tax percentage tax

8/10/2019 TAX Percentage Tax

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1. A tax of Three Percen t (3%)shall be subjected on the grosssales or receipts of any person whose sales or receipts areexempt under Sec. 109(V) of the Tax Code from paying theValue Added Tax (VAT) because their annual sales do not

exceed P 1,919,500 and who are not required to pay apercentage tax

2. Cooperatives shall be exempt from the 3% percentage tax

3. Any business or business pursued by an individual wherethe aggregate gross sales or receipts do not exceed P

100,000 during any 12-month period shall be considered

principally for subsistence or livelihood and not in thecourse of business.

4. Individual taxpayers shall still register but shall be exemptfrom the payment of registration fee and percentage taxes.


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5. Tax on Domestic Carriers and Keepers of Garages

6. Tax Rate is 3% based on Gross Receipts

7. Who are considered Domestic Carriers and Keepers of

Garages?

a. Cars for rent or hire driven by lessee

b. Transportation contractors, including those whotransport passengers for hire, and other domestic

carriers by land transport of passengers (except bancas

and ow ners of animal drawn two wheeled vehicles)


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8. Minimum Gross Receipts in each particular case:Quarterly Monthly

Jeepney for Hire

1. Manila and other cities P 2,400 P 800

2. Provincial 1,200 400

Public Utility Bus1. Not exceeding 30 passengers 3,600 1,200

2. Exceeding 30 but not

exceeding 50 passengers 6,000 2,000

3. Exceeding 50 passengers 7,200 2,400

Taxis

1. Manila and other cities 3,600 1,200

2. Provincial 2,400 800

Car for Hire (with chauffeur) 3,000 1,000

Car for Hire (without chauffeur) 1,800 600


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9. Tax on International Carriers

10. Tax Rate is:

- 3% based on Gross Receipts of international air carriersdoing business in the Philippines

- 3% based on Gross Receipts of international shipping

carriers doing business in the Philippines


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11. Franchises Tax12. Tax Rate is:

- 3% based on Gross Receipts of all franchises on radio

and/or television broadcasting companies whose annual

gross receipts of the preceding year do not exceedP 10,000,000

- 2% based on Gross Receipts of franchises on gas and

water utilities derived from the business covered by the

law granting the franchise

Radio and television broadcasting companies referred to shall

have the option to be registered as a VAT- taxpayer and pay the

tax due thereon. Once this option is exercised, said option shall

be irrevocable.


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15. Tax on Banks and non-bank financial interme-diaries

performing Quasi-banking functions

16. There shall be collected on gross receipts from sources within the

Philippinesby all banks and non-bank financial intermediaries

performing quasi-banking functions


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17. Basis and Rates

On interest, commissions and discounts from lending activities as

well as income from financial leasing, on the basis of remaining

maturities of instruments from which such receipts are derived

Maturity Period is five (5) years or less . . . . . . . . . . . . . . . . . . 5%

Maturity Period is more than five (5) years. . . . . . . . . . . . . . . . 1%

On dividends and equity share in net income of

subsidiaries. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0%

On royalties, rentals of property, real or personal, profits

from exchange and all other items treated as grossincome under Section 32 of the Tax Code. . . . . . . . . . . . . . . . . . . 7%

On net trading gains within the taxable year on foreign

currency, debt securities, derivatives and other

similar instruments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7%


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18. Tax on Other Non-Bank financial intermediaries not

performing Quasi-banking functions

19. There shall be collected on gross receipts from sources within thePhilippinesby all banks and non-bank financial intermediaries

performing quasi-banking functions


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20. Basis and Rates

From interest, commissions, discounts and all other

items treated as gross income under the Tax Code. . . . . . . . . . . 5%

On interest, commissions and discounts from lending activities as

well as income from financial leasing, on the basis of remaining

maturities of instruments from which such receipts are derived

Maturity Period is five (5) years or less . . . . . . . . . . . . . . . . . . 5%

Maturity Period is more than five (5) years. . . . . . . . . . . . . . . . 1%


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21. Tax on Life Insurance Companies

22. Basis and Rates

- 5% on the total premiums received by persons (exceptpurely cooperative companies or associations) doing life

insurance business of any sort in the Philippines


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24. Tax on Agents of Foreign Insurance Companies

25. Rates and Basis

- 10% on premium received by every fire, marine, or

miscellaneous insurance agent legally authorized under

the Insurance Code to procure policies of insurance onrisk located in the Philippines for companies not autho-

rized to transact business in the Philippines except on

reinsurance premium

- 5% on premium payments obtained directly with foreign

firms where the owner of the property does not make useof the services of any agent, company or corporation

residing or doing business in the Philippines, in which

case, it shall be the duty of the said owners to report to the

Insurance Commission and to the BIR each case where

the insurance has been so effected


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26. Amusement Tax

27. Subjected are proprietor, lessee, or operator of

cockpits, cabarets, night or day clubs, boxingexhibitions, professional basketball games, Jai-

alai and racetracks


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29. Winnings

30. Basis and Rates

- Horse Races. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10%(The basis is the actual amoun t paid to th e bettor for

every w inning t icket af ter deduct ing the cost of

the tick et)

- Double, Forecast/Quinella and trifecta bets. . . . . . 4%

- Owner of Winning Race Horses . . . . . . . . . . . . . . . 10%


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31. Sale, Barter, or Exchange of Shares of Stock listed

and Trade in the Local Stock Exchange

32. Basis and Rates- of 1% of the gross selling price or gross value in

money derived on every sale, barter or other disposition

of shares of stock listed and traded through the local

stock exchange other than the sale by a dealer in

securities


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33. Sale, Barter, or Exchange through initial PublicOffering

34. Basis and Rates

On the gross selling price or gross value in money derivedon every sale, barter, exchange or other disposition through

initial public offering of shares of stock in closely heldcorporation in accordance with the proportion of such

shares to the total outstanding shares of stock after thelisting on the local stock exchange at the rates herein

prescribed:Not Over 25%. . . . . . . . . . . . . . . . . . . . . . . . . . 4%

Over 25% but not exceeding 33 1/3% . . . . . . 2%

Over 33 1/3%. . . . . . . . . . . . . . . . . . . . . . . . . . 1%

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