Lesson 3 - National Budget Flashcards
also referred to as the government’s budget.
national budget
It is a plan for how the government spends
taxpayers’ money, and how it pays for its activities, its
borrowings and the repayment of its borrowings.
national budget
In general, a government budget is the financial plan of a government for a given period, usually for a ___ ___
fiscal year
The government budget also refers to the ____ _____ and _____ of borrowings of the National Government (NG).
income, expenditures, and sources
These resources are used to achieve its national objectives, strategies, and programs
national budget
_______ _______ pertain to the sources of funds that will finance budgetary expenditures.
Budgetary resources
Budgetary resources are derived from either:
- Revenues
- Borrowings
are the primary source of financing the budget because these are the most stable sources of funds.
Revenues
Revenues consist of _______ and __________
tax and non-tax collections.
_______ are obtained from repayable sources, including loans secured by the government from financial institutions and other sources internal and external, to finance development projects and/or budget support.
Borrowings
There are two subcategories of borrowings:
a) domestic borrowings and
b) foreign borrowings
The country imposes a __________ _____ _____, meaning only Philippine-sourced income is subject to Philippine taxes.
territorial tax system
The corporate income tax rate is _____ _____
25 percent.
Domestic micro, small, and medium-sized companies will directly benefit from a preferential rate of ______ ____
(businesses with taxable income of up to PHP 5 million (US$85,611) and not exceeding PHP 100 million
(US$1.7 million).
20 percent
The CIT of 25 percent is levied on _______ _____ on all sources.
net income
Non-resident companies are
taxed only on their _______ _____
Philippine-sourced income.
Domestic companies are taxed on their _______ _____
worldwide
income.
The Philippines implements a progressive personal
income tax rate of up to ____ ______
35 percent.
The _____ _____, which was passed at the end of 2017, stipulated provisions to reduce personal income tax on all taxpayers except those in the highest income bracket.
TRAIN Act
Taxpayers in all income brackets below _________ will therefore see between a two and five percent reduction in personal income tax rate from January 1, 2023, onwards.
PHP 8 million (US$142,900)
The ___ _____ value-added tax (VAT) rate is imposed on most goods and services that have achieved actual gross sales of over PHP 3 million (US$51,379). VAT exemption for exporters of local purchases.
12 percent
The Philippines issued a _____ _______ ______ for registered exporters on their local purchases of goods and services through Revenue
Regulations (RR) No. 21-2021.
value- added tax (VAT) exemption
____ ______ are revenues collected from sources other than compulsory tax levies.
Non-tax revenues
These include those collected in exchange for direct services rendered by government agencies to the public. They can also arise from the government’s regulatory and investment activities.
Non-tax revenues
