Philippine Taxation Flashcards
The tributo was a general tax of eight Reales paid to Spain by Filipino males aged 18-50, including carpenters, bricklayers, blacksmiths, tailors, shoemakers, and town workers involved in public works like road construction.
Tributo
The sanctorum was a tax of 3 Reales used to fund Christianization, including church construction and materials for religious celebrations.
Sanctorum
The donativo was a tax of half a Real for the government’s military campaigns against Muslims, later primarily used for Spanish efforts in Zamboanga.
Donativo
The servicio personal was a tax of 1 Real for town expenses, including road construction, bridge repair, and public building improvements.
Caja de comunidad
Polo y Servicios was forced labor during the Spanish period in the Philippines:
Polista: Able-bodied males aged 16-60 were required to work on projects like bridges, churches, and galleon ships.
Work lasted 40 days, reduced to 15 days in 1884 through tax reform.
Polistas also fought against Muslims and joined Spanish expeditions.
Falla (a fine) exempted a polista from labor, but few could afford it.
Exemptions: Gobernadorcillos, cabezas de barangay, and principalia members were not subject to forced labor or the falla.
Servicio personal
Taxation is the process of imposing taxes to generate government income for expenses, fund programs and services, and support economic development through laws governing income collection.
Taxation in
Modern
Philippines
National taxes are paid to the government via the Bureau of Internal Revenue (BIR).
The system is governed by the National Internal Revenue Code of 1997 (Republic Act No. 8424), also known as the Tax Reform Act of 1997, as amended.
There are two types of taxes: national and local
1.Capital Gains Tax
2.Documentary Stamp Tax
3.Donor’s Tax
4.Estate Tax
5.Income Tax
6.Percentage Tax
7.Value-Added Tax
8.Excise Tax
9.Withholding Tax on Compensation
10.Expanded Withholding Tax
11.Final Withholding Tax
12.Withholding Tax on Government Money Payments
Types of
National
Taxes
Capital Gains Tax is a tax on the gains realized by a seller from the sale, exchange, or disposition of capital assets in the Philippines, including pacto de retro sales and other conditional sales.
1.Capital Gains Tax
Documentary Stamp Tax is a tax on documents, instruments, loan agreements, and papers that evidence the acceptance, assignment, sale, or transfer of an obligation, rights, or property related to them.
2.Documentary Stamp Tax
Donor’s Tax is a tax on donations or gifts, imposed on the gratuitous transfer of property between two or more living individuals at the time of the transfer.
3.Donor’s Tax
Estate Tax is a tax on the right of a deceased person to transmit their estate to lawful heirs and beneficiaries at the time of death, as well as on certain transfers made by law that are equivalent to testamentary disposition.
- Estate Tax
Income Tax is a tax on all annual profits earned by individuals, corporations, and other entities that exceed the tax-exempt threshold of Php 250,000.
- Income Tax
Percentage Tax is a business tax imposed on persons or entities who sell or lease goods, properties, or services in the course of trade or business, whose gross annual sales or receipts do not exceed the threshold required for VAT registration.
- Percentage Tax
Value Added Tax (VAT) is a business tax imposed on the seller in the course of trade or business on every sale of properties (real or personal), lease of goods or properties, or provision of services. It is an indirect tax, meaning it can be passed on to the buyer, leading to an increase in the prices of goods and services. VAT returns are typically filed and paid monthly or quarterly. The Expanded Value Added Tax (E-VAT) Law, under RA 9337, was signed on May 24, 2005, by President Gloria Arroyo.
- Value-Added Tax
