Professional Documents
Culture Documents
Other Percentage Taxes
Other Percentage Taxes
REQUISITES:
1) Not a VAT registered person; and
2) The annual gross sales or receipt do not exceed P3,000,000 (P1,919,500 prior to 2018)
EXEMPT PERSON-
1) Cooperatives
2) Beginning January 1, 2018, Self-employed individuals and professionals availing of the 8% tax
on gross sale and/or receipts and other non-operating income under the Train Law
FORMULA:
Tax base P XXX
Rate 3%
Percentage tax P XXX
TAX BASE
1) Seller of goods – Gross sales
2) Seller of services – Gross receipt
SUMMARY RULES
VAT or OPT
P3M AND BELOW (P1,919,500 and below prior to If the taxpayer opts to pay VAT, it will be
2018) irrevocable to 3 consecutive years
PERCENTAGE TAX ON DOMESTIC CARRIERS AND KEEPERS OF GARAGES (Sec.117).
Common carriers – refers to the persons, corporations, firms or associations engaged in the
business of carrying or transporting passengers or goods, or both by land, water, and air, for
compensation, offering their services to the public , and shall include transportation contractors.
Person liable:
1) Cars for rent or hire driven by the lessee (rent-a-car)
2) Transportations contractors, including person who transport of passengers for hire;
3) Other domestic carriers by land for transport of passengers;
4) Keepers of garages
Exempt person:
1) Owners of bancas
2) Owners of animal-drawn two-wheeled vehicles
Formula:
Tax base P XXX
Rate 3%
Common Carriers Tax P XXX
Tax base
1) Actual gross receipt
2) Minimum gross receipt Whichever is
higher
Summary Rules
Passengers OPT
By Land
Cargo/goods VAT
SUMMARY RULES
Person liable:
1) Franchises on Gas and Water Utilities
2) Franchises on Radio and/or Television Broadcasting Companies
Requisites for franchises on Radio and/or Television Broadcasting Companies
1) Not a VAT registered person; and
2) Annual gross receipts of the preceding year do not exceed P10,000,000
P10,000,000 and below Prior Year VAT or OPT if the taxpayers opts to pay it will be irrevocable
Formula:
Gross receipt P XXX
Rate X%
Franchise Tax P XXX
Rate:
1) Gas and Water – 2%
2) Radio and/or Television Broadcasting Companies – 3%
Tax on overseas dispatch, messages or conversation originating from the Philippines (Sec.120);
Requisites
1) There is an overseas dispatch, message or conversation;
2) It originated from the Philippines;
3) It was made through a telephone, telegraph, telewriter exchange, wireless and other
communication equipment.
Person Liable – the user of the facility
Formula:
Payments for Services PXXX
Rate 10%
Overseas Communications Tax PXXX
Exempt Persons:
1) Diplomatic Services
2) International Organizations
3) News Agencies or Services
4) Government
Banks or Banking Institutions- refer to those entities as defined under Section. 3 of Republic Act
No. 8791, otherwise known as the General Banking Law of 2000, or more specifically, two
entities engaged in the lending of funds obtained in the form of deposits, the term banks or
banking institutions are synonymous and interchangeable and specifically include universal
banks, commercial banks, thrift banks (saving and mortgage banks, stocks saving and loans
associations, and private development banks) cooperative banks, rural banks, Islamic banks and
other classifications of banks as may be determined by the Monetary Board of the BSP (RR No.
8-08)
Non-Bank Financial Intermediaries – refer to a person entities whose principal function include
lending, investing or placements of funds or evidences of indebtedness or equity deposited with
them, acquired by them or otherwise coursed through them, either for their own account or for
the accounts of the others. This includes all entities regularly engaged in the lending of funds or
purchasing of receivables or other obligations with funds obtained from the public through the
insurance, endorsement or acceptance of debt instruments of any kind for their own account, or
through the insurance of certificates, or purchase agreements, whether any of these means of
obtaining funds from the public is done on a regular basis or inly occasionally. (RR No. 8-08)
Quasi-Banking Functions- shall refer to the borrowing of funds from twenty (20) or more
personal or corporate lenders at any one time, through the insurance, endorsement or
acceptance of debt instruments of any kind, other than deposits, for the borrower’s own
account or through the insurance of the certificates of assignments or any similar instrument,
with recourse, or of repurchase agreements for purposes of relending or purchasing receivables
or other similar obligations. Provided, however, that commercial industrial and other non-
financial companies, which borrows funds through any of these means for the limited purpose if
financing their own needs or the need if their needs if their agents or dealers, shall not be
considered as performing quasi-banking functions.
Person liable:
1) Fire, Marine or Miscellaneous Agents of Non-resident Foreign Corporations engaged in
insurance business; and
2) Owners of property directly obtaining insurance from Non-resident Foreign
Corporations engaged in insurance business.
Agents of Non-resident Foreign Corporations engaged in insurance business
Formula:
Premium payments PXXX
Rate 4% (twice the rate of Sec. 123)
Premiums tax PXXX
Person liable - proprietor, lessee or operator of cockpits, cabarets, night or day clubs,
boxing exhibitions, professional basketball games, Jai-Alai and recetracks
Formula:
Gross receipt P XXX
Rate X%
Amusement Tax P XXX
Gross receipts – embraces all the receipts (such as from television, radio and motion
picture rights, if any) of the proprietor, lessee or operator of the amusement places.
Rates:
Amusement Places Tax Rate
Place for Boxing Exhibition 10% or exempt
Place for professional Basketball games 15%
Cockpits, Cabarets, Night or Day Clubs 18%
Jai-Alai and Racetracks 30%
Requisites for Exemption of Boxing Exhibitions
1) World or Oriental Championships is at stake
2) One of the contenders is a citizen of the Philippines; and
3) Promoted by citizens of the Philippines or by a corporation or association at least sixty
percent (60) of the capital of the which is owned by such citizen.
Persons Liable:
1) Owners of the winning horse; and
2) Bettor in a horse race or jai-alai
Owner of the winning horse
FORMULA:
Prize/Winnings PXXX
Rate 10%
Tax on Winnings PXXX
Bettor in a horse race or jai-alai
Gross Winnings PXXX
Less: Cost of the Winning Ticket (XXX)
Net Winnings PXXX
Rate X%
Tax on Winnings PXXX
Rate
1) Ordinary Winnings – 10%
2) Special Winnings (applicable only to bettors)
(Double, Forecast, Quinella, Trifecta) – 4%
Kinds of Sale, Barter, or Exchange of Shares of Stock Listed and Traded through the Local
Stock Exchange (LSE) Requisites
1) Seller is not a dealer in securities; and
2) Shares sold is listed and traded through the LSE.
FORMULA:
Gross Selling Price PXXX
X Rate .005 prior to TRAIN Law, . 006 TRAIN Law
Stock Transaction Tax PXXX
Tax on Shares of Stock Sold or Exchanged through Initial Public Offering
Requisites:
1) Sale is made through the LSE; and
2) It is an initial public offering of a closely held corporation
Formula:
Gross Selling Price P XXX
Rate X%
Stock Transaction Tax PXXX
RATE:
RATE WILL DEPEND ON THIS RATIO
(SHARES SOLD/OUTSTANDING SHARES AFTER THE SALE)
RATIO RATE
25% and below 4%
More than 25% but not more than 33 1/3% 2%
More than 33 1/3 1%
Initial Public Offering (IPO) refers to a public offering of shares of stock made for the first time in the
Local Stock Exchange.
Closely Held Corporation means any corporation at least 50% in value of the outstanding capital stock or
at least 50%of the total combined voting power of all classes of stock entitled to votes owned directly or
indirectly by or for more not than 20 individuals.
Person Liable:
Primary Offering refers to the original sale made to the investing public by the issuer corporation of its
unissued Shares of Stocks.
Secondary Offering refers to an offer for sale to the investigating public by the existing shareholders of
their securities which is conducted during an IPO
Follow On/Follow Through Offering of Shares refers to an offering of shares to the investing public
subsequent to an IPO
127A 5 banking days from date of collection 5 banking days from date of collection
127B Primary Offering – 30 days from date of Primary Offering – 30 days from date