A.

COURSE INFORMATION
Course Number and Title AE 312 – Business Taxation
Course Credit 4 Units
Course Component 4 Hours
Course Description This course involves an intensive study of the Bureau of Internal Revenue rulings of business and transfer taxes systems,
including preferential taxes. The relationship between the three taxation systems: business taxes, transfer taxes, and the income
tax are emphasized. The policy underpinnings of wealth transfer taxation, and the reasons for the recent erosion in its political
support, will be explored. The taxation under the government, tariffs and codes are also discussed. Topics include excise tax,
Value Added Tax, Percentage Tax, Estate Tax and Donor’s tax.

Learning Outcomes
At the end of the semester, the students are expected to be able:
1. To apply the National Internal Revenue Code (NIRC) as amended by R.A. 10963 and different BIR rulings related to Business and Transfer Taxes for tax
compliance.
2. To determine computation of Value Added Tax (VAT), Percentage Tax and Excise Taxes returns by accomplishing and familiarizing related BIR forms
including tax computation under local government code.
3. To determine the computation of Estate and Donor’s Tax due by applying all the NIRC and different BIR rulings for tax compliance and also to determine
preferential, tariffs and code tax computations.

Prerequisite: AE 232 – Income Taxation Co-requisite: None

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Reference/s Textbook: Tabag, Enrico D. and Garcia, Earl Jimson R. Transfer and Business Taxation with Special Topics. 2022 edition.
Claro M. Recto, Manila: EDT Book Shop., 2019

Course Requirements 1. Daily Attendance

2. Handouts
3. Written and Oral Report
4. Assignments and Class Participation
5. Major Exams

Grading System Prelim Exam 15%

Midterm Exam 15%
Final Exam 30%
Quizzes 25%
Summary Notebook 5%
Attendance 5%
Assignment and Behavior 5%
Total 100%

Teacher Name:
Class Schedule:
Room Number:
Consultation Hours:

B. LEARNING PLAN

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Time
Learning Content Course Intended Learning Outcomes Methods and Strategies Assessment Tasks
Allotment
1.0 Estate Tax At the end of the learning sessions, the
9.0 hours 1.1. Gross estate students should be able to: PowerPoint presentation Group rating for the
1.2. Deductions allowed to gross group problem solving
estate (ordinary and special 1. Discuss the nature of transfer tax Lecture based on speed and
deductions) 2. Differentiate onerous from gratuitous accuracy
1.3. Tax credit for tax paid to a transfer Small group discussion and
foreign country. 3. Describe the nature of estate tax problem solving Individual ratings for the
1.4. Filing of estate tax returns, 4. Identify the properties included as part assignments and
payment of estate tax of the gross estate Individual reporting on assigned reporting
1.5. Attachments to the estate tax 5. Identify gratuitous transfer problems or cases.
return including CPA certificate. 6. Identify gratuitous transfer exempted Chapter quiz
from estate tax
7. Discuss the nature of allowable
deductions from gross estate
8. Identify allowable deductions from
gross estate
9. Determine the deductions from gross
estate of residents or citizens.
10. Enumerate the items composing
ordinary deductions
11. Apply the tax procedures in
determining vanishing deductions.
3.0 hours 2.0 Donor’s Tax At the end of the learning sessions, the PowerPoint presentation
2.1. Gross gift students should be able to:
2.2. Exemption of certain gifts Lecture
and other deductions from gross gift 1. Illustrate the nature of donor’s tax.
2.3. Tax rates in general 2. Enumerate kinds of donation Small group discussion and
2.4. Filing of donor’s tax returns, 3. Identify the classification of donors problem solving
payment and requirements. 4. Describe the essential elements of
donation. Individual reporting on assigned
5. Determine the computation of gross problems or cases.

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Time
Learning Content Course Intended Learning Outcomes Methods and Strategies Assessment Tasks
Allotment
gifts, allowable deductions and donor’s
tax.
6. Identify the tax procedures in
computing donors tax in case of
married donor
7. Identify donations exempted from tax.

3.0 Business Taxes At the end of the learning sessions, the

1.5 hours 3.1. Introduction to business students should be able to: PowerPoint presentation Board/Seat work
taxes Assignment
3.2. Types of business taxes 1. Describe the concept and nature of a Lecture Quiz Bowl
3.3. Business that qualified for business from the point of view of Quiz
each type of Business taxes. taxation. Class discussion
3.4. Compliance of business 2. Identify the various exceptions in
establishments for each type of classifying whether an activity is a
business taxes. business activity or not.
3.5. Business transactions. 3. Discuss the concept of business taxes
3.6. Different transactions that and transactions.
needs business taxes. 4. Explain the invoicing and accounting
requirements for VAT and non-VAT
registered taxpayers.
5. Identifying different transactions
subject to business taxes.

