Taxation Flashcards
What is the purpose of taxation?
To accumulate funds for the functioning of the government machineries
Why are taxes important?
They fund public goods, services, and contribute to national services
What are Spanish-Philippines Taxes?
- Subsistence Economy
- Tribute or Taxes
- Cedula Personal
What are American Taxes?
From 1898 - 1903 followed Spanish taxation with modifications
- Industria Tax
- Income Tax
- Inheritance Tax
- National Lottery
What are the 2 different types of taxes?
National and Local
What is National Tax?
National taxes are the ones paid to the government through the Bureau of Internal Revenue. The National taxation system is based on the National Internal Revenue Code of 1997 or the Republic Act No. 8424 otherwise known as the Tax Reform Act of 1997, as amended.
What is capital gains tax?
Capital Gains Tax is 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 a sale with a condition for repurchase and other forms of conditional sale.
What is documentary stamp tax?
A tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignments, sale or transfer of an obligation, rights, or property incident thereto. Documentary stamp taxes are evident on documents like bank promissory notes, deed of sale, and deed of assignment on transfer of shares of corporate stock ownership.
What is estate tax?
A tax on the right of the deceased person to transmit his/her estat to lawful heirs and beneficiaries at the time of death and on certain transfers which are made by law as equivalent to testamentary disposition. It is not a tax on property. It is a tax imposed on the privilege of transmitting upon the death of the owner.
What is donor’s 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. It shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect, and whether the property is real or personal, tangible or intangible. A donor’s tax is based on a graduated schedule of tax rate.
What is income tax?
a tax on all annual profits made from property ownership, profession, trades or offices. It is also a tax on a person’s income, emoluments, profits and the like. self employed individuals and corporate taxpayers pay quarterly income taxes from the first quarter to the third quarter. And instead of filing quarterly income tax on the fourth quarter, they file and pay their annual income tax return for the taxable year.
What is percentage tax?
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.
What is value-added 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 and 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.
What is excise 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.
What is local tax?
Local taxes, onother hand, is based on the local government taxation in the Philippines as stated in Republic Act 7160 or the Local Government Code of 1991 as amended. These taxes, fees, or charges are imposed by the local government units, such as provinces, cities, municipalities, and barangays.
What is tax on transfer of real property ownership?
Imposed on the sale, donation, barter, or on any other mode of transferring ownership of real property.
What is Tax on Business of Printing and Publication?
Imposed on printing and publication businesses like that of books, cards, posters, leaflets, handbills, certificates, receipts, pamphlets, and others of similar nature.
What is franchise tax?
A tax on franchised businesses, at the rate not exceeding fifty percent (50%) of one percent (1%) of the gross annual receipts of the preceeding calendar year based on the incoming receipt within the territorial jurisdiction where the franchise is selling in.
What is Tax on Sand, Gravel and Other Quarry Resources?
Imposed on ordinary stones, sand, gravel, earth, other quarry resources, as defined under tand he 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.
What is professional tax?
An annual tax on each person engaged in the exercise or practice of his or her profession that requires givernment examination, like licensure examinations.
What is amusement tax?
A tax collected from the proprietors, lessees, or operators of theaters, cinemas, concert halls, circuses. boxing stadia, and other places of amusement.
What is Annual Fixed Tax for Every Delivery Truck or Van of Manufacturers or Producers, Wholesalers of, Dealers, or Retailers in, Certain Products?
is an annual fixed tax for every truck, van or any vehicle used by manufacturers, producers, wholesalers in the delivery or distribution of distilled spirits, fermented liquors, soft drinks and cigarettes and other products to sales outlets, or consumers, whether directly or indirectly within the province. This type of tas is usually impoed as determined by the local provincial councils through which the truck or trucks pass through or deliver their cargo.
What is Tax on business
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. Businessmen pay this tax if they apply for a Mayor’s Permit to conduct their business in the local government unit. Rates of these taxes vary among cities and municipalities.
What are Fees for Sealing and Licensing of Weights and Measures?
are 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, are 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,
