Business Marketing

• Taxation

  • process which the goverment collecting money from the people which we called 'Tax'
  • this is use to levy the goverment expenses, health, education, social-wlefare
  • the 'national internal revenue code 1997' which is the basis for tazx code
• Income tax return or I. T. R. is a document that is filled with bureu of internal revenue and use to pay taxes
• bureu of internal revenue or B. I. R is a lead aganecy in collecting taxes for goverment was signed by the former president duterte on 2017
• TRAIN LAW

  • tax reform for acceleration and inclusion law otherwise known as republic act 10963
• TYPES OF TAX-PAYERS

  • Individual - required to paytax in return of recieving income

  1. resident citizen - recieving income from sources within or outside the country
  2. Non-reident citizen - recieving sources from the country
  3. alien - whether resident or not but recieving sources from the country

  • Non- individual

  1. corporation
  2. domestic corporation
  3. foreign corporation
  4. state
• TIN - every citizen is required to have a TIN number

  - unique number of every citizen
• passive income - form of an income from other ources whihc u dont need to actively work for it

  example:

  pso, savings fro deposit
• comprehensive income (WITHHOLD) - the amount of the tax that is withheld from the dividens paid by the company
• types of taxes - direct taxes are those imposed on individuals while indirect taxes are imposed on goods and services
• purpose of taxation - government uses taxes as a means of raising revenue which will be used for public services such as education, health care, infrastructure development, etc.
• NET INCOME - refers to the total income minus expenses
• GROSS INCOME - refers to all types of income received by the taxpayer during the year regardless if they are subjected to tax or not
• taxes also serve as a tool for redistribution of wealth whereby the richer members of society pay more than their fair share of taxes so that they can contribute to the welfare of the less fortunate members of society
• another purpose of taxation is to regulate economic activities through the imposition of excise taxes on certain products or services
• income tax - this type of tax is levied upon an individual's earnings or profits derived from any source
• progresive taxation - tax rate increases as income increases, so rich pay more
• tax evasion - form of fraud or criminal offense against the goverment whereby the taxes are not paid
• tax avoidance - the practice of reducing tax liability by using legal or illegal method
• penalty - 10,000 pesos; imprisonment for less than 1 year but not more than 10 yrs