Normally, foreign investors invest in Philippine real property through a corporation in a joint venture with Filipino individuals or Filipino-owned corporations.
Rental income earned by a real estate company is subject to ordinary corporate income tax at a rate of 30% on net taxable income, i.e. gross rental income less deductible expenses. There is a 5% creditable withholding tax (CWT) imposed on the gross rental amount to be withheld by the lessee, which can be used to offset or be credited against the 30% corporate income tax liability of the lessor. In effect, the 5% CWT withheld is an advance payment of income tax, and any CWT which could not be credited against any tax due in a particular tax year can be carried forward to succeeding years.
Source : PWC