Business Taxes Flashcards
(28 cards)
What is the consequence/implication of being
engaged in the course of trade or business?
BUSINESS TAX
→ Imposed upon onerous transfers such as sale, barter,
exchange, and importation.
→ A tax in doing business (except for importation)
→ based on gross sales/gross receipts
BUSINESS TAX
Who are NOT subject to business tax.
- those individuals whose business do not realize a gross
sales/gross receipts of Php 100,000 in any 12 month period. - Small sari-sari store and small business
Regular conduct or pursuit of a commercial or and
economic activity, including transactions incidental thereto,
by any person, regardless of whether or not the person
engaged therein is a non-stock, non- profit private
organization or government entity.
BUSINESS OR TRADE
May not be considered in the course of doing business;
may not subject to business tax
Isolated transactions
tax on the value added by every seller to the purchase price or cost in the sale or lease of goods, property or services in the ordinary course of business or trade as well as importation of good in the Philippines, whether for personal or business user.
VALUE ADDED TAX
imposed on the sale, barter, exchange or importation of goods, or sale of services based upon gross sales, value in money of receipts
derived by the manufacturer, produces, importer or seller measured by a certain percentage of the gross selling price or receipts.
PERCENTAGE TAX
top goods manufactured or produced in the Philippines for
domestic sales or consumption or for any other disposition, as
well as good imported.
→ goods manufactured or imported as categorized as “sin
products” or non-essential goods” under the tax code.
EXCISE TAX
“a sole proprietor or an independent contractor who reports
income earned from self- employment. He/she controls who
he/she works for, how the work is done and when it is done.
Self-
Employed
“person formally certified by a professional body
belonging to a specific profession by virtue of having
completed a required course of studies and/or practice, whose
competence can usually be measured against an established
set of standards.
Professionals
One of the following is subject to three percent (3%) percentage tax
a) Establishments whose annual gross sales or receipts exceed P3,000,000 and who are VAT registered
b) Businesses whose annual gross sales or receipts exceed P3,000,000 and
who are not VAT registered
c) VAT registered establishments whose annual gross sales or receipts do not exceed P3,000,000
d) Establishments whose annual gross sales or receipts do not exceed P3,000,000 and who are not VAT registered
D
A domestic carrier by land is engaged in the transport of
passengers. It is not VAT-registered and its annual gross receipts do not exceed P3,000,000 during 2022. To what business taxes is it liable?
a) 12% VAT
b) 3% OPT under Sec. 116
c) 3% common carrier’s tax under Sec. 117
d) Not subject to business tax
C
All of the following except one, are not subject to
common carrier’s tax
a) Owner of a parking lot/building
b) Rent-a-car companies
c) Common carriers engaged in carriage of goods or cargo
d) Domestic airline companies
A
A telephone company, VAT-registered, provides services for domestic and overseas calls. What business taxes are due from the services offered?
I. VAT for domestic calls.
II. Overseas communications tax for overseas calls.
a) I only
b) II only
c) Both I and II
d) Neither I nor II
C
Which of the following is subject to Other Percentage Taxes?
I. Banks
II. Financing/credit Companies
III. Pawnshops
IV. Duly registered Credit Cooperatives
a) I and II only
b) I, II and III only
c) I, II, III and IV
d) None of the above
B
Statement 1: The tax on life insurance premium is 2% based upon the total premiums collected whether such premiums are paid in money, notes, credits, or any substitute for money.
Statement 2: The tax on agents of foreign insurance companies is 4% based upon the total premiums collected.
a) Both statements are correct.
b) Both statements are incorrect.
c) Only the first statement is correct.
d) Only the second statement is correct.
A
The operator of one of the following placesis not subject to
amusement tax.
a) Cockpits
b) Racetracks
c) Bowling alleys
d) KTV Karaoke joints
C
Apol B., a Filipino citizen, promoted a world boxing
championship bout in the Philippine Arena in Bocaue,
Bulacan, featuring Manny Pacquiao, a Filipino champion,
and Lucas Matthysse, dubbed as “Fight of Champions”.
Gate receipts amounted to P30,000,000 and additional
receipts from television coverage was P20,000,000. The
amusement tax due is:
0
Mang Jose, a horse-owner, received gross winnings of
P120,000 during the current month. His tax on winnings
should be:
12,000
Mr. Co is an employee of a private corporation. His gross compensation income is Php 4,000,000 per year. How much is business tax?
None. Subject to income tax.
Assuming Mr. Co is a Certified Public Accountant practicing his profession with annual gross receipts of Php 5,000,000. How much is the business tax?
Business tax of 12% VAT.
Income tax based on the graduated income tax rate.
Assuming Mr. Co as an employee earns Php 4,000,000 and also practice his profession and has gross annual receipts of Php 5,000,000. Is he subject to business tax? If yes, how much is the business tax?
Php 4,000,000 is subject to **income tax.
Php 5,000,000 is subject to business tax (VAT)
Determine the carrier that is subject to the Percentage Tax
a) Resident foreign corporation operating as an
international shipping carrier
b) Non-resident foreign corporation operating as an
international air carrier
c) Domestic corporation with international flights
d) Domestic corporation with international voyages
A
refers to the original sale made to the investing public by the
issuer corporation of its unissued Shares of Stock
Primary Offering
