OTHER PERCENTAGE TAXES BY DEFAULT IS AT 3%

F - inance -S Winnings E D I B O L A

Franchise grantees 3%
Except water and gas utilities 2%
Radio and TV franchisees must have less than or equal to P10M gross receipts to be subject to OPT 3%
Vatable if gross receipts exceed P10M

Finance Companies
This pertains to money changers and pawnshops
See summary for Banks

Sale, exchange, barter of Shares of stock

Initial Public Offering (IPO) - first time issuance or sale of shares of stock of the Corporation made in public
TRANSFER Basis Tax rate
Disposition of shares listed and traded in the stock exchange (afer IPO) 0.60%
Disposition of shares through IPO Up to 25% 4%
> 25% to 33-1/3 2%
> 33-1/3 1%

Winnings on horse races

Prize of owner of winning horse 10%
Prize of bettors less winning ticket price 10%
Dividends per tax code is actually "Dividendazo" used by bettors in horse race
Other winnings (double forecast, quinella, and trifecta bets) 4%

Exemp from VAT

Remember the 3M threshold 3%

Domestic carriers by land of passengers 3%

Regardless of gross receipts. Ex. Victory liner and oher bus companies
Keepers of garages ~ talyer
If the domestic carrier is for cargoes, note the 3M threshold

International shipping of cargo from PH to abroad 3%

Receipts from abroad to PH is not Vatable by principle of territoriality
however, such inceom is taxable if the taxpayer is RC or NRC

Banks and other non-bank financial institutions performaing quasi- banking functions
Source of Income TERM OR MATURITY RATE
Interest, commissions, discount from lending and leasing activities. For Up to 5 years 5%
bank and non-bank and other finance companies More than 5 years 1%
Other receipts considered as gross income:
Source of Income 7%
other finance companies 5%

Overseas dispatch 10%

Overseas communication from PH to abroad
Normally charged by the tele communications company and shown in the billing statement

Life insurance premiums 2%

Except purely cooperative companies or associations

Agents of foreign insurance companies (except reinsurance premiums)

Fire, marine, and miscellaneous agents 4%
If owners of property directly transact with foreign Insurance companies 5%

Amusement taxes
Cockpits, cabarets, clubs, music lounges 18%
Why? You have to be 18 to be able to enter the establishment
Boxing exhibitions 10%
Why? If one got knocked down, the referee will count "10, 9, 8…" (per Sir Co)
except world championship wherein one of the contenders is a Filipino citizen being supported by an entity whicih
is 60% owned by Filipinos
Professional basketball games 15%
Why? 5 players, 1 coach and 1 referee for each team plus the announcer)
Jai alai and racetracks 30%
Considering this is costly and normally for the rich, it is taxed as a Corporation