Taxes

Question 1

3 types of taxes in the ph

Answer 1

National, local, and special

Question 2

What is national tax?

Answer 2

are fees that the BIR collects from taxpayers all over the Philippines.

Question 3

Capital gains tax

Answer 3

Tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets in the Philippines, including pacto de retro sales and other forms of conditional sale

Question 4

What are local taxes?

Answer 4

are involuntary fees that local government units (LGUs) collect from their constituents to finance activities and projects for their city or municipality.

Question 5

What are special taxes?

Answer 5

must be paid during certain transactions or purchases:

Question 6

Documentary stamp tax

Answer 6

Tax on documents, instruments, loan agreements, and papers evidencing the acceptance, assignment, sale, or transfer of an obligation, right, or property incident to it

Question 7

Donor’s tax

Answer 7

Tax on a gift or donation in which both the sender and recipient are alive at the time of the transfer

Question 8

Percentage tax

Answer 8

A business tax imposed on the following taxpayers:
- Non-VAT-registered individuals or corporations that sell or lease goods and services with gross annual sales or receipts not exceeding ₱3 million
- Persons who lease residential units where the monthly rental per unit exceeds ₱15,000.00 but the total rental during the year does not exceed ₱3 million
- Persons engaged in the industries/transactions listed in the Tax Code

Question 8

Estate tax

Answer 8

Tax on the right of the deceased person to transmit estate[6] to lawful heirs and beneficiaries at the time of death. It is imposed on the privilege of transmitting property upon the death of the owner

Question 9

Excise tax

Answer 9

Tax on the production, sale, or consumption of goods in the Philippines

Question 10

Income tax

Answer 10

Tax on a person’s or business’ income or profit, less deductions authorized by law

Question 11

Value added tax

Answer 11

A sales tax on consumption imposed on the sale, lease, or importation of goods, properties, and services in the Philippines, which may be passed on to the buyer or consumer

Question 12

Withholding tax

Answer 12

Tax withheld from an individual’s income to promote tax compliance and prevent tax evasion

Question 13

Basic real property tax

Answer 13

Tax on the value of real properties such as houses, lands, buildings, etc.

Question 14

Business of printing and publication tax

Answer 14

Tax imposed on businesses that involve printing and publication

Question 15

Amusement tax

Answer 15

Tax imposed on cinemas, theaters, concert halls, circuses, and other amusement venues

Question 15

Franchise tax

Answer 15

Tax imposed on a franchise business

Question 16

Sand, gravel, and other quarry resources taxa

Answer 16

Tax on the fair market value of ordinary stones, sand, gravel, earth, and other quarry resources extracted from public lands or public waters within the province

Question 17

Professional tax

Answer 17

Tax imposed on professionals such as lawyers, doctors, and engineers

Question 18

Annual fixed tax for delivery trucks and vans

Answer 18

₱500 fee for every truck or van used to deliver soft drinks, liquors, or cigarettes within the province

Question 19

Local business tax

Answer 19

ax imposed by municipalities on different types of businesses within their jurisdiction

Question 20

Barangay tax

Answer 20

Tax imposed on stores or retailers with annual gross sales of up to ₱50,000 in cities or up to ₱30,000 in municipalities

Question 21

Community tax

Answer 21

Tax imposed on individuals and corporations within the jurisdiction of a city or municipality

Question 22

Motor vehicle user’s charge

Answer 22

An annual fee charged on every application for vehicle registration

Question 23

Travel tax

Answer 23

An airport fee imposed on Filipino citizens, foreign residents, and non-resident foreigners (who have stayed in the country for more than a year) who are leaving the Philippines

Question 24

Head tax

Answer 24

Tax imposed on foreigners staying in the Philippines for at least 60 days, with permanent residency status in the country, and applying for Re-entry Permit and paid to the immigration officer when entering the country

Question 25

Charges on forest products

Answer 25

Tax on the privilege of exploiting the forest resources in the Philippines

Question 26

Energy consumption tax

Answer 26

Tax on electric power consumption over 650 kWh of each residential customer

Question 27

Purpose of taxes

Answer 27

o fund its operations and finance its development projects.

Question 28

Who are those that pay taxes?

Answer 28

• Filipino citizens living in the Philippines and earning income from sources within and outside the country
• OFWs, Filipino immigrants, and other non-resident citizens with income from sources within the Philippines
• Resident and non-resident foreigners earning income from sources within the Philippines
• Domestic corporations earning income from sources within and outside the Philippines
• Foreign corporations with income from sources within the Philippines

Question 29

What are the government agencies that collect different taxes?

Answer 29

BIR collects national tax, LGU’s collects local tax (provinces, municipalities, cities, barangay), Bureau of Customs (on imported and exported goods)

Question 30

What is tax exemption?

Answer 30

is an exclusion from the payment of taxes on certain types of income, property, or transaction. Only happens to those meeting requirements specified by the law