TAXATION
TYPE
S OF TAXES TAXES IMPOSED PURPOSE OF TAXES LAWS COLLECTOR YEAR
IMPOSED
A tax imposed on the gains
presumed to have been realized by
the seller from the sale, exchange, or
1. Capital Gains
other disposition of capital assets
Tax
located in the Philippines, including
pacto de retro sales and other forms
of conditional sale.
National Internal Paid to the
Revenue Code government 1997
of 1997 or the through Bureau
National Taxes A tax on documents, instruments,
Republic Act of Internal
loan agreements and papers
No. 8424 or Tax Revenue
2. Documentary evidencing the acceptance,
Reform Act of (BIR)
Tax assignment, sale or transfer of an
1997
obligation, rights, or property incident
thereto.
3. Donor’s Tax
A tax on a donation or gift, and is
imposed on the gratuitous transfer of
property between two or more
persons who are living at the time of
the transfer.
A tax on the right of the deceased
person to transmit his/her estate to
his/her lawful heirs and beneficiaries
4. Estate Tax at the time of death and on certain
transfers which are made by law as
equivalent to testamentary
disposition.
A tax on all yearly profits arising from
property, profession, trades or offices
5. Income Tax
or as a tax on a person’s income,
emoluments, profits and the like.
6. Percentage
Tax
A business tax imposed on persons
or entities who sell or lease goods,
properties or services in the course of
trade or business whose gross
annual sales or receipts do not
exceed P550,000 and are not VAT-
registered.
A business tax imposed and
collected from the seller in the course
of trade or business on every sale of
7. Value-Added properties (real or personal) lease of
Tax goods or properties (real or personal)
or vendors of services. It is an
indirect tax, thus, it can be passed on
to the buyer.
8. Excise Tax
A tax imposed on goods
manufactured or produced in the
Philippines for domestic sale or
consumption or any other disposition.
9. Withholding
The tax withheld from individuals
Tax on
receiving purely compensation
Compensation
income.
A kind of withholding tax which is
10. Expanded
prescribed only for certain payors
Withholding
and is creditable against the income
Tax
tax due of the payee for the taxable
quarter year.
A kind of withholding tax which is
prescribed only for certain payors
and is not creditable against the
11. Final
income tax due of the payee for the
Withholding
taxable year. Income Tax withheld
Tax
constitutes the full and final payment
of the Income Tax due from the
payee on the said income.
The withholding tax withheld by
government offices and
12. Withholding
instrumentalities, including
Tax on
government-owned or -controlled
Government
corporations and local government
Money
units, before making any payments to
Payments
private individuals, corporations,
partnerships and/or associations.
1. Tax on Tax imposed on the sale, donation,
Transfer of barter, or on any other mode of
Real Property transferring ownership or title of real
Ownership property.
Tax on the business of persons
2. Tax on engaged in the printing and/or
Business of publication of books, cards, posters,
Printing and leaflets, handbills, certificates,
Publication receipts, pamphlets, and others of Paid to the
similar nature. Republic Act local
Tax on businesses enjoying a 7160 or Local government
franchise, at the rate not exceeding Government units, which
Local Taxes fifty percent (50%) of one percent Code of 1991 include the 1991
3. Franchise Tax (1%) of the gross annual receipts for provinces,
the preceding calendar year based municipalities,
on the incoming receipt, or realized, cities, and
within its territorial jurisdiction. barangays.
4. Tax on Sand, Tax imposed on ordinary stones,
Gravel and sand, gravel, earth, and other quarry
Other Quarry resources
Resources
An annual professional tax on each
5. Professional person engaged in the exercise or
Tax practice of his profession requiring
government examination.
6. Amusement
Tax Tax collected from the proprietors,
lessees, or operators of theaters,
cinemas, concert halls, circuses,
boxing stadia, and other places of
amusement.
7. Annual Fixed An annual fixed tax for every truck,
Tax For Every van or any vehicle used by
Delivery Truck manufacturers, producers,
or Van of wholesalers, dealers or retailers in
Manufacturers the delivery or distribution of distilled
or Producers, spirits, fermented liquors, soft drinks,
Wholesalers of, cigars and cigarettes,
Dealers, or
Retailers in,
Certain
Products
Taxes imposed by cities,
municipalities on businesses before
8. Tax on they will be issued a business license
Business or permit to start operations based on
the schedule of rates prescribed by
the local government code, as
amended.
9. Fees for Fees for the sealing and licensing of
Sealing and weights and measures at such
Licensing of reasonable rates as shall be
Weights and prescribed by the sangguniang bayan
Measures of the municipality or city.
10. Fishery
Rentals, fees or charges imposed by
the municipality/city to grantees of
fishery privileges in the municipal/city
Rentals, Fees waters, e.g., fishery privileges to
and Charges erect fish corrals, oysters, mussels or
other aquatic beds or bangus fry
areas and others as mentioned in the
local government code, as amended.
Tax levied by cities or municipalities
to every inhabitant of the Philippines
eighteen (18) years of age or over
who has been regularly employed on
a wage or salary basis for at least
thirty (30) consecutive working days
during any calendar year, or who is
engaged in business or occupation,
11. Community or who owns real property with an
Tax aggregate assessed value of One
thousand pesos (P1,000.00) or more,
or who is required by law to file an
income tax return. Community tax is
also imposed on every corporation no
matter how created or organized,
whether domestic or resident foreign,
engaged in or doing business in the
Philippines.
12. Taxes levied by
Tax on stores of retailers with gross
sales of receipts of the preceding
the barangays
calendar year amounting to Php
on stores or
50,000 or less and Php 30,000 or
retailers with
less at a rate not exceeding one
fixed business
percent on such gross sales or
establishments
receipts.
Fees or charges for services
rendered in connection with the
13. Service Fees
regulations or the use of barangay-
or Charges
owned properties or service facilities,
such as palay, copra, or tobacco
dryers.
