Comparative Table of Kinds of Taxes

INCOME TAX ESTATE TAX DONORS TAX VALUE-ADDED TAX TARIFF AND CUSTOMS DUTIES
Definition
Tax on yearly profits arising from
property, professions, trade or as a tax
on persons, income, emoluments, profits
and the like
Tax on the transfer
of property of one
who dies to his
heirs
Tax imposed upon the
transfer by any person of
the property by gift
An indirect tax and the amount or
tax may be shifted or passed on to
the buyer, transferee or lessee of
the goods, properties or services
Tax assessed upon merchandise from or
exported to a foreign country
Taxpayers
and
taxable
property
A.Individuals
All individuals are taxable for income
within the Philippines; resident citizens
are taxable for both incomes within and
outside the Philippines.
B.Corporations
Only domestic corporations are taxable
for income within and outside the
Philippines. Resident and non-resident
foreign corporations are taxable only
for income within the Philippines
Citizens (resident
and non-resident)
and resident aliens
are taxable for
properties within
and outside the
Philippines
Non-resident aliens
are only taxable for
properties within the
Philippines
Same as Estate Tax The seller is subject to VAT but it
may be passed on to the buyer or
transferee or lessee of goods/
properties/ services
Importer is liable for payment of tariff and
customs duties
Articles under the TCC may either be:
1. Subject to duty as enumerated in Sec
104, TCC;
2. Those prohibited from being imported;
3. Conditionally-free importation; or
4. Duty-free goods.
liability of importer is limited to the
value of imported merchandise
INCOME TAX ESTATE TAX DONORS TAX VALUE-ADDED TAX
TARIFF AND
CUSTOMS
DUTIES
Taxable
Items/
Transactions
Covered
Income is anything that
increases the net worth other
than mere return of capital
GROSS INCOME includes:
(CG
2
DIR
2
AP
3
)
1. Compensation
2. Gross income from exercise
of a profession, trade or
business
3. Gains from dealings in
property
4. Dividends
5. Interests
6. Rents
7. Royalties
8. Annuities
9. Prizes and Winnings
10. Pensions
11. Partners distributive share in
the net income of the general
professional partnership
GROSS ESTATE
includes: (GRID-
LIP)
1. Transfer under
General Power
of Appointment
2. Revocable
Transfer
3. Decedents
Interest
4. Transfer in
contemplation
of Death
5. Proceeds of
Life Insurance
6. Transfer for
Insufficient
consideration
7. Prior Interests
GROSS DONATIONS include all
gifts directly or indirectly made
whether in trust or otherwise as
long as there is no consideration
or the same is gratuitously made.
The term GIFT includes:
1. voluntary transfers of property
from one person to another
without any compensation or
consideration therefor;
2. transfers for less than an
adequate and full
consideration in money or
moneys worth to the extent of
the difference between the fair
market value and
consideration except in forced
sales and in sale by an
individual of real property
which is a capital asset
TRANSACTIONS COVERED:
1. sale of goods or services in the course of trade/business; and
2. Importation of goods whether or not in the course of trade or
business.
Transactions deemed sale:
1. Transfer, use or consumption not in the course of trade/business of
goods or properties originally intended for sale or for use in the
course of trade or business; and
2. Distribution/transfer to (a) shareholders or investors as share in the
profits of a VAT registered person and to (b) creditors in payment
of debt; and
3. Consignment of goods if actual sale is not made within 60 days
following the date of consignment; and
4. Retirement/cessation of business with respect to inventories or
taxable goods existing as of such retirement/cessation
Zero-rated transactions:
1. Export sales
2. Foreign-currency denominated sales
Sales to persons/entities whose exemption under special laws or
international agreements to which the Philippines is a signatory
Section 101, TCC
- All importations/
exportations of
goods are subject
to customs
duties.
Articles under
TCC are subject
to duty as
enumerated in
Sec. 104, Title 1,
TCC
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2008 CENTRALIZED BAR OPERATIONS
INCOME TAX ESTATE TAX DONORS TAX
VALUE-ADDED
TAX
TARIFF AND
CUSTOMS
DUTIES
Exemptions/
Exclusions/
Deductions
EXCLUSIONS
1. Proceeds of life insurance
2. Return of insurance premium
3. Gifts, bequests or devises
4. Compensation for personal injuries or sickness whether by
suit or agreement
5. Income exempt under treaty
6. Retirement benefits, pensions, gratuities
7. Miscellaneous items
- income derived by foreign government
- income derived by the government or its political
subdivisions
- prizes and awards
- prizes and awards in sports competition
- 13
th
month pay and other benefits
- GSIS, SSS, Medicare and other contributions
- Gains from the Sale of Bonds, Debentures or other
Certificate of Indebtedness
- Gains from Redemption of Shares in Mutual Fund
EXEMPTIONS
(for individuals):
1. Personal exemptions
2. Additional exemptions
DEDUCTIONS:
1. Ordinary and necessary expenses
2. Interest on loans incurred in the course of trade/business
3. Taxes
4. Losses
5. Bad debts
6. Depreciation of property
7. Depletion of oil, gas wells and mines
8. Charitable and other contributions
9. Research and development
10.Pension trust contributions of employees
11.Premium payments on health and/or hospitalization
insurance
EXEMPT
TRANSACTIONS:
1. Merger of usufruct in
the owner of the
naked title
2. Fideicommissary
substitution
3. Bequests, devices
legacies or transfers
to social welfare,
cultural & charitable
institutions
DEDUCTIONS ON
GROSS ESTATE FOR
CITIZENS AND
RESIDENT ALIENS:
1. Expenses, losses,
indebtedness, taxes
2. Transfers for public
use
3. Vanishing deductions
4. Family home
5. Standard deduction of
P1M
6. Medical expenses
7. Retirement benefits
(RA 4917)
8. Conjugal share of
surviving spouse
only numbers 1, 2, 3
and 8 are applicable to
non-resident aliens
Reciprocity rule
applies to exemptions
of certain intangible
personal property
A.Exemptions for gifts made by
a citizen and resident alien
1. Dowries or gifts made on
account of marriage and
before its celebration or
within 1 year thereafter by
parents to each of their
children to the extent of the
1
st
P 10 000
2. Gifts made to or for the use
of the National Government
or any entity created by it or
any of its agencies which is
not conducted for profit or to
any political subdivision of
said government
3. Gifts in favor of educational,
charitable, religious, cultural
or social welfare
corporation, institution,
foundations, trusts or
philanthropic organization,
research institution or
accredited NGO provided
that not more than 30% of
said gifts be used by such
donee for administrative
purposes
B.Exemptions of gifts made by
non-resident aliens
1. Same as A(2)
2. Same as A (3) except
accredited NGO
C.Exemption of Certain
Intangible Property
- reciprocity rule applies
EXEMPT
TRANSACTIONS
Sec. 109, NIRC,
as amended by
Section 7, R.A.
