Taxation Flashcards
Documentary Stam Tax (DST)
excise tax on certain rights embodied in documents
T or F. Failure to pay DST will not invalidate the transaction but the documents will.
TRUE
T or F. One transaction, one (DST) tax.
TRUE
Real Property Tax (RPT) accrues every ________.
January 1
Procedure for computing RPT
FMV > Assessment Level > Assessed Value > RPT
Classification or Assessment Level (CARTSH)
Commercial/Industrial and Mineral - 50%
Agricultural - 40%
Residential - 20%
Timberland - 20%
Special Classes - 15%
Hospital and Water District - 10%
Classification or Assessment Level (CARTSH)
Commercial/Industrial and Mineral - 50%
Agricultural - 40%
Residential - 20%
Timberland - 20%
Special Classes - 15%
Hospital and Water District - 10%
Maximum Tax Rates for:
1. Cities and Municipalities (within MM)
2. Provinces
2% and 1%
Exempted Properties from RPT
Public Properties
Religious, Educational and Charitable
LWDs (GOCCs for water/electric supply and distribution)
Registered Coops
Pollution Control and Environmental Protection
Special Education Fund Tax Rate
uniform 1% (same basis with RPT)
What are idle lands?
- 1/2 left uncultivated, unutilized or unimproved
- residential lots in subdivision
Special Levy
_< 60% actual cost
DST for shares of stock
- Issuance - P2/P200 of par
- Transfer - P1.5/P200 of par
DST for Real Properties
P15/P1000 or 1.5%
Deadline for filing of DST tax return
Within 10 days after the close of the month. Provided, however, that RR6-2001 moved the payment to within 5 days from end of the month.
Mandatory use of web-based eDST system
- banks, quasi-banks or non-bank financial companies
- shipping and airlines companies
- pre-need companies
- educational institutions
Two Types of Excise Tax
- Specific
- Ad Valorem
Taxability of excisable goods or services
GR: point of import or production
XPN: non-essential services (point of sale)
VAT-exempt sales of goods or properties
SECRET Tax-free Gold
VAT-Exempt Sales of Services
SEARCH2 VA TRIPS
Other VAT-Exempt Sales of Goods or Services
CUNS
Services subject to Specific Percentage Tax
BICAP FLOW
Special Exemption to the Percentage Tax
- Cooperatives
- SEP availing the 8% on gross sales/receipts and other income
Deadline of Filing of VAT (2551Q)
25 days after end of taxable quarter
Deadline for filing Overseas Communication Tax
within 20 days after end of each quarter
Deadline for filing Amusement Tax
within 20 days from end of the quarter
Deadline for filing on sales of stock to PSE by stock brokers
5 banking days from date of collection
VAT Threshold
P3M vatable sales or receipts in the last 12 months
VAT Threshold for franchise grantees
P10M per year
Transactions deemed Sale
- Consignment if not withdrawn in 60 days
- Usage not in the course of business (for personal use, dacion en pago, property dividend)
- Retirement or Cessation of business
- Change from VAT to non-VAT status
What is seller’s option on exempt goods
Sellers may opt to apply 12% VAT on sales of exempt goods but shall be irrevocable for three years
When can input VAT be creditable
- paid
- billed by VAT supplier
- VAT invoice or receipt
Sources of Input VAT (TRAPSI)
- Transitional IV
- Regular IV
- Amortization of deferred IV
- Presumptive IV
- Standard IV
- IV carry-over
Filing of returns
1. 2550M
2. 2550Q
- on or before 20th day ff EOM
- on or before 25th day ff EOQ
Invoicing Requirement
- VAT Invoice - goods
- VAT Receipts - services
VAT-exempt on Importation Items
- Import of exempt goods
- Importation by VAT-exempt persons
- Quasi-importation
4.Exempt under special laws and international agreement
What does the term simple processing include? (for identifying vatable products/services)
- preparation for the marker
- preservation
- packaging, including advanced technological means of packaging
Examples of simple acts of preparation
boiling
broiling
husking
roasting
stripping
grinding
Examples of simple acts of preservation
freezing
drying
smoking
salting
T or F. Goods are still in their original state even if they are packed using advanced technological means, such as shrink wrapping in plastics, vacuum packing, tetra-packing and other similar packing methods.
TRUE
Basis of VAT on Importation
Landed Cost
Composition of Landed Cost
- Dutiable Value
- Other in-land Cost
T or F. Excise tax is included in the landed cost.
TRUE
T or F. Bank charges are included in the landed cost.
TRUE
T or F. Facilitation Fees are included in the landed cost.
FALSE
What is FWVAT?
tax on domestic consumption of services purchased from abroad
What is the Rationale of Consumption Taxes
- Savings Formation
- Benefit Received Theory
Wealth Redistribution
T or F. Donor’s Tax shall apply whether the transfer is in trust or otherwise.
TRUE
What are the essential requisites of donation?
- Capacity of the donor
- Intention to Donate
- Donative Act
- Acceptance by the donee
T or F. Donation inter vivos takes effect upon death of the donor.
FALSE
T or F. Donation mortis causa is donation between living individuals.
FALSE
T or F. Only properties within the Philippines are subject to Donor’s Tax for Nonresident Citizen.
FALSE
