Scribd
Upload
29 views2 pages

Situs of Taxation 2

The document discusses the concept of situs of taxation, which refers to the place where taxation occurs based on jurisdiction over persons, property, or transactions. It outlines the classification of taxpayers and the principles governing income taxation in the Philippines, including where income is earned and the implications for taxation. Several illustrations are provided to clarify how income earned within and outside the Philippines is taxed for different types of taxpayers.

Uploaded by

billsimoncastillo60
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
29 views2 pages

Situs of Taxation 2

The document discusses the concept of situs of taxation, which refers to the place where taxation occurs based on jurisdiction over persons, property, or transactions. It outlines the classification of taxpayers and the principles governing income taxation in the Philippines, including where income is earned and the implications for taxation. Several illustrations are provided to clarify how income earned within and outside the Philippines is taxed for different types of taxpayers.

Uploaded by

billsimoncastillo60
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 2

SITUS OF TAXATION

Situs of Taxation
Situs of taxation means place of taxation. The rule is that the state which has the jurisdiction to
tax the person, property or transaction may rightfully levy and collect tax. The following are the
general principles on income taxation in the Philippines
Classification of Tax Payer Income Earned Within Income Earned Outside
the Philippines the Philippines
Resident Citizen √ √
Non-resident Citizen √
Resident Alien √
Non-resident Alien √
Domestic Corporation √ √
Foreign Corporation √

Situs of taxation shall be as follows:


 Place where the business is
conducted
Business, occupation of transaction  Place where the occupation is
practiced
 Where the transaction takes place
Real and tangible property  Location of the property
Intangible personal property  Domicile of the owner
Income  Place where the same is earned
Gratuitous transfer of property  Location of the property

Illustrations

Illustration 1: Rim Gonzales is a resident citizen who earned Php 100,000 interest income;
70% of these were from non-resident debtors.
1. How much income was earned within the Philippines?
2. How much income was earned outside the Philippines?
3. How much income is subject to income tax?

Illustration 2: Chester, a resident alien, works home online and submits his output to clients.
He collected Php 100,000 service fee from foreign clients and Php 20,000 from resident clients.
1. How much income was earned within the Philippines?
2. How much income was earned outside the Philippines?
3. How much income is subject to income tax?

Illustration 3: Joe, a resident citizen manufactures banig in the Philippines and sells to
unaffiliated export clients. A total of Php 100,000 gross income was earned during the period
1. How much income was earned within the Philippines?
2. How much income was earned outside the Philippines?
3. How much income is subject to income tax?
Illustration 4: During 2010 Don Flores, a resident citizen purchased a commercial building
located at Quezon City, Philippines amounting to Php 1,200,000. After 5 years, he sold his
commercial building to foreign client at Php 2,500,000.
1. How much income was earned within the Philippines?
2. How much income was earned outside the Philippines?
3. How much income is subject to income tax?

Illustration 5: July, a resident alien, has a store in a tourist park in Baguio City, Philippines. He
earned a total of Php 40,000. 40% were from foreign tourists.
1. How much income was earned within the Philippines?
2. How much income was earned outside the Philippines?
3. How much income is subject to income tax?

You might also like