OTHER PERCENTAGE TAXES 5.

TAX ON AGENTS OF FOREIGN

INSURANCE COMPANY
1. TAX ON PERSONS EXEMPT FROM VAT (NON-VAT Tax Rate and Tax Base:
under Sec 116) 1. 4% of the total premium collected shall
TRANSACTIONS SUBJECT: Sale, lease of goods or be imposed upon every fire, marine or
properties, or performance of services. miscellaneous insurance agent authorized
RATE and BASE: 3% of gross sales under the Insurance Code to procure policies or
insurance as he may have previously been
Requisites: legally authorized to transact on risks located in
1. The gross annual sales do not exceed P3 the Philippines for companies not authorized to
million; AND transact business in the Philippines.
2. Must not be a VAT registered taxpayer.
2. 5% on premiums paid shall also be
EXEMPTION FROM 3% NON-VAT: imposed on owners of property who obtain
1. Self-employed individuals and professionals insurance directly with foreign insurance
whose annual gross sales and other non- companies.
operating income do not exceed P3 million and
who opted for the 8% income tax. This tax shall not apply to reinsurance premiums.
2. Cooperatives 6. TAX ON BANKS AND NON-BANK FINANCIAL
2. COMMON CARRIERS’ TAX: Domestic Carriers INTERMEDIARIES PERFORMING QUASI-BANKING
What are subject? FUNCTIONS
1. Cars for rent or hire driven by the lessee; Tax Base: Gross Receipts derived from sources
2. Transportation contractors on land, including within the Philippines
persons who transport passengers for hire; Tax Rates:
3. Other domestic carriers by land for transport of a. On interest, commissions and discounts from
passengers, except owners of bancas and lending activities as well as income from
owners of animal-drawn two-wheeled vehicles; financial leasing, on the basis of remaining
and maturities of instruments from which such
4. Keepers of garages. receipts are derived:
RATE AND BASE: 3% of gross sales Maturity period:
Business tax on Transport Network Vehicle Service Five (5) years or less 5%
(TNVS) More than 5 years 1%

