PHILIPPINE TAXATION Flashcards
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.
Tributo
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.
Sanctorum
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.
Donativo
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
Caja de comunidad
Also called polo y servicios was a form of forced labor during the Spanish period in the Philippines.
Servicio personal
Laying a tax through which the
government generates income to defray its expenses.
Taxation
There are two types of taxes:
National and Local
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.
Capital Gains Tax
A tax on documents, instruments, loan agreements, and papers evidencing the acceptance, assignment, sale, or transfer of an obligation, rights, or property incident thereto.
Documentary Stamp Tax
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.
Donor’s Tax
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
Estate Tax
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.
Withholding Tax on Government Money Payments
A tax on all annual profits made from individuals, corporations and other earnings that exceed to the tax-exempt threshold of
Php250,000
Income Tax
An annual tax on each person engaged in the exercise or practice of his or her profession that requires government
examination, like licensure examinations.
Professional Tax
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.
Community Tax
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.
Service Fees or Charges
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
Percentage Tax
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
Value-Added Tax
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.
Excise Tax
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.
Withholding Tax on Compensation
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.
Expanded Withholding Tax
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.
Final Withholding Tax
Imposed on the sale, donation, barter, or on any other mode of transferring ownership of real property.
Tax on Transfer of Real Property Ownership
Imposed on printing and publication businesses like that of books, cards, posters, leaflets, handbills, certificates, receipts, pamphlets, and others of similar nature.
Tax on Business of Printing and Publication
