taxation Flashcards
is the supreme power of a sovereign state to impose
burdens or charges upon person, property or property
rights for public purpose
taxation
the enforced proportional contributions from person
and property, level by the state for virtue of its
sovereignty for the support of the government and for
public needs.
tax/ taxes
Importance of Tax
- Raise Revenue: No government can exist without it, it cannot promote the welfare of the people
- Protect locally produced goods against competition from import by imposing higher custom duties.
- Protect new industries by granting tax exemptions.
- Regulate property.
- Distribute equally the wealth of the nation.
classification of taxes:
a. national tax
b. local tax
Imposed by the National Government under the National Internal Revenue Code and other laws particularly the Tariff and Customs Code
national tax
Imposed by local government to meet particular needs under the Local Government Code
local tax
forms of taxes:
a. direct tax
b. indirect tax
a form of tax paid directly by the individual or corporation directly to the government. They are typically based on the taxpayer’s ability to pay as measured by income, consumption, or net wealth.
direct tax
taxes imposed on a particular article or transaction which paid by others than those from whom the tax collected
receives payment
indirect tax
types of direct taxes:
a. incomes tax
b. inheritance tax
c. estate tax
d. donor’s tax
e. capital gain tax
f. property tax
g. documentary stamp tax
Derived from individual, corporate estates and trust income
income tax
Paid on property passed on from a diseased person to those who are to inherit it
inheritance tax
A tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfer, which are made by law equivalent to testamentary disposition
estate tax
Tax levied of donation or gift and is imposed on the
graduations transfer of property between two or more
persons who are living at the time of the transfer
donor’s tax
Tax imposed on income from the sale of capital assets,
which includes stocks, bonds, real estate, and partnership
capital gain tax
Tax levied on the assess value of land and permanently
attached improvement owned by individual or corporation
property tax
Tax imposed on documents, instruments loan
agreements and paper evidencing the acceptance,
assignment, sales or transfer of an obligation
documentary stamp tax
types of indirect tax:
a. value added tax
b. excise tax
c. forest charge
Tax imposed by the government at each stage in the production of a good or service. It is 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
value added tax
Tax is on the manufacture, sale or use of goods or service levied by local, state or national government. It is applied on goods manufactured or produced in the Philippines for domestic sale or consumption or for any other disposition and on goods imported.
excise tax
It refers to a levy being imposed by the
government on timber and other forest
products cut in a forestland by a permittee
and TLA/TPSA holders
forest charges
The forest charge per cubic meter of timber
cut in forestlands is equivalent to:
a. 30% of the actual FOB market price
b. 25% of the actual FOB market price
c. 15% of the actual FOB market price
d. 20% of the actual FOB market price
b. 25% of the actual FOB market price
