Philippine Court of Tax Appeals Confirms Withholding Tax Exemption on Dividends for Foreign Government Investments

The Philippine Court of Tax Appeals issued a decision on 26 February 2026 regarding the application of the withholding tax exemption on dividends under Section 32(B)(7)(a) of the National Internal Revenue Code (NIRC) of 1997. Under Section 32(B), certain items of income are excluded from gross income and exempted from tax. This includes: (a) Income Derived by Foreign Government. - Income derived from investments in the Philippines in loans, stocks, bonds or other domestic securities, or from…