Introduction to Business Taxes Flashcards
What types of transfers are subject to business taxes?
Business taxes are imposed upon onerous transfers such as sales, barter, exchange, and importation.
What is the scope of business taxes?
Those imposed upon the pursuit of businesses within the Philippines only, except importation.
Are onerous transfers made in the course of trade or businesses taxable?
Yes, onerous transfers made in the course of trade or businesses are taxable.
Are onerous transfers made in isolated transactions generally taxable?
No, onerous transfers made in isolated transactions are generally not taxable. However, there is an exception.
What is the exception for onerous transfers made in isolated transactions?
Residents making isolated transactions are non-taxable, but non-resident aliens rendering services in the Philippines are taxable.
What qualifies as onerous transfers made for subsistence or livelihood?
Onerous transfers made for subsistence or livelihood are those earning gross sales or receipts not exceeding P100,000.00.
Are onerous transfers made for subsistence or livelihood taxable?
No, onerous transfers made for subsistence or livelihood are not taxable.
Who are considered Marginal Income Earners (MEIs)?
Marginal Income Earners (MEIs) are earners who make onerous transfers for subsistence or livelihood, meaning they do not realize gross sales or receipts exceeding P100,000. Therefore, they’re not imposed with business tax.
What are MEIs in terms of their relationship with employers?
MEIs are not under an employee-employer relationship; instead, they are self-employed.
Can you provide examples of occupations that fall under the category of MEIs?
Yes, examples of MEIs include:
Farmers/Fishermen
Sari-sari store owners
Small carinderia owners
Drivers/operators of single-unit tricycles
Which self-employed individuals are not included in the category of MEIs?
Self-employed individuals not included as MEIs are:
Licensed professions and consultants
Artists
Sales agents and brokers.
