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DEPARTMENT OF ACCOUNTANCY
In lieu of VAT, Other Percentage Taxes are imposed on the following persons/transactions:
A. 3% percentage tax on any person whose sales or receipts are exempt from payment
of VAT because gross annual sales do not exceed P3,000,000.
Cooperatives
Note: Cooperatives who transact business who transact business with their
members and non-members and with accumulated reserves and undivided net savings of
more than P10,000,000 shall be subject to the percentage tax on all sales of goods and/or
other services to non-members.
Note: Such taxpayer may opt to register under VAT system not later than 10 days before the
beginning of the taxable quarter. Once registered under optional VAT registration, he/she shall
not be allowed to cancel his/her registration for the next three years.
3% of Gross Sales or Receipts from the transport of passengers, provided the gross receipts
are greater than or equal to the minimum levels provided by law.
Persons Subject:
Keepers of garage
Transporting contractors
Taxicabs
1. Provincial P1,200
Taxis:
1. Provincial P2,400
TNC is a pool of land transportation vehicles whose accessibility to the riding public is
facilitated through the use of common point of contract may be in the form of text, telephone,
and/or cellular calls, email, mobile applications or by other means.
12% VAT or 3% OPT - TNCs/Partners without valid CPC are classified as land
transportation contractor or subject to either 12% VAT or 3% OPT.
3% of Gross Receipts from the transport of CARGO from the Philippines to another country
Note:
3. Electricity
4. Radio and TV Broadcasting companies whose gross sales of the preceding period
exceeded P10,000,000.
Taxed at 10% based on the amount paid for the services rendered.
Collects and remits the tax to the BIR within 20 days after the end of each quarter.
News services: amounts paid for messages from any news paper, press association,
radio or television, newspaper, broadcasting, or other news services to any other
newspaper, press association, radio or television newspaper broadcasting agency, news
services, or to a bona fide correspondent. The messages must deal exclusively with the
collection or dissemination of news items.
F. Tax on banks and non-bank financial intermediaries performing quasi-banking
functions. (Gross Receipts Tax)
1%
On royalties, rentals of property, profits from exchange and all other items treated as 7%
gross income under the tax code
On net trading gain on foreign currency, debt instruments, derivatives, and other similar 7%
financial instruments
Person subject:
1. Banks - entities engaged in the lending of funds obtained in the form of deposits.
1%
On royalties, rentals of property, profits from exchange and all other items treated as 5%
gross income under the tax code
Person subject: Any person/entity offering life insurance in the Philippines, except purely
cooperatives companies or associations.
Exemptions:
5. Management fees, rental income, or any other income earned by the life insurance
company from services which can be pursued independently of the insurance business
activity.
6. Investment income earned by the life insurance company from investing the premiums.
2. Owners of property who obtain insurance directly with foreign 5% of premiums paid
companies
J. Amusement Taxes
1. Proprietors, operators or lessees of the following amusement places are subject to
percentage tax on gross receipts:
Cockpits - 18%
Jai-alai - 30%
Note: Income from television, radio, and motion pictures rights is included as part of the gross
receipts.
Boxing exhibition wherein World or Oriental Championship in any division is at stake, shall be
exempt from amusement tax, provided that at least one of the contenders is a citizen of the
Philippines, and said exhibitions are promoted by Filipino citizens or by a corporation or
association which at least 60% of its capital is owned by such citizens.
K. Tax on Winnings
Winnings in horse races or jai-alai - 10% based on the amount paid for every ticket less
cost of the ticket.
Winnings from double, forecast, quinella, and trifecta bet - 4% based on the amount paid
for ticket less cost of the ticket.
Note: Percentage tax shall be collected/withheld from the prize by the operator or owner of the
amusement place.
Tax shall be based on the gross selling price or gross value in money of the shares of
stock sold.
In accordance with the proportion of shares of stock sold to the total outstanding shares of
stock after listing in the local stock exchange:
Up to 25% 4%
Over 33 1/3% 1%
Person Subject:
Issuing corporation in a primary offering or the selling shareholder of the shares in the
secondary offering.
In the case of primary offering - the corporate issuer shall file the return, and pay the
corresponding tax within thirty days from the date of listing of the shares of stock in the Local
Stock Exchange
In the case of secondary offering - it shall be the duty of the stockholder who effected the sale
to collect the tax, and remit the same to the BIR within five banking days from the date of
collection.
The quarterly Percentage Tax Returns shall be e-filed in a consolidated return on a staggered
basis accoirding to the taxpayer’s industry classification. Payment of the tax due via EFPS
shall depend of the Group classification of the the taxpayer.
Exceptions:
2. Stock Transaction Tax - 5 banking days after the date withheld or collection
3. IPO stock transaction tax (Primary) - 30 days from the date of listing of the shares in
the local stock exchange
4. IPO stock transaction tax (Secondary) - 5 days from the date of collection.
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