9337
Those
provided in
Sec 105 of
the TCC
Those
granted to
government
agencies,
GOCCs with
agreements
with foreign
countries
Those given
to
international
institutions
entitled to
exemption
by
agreement
or special
laws
Those that
may be
granted by
the
President
upon
recommend
ation of
NEDA
162 MEMORY AID IN TAXATION LAW
Tariffs and Customs Code of The Philippines
INCOME TAX ESTATE TAX DONORS TAX VALUE-ADDED TAX
TARIFF AND
CUSTOMS
DUTIES
Filing
of Tax
Returns
Who should file:
A.Individual Taxpayer
1. Resident Citizen
2. Non-resident Citizen
3. Resident Alien
4. Non-resident alien engaged in trade/business
or practice of a profession w/in the Philippines
5. Individual engaged in business or practice of
a profession within the Philippines regardless
of the amount of gross income
6. Compensation income earner for two or more
employers at any time during the taxable year
7. Individual whose pure compensation income
derived from sources w/in the Philippines
exceed P60,000
B.Taxable estate and trust
C.General Professional Partnership
D.Corporation
1. Corporations not exempt from filing; and
2. Corporations exempt from income tax under
Sec. 30 of the NIRC but has not shown proof
of exemption
Place of Filing
1. Legal residence (authorized agent, bank,
Revenue District Officer, Collection Agent or duly
authorized treasurer)
2. Principal place of business
3. Office of the Commissioner
Date of Filing
INDIVIDUAL TAXPAYER
April 15 following the close of taxable year
CORPORATE TAXPAYER
3 Quarterly returns are filed 60 days from end of
quarter
+ 1 Final return filed every 15
th
of April for those
who opt to follow the calendar year or for fiscal
year, 15
th
day of the 4
th
month following close of
fiscal year
Date of filing:
Within 180 days from
death
Place of filing:
1. If the decedent is a
resident citizen, file with
accredited agent bank,
Revenue District Officer,
Collection Officer or duly
authorized treasurer of
city/municipality where
decedent was domiciled
at the time of his death
2. Non-resident citizen or
alien decedent:
a. If there is a
registered executor
or administrator, file
with Revenue
District Officer where
such executor or
administrator is
registered
b. If the executor or
administrator is not
registered, file with
Revenue District
Officer having
jurisdiction over
executor/
administrators
residence.
c. If there is no
executor or
administrator, file
with the Office of the
Commissioner.
Who should file:
Any individual who makes any transfer
by gift except those which are exempt
from tax shall submit a return.
The return shall set forth:
1. Each gift made during the calendar
year which is to be included in
computing net gifts;
2. The deductions claimed and
allowable;
3. Any previous net gifts made during
the same calendar year ;
4. The name of the donee;
5. Relationship of donor to donee; and
6. Such further information as may be
required by rules and regulations
made pursuant to law.
Place of filing:
1. RESIDENT DONOR
a. authorized agent bank
b. Revenue District Officer,
collection officer or duly
authorized treasurer of city/
municipality where the donor was
domiciled at the time of transfer
c. If there be no legal residence, file
with CIR
2. NON-RESIDENT DONOR
The return may be filed with the
Philippine embassy or consulate in the
country where he was domiciled at the
time of transfer of directly with the
Office of the Commissioner.
Date of filing:
The return shall be filed within 30 days
after the date the gift was made.
Who should file and date
of filing:
- file a quarterly return of the
amount of his gross sales
or receipts within 25 days
following the close of each
taxable quarter prescribed
for each taxpayer
- VAT registered person
shall pay VAT on monthly
basis
- Any person whose
registration has been
cancelled shall file a return
and pay tax due thereon
within 25 days from the
date of cancellation of
registration, Provided that
only one consolidated
return shall be filed by the
taxpayer for his principal
place of business or head
office and all branches
Place of filing:
Except as the Commissioner
provides, the return shall be
filed with and tax paid to:
- an authorized agent bank;
- Revenue Collection
Officer; or
- duly authorized city or
municipal treasurer in the
Philippines located within
the revenue district where
the taxpayer is registered
or required to register
No return is
filed and tax
is paid upon
importation/
exportation
! END OF TARIFF AND CUSTOMS CODE OF THE PHILIPPINES "
San Beda College of Law 163
2008 CENTRALIZED BAR OPERATIONS