TAXATION

Onego, Joselito R. September 19, 2022

Prof. Lino Malapascua BSBA 2B

Questions(wfh#4)
DEFINE THE FOLLOWING:
1. Personal,Poll or Capitation
Tax of a fixed amount imposed on individuals, whether citizens or not, residing within a
specified territory without regard to their property or the occupation in which they may be
engaged.
Example; community tax

2. Property
II.Tax imposed on property, whether real or personal, in proportion either to its value or in
accordance with some other reasonable method of appointment.
Example: real estate tax

3. Excise
III.Tax imposed upon the performance of an act, the enjoyment of a privilege or the
engaging in an occupation. Examples: estate tax, donor’s tax, income tax, value-added tax.

4. Direct
Tax demanded from persons who are intended or bound by law to pay the tax. Examples:
community tax, income tax, estate tax, donor’s tax

5. Indirect
Tax which the taxpayer can shift to another. Examples: customs duties, value-added tax,
some percentage taxes

6. Specific
Tax imposed based on a physical unit of measurement, as by head or number, weight, or
length or volume. Examples: tax on distilled spirits, fermented liquors, cigars, wines, fireworks,
etc.
7. Ad Valorem
Tax of a fixed proportion of the value of property; needs an independent appraiser to
determine its value. Examples: real estate tax, certain customs duties, excise taxes on
cigarettes, gasoline and others. Excise taxes on a certain specific goods imposed under the
national internal revenue code are either specific or ad valorem taxes.

8. General, Fiscal or Revenue

Tax with no particular purpose or object for which the revenue is raised, but is simply
raised for whatever need may arise. Examples: income tax, value-added tax

9. Special or Regulatory
Tax imposed for a special purpose regardless of whether revenue is raised or not, and is
intended to achieve some social or economic end. Example: protective tariffs or customs duties
on certain imported goods to protect local industries against foreign competition.

10. National
Tax imposed by the national government. Examples: internal revenue taxes, tariff and
customs duties.

11. Municipal or Local

Tax imposed by municipal governments for specific needs. Examples: real estate taxes,
municipal licenses.

12. Proportional
Tax based on a fixed percentage of the amount of property income or other basis to be
taxed. Examples: percentage taxes, real estate taxes.

13. Progressive or Graduated

Tax rate increases as the tax base increases.
Examples: income tax, estate tax, donor’s tax.
14. Regressive
Tax rate decreases as the tax base increases
Example: value added tax

15. Republic Act 8424

Republic Act 8424. An Act Amending the National Internal Revenue Code, As Amended,
And For Other Purposes, otherwise known as the “Tax Reform Act of 1997”. The Act declares
the policy of the State to promote sustainable economic growth through the rationalization of
the Philippine internal revenue tax system, including tax administration; to provide , as much as
possible an equitable relief to a greater number of taxpayers in order to improve levels of
disposable income and increase economic activity; and to create a robust environment for
business to enable firms to compete better in the regional as well as the global market, at the
same time that the State ensures that the Government is able to provide for the needs of those
under its jurisdiction and care.