Business Taxes:

Value Added Tax

Percentage Taxes
Nature and Characteristic of Value Added Tax

• Is a tax on consumption levied on the sale, barter,

exchange or lease of goods or properties and services
and on importation of goods into the Philippines
• The seller is the one statutorily liable for the payment of
the tax but the amount of tax may be shifted or passed
on to the buyer, transferee or lessee of the goods,
properties or services.
• In the case of importation, the importer is the one liable
for the VAT.
Persons liable

• any person who, in the course of his trade or business,

sells, barters, exchanges or leases goods or properties,
or renders services or any person who imports goods.

1. Seller of goods
2. Seller of service
3. Lessor
4. Importer
Registration

In General - any person who, in the course of trade or

business, sells, barters, exchanges goods or properties, or
engages in the sale of service subject to VAT imposed in
Sections 106 and 108 of the Tax Code shall register.
1. Mandatory – those with gross sales or receipts
exceeding Php 3 Million
2. Optional – those with VAT-exempt transactions who is
not required to register as VAT but opted to become
VAT-registered
Note: For Optional Registrant, taxpayer is not allowed to
cancel registration for the next three years
Meaning of “in the course of trade or business”

The “course of trade or business” means the regular

conduct or pursuit of a commercial or economic activity,
including transactions incidental thereto, by any person
regardless of whether or not the person is engaged
therein is a non-stock, non-profit private organization, or
government entity.
Goods and Properties
refers to all tangible and intangible objects which are capable of
pecuniary estimation and shall include, among others:
a. Real properties held primarily for sale to customers or held for
lease in the ordinary course of trade or business
b. b The right or the privilege to use patent, copyright, design or
model, plan, secret formula or process, goodwill, trademark,
trade brand or other like property or right
c. The right or the privilege to use any industrial, commercial or
scientific equipment
d. The right or the privilege to use motion picture films, films, tapes
and discs
e. Radio, television, satellite transmission and cable television time.
Services
means the performance of all kinds of services in the Philippines
for others for a fee, remuneration or consideration, whether in
kind or in cash, including those performed or rendered by:
• Construction and service contractors
• Stock, real estate, commercial, customs and immigration
brokers
• Lessors of property, whether personal or real
• Persons engaged in warehousing services
• Lessors or distributors of cinematographic films
• Persons engaged in milling, processing, manufacturing, or
repacking goods for others
Services
• Proprietors, operator or keepers of hotels, motels, resthouses,
pension houses, inns, resorts, theatres and movie houses
• Proprietors, operators of restaurants, refreshment parlors,
cafes and other eating places, including clubs and caterers
• Dealers in securities
• Lending investors
• Transportation contractors on their transport of goods or
cargoes including persons who transport goods or cargoes for
hire and other domestic common carriers by land, relative to
their transport of goods or cargoes
• Common carriers by air and sea relative to their transport of
passengers, goods or cargoes from one place in the Philippines
to another place in the Philippines
Services
• Sales of electricity by generation, transmission, and/or
distribution
• Franchise grantees of electric utilities, telephone and telegraph,
radio and/or television broadcasting and all other franchise
grantees, except franchise grantees of radio and/or television
broadcasting whose annual gross receipts of the preceding year
do not exceed P10,000,000, and franchise grantees of gas and
water utilities
• Non-life insurance companies (except their crop insurance),
including surety, fidelity, indemnity and bonding companies
• Similar services regardless of whether or not the performance
thereof calls for the exercise or use of the physical or mental
facilities
Invoice Vs. Official Receipt

Sale of Invoice
Goods

Sale of Official
Service Receipt
Output tax Vs. Input tax
Output tax means the value-added tax on sale or lease of taxable
goods or properties or services by any person registered or required
to register

Input tax – - is the value- added tax due from or paid by a VAT
registered person in the course of his trade or business on
importation of goods or local purchase of goods, properties or
services, including lease or use of properties from a VAT registered
person.
 Seller vs. Buyer
Seller (VAT-registered) Buyer (VAT-registered)
Sale Php 1,000,000.00 Purchase Php 1,000,000.00
Rate 12% Rate 12%
Output tax 120,000.00 Input tax 120,000.00
Seller
Sale Php 1,200,000.00
Output tax can be shifted to buyer.
Rate 12%
Output tax 144,000.00

