Taxation

Question 1

What is the purpose of taxation?

Answer 1

To accumulate funds for the functioning of the government machineries

Question 2

Why are taxes important?

Answer 2

They fund public goods, services, and contribute to national services

Question 3

What are Spanish-Philippines Taxes?

Answer 3

• Subsistence Economy
• Tribute or Taxes
• Cedula Personal

Question 4

What are American Taxes?

Answer 4

From 1898 - 1903 followed Spanish taxation with modifications
- Industria Tax
- Income Tax
- Inheritance Tax
- National Lottery

Question 5

What are the 2 different types of taxes?

Answer 5

National and Local

Question 6

What is National Tax?

Answer 6

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.

Question 7

What is capital gains tax?

Answer 7

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.

Question 8

What is documentary stamp tax?

Answer 8

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.

Question 9

What is estate tax?

Answer 9

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.

Question 9

What is donor’s tax?

Answer 9

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.

Question 10

What is income tax?

Answer 10

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.

Question 11

What is percentage tax?

Answer 11

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.

Question 12

What is value-added tax?

Answer 12

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.

Question 13

What is excise tax?

Answer 13

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.

Question 14

What is local tax?

Answer 14

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.

Question 15

What is tax on transfer of real property ownership?

Answer 15

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

Question 16

What is Tax on Business of Printing and Publication?

Answer 16

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

Question 17

What is franchise tax?

Answer 17

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.

Question 18

What is Tax on Sand, Gravel and Other Quarry Resources?

Answer 18

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.

Question 19

What is professional tax?

Answer 19

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

Question 20

What is amusement tax?

Answer 20

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

Question 21

What is Annual Fixed Tax for Every Delivery Truck or Van of Manufacturers or Producers, Wholesalers of, Dealers, or Retailers in, Certain Products?

Answer 21

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.

Question 22

What is Tax on business

Answer 22

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.

Question 23

What are Fees for Sealing and Licensing of Weights and Measures?

Answer 23

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,

Question 24

What are? Fishery Rentals, Fees, and Charges

Answer 24

Imposed by the municipality/city to grantees of fishery privileges in the municipality/city waters especially the privilege to build fish corals, oysters, mussels, or other aquatic beds as specified in the Local Government Code.

Question 25

What is community tax?

Answer 25

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. Community tax is also imposed on every corporation no matter how created or organized, whether domestic or resident foreign, engaged in or doing business in the Philippines.

Question 26

What is Taxes levied by the barangays?

Answer 26

Stores and retailers with fixed business establishments with gross sales of receipts of the preceeding calendar year amounting to fifty thousand pesos or less (for city barangays) and thirty thousand pesos or at a rate not exceeding one percent on such gross sales or receipts.

Question 27

What is Service Fees or charges?

Answer 27

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 copra, or tobaccodryers.

Question 28

What is a Barangay Clearance?

Answer 28

A fee collecte 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.