4.0 Introduction to Value Added Tax At the end of the learning sessions, the
1.5 hours (VAT) students should be able to: PowerPoint presentation Group rating for the
4.1. Nature and rationale of VAT group problem solving
4.2. Characteristics, computation 1. Define and discuss the features of Lecture based on speed and
and different rates Value Added Tax (VAT) accuracy
4.3. Different taxpayers who 2. Identify the person who are Small group discussion and
qualified/exempt for VAT charged/exempt with VAT problem solving Individual ratings for the
transactions 3. Discuss the historical background of assignments and

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Time
Learning Content Course Intended Learning Outcomes Methods and Strategies Assessment Tasks
Allotment
4.4. Determining VAT VAT. Individual reporting on assigned reporting
declaration 4. Discuss the basic formula of VAT. problems or cases.
Chapter quiz
5.0 Value Added Tax At the end of the learning sessions, the
1.5 hours 5.1. VAT-subject transactions students should be able to: PowerPoint presentation Group rating for the
5.2. Sale of goods or properties group problem solving
(actual sales, deemed sales, zero 1. Define the meaning of goods or Lecture based on speed and
rated sales) properties and sales of services relative accuracy
5.3. Sales of services and lease to VAT. Small group discussion and
of properties (actual sales or lease, 2. Identify the different taxpayers that problem solving Individual ratings for the
zero rated sales) qualified to sell goods or properties and assignments and
5.4. Importation services. Individual reporting on assigned reporting
3. Identify the basis in determining the problems or cases.
output and input tax. Chapter quiz

6.0 Input VAT Credits, refunds and
9.0 hours mixed business transactions
6.1.VAT exempt transactions
6.2.Input value added taxes
6.3.Passed-on VAT
6.4.Transitional VAT input
6.5.Presumptive VAT input
6.6.Withholding VAT (creditable and
final)
6.7.Excess VAT input in previous
return.
6.8.Refund of VAT input (zero rated
sales, purchase of land and capital
goods)
6.9.Compliance requirements
(invoicing, returns and payment of
value added tax, power of
At the end of the learning sessions, the
students should be able to: PowerPoint presentation Group rating for the
1. Enumerate transactions exempt from group problem solving
VAT. Lecture based on speed and
2. Discuss creditable input tax. accuracy
3. Discuss transitional and presumptive Small group discussion and
input tax. problem solving Individual ratings for the
4. Identify input tax on capital goods. assignments and
5. Describe VAT on sale of real Individual reporting on assigned reporting
properties. problems or cases.
6. Discuss withholding VAT Chapter quiz
7. Discuss input tax on mixed transactions
and monthly/quarterly VAT liabilities.

