Tax Rate Comparison

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

🇵🇭 Philippines
vs
🇧🇸 Bahamas
Tax Year:

💰 Personal Income Tax Calculator

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

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–35%
Final TRAIN phase; potential review by Congress
No change
0%
No income tax maintained
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
12%
12% standard; no change
No change
10%
10% VAT maintained
No change

Corporate Tax Rate

Corporate Tax Rate
20–25%
25% large; 20% small; Pillar Two for qualifying MNCs
No change
0%
No CIT; Pillar Two compliance via domestic top-up
No change

Capital Gains Tax

Capital Gains Tax
6–15%
6%/15% maintained
No change
0%
No CGT
No change

Social Security & Payroll

Social Security / Payroll
~16%
Universal health coverage push increasing PhilHealth rates
No change
~9.8%
NIB; hurricane recovery spending affecting fiscal position
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.

🇧🇸 BahamasLocal Government Rates & Fees

The Bahamas' islands have local government bodies collecting fees for services, building permits, and business licences. The Bahamas famously has no income tax, no capital gains tax, no corporate income tax, and no withholding tax — making it one of the world's purest zero-tax jurisdictions. Revenue comes through VAT (introduced 2015), real property tax, customs duties, and stamp duty. As a major offshore financial centre and tourism destination, the Bahamas has faced OECD/FATF pressure on transparency and has made significant reforms.

⚠️ 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 Bahamas: Key Tax Differences (2026)

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

🛒 VAT/Sales Tax: Philippines has a higher consumption tax (12% vs 10%).

🏢 Corporate Tax: 🇧🇸 Bahamas offers a lower corporate rate (0% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇧🇸 Bahamas taxes investment gains at a lower rate (0% vs 15%), benefiting investors.

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