TAXING AND OTHER REVENUERAISING POWERS OF PROVINCES

Scope of power
1. 2. 3. 4. 5.

6.
7.

Tax on the transfer of real property ownership Tax on the business of printing and publication Franchise tax Tax on sand, gravel and other quarry resources Professional tax Amusement tax Annual fixed tax per delivery truck or van of manufacturers or producers and wholesalers of, or dealers in, certain products

Tax on transfer of real property ownership

Transfer covered Tax on the sale, donation, barter, or any other mode of transferring ownership or, or title to, real property.
Rate of the tax Not to exceed 50% of 1% of the total consideration involved in the acquisition, or, FMV in case the monetary consideration involved in the transfer is not substantial Whichever is higher

Tax on transfer of real property ownership

Real property lands, buildings, and machineries intended by the owner of the land or building for an industry or works which may be carried on in a building or land which tend directly to meet the need of the said industry or works

Tax on transfer of real property ownership

Duties Duty of the seller, donor, transferor, executor, or administrator to pay the tax imposed within 60 days from date of the execution of the deed as regards sale, barter, donation or any other mode of transferring ownership, or from the date of the decedents death in the case of transfer by succession
Exemption Sale, transfer, or other disposition of real property pursuant to Comprehensive Agrarian Reform Law

Tax on business on printing and publication

Business covered Persons engaged in the printing and/or publication of books, cards, posters, leaflets, handbills, certificates, receipts, pamphlets.
Rate of the tax Not to exceed 50% of 1% of the gross annual receipts for the preceding calendar year Not to exceed 1/20 of 1% of the capital investment

Tax on business on printing and publication

Exemption from the tax Receipts from the printing and/or publishing of books or other reading materials prescribed by the DepEd as school texts or references

Franchise Tax
Franchise special privilege conferred by the government on an individual or corporation which does not belong to the citizens by common right
Business covered Businesses enjoying franchise based on the gross receipts realized within its territorial jurisdiction

Franchise Tax
Rate of the tax Not to exceed 50% of 1% of the gross annual receipts for the preceding calendar year based on the incoming receipt, or realized, within the territorial jurisdiction Not exceed 1/20 of 1% of the capital investment

Sand and gravel tax

Amount of the tax Fee of not more than 10% of FMV in the locality per cubic meter of ordinary stones, sand, gravel, earth, and other quarry resources extracted from public lands or from the beds of seas, lakes, rivers, streams, creeks, and other public waters within the jurisdiction of the province Issuance of permit Exclusively by the provincial governor pursuant to the ordinance of the sangguniang panlalawigan

Sand and gravel tax

Issuance of permit Exclusively by the provincial governor pursuant to the ordinance of the sangguniang panlalawigan Distribution of the proceeds a. Province 30% b. Component city or municipality 30% c. Barangay 40%

Professional tax
Occupation Calling

Profession

Professional tax
Ones regular Occupation business or Calling employment, or an activity which principally takes up ones time, thought, Profession energies and

Professional tax
Ones regular business, trade, profession, Occupation vocation or Calling employment which does not require the passing of an appropriate Profession government board or bar examination

Professional tax
Occupation Calling

Calling which require the passing Profession of an appropriate government board or bar examination

Professional tax
Annual

professional tax on each person engaged in the exercise or practice of his profession requiring government examination at such amount and reasonable classification as the SP may determine but not to exceed P300

Where to pay the tax? Province where the person practices his profession or where he maintains his principal office

Professional tax
When to pay? Payable annually, on or before January 31 Any person first beginning to practice a profession after the month of January must pay the full tax before engaging therein Exemption Professionals exclusively employed in the government

Professional Tax
Nature and application of the tax 1. Fixed tax on the privilege of exercising or engaging in a profession 2. Applies only to natural or physical persons and not to juridical entities
Privilege

tax receipt not an authority to exercise profession Criterion for taxability of a profession

Nature of the services Character of the profession

Professional tax
Liability of person engaged in two or more professions A profession does not become exempt by being conducted with some other profession for which the tax has been paid.
Exception

One profession is necessarily incident to the practice of another profession

Amusement Tax
Amusement Amusement places Theaters, cinemas, concert halls, circuses, and other places of amusement where one seeks admission to entertain himself by seeing or viewing the show or performances

Pleasurable diversion and entertainment

Amusement Tax
Tax

on admission to be collected from the proprietors, lessees, or operators of theaters, cinemas, concert halls, circuses, and other places of amusement at a rate of not more than 30% of gross receipts from admission fees withheld and paid to the provincial treasurer before the gross receipts are divided

Deducted,

Amusement Tax
When and where to pay? SP may prescribe the time, manner, terms and conditions for the payment of the tax Distribution of proceeds Shared equally by the province and the municipality where such amusement places are located

Amusement Tax
Liability for payment of the tax Attaches upon the sale of the admission ticket Does not require an assessment to be made before liability for the tax may be fixed
Exemption Holding of

Operas Concerts Dramas Recitals

Paintings Art exhibitions Flower shows Musical programs Literary & oratorical presentations

Tax per delivery truck or van or certain manufacturers, producers

Annual

fixed tax for every truck, van or any vehicle used by manufacturers, producers, wholesalers, dealers or retailers in the delivery or distribution to sales outlets or consumers, within the province in an amount not exceeding P500