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• What is taxation primarily used for?

  To finance government expenditures
• What is the historical significance of taxation in the Philippines?

  It has an age-old history
• What did pre-colonials in the Philippines pay to their chieftains?

  Tributes
• What was the term used for taxes during the Spanish era in the Philippines?

  Buwis
• What are the three principles of a sound tax system?

  Social Justice, Compliance, Adequacy of Revenue
• What does social justice in taxation imply?

  Taxation must consider the ability to pay
• What does compliance in taxation refer to?

  Tax measures must allow taxpayer compliance
• What is meant by adequacy of revenue in taxation?

  Taxes must yield enough revenue
• What are the three types of tax structures?

  Progressive, Proportional, Regressive
• How do progressive taxes function?

  Tax rates increase with the base
• What characterizes proportional taxes?

  Fixed percentages applied to the base
• What defines regressive taxes?

  Fixed rates that decrease as the base increases
• What are examples of direct taxes?

  Income, estate, gift taxes
• What are examples of indirect taxes?

  Excise tax, import duties
• Who imposes taxes in the Philippines?

  National and local government units
• What is Republic Act 10963 known as?

  TRAIN Law
• What is the purpose of the TRAIN Law?

  To correct deficiencies in the tax system
• How does TRAIN aim to benefit Filipinos?

  By funding infrastructure and social services
• What are some changes introduced by the TRAIN Law?

  Lowering personal income taxes, expanding VAT
• When was the TRAIN Law signed into law?

  December 19, 2017
• What is the goal of the Comprehensive Tax Reform Program (CTRP)?

  To create a simpler, fairer tax system
• What is the income tax rate for annual income below P250,000?

  0%
• What is the income tax rate for annual income above P8,000,000?

  35%
• What is the tax rate for 13th month pay below P90,000?

  0%
• What was the old provision for annual income below P10,000?

  5% tax rate
• What is the tax rate for annual income over P2,000,000?

  P490,000 + 32% of excess
• What is the tax rate for annual income over P8,000,000 in the new schedule?

  P2,202,500 + 35% of excess
• What is the tax rate for self-employed individuals with income below P250,000?


  0%
• What is the tax rate for self-employed individuals with income below P3,000,000?

  8% flat tax or graduated rates
• What is the tax rate for passive income such as capital gains tax?

  15% final tax
• What is the tax rate for PCSO and lotto winnings exceeding P10,000?

  20% final tax
• What is the tax rate for interest on Foreign Currency Deposit Units?

  7.5%
• What is the stock transaction tax rate?

  0.50 of 1%
• What is the capital gains tax rate on unlisted shares?

  5% and 10%
• What are the key features of the TRAIN Law?

  • Simplifies personal income taxes
  • Adjusts excise taxes on oil and automobiles
  • Introduces excise tax on sugar-sweetened beverages
  • Expands the VAT base
• What are the filing deadlines for Quarterly Income Tax Returns?

  1. 1st Quarter: April 15
  2. 2nd Quarter: August 15
  3. 3rd Quarter: November 15
  4. Annual ITR: April 15 of succeeding year
• What are the exclusions and deductions in the income tax system?

  • Personal Exemption: Php 50,000
  • Php 25,000 per dependent (up to 4 children)
  • 13th Month Pay and bonuses: Php 82,000
• What are the requirements for keeping books of accounts?

  • Relevant bookkeeping records must be maintained
  • Corporations with sales over P3,000,000 must have audited books
  • Income tax returns must include an Account Information Form (AIF)
• What are the tax options for mixed income earners?

  • Graduated rates for compensation income
  • Option for business income: 8% flat tax or graduated rates
• What are the tax implications for self-employed individuals?

  • Income below P250,000: 0%
  • Income below P3,000,000: 8% flat tax or graduated rates