CHAPTER 5

Question 1

BICAP FLOW

Answer 1

• Bank and Non-bank financial intermediaries (Gross receipts tax)
• (International Carrier Tax)
• (Common
  Carrier Tax)
• (Amusement Tax)
• (Stock Transaction Tax)
• Certain Franchise Grantees
• Life Insurance (Premium Tax) and Agents of Foreign Insurance
  -(Overseas Communication Tax)
• (Winnings Tax)

Question 2

Interest income, commissions and discount from lending activities and income from financial leasing, on the basis of remaining maturities of instrument from which the receipt are derived:

a. Maturity period less than 5 years

Answer 2

5%

Question 3

Interest income, commissions and discount from lending activities and income from financial leasing, on the basis of remaining maturities of instrument from which the receipt are derived:

b. Maturity period more than 5 years

Answer 3

1%

Question 4

On royalties, rent of property, personal or real, profit on exchange
and all other items treated as gross income under section 32 of the
NIRC

Answer 4

7%

Question 5

On net trading gains within the taxable year on foreign currency,
debt securities, derivatives and other similar financial instrument

Answer 5

7%

Question 6

TAX ON OTHER FINANCIAL INTERMEDIARIES W/OUT QUASI-BANKING

From all other items treated as gross income under NIRC

Answer 6

5%

Question 7

(International Carrier Tax)
Good, mails or
cargoes? outgoing

Answer 7

3%

Question 8

(Common Carrier Tax)

passenger by land?

Answer 8

3%

Question 9

Certain Amusement places (Amusement Tax)

Places of boxing exhibitions

Answer 9

10%

Question 10

Certain Amusement places (Amusement Tax)

Places of professional basketball games

Answer 10

15%

Question 11

Certain Amusement places (Amusement Tax)

Cockpits, cabaret, day or night clubs

Answer 11

18%

Question 12

Certain Amusement places (Amusement Tax)

Jai-Alai and race tracks

Answer 12

30%

Question 13

(Stock Transaction Tax)
Listed stocks through PSE

Answer 13

60% of 1%

Question 14

IPO TAX
Up to 25%

Answer 14

4%

Question 15

IPO TAX
Over 25% but not over 33 1/3%

Answer 15

2%

Question 16

IPO TAX
Over 33 1/3 %

Answer 16

1%

Question 16

PRIMARY OFFERING =

Answer 16

primary shares / outstanding shares after IPO

Question 17

SEC0NDARY OFFERING =

Answer 17

secondary shares / outstanding shares before IPO

Question 18

Life Insurance (Premium Tax) and Agents of Foreign Insurance

Life insurance (Philippines)

Answer 18

2%

Question 19

Life Insurance (Premium Tax) and Agents of Foreign Insurance

Foreign life insurance (AGENT)

Answer 19

4%

Question 19

Life Insurance (Premium Tax) and Agents of Foreign Insurance

Insurance directly from abroad

Answer 19

5%

Question 20

(Overseas Communication Tax)

Philippines – Philippines

Answer 20

12% vat

Question 21

(Overseas Communication Tax)

Philippines – Abroad

Answer 21

10%

Question 22

(Overseas Communication Tax)

Abroad – Philippines

Answer 22

0% VAT

Question 23

Jai-Alai and Cockpits operators on winnings Winnings in horse race or jai-alai (straight bets/wagers)

Answer 23

10%

Question 24

Jai-Alai and Cockpits operators on winnings Winnings from double, forecast/quinella and trifecta bets

Answer 24

4%

Question 25

Jai-Alai and Cockpits operators on winnings Owners of winning race horses

Answer 25

10%