ACCOUNTING FOR GOVERNMENT AND NON-PROFIT

ORGANIZATIONS

Give 5 types of tax in the Philippines.

1. Income Tax
- Income tax is a type of tax that governments impose on income generated
by businesses and individuals within their jurisdiction. Income tax is used to fund
public services, pay government obligations, and provide goods for citizens.

2. Value-added Tax
- A value-added tax (VAT) is a consumption tax that is levied on a product
repeatedly at every point of sale at which value has been added. Ultimately, the
retail consumer pays the VAT. The buyer in each earlier stage of the product's
production is reimbursed for the VAT by the subsequent buyer in the chain.

3. Percentage Tax
- Percentage tax is a business tax imposed on persons, entities, or transactions
specified under Sections 116 to 127 of the National Internal Revenue Code of 1997
(also known as Tax Code), as amended, and as required under special laws.

4. Excise Tax
- Excise taxes are taxes required on specific goods or services like fuel, tobacco,
and alcohol. Excise taxes are primarily taxes that must be paid by businesses, usually
increasing prices for consumers indirectly. Excise taxes can be ad valorem (paid by
percentage) or specific (cost charged by unit).

5. Documentary stamp Tax

- Documentary Stamp Tax is a tax on documents, instruments, loan agreements
and papers evidencing the acceptance, assignment, sale or transfer of an obligation,
right or property incident thereto.
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