Output tax Php 144,000.00

Less: Input tax 120,000.00
VAT Payable Php 24,000.00
Kinds of Sales

• VATable Sales
1. Subject to 12%
• Ordinary sale
• Deemed sale
• Sale to government
2. Subject to 0%
• Exempt sale
Tax Base
Gross selling price – total amount of money or its equivalent
which the purchaser pays or is obligated to pay to the seller
in consideration of the sale, barter or exchange of the goods
or properties, excluding VAT. The excise tax, if any, on such
goods or properties shall form part of the gross selling price
Gross receipts - total amount of money or its equivalent
representing the contract price, compensation, service fee,
rental or royalty, including the amount charged for materials
supplied with the services and deposits applied as payments
for services rendered and advance payments actually or
constructively received during the taxable period for the
services performed or to be performed for another person,
excluding VAT
 Transactions Deemed Sale
1. Transfer, use or consumption not in the course of business
of goods or properties originally intended for sale or for use
in the course of business
2. Distribution or transfer to shareholders/investors share in
the profits of a VAT-registered person
3. Distribution or transfer to creditors in payment of debt
4. Consignment of goods if actual sale is not made within 60
days following the date such goods were consigned
5. Retirement from or cessation of business with respect to all
goods on hand
 Zero-rated Sale of Goods
1. The sale and actual shipment of
goods from the Philippines to a
XYZ Corp.
foreign country, irrespective of Buyer
any shipping arrangement, paid (Canada)
for in acceptable foreign currency
or its equivalent in goods or
services, and accounted for in
accordance with the rules and $1,000,000.00
regulations of the Bangko Sentral ABC Corp.
ng Pilipinas (BSP) Seller
(PHI)
 Zero-rated Sale of Goods
2. Sale of raw materials or
packaging materials to a XYZ Corp.
nonresident buyer for $1,000,000.00 Buyer
(Canada)
delivery to a resident local
export-oriented enterprise to
be used in manufacturing,
processing, packing or
repacking and paid for in
ABC Corp. DEF Corp.
acceptable foreign currency Seller Manufacturer
and accounted for in (PHI) (PHI)
accordance with the rules
and regulations of the Bangko
Sentral ng Pilipinas (BSP)* Delivered to
 Zero-rated Sale of Goods
3. Sale of raw materials or
packaging materials to export-
oriented enterprise whose XYZ Corp.
Buyer
export sales exceed seventy (Canada)
percent (70%) of total annual $1,000,000.00
production*

ABC Corp. DEF Corp.

Seller/Exporter
Seller
Buyer fr ABC
(PHI)
(PHI)

P1,000,000.00
 Zero-rated Sale of Goods
4. Export sales under EO 226 *
a. Sale of export producer to another export producer or to an export
trader that subsequently export the same
b. Even without actual exportation:
• Sales to bonded manufacturing warehouses of export-oriented
manufacturers
• Sales to export processing zones (BOI-registered manufacturers or
producers)
• sales to registered export traders operating bonded trading
warehouses supplying raw materials in the manufacture of export
products
• sales to diplomatic missions and other agencies and or
instrumentalities granted tax immunities, of locally manufactured,
assembled or repacked products whether paid for in foreign currency
or not
Zero-rated Sale of Goods
Scenario 1: 12% or 0%? Scenario 2:

Embassy of Embassy of
Canada Canada
(Buyer) (Seller)

$1,000,000.00 $1,000,000.00
ABC Corp. ABC Corp.
Seller Buyer
(PHI) (PHI)
 Zero-rated Sale of Goods
5. The sale of goods, supplies, equipment and fuel to persons
engaged in international shipping or international air
transport; provided, that the goods, supplies, equipment
and fuel have been sold and used for international shipping
or air transport operation

Note: Sale of gold to Bangko Sentral ng Pilipinas no longer zero-

rated sale but VAT-exempt

*Shall be subject to VAT upon fulfillment of conditions under

TRAIN law
 Zero-rated Sale of Service
1. Processing, manufacturing or
repacking goods for other
XYZ Corp.
persons doing business outside Buyer
the Philippines which goods are (Canada)
subsequently exported, where
the services are paid for in
acceptable foreign currency and
accounted for in accordance with $1,000,000.00
the rules and regulations of the ABC Corp.
Bangko Sentral ng Pilipinas (BSP)* Seller
(PHI)
 Zero-rated Sale of Service
2. Services other than those
mentioned in the preceding
XYZ Corp.
paragraph, rendered to a person Buyer
engaged in business conducted (Canada)
outside the Philippines or to a
nonresident person not
engaged in business who is
outside the Philippines when $1,000,000.00
the services are performed, the ABC Corp.
consideration for which is paid Seller
(PHI)
for in acceptable foreign
currency and accounted for in
accordance with the rules and
regulations of the Bangko
Sentral ng Pilipinas (BSP)
 Zero-rated Sale of Service
3. Transport of passengers and cargo by domestic air or sea
vessels from the Philippines to a foreign country
4. Sale of power or fuel generated through renewable sourced
of energy such as but not limited to biomass, solar, wind,
hydropower, geothermal, ocean energy, and other emerging
energy sources using technologies such as fuel cells and
hydrogen fuels.
5. Services rendered to persons or entities whose exemption
under special laws or international agreements to which the
Philippines is a signatory effectively subjects the supply of
such services to zero percent (0%) rate
 Zero-rated Sale of Service
6. Services rendered to persons engaged in international
shipping or international air transport operations, including
leases of property for use thereof: provided, that these
services shall be exclusively for international shipping or air
transport operations
7. Services performed by subcontractors and/or contractors in
processing, converting, or manufacturing goods for an
enterprise whose export sales exceed seventy percent (70%)
of total annual production*
 Zero-rated Sale of Service
* shall be subject to the 12% VAT and no longer be considered
export sales subject to 0% VAT upon satisfaction of the
following conditions:
• There is a successful establishment and implementation of an
enhanced VAT refund system that grants refunds of creditable
input tax within 90 days from the filing of the VAT refund
application with the Bureau.
• All pending VAT refund claims as of December 31, 2017 shall
be fully paid in cash by December 31, 2019.
 VAT Refund Center and Source of Payment of Refunds
VAT Refund Center
The Department of Finance shall establish a VAT refund center in the
BIR and in the Bureau of Customs (BOC) that will handle the
processing and granting of cash refunds of creditable input tax.

