TAX BASE
Services: GR – Cash Basis Securities: GR (net of Cost)
Electricity: GR
NON-Life Insurance: GR (including notes and credits);
LIFE insurance – not subj to VAT
Millers: GR (received milled products, MV)
Traders: GSP – Cash or Sales on account
Market Value TDS not in the OCB
Creditors (Dacion en Pago)/ Shareholders (Property Dividend)
60-day consignment
Acq Cost or MV, Lower Retirement/Cessation
MNEMONICS
Transactions Deemed Sale (TDS)
Shareholders – distribution of profits (or property dividend)
Consigment – not returned within 60 days
Retirement/Cessation from business or VAT status
SCoReCO
XPN: Consolidation/Merger, Acquisition of Controlling Interest)
Payment to Creditor (Dacion En Pago, or offsetting of Debts)
Originally intended for sale
VAT on Importation
Dutiable Value (Freight + Insurance + Cost; FIC)
Customs Duties
Duti CEO
Excise Tax
Other Legal Charges
0% Sale of Goods
Separate Customs Territory (directly and exclusively used in the registered project)
CuSTOm ENGInE Special Laws (exempt from ALL taxes) – ADB, WHO, IRRI
International Transport Operations (exclusively used for transport ops)
* Omnibus Investment Code *(BoEDIES)
**Export Sales (paid in acceptable FC; same
regulations to EOE)
Non-resident for delivery to a resident EOE
Offshore Gaming Operations (POGOs)
International Agreements
RM or Packaging Materials to EOE (Export Sales: <70% of Annual Prod)
0% Sale of Services
International Transport Operations (ITO) (exclusively for transport ops)
Special Laws
Export-oriented Enterprise (Services directly related to the exported goods;
subcontractors/contractors)
Processing, manufacturing, or repacking of goods for persons doing business outside
PH (paid in acceptable FC)
ItS ExPORTInGS Other services to persons engaged in business outside PH or non-resident not in PH
(paid in acceptable FC)
Renewable Energy (should provide DOE Cert of Endorsement to avail 0%)
Transport (passenger/cargo) from PH to abroad
International Agreement
Offshore Gaming Operations
Separate Customs Territory (directly and exclusively used in the registered projects)
VAT Exempt Transactions Regardless if annual GS/GR more than 3M
AFFeCT3D SA BoNeS Agricultural and marine food products (in their original state; including rabbit and
(Sale of Goods) C2ROP Mo)
- Preparation, Preservation, Packaging (Pre-Pre-Pack)
XPN: Dine-In of Roasted chicken
Fertilizers/seeds
Feeds – livestock, poultry, fish including ingredients
- XPN: specialty feeds for (CRAPZ)
fighting Cocks, Race horses, Pets, Zoo animals
Agricultural Cooperatives
- Sale to members
- Member’s produce
- Import of direct farm inputs, M&E
Threshold: below 3M
Drugs for DHH (diabetes, hypertension, high cholesterol), CMTK (cancer, mental
illness, TB, kidney disease) and COVID – not locally available and insuff qty
Special Laws
International Agreement
Books
Newspaper (PNR/PDI)
- fixed prices
- not devoted to publication of paid ads
- regular intervals
Solo Parent
- when the spouse is: death, incapacitated, separated (@ least 6mos), criminal
convicted, abandoned, rape, divorce - DISCARD
- earning <250k annually
Purchased from the birth of a child up to 6yo (MOMMI DI)
- Meds and vaccines
- Other Medical Supplements
- Micronutrient and food supplements
- Baby’s Milk
- Diapers
FEVeR Importation of Fuel, etc for ITO
(Sale of Goods) Export sales by non-VAT
Vessels/vehicles (Part of Airplane itself) – Domestic/ITO
Real Properties (residential, TH: 3,199,200)
- 2 adjacent H&L are presumed as one if 1B and 1S
GoD CoMeS Gold to BSP
(Sale of Goods) Persons with Disability (PWDs)
Cooperatives (sh. capital contribution: less than 15k)
Merger and consolidation
Senior Citizens
PAsS DAMI BEER subj to Percentage tax
(Sale of Services) Association dues
Senior citizens
Persons with Disability (PWDs)
Agricultural contract growers
Medical, dental, hospitals. Vets institute. (XPN: Professional fees)
International Carriers (Passenger)
Banks and BSP
Educational Institution (private)
Employees
Regional or Area HQs: supervisory, communications and coordinating
ProPer Rest Importation of:
Professional tools/implements
Personal/household effects
Requisites: In quantities and suitable to profession
Not for sale
Within Reasonable time
Lease of Residential units (15k max)
Presumptive Input VAT (4%) Processors or Manufacturers of:
SaMaMi Co PaRe Processors or Manufacturers of:
Sardines
Mackerel
Milk
Cooking Oil
Packed Instant Noodles
Refined Sugar
