PHILIPPINE TAXATION

Question 1

A general tax paid by the Filipinos to Spain which amounted to eight Reales. Those who were
required to pay the tributo were the (a) 18 - 50 years old
males, (2) the carpenters, bricklayers, blacksmiths,
tailors, and shoemakers, and (3) town workers such as
those in road construction, and those whose in public in
nature.

Answer 1

Tributo

Question 2

A tax in the amount of 3 Reales. These were required for the cost of Christianization, including the
construction of churches and the purchase of materials for
religious celebrations.

Answer 2

Sanctorum

Question 3

A tax in the amount of half Real for the military campaign of the government against the
Muslims. In later years, however, the amount collected
from donativo was almost exclusively used for the
Spanish for Zamboanga.

Answer 3

Donativo

Question 4

A tax collected in the amount of 1 Real for the incurred expenses of the town in the construction of roads, repair of bridges, or the
improvement of public buildings

Answer 4

Caja de comunidad

Question 5

Also called polo y servicios was a form of forced labor during the Spanish period in the Philippines.

Answer 5

Servicio personal

Question 6

Laying a tax through which the
government generates income to defray its expenses.

Answer 6

Taxation

Question 7

There are two types of taxes:

Answer 7

National and Local

Question 8

A tax imposed on gains that may have been realized by a seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales
(a sale with a condition for repurchase) and other forms of conditional sale.

Answer 8

Capital Gains Tax

Question 9

A tax on documents, instruments, loan agreements, and papers evidencing the acceptance, assignment, sale, or transfer of an obligation, rights, or property incident thereto.

Answer 9

Documentary Stamp Tax

Question 10

A tax on a donation or gift. It is also a tax imposed on the gratuitous transfer of property between two or more persons
who are living at the time of the transfer.

Answer 10

Donor’s Tax

Question 11

A tax on the right of the deceased person to transmit his/her
estate to lawful heirs and beneficiaries at the time of death and on certain transfers which are made by law as equivalent to te

Answer 11

Estate Tax

Question 12

The withholding tax withheld by government offices including government-owned or controlled
corporations and local government units, before making any payments to
private individuals, corporations, partnerships and/or associations.

Answer 12

Withholding Tax on Government Money Payments

Question 13

A tax on all annual profits made from individuals, corporations and other earnings that exceed to the tax-exempt threshold of
Php250,000

Answer 13

Income Tax

Question 14

An annual tax on each person engaged in the exercise or practice of his or her profession that requires government
examination, like licensure examinations.

Answer 14

Professional Tax

Question 15

The tax levied by cities or municipalities to every Filipino or
alien living in the Philippines, eighteen (18) years of age or over, who has been regularly employed on a wage or salary basis for at least thirty (30) consecutive
working days during any calendar year, or who is engaged in business or occupation, or who owns real property with an aggregate assessed value of one thousand pesos (P1,000.00) or more, or who is required by law to file an income tax return.

Answer 15

Community Tax

Question 16

Are fees or charges collected by the barangays for services rendered in connection with the regulation or the use of barangay-owned properties or service facilities, such as palay, copra, or tobacco dryers.

Answer 16

Service Fees or Charges

Question 17

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 amount required to register as VAT registered taxpayers. Percentage taxes are usually based on a fixed rate. They are usually paid monthly by businesses or professionals. However, some special industries and
transactions pay percentage tax on a quarterly basis

Answer 17

Percentage Tax

Question 18

A business tax imposed and collected from the seller in the
course of trade or business on every sale of properties (real or personal), lease of goods or properties (real or personal), or vendors of services. It is an indirect tax, thus, it can be passed on to the buyer, causing the increase of prices of most goods and services bought and paid by consumers, VAT returns are usually filed and paid monthly and quarterly. The latest law on Taxation is RA 9337 signed on May 24, 2005 by President Gloria Arroyo is known as the “expanded value added tax” or the “E-VAT”
law

Answer 18

Value-Added Tax

Question 19

A tax imposed on goods manufactured or produced in the Philippines for domestic sale or consumption or any other disposition. It is also imposed on things
that are imported.

Answer 19

Excise Tax

Question 20

The tax withheld from individuals receiving purely compensation income arising from an employer-employee relationship. This tax is what employers withheld in their employees’ compensation income and remit to the government through the BIR or authorized accrediting agent.

Answer 20

Withholding Tax on Compensation

Question 21

Prescribed only for certain payors like those withheld on rental income and professional income. It is creditable against the
income tax due of the payee for the taxable quarter year.

Answer 21

Expanded Withholding Tax

Question 22

A kind of withholding tax which is prescribed only for certain payors and is not creditable against the income tax due of the payee
for the taxable year. An example of final withholding tax is the tax withheld by banks on the interest income earned on bank deposits.

Answer 22

Final Withholding Tax

Question 23

Imposed on the sale, donation, barter, or on any other mode of transferring ownership of real property.

Answer 23

Tax on Transfer of Real Property Ownership

Question 24

Imposed on printing and publication businesses like that of books, cards, posters, leaflets, handbills, certificates, receipts, pamphlets, and others of similar nature.

Answer 24

Tax on Business of Printing and Publication

Question 25

A tax on franchised businesses, at the rate not exceeding fifty percent (50%) of one percent (1%) of the gross annual receipts of the preceding calendar year based on the
incoming receipt (the annual earning) within the territorial
jurisdiction where the franchise is selling in.

Answer 25

Franchise Tax

Question 26

Imposed on ordinary stones, sand, gravel, earth, and other quarry resources, as defined under the National Internal Revenue Code, as amended. This refers to the above materials that are extracted from public lands or from the beds of seas, lakes, rivers, streams, creeks, and other public waters within its territorial jurisdiction.

Answer 26

Tax on Sand, Gravel, and Other Quarry Resources

Question 27

A tax collected from the proprietors, lessees, or
operators of theaters, cinemas, concert halls, circuses, boxing stadia, and other places of amusement.

Answer 27

Amusement Tax

Question 28

This type of tax is usually imposed as determined by the local
provincial councils through which the truck or trucks pass through or deliver their cargo

Answer 28

Annual Fixed Tax

Question 29

Imposed by cities or municipalities on businesses before they will be issued a business license or permit to start operations
based on the schedule of rates prescribed by the local government code, as
amended.

Answer 29

Tax on Business

Question 30

Imposed for the sealing and licensing of weights and measures. This is to impose regulations with regards to such weights and measures as prescribed by the city, provincial or municipal council.

Answer 30

Fees for Sealing and Licensing of Weights and Measures

Question 31

Imposed by the municipality/city to grantees of fishery privileges in the municipal/city waters especially the privilege to
build fish corrals, oysters, mussels, or other aquatic beds or bangus fry areas and others as specified in the Local Government Code.

Answer 31

Fishery Rentals, Fees, and Charges

Question 32

Gross sales of receipts of the preceding calendar year amounting to fifty thousand pesos (P50,000.00) or less, (for city barangays) and thirty thousand
pesos (P30,000.00) or less, (for municipal barangays), at a rate not exceeding one percent (1%) on such gross sales or receipts.

Answer 32

Taxes levied by the barangays on stores or retailers with fixed business establishments

Question 33

A fee collected by barangays upon issuance of barangay clearance, a document required for many government transactions, such as when
getting a business permit from a city or municipal government or applying for a job in a government office or a private company.

Answer 33

Barangay Clearance i