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Time
Learning Content
Allotment
Commissioner to suspend business)
6.10. Mixed business transactions
and allocation of input tax.
7.0 Percentage Taxes
9.0 hours 7.1.Taxpayer, tax base and tax rates.
7.2.Tax on persons exempt from value
added tax (annual gross sales or
receipts do not exceed P 3,000,000)
7.3.Tax on domestic or international
carrier (including exemptions)
7.4.Tax on franchise
7.5.Overseas communication tax
(including exemptions)
7.6.Tax on bank and non-bank financial
intermediaries performing quasi-
banking functions.
7.7.Tax on other non-bank financial
intermediaries.
7.8.Tax on life insurance
7.9.Tax on agents of foreign insurance
companies.
7.10. Amusement taxes
7.11. Tax on winnings
7.12. Stock transaction tax
7.13. Returns and payment of
percentage tax (regular filing)
7.14. Excise tax
7.15. Purposes, Classifications
and Goods subject to Excise tax.
12.0 hours 8.0 Taxation under the local government
Course Intended Learning Outcomes Methods and Strategies Assessment Tasks
At the end of the learning sessions, the
students should be able to: PowerPoint presentation Board//Seat work
Assignment
1. Discuss the concept and nature of Lecture Quiz Bowl
percentage tax. Quiz
2. Identify properly the tax base of
percentage tax.
3. Enumerate the different business
entities that are subject to percentage
tax.
4. Describe common carrier’s tax.
5. Define franchise tax.
6. Explain the nature of overseas
communication tax.
7. Describe the percentage tax on banks
and other financial intermediaries.
8. Explain business tax on life insurance
companies and agents of foreign
insurance companies.
9. Discuss percentage taxes on
amusement places and winnings,
describe stock transaction tax.
10. Determine the time of filing and
payment of percentage tax.
At the end of the learning sessions, the
students should be able to: PowerPoint presentation Group rating for the
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Time
Learning Content Course Intended Learning Outcomes Methods and Strategies Assessment Tasks
Allotment
code 1. Compute different type of local taxes group problem solving
8.1 Scope and different types of local under the local government code. Lecture based on speed and
taxes 2. Discuss taxation rules on senior citizen accuracy
8.2 Tax base and rates and persons with disabilities. Small group discussion and
8.3 Venue and time of filing and 3. Enumerate the functions of the Bureau problem solving Individual ratings for the
payment of tax returns. of Customs. assignments and
Individual reporting on assigned reporting
9.0 Preferential Taxation problems or cases.
9.1 Senior citizen law – exemption from Chapter quiz
income tax and incentives for
qualified establishments selling
goods and services
9.2 Magna Carta for persons with
disabilities – tax incentives
9.3 Special Economic Zone Act
9.4 Omnibus Investment Code
9.5 Barangay Micro Business Enterprise
Act
9.6 Double Taxation Arrangements

10. Tariffs and customs code

10.1 Functions of the Bureau of
Customs
10.2 Customs duties nature and
tariff
10.3 Basis of assessment of duty
10.4 Export/import of goods
requirement
9.0 hours QUIZZES and MAJOR EXAM

C. ASSESSMENT

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 Rubric A: For essay questions
Quizzes – True or False, Problem Solving
Written exams – True or False, Multiple Choice, Problem Solving

Rubric A:
Score Content Organization and Development
4 Answer is appropriate to the question. Content is Clear sense of order. Points are presented in logical progression. Develops each point with specific
factually correct details. Answers question completely. Uses technology appropriately and correctly. No major
grammatical or spelling errors.
3 Answer is appropriate to the question. Content may Points are presented in logical progression. Develops each point with specific details. All important
have minor factual errors points included. There is reasonable word choice. No more than 2 major errors and a few minor errors.
2 Content related peripherally to the question. Points presented in seemingly random fashion, but all support argument. Sparse details or evidence.
Contains significant factual errors Question is partially answered. Ordinary word choice. Some serious errors.
1 Content unrelated to question Lacks clear organizational flow. Reader is confused. Statements are unsupported by any detail or
explanation. Repetitive, incoherent, illogical development. Limited vocabulary.

D. COURSE POLICIES

1. All students are expected to observe regular attendance, active participation in learning activities and prompt submission of requirements.
2. Absences due to social obligations, responsibilities as school official, extra-curricular activities and medical reasons should be supported with parents’ or guardian’s
excuse letter, school special order, and medical certificates, respectively.
3. This course has a passing percentage of 70%. In case at the end of the trimester, the student acquired a grade lower than 70% s/he must be given a removal and a
chance to pass the course. The following will be the criteria:
 65-69% final rating must take a removal exam, and their final rate to the removal exam must not be lower than 75%. The student must be given two
chances. If s/he passed the first removal exam, s/he must automatically be given a grade of 3.0, if not, s/he must be given another removal exam, and s/he
failed, s/he must be given a 5.0 grade and has to retake the course.
 60-64% final rating must take a removal exam, and their final rate to the removal exam must not be lower than 80%. The student must be given two
chances. If s/he passed the first removal exam, s/he must automatically be given a grade of 3.0, if not, s/he must be given another removal exam, and s/he
failed, s/he must be given a 5.0 grade and has to retake the course.
 55-59% final rating must take a removal exam, and their final rate to the removal exam must not be lower than 85%. The student must be given two
chances. If s/he passed the first removal exam, s/he must automatically be given a grade of 3.0, if not, s/he must be given another removal exam, and s/he
failed, s/he must be given a 5.0 grade and has to retake the course.

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  50-54% final rating must take a 3 series of removal exam, and their average must not be lower than 75%. The student must be given two chances. If s/he
passed the first removal exam, s/he must automatically be given a grade of 3.0, if not, s/he must be given another removal exam, and s/he failed, s/he must be
given a 5.0 grade and has to retake the course.

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