TAX IMPLICATIONS National Internal Revenue Code of Train Law (R.A. No.

10963)
1997

* Government-owned or - The Government Service System - Corporate Income Tax

controlled corporations, agencies
or instrumentalities
Insurance System, the Social Security exemption of PCSO was removed.
System, the Philippine Health
Insurance Corporation, the local
water districts and the PCSO are
exempt from corporate income tax.

*Creditable Input Tax
- The Input Tax on goods purchased
or imported for use in trade or
business for which deduction for
depreciation is allowed shall be
spread evenly over the month of
acquisition and the 59 succeeding
months if the aggregate acquisition
cost for such goods, excluding the
VAT component thereof, exceeds
P1M
- The amortization of the input
VAT shall only be allowed until 31
december 2021 after which
taxpayers with unutilized input
VAT on capital goods purchased
or imported shall be allowed to
apply the same as scheduled until
fully utilized.
* Capital gains from sale of shares
of stock not traded in the local
stock exchange of domestic
corporations
Misoles, Rhea Jane C. BSAT3
- Capital gains tax of 5% on the first
PHP100,000 and 10% in excess
thereof is imposed on sale, exchange
or disposition of
shares not traded in the local stock
exchange.
- Capital gains tax on sale,
exchange or disposition of shares
not traded in the local stock
exchange is increased to a flat
rate of 15%.
TAX2