PERCENTAGE TAX

Question 1

Persons exempt from vat

Answer 1

1% (July 1, 2020 to June 30, 2023)
3% (July 1, 2023 onwards)

Question 2

Domestic carriers and keepers of garages

Answer 2

3%

Question 3

International air and shipping carriers doing business in the Philippines

Answer 3

3%

Question 4

Gas and water utilities

Answer 4

2%

Question 5

Radio and television broadcasting companies

Answer 5

3%

Question 6

Overseas disparch, message, or conversation originating from the philippines

Answer 6

10%

Exempt:
* Diplomatic services
* International organizations
* News agencies or services
* Government

Question 7

Banks and non bank:

Interest (5 years or less)

Answer 7

5%

Question 8

Banks and non bank:

Interest (more than 5 years)

Answer 8

1%

Question 9

Banks and non bank:

Dividends

Answer 9

0%

Question 10

Banks and non bank:

Royalties, rentals of property

Answer 10

7%

Question 11

Banks and non bank:

Net trading gains

Answer 11

7%

Question 12

Other non bank:

Interest, commissions, discounts and all other items treated as gross income

Answer 12

5%

Question 13

Life insurance premiums

Answer 13

2% of total premiums collected

Exempt:
* refund within 6 months
* reinsurance premiums
* received from abroad
* excess of premiums on variable contracts in excess of amount necessary
*premiums collected by cooperative

Question 14

Agents of foreign insurance:

Agents of NRFC engaged in insurance business

Answer 14

4% of total premiums collected

Question 15

Agents of foreign insurance:

owners of property obtaining insurance

Answer 15

5%

Question 16

Amusement:

Boxing

Answer 16

10%

Question 17

Amusement:

Professional Basketball games

Answer 17

15%

Question 18

Amusement:

Cockpits, cabarets, night or day clubs

Answer 18

18%

Question 19

Amusement:

Jai alai and racetracks

Answer 19

30%

Question 20

Amusement:

POGO

Answer 20

5%

Question 21

Winnings:

Owner of the winning horse

Answer 21

10% (gross winnings)

Question 22

Winnings:

Bettor in a horse or jai alai (ordinary)

Answer 22

10% (net winnings)

Question 23

Winnings:

Bettor in a horse or jai alai (special; double, forecast, quinella, trifecta)

Answer 23

4% (net winnings)

Question 24

Shares of stock listed and traded through LCE or through IPO:

Shares of stock listed and traded

Answer 24

60% of 1% (gross selling price)

Question 25

Shares of stock listed and traded through LCE or through IPO:

Shares of stock sold through IPO
Up to 25%

Answer 25

4%

Question 26

Shares of stock listed and traded through LCE or through IPO:

Shares of stock sold through IPO
Over 25% to 33 1/3%

Answer 26

2%

Question 27

Shares of stock listed and traded through LCE or through IPO:

Shares of stock sold through IPO
Over 33 1/3%

Answer 27

1%