Taxation

• Taxation


  The practice of collecting taxes from citizens based on their earnings and property
• The agency responsible for collecting the taxes is called BIR
• Purpose of taxation


  To finance government expenditures by imposing charges on citizens and corporate entities
• The main purpose of taxation is to accumulate funds for the functioning of the government machineries
• Importance of taxes


  • They fund essential public goods and services
  • They contribute positively to national services
  • They indirectly create private wealth
• Taxes are the lifeblood of our government
• Taxation in Spanish Philippines

  • Subsistence economy
  • Tribute or taxes
  • Cedula personal
• From 1898 to 1903, the Americans followed the Spanish system of taxation with some modifications
• Types of taxes under Americans

  • Industria tax
  • Income tax
  • Inheritance tax
  • National lottery
• Types of taxes during the Commonwealth period

  • Income tax
  • Residence tax
• Types of taxes


  • National taxes
  • Local taxes
• National taxes


  • Paid to the government through the Bureau of Internal Revenue
  • Based on the National Internal Revenue Code of 1997
• Types of national taxes

  • Capital Gains Tax
  • Documentary Stamp Tax
  • Donor's Tax
  • Estate Tax
  • Income Tax
  • Percentage Tax
  • Value-Added Tax
  • Excise Tax
• Capital Gains Tax


  A tax imposed on gains realized from the sale, exchange, or other disposition of capital assets located in the Philippines
• Documentary Stamp Tax


  A tax on documents, instruments, loan agreements, and papers evidencing the acceptance, assignments, sale, or transfer of an obligation, rights, or property
• Donor's Tax


  A tax on a donation or gift, imposed on the gratuitous transfer of property between living persons
• Estate Tax


  A tax on the right of the deceased person to transmit their estate to lawful heirs and beneficiaries
• Income Tax


  A tax on all annual profits made from property ownership, profession, trades, or offices
• Percentage Tax


  A business tax imposed on persons or entities whose gross annual sales or receipts do not exceed the amount required to register as VAT-registered taxpayers
• Value-Added Tax


  A business tax imposed on every sale of properties or vendors of services, which can be passed on to the buyer
• Excise Tax


  A tax imposed on goods manufactured or produced in the Philippines for domestic sale or consumption
• Local taxes


  • Based on local government taxation in the Philippines
  • Imposed by local government units
• Types of local taxes

  • Tax on transfer of Real Property Ownership
  • Tax on Business of Printing and Publication
  • Franchise Tax
  • Tax on Sand, Gravel and Other Quarry Resources
  • Professional Tax
  • Amusement Tax
  • Annual Fixed Tax for Every Delivery Truck or Van
  • Tax on Business
  • Fees for Sealing and Licensing of Weights and Measures
  • Fishery Rentals, Fees, and Charges
  • Community Tax
  • Taxes levied by the barangays
  • Service Fees or charges
  • Barangay Clearance
• Tax on transfer of Real Property Ownership


  Imposed on the sale, donation, barter, or any other mode of transferring ownership of real property
• Tax on Business of Printing and Publication

  Imposed on printing and publication businesses
• Franchise Tax


  A tax on franchised businesses based on gross annual receipts
• Tax on Sand, Gravel and Other Quarry Resources

  Imposed on ordinary stones, sand, gravel, and other quarry resources extracted from public lands
• Professional Tax


  An annual tax on each person engaged in the exercise or practice of their profession
• Amusement Tax


  A tax collected from proprietors, lessees, or operators of places of amusement
• Annual Fixed Tax for Every Delivery Truck or Van


  An annual fixed tax for every vehicle used in the delivery or distribution of certain products
• Tax on Business


  Imposed by cities or municipalities on businesses before issuing a business license or permit
• Fees for Sealing and Licensing of Weights and Measures

  Fees imposed for the sealing and licensing of weights and measures
• Fishery Rentals, Fees, and Charges


  Imposed by the municipality/city to grant fishery privileges
• Community Tax


  Tax levied by cities or municipalities on every Filipino or alien living in the Philippines who meets certain criteria
• Taxes levied by the barangays

  Imposed on stores and retailers with fixed business establishments based on gross sales or receipts
• Service Fees or charges

  Fees or charges collected by barangays for services rendered
• Barangay Clearance


  A fee collected by barangays upon issuance of barangay clearance for government transactions