This document outlines the basic formulas for computing various duties and taxes on imported goods into the Philippines. It explains that the total duties and taxes equal the customs duty plus VAT plus IPF plus any excise tax. It then provides more details on how each of these individual taxes and duties are calculated based on the customs value, foreign exchange rate, dutiable value, and applicable tax rates. Specific sections cover the computation of customs duty, VAT, IPF, and excise taxes on motor vehicles as an example.
This document outlines the basic formulas for computing various duties and taxes on imported goods into the Philippines. It explains that the total duties and taxes equal the customs duty plus VAT plus IPF plus any excise tax. It then provides more details on how each of these individual taxes and duties are calculated based on the customs value, foreign exchange rate, dutiable value, and applicable tax rates. Specific sections cover the computation of customs duty, VAT, IPF, and excise taxes on motor vehicles as an example.
This document outlines the basic formulas for computing various duties and taxes on imported goods into the Philippines. It explains that the total duties and taxes equal the customs duty plus VAT plus IPF plus any excise tax. It then provides more details on how each of these individual taxes and duties are calculated based on the customs value, foreign exchange rate, dutiable value, and applicable tax rates. Specific sections cover the computation of customs duty, VAT, IPF, and excise taxes on motor vehicles as an example.
x Foreign Exchange Rate x Rate of Duty Dutiable Value = Cost of Goods + Freight + Insurance + Other Charges and Costs Exchange Rate = As published weekly through Customs Memorandum Circular Rate of Duty = As per classification of goods under AHTN, Section 104, TCCP
C. How to Arrive at Value Added Tax (VAT)
VAT = 12% of Total Landed Cost (TLC)
TLC = Dutiable Value + Bank Charges + Customs Duty + Brokerage Fee + Arrastre Charge + Wharfage Due + Customs Documentary Stamp (CDS) + Import Processing Fee (IPF)
D. CDS = Fixed Amount of P265.00
E. IPF Table per CAO 2-2001
DV of shipment IPF/entry Up to P250,000 P 250.00 Over P250,000 to P500,000 P 500.00 Over P500,000 to P750,000 P 750.00 Over P750,000 P 1000.00
F. List of Articles subject to Excise Tax
G. Normal Computation for Motor Vehicles
Total Car Value = Book Value
+ Accessories (if any) Depreciation Value = Total Car Value Depreciation (based on year model and cc) Cost = Depreciation Value x 80 (Less: 20% wholesale allowance/fixed) Dutiable Value (in $) = Cost + Insurance + Freight Customs Duty = Dutiable Value (in $) x Rate of Exchange x Rate of Duty Landed Cost / AVT Base = Customs Duty + Dutiable Value in Php + Miscellaneous Expenses Ad Valorem Tax = Landed Cost / AVT Base x Rate of Ad Valorem Tax (under RA 9224) Value Added Tax Base = Ad Valorem Tax + Landed Cost Value Added Tax = Value Added Tax Base x 12% (Rate of VAT) Total Duties of Taxes = Customs Duty + Ad Valorem Tax + VAT + IPF
Third Division January 10, 2018 G.R. No. 204039 United Coconut Planters Bank, Petitioner Spouses Walter Uy and Lily Uy, Respondents Decision Martires, J.