Taxation Law

• Taxation


  The power by which the sovereign raises revenue to defray the necessary expenses of the government
• Taxes


  The enforced proportional contribution from persons and properly levied by the State by virtue of its sovereign power for public purposes
• National Internal Revenue Taxes


  • Income Tax (individual income)
  • Tax on corporations
  • Estate Tax
  • Donor's Tax
  • Excise Tax
  • Value-added Taxes
  • Other Percentage taxes
  • Documentary Stamp Taxes
  • Such other taxes as are and may be imposed
• Necessity Theory


  Premised on the belief that the existence of government is a necessity and that it cannot continue without the necessary means to defray its expenses and due to those means, it has the right to compel all citizens and property within its jurisdiction to contribute
• Benefits-Protection Theory


  Also called Doctrine of Symbiotic Relationship of Taxation. The state demands and receives taxes from the subjects of taxation within its jurisdiction so that it may be able to carry its mandate into effect and perform the functions of government and the citizens pay from his property, the proportion demanded in order that it may by means thereof be secure in the enjoyment of the benefits of organized society
• Lifeblood Theory


  Taxes are the lifeblood of the nation through which the government agencies continue to operate and which the state effects its function for the welfare of its constituents
• Bureau of Internal Revenue (BIR)


  The primary administrative agency tasked with the enforcement and implementation of the National Internal Revenue Code (NIRC) and the collection of taxes
• Income Tax


  A tax on yearly profits arising from property, professions, trades or offices or as a tax on a person's income, emoluments, profits, and the like
• Tax on Corporation


  Applies to domestic and resident foreign corporations
• Estate Tax


  A tax imposed on the privilege of transferring property upon the death of its owner from the deceased to the lawful heirs
• Donor's Tax


  A tax on the gratuitous transfer of property (donation or gift) between two or more persons who are living at the time of the transfer
• Excise Tax


  Applies to goods manufactured or produced in the Philippines for domestic sale or consumption or for any other disposition and to things imported as well as services performed in the Philippines (e.g. alcoholic products, tobacco products, miscellaneous article)
• Value-Added Tax


  A uniform tax (0% or 10%) imposed on all persons who sell barter, exchange, or lease of goods or properties, or render services in the course of trade or business and those who import goods, whether for business as otherwise