Status TNVS/Partner b. On dividends and equity shares and

net income of subsidiaries 0%
With CPC (franchise) 3% Franchise Tax
c. On royalties, rentals of property, real or
Without CPC 3% non-VAT/12% VAT personal, profit from exchange and all
other items treated as gross income 7%
3. COMMON CARRIERS TAX ON INTERNATIONAL under Sec 32 of the Code
CARRIERS
Who are subject? International air carriers and d. On net trading gains within the taxable
international shipping carriers doing business in the year on foreign currency, debt
Philippines. securities, derivatives and other similar
financial instruments 7%
Rule on international carriers: In case the maturity period is shortened thru
Business Tax Passengers Cargoes pretermination, then the maturity period shall be
reckoned to end as of the date of pretermination for
VAT Exempt Exempt purposes of classifying the transaction and the
Taxable on correct rate of tax shall be applied accordingly.
3% Carriers Tax Exempt
outgoing
flight/voyage 7. TAX ON OTHER NON-BANK FINANCIAL INTER-
MEDIARIES INCLUDING FINANCE COMPANIES,
Rate and Base: 3% of gross sales MONEY CHANGERS AND PAWNSHOPS
4. FRANCHISE TAX Tax Base: Gross receipts
Who are subject? Franchise holders of: Tax Rates:
1. Radio/television broadcasting companies whose a. On interests, commissions and discounts from
annual gross sales of the preceding year do not lending activities as well as income from
exceed P10 million - 3% of gross sales financial leasing on the basis of remaining
2. Gas and water utilities - 2% of gross sales maturities of the instruments from which such
receipts are derived:
All other franchise holders shall pay the VAT. The
radio and television broadcasting companies shall Maturity period:
have an option to be registered as a value-added Five (5) years or less 5%
taxpayer and pay the tax due thereon. More than 5 years 1%
Once this option is exercised, it becomes b. From all other items treated as gross
irrevocable. income under Sec. 32 of the tax code 5%
 within 20 days from the date the tax was deducted and
8. TAX ON OVERSEAS DISPATCH, MESSAGE OR withheld (BIR Form 1600-WP).
CONVERSATION ORIGINATING FROM THE PHIL
(OVERSEAS COMMUNICATIONS TAX) FILING OF RETURN (BIR FORM NO. 2551Q) AND
PAYMENT OF PERCENTAGE TAXES
RATE AND BASE: 10% of the amount paid upon
every overseas dispatched, message or 1. TIME FOR FILING AND PAYMENT
conversation transmitted from the Philippines Large and non-large taxpayers-within 25 days after
(outgoing) by telephone, telegraph, telewriter the end of every quarter on the following:
exchange, wireless and other communications
equipment services. a. VAT-exempt taxpayers with annual gross
sales not exceeding P3M;
Exemptions– This tax shall not apply to: b. Domestic carriers and keepers of garages;
1. Government c. International air/shipping carriers;
2. Diplomatic services d. Franchisees of gas or water utilities;
3. International organizations e. Franchisees of radio and/or TV broadcasting
4. News services with annual gross sales of the preceding year
Time for filing – The person rendering services shall does not exceed P10M;
collect and pay the tax within 20 days after the end f. Franchise grantees sending overseas
of each quarter. dispatch, messages or conversations from the
Philippines
9. AMUSEMENT TAX g. Proprietors, lessees or operators of cockpits,
The following amusement places shall be subject to cabarets, night or day clubs, boxing exhibitions,
the corresponding tax rates based on gross professional basketball games, jai-alai and
receipts:
racetracks.
10% Place for boxing exhibitions h. Banks, non-bank financial intermediaries and
15% Place for professional basketball games finance companies.
18% Cockpits, cabarets, night or day clubs i. Life insurance companies; and
30% Jai-Alai and race tracks j. Agent of foreign insurance companies.
Boxing exhibitions where World or Oriental 2. Every person subject to the other percentage
Championships in any division is at stake shall be taxes shall file, either electronically or manually, a
exempt from amusement tax, if - quarterly return of the amount of the person's gross
sales or earnings and pay, either electronically or
1. One of the contenders is a citizen of the
manually, with any authorized agent bank,
Philippines; AND
Revenue District Office through Revenue Collection
2. Said exhibitions are promoted by
Officer or authorized tax software provider, the tax
a) citizens of the Philippines, OR
due thereon within 25 days after the end of each
b) by a corporation or association at least 60%
taxable quarter.
of the capital of which is owned by such
citizens. In the case of a person whose VAT registration is
cancelled and who becomes liable to the tax
10. TAX ON WINNINGS imposed in Section 116 of this Code, the tax shall
Persons subject: Any person who – accrue from the date of cancellation and shall be
1. Wins in horse races. paid in accordance with the provisions of this
2. Owns a winning race horse, based on the Section
prize.
3. Any person retiring from a business subject to
Tax Rate and Tax Base: percentage tax shall notify the nearest internal
a. Winner in horse races . . . . 10% revenue officer, file, either electronically or
But if from: Double, forecast, quinella and manually, the person's return and pay, either
trifecta bets - 4% electronically or manually, the tax due thereon
BASE: Actual amount of winnings or dividends within twenty (20) days after closing the business.
on every ticket after deducting the cost of
ticket.
b. Owner of winning horse -10% of the prize
11. STOCK TRANSACTION TAX
On the sale, barter, exchange or other disposition
of shares listed and traded thru a local stock
exchange, other than by a dealer in securities.
Tax Base: Gross selling price/gross value in money
Tax Rate: 6/10 of 1% (.006)
Filing and payment – Within 5 banking days from
the date of collection.

FILING AND PAYMENT - The operator, manager or

person in charge of horse races shall file and pay