FINALS

Question 1

These are enforced proportional contributions from persons, properties, or rights by the lawmaking body of the state for the support of the government and all public needs. The bloodline of the government.

Answer 1

Taxes​

Question 2

It pertains to the items of income provided for in the National Internal Revenue Code less, the deductions and personal and additional exemptions, if any.​ Hence, it is the amount of income that is taxed.

Answer 2

Taxable Income​

Question 3

It refers to the tax on all yearly profits arising from property, professions, trades, or offices or tax on the person’s income, profits, and the like.​

Answer 3

Income Tax​

Question 4

Guidelines on what is deemed to be as taxes, fees, and charges by the National Internal Revenue Code​

Answer 4

Income Tax​
Estate and Donor’s taxes​
Value-added Tax​
Other Percentage Tax​
Excise Taxes​
Documentary Stamp Taxes​
Other taxes as are of hereafter may be imposed and collected by the Bureau of Internal Revenue​

Question 5

The one who has the list and guidelines of all items that are taxable. References for Taxation in the Philippines​

Answer 5

National Internal Revenue Code - Republic Act 8424 (Tax Reform Act of 1997)

Question 6

• Revenue Regulations issued by the
• The PH Government Body in charge of taxation

Answer 6

BIR (Bureau of Internal Revenue)

Question 7

money being collected by the government for public use. (funds for projects, social programs, infrastructure, and education).

Answer 7

Taxation

Question 8

3 TYPES OF TAXES

Answer 8

PROGRESSIVE TAXATION
REGRESSIVE TAXATION
PROPORTIONAL TAXATION

Question 9

changing. The higher the income, the higher the tax. the lower the income, the lower the tax. examples are PH, the UK, the US, Germany, and Denmark.

Answer 9

PROGRESSIVE TAXATION

Question 10

Fixed percentages are collected in all class groups. The lower the income, the higher the tax. The higher the income, the lower the tax. examples are Brazil, japan, and other Latin America.

Answer 10

REGRESSIVE TAXATION

Question 11

The basis of taxation of the PH. adjusted the taxes in terms of income. low income almost no taxes.

Answer 11

Republic Act 8424 (Tax Reform Act of 1997) also known as Tax Reform for Acceleration and Inclusion (TRAIN) Law​ (Revised Reg No. 8-2018). amended by Former President Duterte in 2018.

Question 12

producer of the goods

Answer 12

Manufacturer (EXCISE TAX)

Question 13

2 TYPES OF EXCISE TAX

Answer 13

1. Specific
2. Ad Valorem (20% imposed rate).

Question 14

taxed based on weight, volume, capacity, or any type of measurement. (tobaccos are taxed on kilogram bases.)

Answer 14

SPECIFIC

Question 15

taxed based on fair market value. (real estate, property, cars, etc.)

Answer 15

AD VALOREM (20% imposed rate).

Question 16

anything sold or profited in the business issued by a receipt is charged with Sales Tax.

Answer 16

BUSINESS OWNERS (SALES TAX)

Question 17

doctors, lawyers, architects, or businesses that provide service are charged with Service Tax.

Answer 17

SERVICE PROVIDERS (SERVICE TAX)

Question 18

anyone who works for public or private sectors and is earning will be charged with income tax.

Answer 18

EMPLOYEES (INCOME TAX)

Question 19

2 TYPES/APPROACH OF TAXATION

Answer 19

DIRECT (INCOME TAX)
INDIRECT (EXCISE, SERVICE, SALES TAX)

Question 20

refers to taxes imposed directly on an individual’s or entity’s income.

Answer 20

DIRECT (INCOME TAX)

Question 21

refers to taxes that are not directly levied on income but are instead applied to goods and services. These taxes are typically included in the price consumers pay and are collected by businesses on behalf of the government.

Answer 21

INDIRECT (EXCISE, VAT, SALES TAX)

Question 22

a form of sales tax that applies to the total income from selling, exchanging, or leasing goods and services. It is an indirect tax which means that the end consumer is being charged for the tax.

Answer 22

Business Taxes – Value-added Tax​ (12%)

Question 23

For small businesses with annual sales of goods or receipts from services or lease not exceeding Php 1,919,500.00 and are not VAT registered, a 3% percentage tax is imposed.

Answer 23

Business Taxes – Percentage Taxes (3%)​

Question 24

is the document we utilize to file our Percentage Taxes.​

Answer 24

The BIR Form 2551Q

Question 25

late payment or filing of taxes.

Answer 25

25% of the tax due.

Question 26

If the form is incorrectly filed.

Answer 26

50% of the tax due.​

Question 27

unpaid dues.

Answer 27

The tax rate is 12% per annum.

Question 28

The tax is levied to gain revenue and lessen consumption of certain commodities that are considered harmful.​

Answer 28

Business Taxes – Excise Tax​ (6%)

Question 29

Business Taxes – Excise Tax​ 6 examples

Answer 29

1. Sin Products - beverages, wine, and cigars.
2. Petroleum Products - processed gas, waxes, and petroleum, LPG
3. ​Automobiles – any four-wheeled vehicle that is powered by electricity, gasoline, and other motive power.
4. Non-essential goods – Perfume, jewelry, expensive phones and gadgets, watches, expensive arts.​
5. Minerals and Mineral Products
6. Sweetened Beverages

Question 30

tax is passed using properties or real estate because the owner died. prepared before they die. hierarchy.

There is no Inheritance Tax in the Philippines.​

Answer 30

Transfer Taxes – Estate Tax​ (6%)

Question 31

tax is passed using properties or real estate but the owner is still alive. 250k exceed taxable. filed within 30 days.

There is no Inheritance Tax in the Philippines.​

Answer 31

Transfer Taxes – Donor’s Tax​ (6%)

Question 32

Two Types of Donor’s Tax​

Answer 32

Donation Inter Vivos (Article 746)
Donation Mortis Causa (Article 728)

Question 33

donations given during one’s lifetime.​

Acceptance must be made during the lifetime of the donor and of the donee.

Answer 33

Donation Inter Vivos (Article 746)

Question 34

donations take effect after the person’s death​

Donations which are to take effect upon the death of the donor partake of the nature of testamentary provisions, and shall be governed by the rules established in the Title on Succession.

Answer 34

Donation Mortis Causa (Article 728)

Question 35

Illegal. It involves deliberately misrepresenting or concealing information to avoid paying the correct amount of taxes.

Answer 35

Tax Evasion:

Question 36

Legal. It involves using lawful methods to reduce tax liabilities, such as deductions and credits.

Answer 36

Tax Avoidance:

Question 37

3 General Principles of Income Taxation on Individuals​

Answer 37

Citizenship Principle
Residence Principle
Source Principle

Question 38

Citizenship Principle: A Philippine citizen living in the country is taxed on all income, regardless of where it comes from. A citizen living abroad is only taxed on income from the Philippines.

Answer 38

​Citizenship Principle

Question 39

Anyone residing in the Philippines, whether a citizen or foreigner, is taxed on income earned from within the country.

Answer 39

Residence Principle

Question 40

All income generated from sources within the Philippines is subject to income tax, regardless of the taxpayer’s residency status.

Answer 40

Source Principle