Australia – Philippines Tax Treaty
The Australia-Philippines tax treaty caps withholding on dividends at 25% for portfolio investors and 15% for qualifying direct investment, and interest at 15%. Royalty rates vary by category, from 15% on copyright to 25% on film and television. Private pensions are taxable only in the country of residence, with no withholding at source. This is one of 48 active treaties in Australia's network and one of 28 in Philippines's. The general dividend rate of 25% is above the median in both countries' networks (Australia: 15%, Philippines: 15%).
Verified data
Australian Treasury Income Tax Treaties (treasury.gov.au) (Treaty list verified April 2026. Rates from individual treaty texts (Articles 10-12).)
Withholding Rate Summary
Source: Australia Treaty Reference| Income Type | Treaty Rate | Statutory Rate (Australia) |
|---|---|---|
| Dividends (general) Portfolio investors | 25%saves 5% | 30% |
| Dividends (qualified) Beneficial owner is a company holding >= 10% of voting stock | 15%saves 15% | 30% |
| Interest Bank interest, bonds, loans | 15% | 10% |
| Royalties (avg) Patents, copyright, know-how, film/TV | 17.5% | — |
| Pensions Private pension distributions | 0% | — |
| Social Security Government social security benefits | 0% | — |
“Treaty Rate” is the maximum withholding permitted under this treaty. The actual effective rate may be lower if domestic law provides a more favorable rate independently. “Statutory Rate (Australia)” shows the rate that applies when no treaty benefit is claimed. Qualified dividend rate requires: Beneficial owner is a company holding >= 10% of voting stock.
Dividends
The general dividend rate of 25% applies to portfolio investors. A reduced rate of 15% is available when beneficial owner is a company holding >= 10% of voting stock. Without the treaty, the statutory withholding rate on dividends is 30%.
Source: Australia Treaty Reference
Interest
Interest payments (bank interest, bonds, loans) are subject to 15% withholding under this treaty, compared to the 10% statutory rate. This represents a no reduction from the statutory rate.
Source: Australia Treaty Reference
Royalties
Royalty withholding rates vary by the type of intellectual property. This treaty distinguishes 4 categories, with rates ranging from 15% to 25%.
Source: Australia Treaty Reference
Pensions & Social Security
Private pension distributions are taxable only in the country of residence, with no withholding at source. Government social security benefits are exempt from source-country withholding.
Source: Australia Treaty Reference
Comparative Context
🇦🇺Australia's Network
Among Australia's 48 active treaty partners, the 25% general dividend rate ranks 48th (median: 15%).
| Partner | Rate |
|---|---|
| United States | 15% |
| Vietnam | 15% |
| South Africa | 15% |
| Philippines (this treaty) | 25% |
🇵🇭Philippines's Network
Among Philippines's 28 active treaty partners, the 25% general dividend rate ranks 22th (median: 15%).
| Partner | Rate |
|---|---|
| India | 20% |
| Thailand | 20% |
| Austria | 25% |
| Australia (this treaty) | 25% |
| Brazil | 25% |
| United Kingdom | 25% |
| South Korea | 25% |