Taxes Flashcards
3 types of taxes in the ph
National, local, and special
What is national tax?
are fees that the BIR collects from taxpayers all over the Philippines.
Capital gains tax
Tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets in the Philippines, including pacto de retro sales and other forms of conditional sale
What are local taxes?
are involuntary fees that local government units (LGUs) collect from their constituents to finance activities and projects for their city or municipality.
What are special taxes?
must be paid during certain transactions or purchases:
Documentary stamp tax
Tax on documents, instruments, loan agreements, and papers evidencing the acceptance, assignment, sale, or transfer of an obligation, right, or property incident to it
Donor’s tax
Tax on a gift or donation in which both the sender and recipient are alive at the time of the transfer
Percentage tax
A business tax imposed on the following taxpayers:
- Non-VAT-registered individuals or corporations that sell or lease goods and services with gross annual sales or receipts not exceeding ₱3 million
- Persons who lease residential units where the monthly rental per unit exceeds ₱15,000.00 but the total rental during the year does not exceed ₱3 million
- Persons engaged in the industries/transactions listed in the Tax Code
Estate tax
Tax on the right of the deceased person to transmit estate[6] to lawful heirs and beneficiaries at the time of death. It is imposed on the privilege of transmitting property upon the death of the owner
Excise tax
Tax on the production, sale, or consumption of goods in the Philippines
Income tax
Tax on a person’s or business’ income or profit, less deductions authorized by law
Value added tax
A sales tax on consumption imposed on the sale, lease, or importation of goods, properties, and services in the Philippines, which may be passed on to the buyer or consumer
Withholding tax
Tax withheld from an individual’s income to promote tax compliance and prevent tax evasion
Basic real property tax
Tax on the value of real properties such as houses, lands, buildings, etc.
Business of printing and publication tax
Tax imposed on businesses that involve printing and publication
Amusement tax
Tax imposed on cinemas, theaters, concert halls, circuses, and other amusement venues
Franchise tax
Tax imposed on a franchise business
Sand, gravel, and other quarry resources taxa
Tax on the fair market value of ordinary stones, sand, gravel, earth, and other quarry resources extracted from public lands or public waters within the province
Professional tax
Tax imposed on professionals such as lawyers, doctors, and engineers
Annual fixed tax for delivery trucks and vans
₱500 fee for every truck or van used to deliver soft drinks, liquors, or cigarettes within the province
Local business tax
ax imposed by municipalities on different types of businesses within their jurisdiction
Barangay tax
Tax imposed on stores or retailers with annual gross sales of up to ₱50,000 in cities or up to ₱30,000 in municipalities
Community tax
Tax imposed on individuals and corporations within the jurisdiction of a city or municipality
Motor vehicle user’s charge
An annual fee charged on every application for vehicle registration
Travel tax
An airport fee imposed on Filipino citizens, foreign residents, and non-resident foreigners (who have stayed in the country for more than a year) who are leaving the Philippines
Head tax
Tax imposed on foreigners staying in the Philippines for at least 60 days, with permanent residency status in the country, and applying for Re-entry Permit and paid to the immigration officer when entering the country
Charges on forest products
Tax on the privilege of exploiting the forest resources in the Philippines
Energy consumption tax
Tax on electric power consumption over 650 kWh of each residential customer
Purpose of taxes
o fund its operations and finance its development projects.
Who are those that pay taxes?
- Filipino citizens living in the Philippines and earning income from sources within and outside the country
- OFWs, Filipino immigrants, and other non-resident citizens with income from sources within the Philippines
- Resident and non-resident foreigners earning income from sources within the Philippines
- Domestic corporations earning income from sources within and outside the Philippines
- Foreign corporations with income from sources within the Philippines
What are the government agencies that collect different taxes?
BIR collects national tax, LGU’s collects local tax (provinces, municipalities, cities, barangay), Bureau of Customs (on imported and exported goods)
What is tax exemption?
is an exclusion from the payment of taxes on certain types of income, property, or transaction. Only happens to those meeting requirements specified by the law
