Professional Documents
Culture Documents
Business Tax
Business Tax
o Tobacco Products
– Should be business all the time o Cigarettes
- Regular conduct o Cigars
o Automobiles
- Pursuit of a commercial or economic activity
o Manufactured fuel oils
- Including transactions incidental thereto o Mineral Products
The activity should be a commercial or o Non-essential products
economic activity
o Purpose is profit or income *not all people are subject it only those manufacturers
o Completed a business cycle or importers handling the 10 things mentions above.
There should be regularity in the activity Should be movable.
o Regularity
- Value Added Tax
Repetition o Sale of goods or properties
Continuity o Sale of services
More than 1 isolated o Importation of goods or properties
transaction - Percentage Tax
o 3% on sale of goods, properties or
*you should pay business tax even without conducting
business services
o Common Carrier’s Tax (intrnl or
- Importation of good whether personal or for business domestic)
(VAT) o Franchise Tax
o Overseas Communication Tax
- Overseas Communication even if it is private
o Tax on banks and non-bank financial
(percentage tax: Overseas communication tax)
intermediaries performing quasi
- services rendered by a foreigner in the Philippines – banking fuctions and others
Considered as in the course of business o Tax on insurance companies
o Tax on agents of intrn’l insurance
*Some isolated transactions are business taxable companies
o Amusment Tax
- Importation of goods for personal use
o Tax on winnings
- winnings in a horse race or jai-alai *those that did not exceed 1,500,000 the preceding
year is exempted from VAT but subject to percentage
- Single sale of shares of stock of a domestic corporation tax of 3% (this is optional) however, can’t be change in
thru a local stock exchange by one who is not a dealer the middle of the year.
in securities is subject to a percentage tax.
* those that pay excise tax either pay Vat of percentage
3 major business taxes in the NIRC tax depending on their sales.
- Real property for primarily for sale/lease in the *foreign currency dominated goods are those sold in
ordinary course of business consideration of foreign currency recognized in the
- Right previleges to use intellectual property, Philippines except for automobiles and n-essential
patent etc. goods subject to excise tax.
- The right/privilege to use industrial commercial,
If output > input VAT PAYABLE (liability in BS)
scientific equipment
- The right to use films, tapes, disc If input < output deferred input tax in assets
- Radio television satellite transmission and cable
transmission time. Presumptive Input Tax
VAT rates: