OTHER PERCENTAGE TAX

Under Section Tax Base Tax Rate

Tax on Person Exempt from VAT,
because their annual gross
Gross quarterly sales
116 sales/receipts are not exceed 3M 3%
or receipts
AND not VAT registered
enterprises
Percentage tax on domestic
carriers and keepers of garages,
common carriers by land Gross Quarterly
117 3%
Note: Exempt from OPT 117 are 2 Receipts
wheel animal driven vehicles and
bancas

DOMESTIC
LAND SEA AIR
PASSENGER OPT 117 VAT VAT
CARGO VAT VAT VAT

Gross Quarterly
118 OPT on International carriers 3%
Receipts

LAND SEA AIR

PASSENGER BY
DOMESTIC AIR
AND SEA VESSEL
0% VAT 0% VAT
CARGO BY
DOMESTIC AIR
AND SEA VESSEL 0% VAT 0% VAT
PASSENGER BY
VAT Exempt VAT Exempt
FOREIGN VESSEL

CARGO BY
OPT 118 OPT 118
FOREIGN VESSEL

Tax on Franchises:
- On gas, water utilities Gross Receipts 2%
119
- On radio/telephone,
Gross Receipts 3%
broadcasting corp.
Tax on overseas dispatch Receipts form such
messages or conversation gross quarterly 10%
originating from the Philippines services
120 Exempted from Sec. 120 are:
120
1. D iplomatic services
2. I nternational organizations
3. N ews services
4. G overnment

Tax on Banks and non-bank

financial intermediaries, money
Gross receipts from
changers and pawnshop
the Phils.
on interest commissions and
dicounts from lending activities

a. Maturity period is two years or

5%
less
Maturity period is more than 2
3%
years but less than 5 years
Maturity period is more than 5
1%
years less than 7 yrs
Maturity period is more than 7
0%
yrs
121
Income from financial leasing
based on remaining maturities of
the instrument:
b. On dividends and equity shares
0%
in income of subsidiaries

c. On royalties, rentals of
property, real or personal, profits
from exchange and all other items 5%
treated as gross income under sec.
32 of the tax code

d. On net trading gains on foreign

currency, debt instruments, and
other similar financial instruments
Tax on finance companies
122 - from lending Gross receipts 5%; 3%; 1% and 0%
- from other sources Gross income 5%
Insurance premiums
123 Tax on LIFE insurance premium 2%
collected

a. Agents of foreign insurance

Insurance premiums
companies (fire/marine or 4%
collected
miscellaneous insurance agent)
124
 124
b. Owners of the property who
obtain insurance directly with On premium paid
foreign companies
Amusement Taxes:
Cockpits Gross Receipts ** 18%
Cabarets, night/day clubs Gross Receipts ** 18%
Boxing Exhibitions* Gross Receipts ** 10%
*Exempt if world or oriental
championship in any division is at
stake, promoted by a Filipino or
Corporation at least 60% Filipino
125 owned , and one of the c ontenders is
a Filipino citizen
Professional Basketball games Gross Receipts ** 15%
Jai-alai & Race tracks Gross Receipts ** 30%
** Gross receipts - embraces all the
receipts of the proprietor, lessee or
operator of the amusement place. It
also includes income from television,
radio, and motion picture rights, if
any.
a. Owners of winning
Tax on Winnings 10% of the prizes
race horses
b. Winner of the
prizes in double 4% of the prizes, net of
126 forecast/quinella & ticket cost
trifecta bet
c. Person winning
NOT in double 10% of the prizes, net of
forecast/quinella & ticket cost
trifecta bet

6/10 of 1% of gross
selling price or gross
Tax on sale, barter or exchange of shares of stock listed
value in money of shares
127-A and traded thru LSE-other than sale by dealers in
of stock sold, bartered,
securities
exchanged or otherwise
disposed

127-B Tax on shares of stock sold or exchanged through Initial Public Offering

Proportion of shares of stock sold, bartered or exchanged or disposed of the outstanding shares of
stock after the listing in the LSE
Up to 25% 4% GSP
Over 25% to 33 1/3 % 2% GSP
Over 33 1/3 % 1% GSP
 NOTE
Sale of shares of
Sale of Shares of stock LISTED in Sale of shares of stock by
stock NOT listed in
the LSE dealer of securities
the LSE
OPT CGT VAT
Tax
consequence On the Net Capital
6/10 of 1% of gross selling price Output (12% of SP) XX
Gain 15%
Input (12%) of purchase
price) (XX)
VAT payable XX