Classification of

Taxes
JOHN CRIS T. MUNSAYAC
BSAIS 2-2
AS TO SCOPE

National – imposed by
national government (e.g Local – imposed by LGU
income tax, donor’s tax , (e.g real estate tax)
VAT )
AS TO SUBJECT
MATTER OR OBJECT
• Personal or poll tax – community tax
• Property tax – imposed on property
(real estate tax)
• Excise tax – it is tax on fuel, tobacco
and alcohol
AS TO WHO
BEARS THE
BURDEN
• Direct – tax which cannot
shift to others (e.g
Income tax)

• Indirect – tax that falls

on one person to another
(e.g VAT)
AS TO DETERMINATION OF AMOUNT
Specific – refers to excise tax
which is imposed based on
weight or volume capacity or
any other physical unit of
measures (e.g 15% tax per
proof liter of alcohol)
Ad Valorem – excise tax which
is based on selling price. ( e.g
cigarettes cost more than 11.50
pesos per pack will be
subjected to excise tax of 30
pesos)
 General Tax – tax levied to raise
revenue of the government for the
general welfare (e.g sales tax,
income tax)
AS TO
PURPOSE
Special Tax – tax for special
purpose, tax used for particular
government projects(e.g tariff &
certain duties on imports)
AS GRADUATION OR RATE

Proportional – Fixed percentages of amount (e.g VAT)

Progressive or Graduated – As the income increase, the tax also

increase ( e.g Income tax on individual taxpayers)

Regressive – low income and high-income earners pay the same tax
(e.g sales tax)
AS TO TAXING AUTHORITY

National – Taxes
Local – taxes imposed
imposed under
by Local government
National Internal
unit.
Revenue Code (NIRC)
 Limitations on
the state’s power
to tax
 • Restrictions arising from the nature of tax itself:
a) Purpose must be public in nature or
governmental purpose;

b) Prohibition against delegation of the taxing

Inherent power;
Limitation
c) Territorial Limitation; and

d) The rule of double taxation;

(taxing twice with the same year, same tax,
same taxing authority)
Constitutional Limitations

a. Due Process Law

Taxation must be valid law, conscionable, and just.
It is right to notice and hearing.

b. Equal Protection of laws – All person shall be treated alike

under circumstances and conditions both in privileges
conferred and liabilities imposed.
c. Rule of uniformity and equity in taxation
It requires the uniform application and operation, without
discrimination of the tax in every place where the subject of the tax is
found.

d. Prohibition against imprisonment for non-paying of “poll

tax”

e. Prohibition against impairment of obligation of contracts

f. Prohibition against infringement of religious freedom

g. Prohibition against appropriation of proceeds of
taxation for the use, benefit, or support of any church.

h. Prohibition against taxation of religious, charitable and

educational entities.

i. Prohibition against taxation of non-stock, non-profit

educational institutions.