REAL PROPERTY TAX INCOME TAX X donates Interest on

bank deposit
EXEMPT NOT EXEMPT EXEMPT NOT EXEMPT INCOME TAX ESTATE TAX DONORS TAX INCOME TAX

Government LGC: Directly Beneficial use pertains Governmental functions Proprietary functions Excluded Sec. 32 B3 Exempt Sec. 86(3) Exempt Taxable
agencies Government to non-exempt entity Transfer for public use Sec. 101 Last par. Sec. 30
functions. deduction to X: Transfer for public
Prop. Owned by CIE-  use
gov. ETB- 
Corp- 
GEI LGC: Real (Except) when the Sec. 30 – income by institution Last par. Sec. 30 – (Same as above) (Same as above) (Same as above) (Same as above)
property owned beneficial use pertains when it is “realized as such” (as income from any
by the gov. and to non-exempt entity. such means “pursuant to the activity conducted for
its agencies and purpose for which it was profit regardless of
instrumentalitie created”) disposition
s shall be
exempt from
RPT
NSNPEI ADE used for NOT ADE used for Constitution: All revenues, NOT ADE used (Same as above) Exempt (Sec. 87) Exempt (Sec. 101) (Same as above)
educ, religious & educ, religious & assets as well as land, building provided that not more provided that not
charitable charitable purpose. & improvement of NSNPEI, ADE deduction to X: than 30% is used for more than 30% is
purpose used are exempt from taxes and CIE-  admin purposes. used for admin
duties. (pursuant to new ETB- up to extent of 10% of purposes.
landmark case of DLSU v. CIR) the amount of taxable
income.
Corp- 5%
PEI GR: Not exempt (Same as above) (Partial Exemption Only) (Same as above) (Same as above) (Same as above) Taxable apply
from IRT, tariff, Sec. 27B Sec. 27B
RPT  Income from U T/A exceeds 50% total income, it is
XPN: if there is a treated as ordinary corp. taxable – 30%
law providing  Otherwise – 15% NIT preferential tax rate
exemption:
LGC: ADE used
Charitable/ (Same as above) (Same as above) Sec. 30 E – Exclusively used for Last par. Sec. 30. (Same as above) (Same as above) (Same as above)
Religious religious or charitable purposes
Institution
GOCC Directly GR: Not exempt Governmental function Proprietary functions Excluded Sec. 32 B3
Xpn: SSS, performing
PHIC, PCSO, government
GSIS functions
Proprietary XPN: Charity GR: All are subject to (Partial Exemption Only) (Partial Exemption Excluded Sec. 32 B3 Sec. 85 – Decedent’s 30% of the net gifts Corporate
Hospital ward portion RPT (they do not fall Sec. 27B Only) interest donation to stranger income tax 30%
only within LGC provision) Sec. 27B
Charitable ADE used for NOT ADE used for Sec. 30 – “realized as such” Last par. Sec. 30 – Excluded Sec. 32 B3 Exempt (Sec. 87) Exempt (Sec. 101)
Hospital charitable, charitable, religious, regardless of deduction to X: provided that not more provided that not
religious, educ educ purposes disposition CIE-  than 30% is used for more than 30% is
purposes admin purposes. used for admin
purposes.
 ETB- up to extent of 10% of
the amount of taxable
income.
Corp- 5%

INCOME TAX ESTATE TAX DONORS TAX

GROSS CG2DIR2AP3 (Sec. 32 A) (Sec. 85) Stranger – 30%
Compensation for services (not VAT) Decedent’s interest Not stranger – 2-15%
Gross income in exercise of profession or T/B Transfer in contemplation of death Contribution to candidate
(VATable) Revocable transfer
Gains in dealing in property Property passing under General power of
Interests appointment
Rents Proceeds of life insurance
Royalties Prior interest
Annuities Transfer for insufficient consideration
Pensions Capital of Surviving spouse
Prizes
Partnership share

ALLOWABLE DEDUCTIONS EITL-BD-CPR (Sec. 34) (Sec. 86) (Sec. 101)

Expenses (business) Expenses, Losses, Indebtedness, Taxes: Dowries or gifts made on account of marriage
Interest *Funeral Expense Gifts to National Gov.
Taxes *Judicial Expense Gifts to:
Loss *Claims against Estate  Educational
Bad debts *Claims against insolvent person (+ -)  Charitable
Depreciation *Unpaid Taxes  Religious
Charitable and other contributions *Unpaid mortgage (+ -)  Cultural
Premium from health and hospital insurance *Casualty Loss  Social welfare corp., insti.,
Research and Development Vanishing Deductions  Accredited non-government org.
*Transfer for Public Use  Trust/philanthropic org
Family Home  Research insti
Standard deduction Provided that not more than 30% is used for admin
*Medical Expenses purposes
Retirement Benefits (+ -)

EXCLUSION PAG-CIR-SM (Sec. 32 B) (Sec. 87)

Proceeds of Life Insurance
Amount received by the insured as ROP
Gifts, Bequests and Devises (income from these is
included in gross income)
Compensation for injuries or sickness
Income exempt under treaty
Retirement benefits, pensions, gratuities
Miscellaneous Items
Merger of usufruct
Transmission/delivery of inheritance by fiduciary
heir to the fideicommissary
Transmission from 1st heir in favor of another
beneficiary
All bequest, devises, legacies or transfer to:
 social welfare
 cultural and charitable institution
that no part of net income inures to the benefit
of any individual. Provided that not more than
30% is used for admin purposes