Automatic Appropriation
An amount equivalent to five percent (5%) of the total VAT
collection of the BIR and the BOC from the immediately preceding
year shall be automatically appropriated annually and shall be
treated as a special account in the general fund or as trust receipts
for the purpose of funding claims for VAT refund: Provided, That any
unused fund, at the end of the year shall revert to the general fund
 VAT-Exempt Transactions
a. Sale or importation of:
• agricultural and marine food products in their original state
• livestock and poultry of a kind generally used as, or yielding or
producing foods for human consumption
• breeding stock and genetic materials
b. Sale or importation of:
• Fertilizers, seeds, seedlings and fingerlings
• fish, prawn, livestock and poultry feeds, including ingredients,
whether locally produced or imported, used in the
manufacture of finished feeds
• Exception: specialty feeds for race horses, fighting cocks,
acquarium fish, zoo animals and other animals generally
considered as pets)
 VAT-Exempt Transactions
c. Importation of personal and household effects belonging to residents of the
Philippines returning from abroad and non-residing citizens coming to resettle in
the Philippines (condition: such goods are exempt from custom duties under the
Customs Modernization and Tariff Act)
d. Importation of professional instruments and implements, tools of trade, occupation
or employment, wearing apparel, domestic animals, and personal and household
effects belonging to persons coming to settle in the Philippines or Filipinos or their
families and descendants who are now residents or citizens of other countries,
such parties hereinafter referred to as overseas Filipinos, in quantities and of the
class suitable to the profession, rank or position of the persons importing said
items for their own use and not for barter or sale, accompanying such persons, or
arriving within a reasonable time: Provided, That the Bureau of Customs may, upon
the production of satisfactory evidence that such persons are actually coming to
settle in the Philippines and that the goods are brought from their former place of
abode, exempt such goods from payment of duties and taxes: Provided, further,
That vehicles, vessels, aircrafts, machineries and other similar goods for use in
manufacture, shall not fall within this classification and shall therefore be subject to
duties, taxes and other charges
 VAT-Exempt Transactions
e. Services subject to percentage tax
f. Services by agricultural contract growers and milling for others of
palay into rice, corn into grits and sugar cane into raw sugar
g. Medical, dental, hospital and veterinary services, except those
rendered by professionals
• Laboratory services are exempted. Hospital bills constitute medical
services.
• If the hospital or clinic operates a pharmacy or drugstore, the sale of
drugs and medicines are :
1. Sales made by the drugstore to the in-patients which are included
in the hospital bills are part of medical bills exempt from VAT.
2. Sales of the drug store to the out-patients are subject to VAT,
because they are not part of medical services of the hospital
 VAT-Exempt Transactions
h. Educational services rendered by private educational
institutions, duly accredited by:
• Department of Education (DepEd)
• Commission on Higher Education (CHED) and
• Technical Education and Skills Development Authority (TESDA)
and
those rendered by government educational institutions
 VAT-Exempt Transactions
i. Services rendered by individuals pursuant to an employer-
employee relationship
j. Services rendered by regional or area headquarters
established in the Philippines by multinational corporations:
• - which act as supervisory, communications and coordinating
centers for their affiliates, subsidiaries or branches in the Asia-
Pacific Region and
• - do not earn or derive income from the Philippines
k. Transactions which are exempt under international
agreement to which the Philippines is a signatory or under
special laws
 VAT-Exempt Transactions
l. Sales by agricultural cooperatives duly registered and in good standing
with the Cooperative Development Authority to their members as well
as sale of their produce, whether in its original state or processed form,
to non-members; their importation of direct farm inputs, machineries
and equipment, including spare parts thereof, to be used directly and
exclusively in the production and/or processing of their produce
m. Gross receipts from lending activities by credit or multi-purpose
cooperatives duly registered and in good standing with the Cooperative
Development Authority
n. Sales by non-agricultural, non-electric and non-credit cooperatives
duly registered and in good standing with the Cooperative
Development Authority; Provided, That the share capital contribution
of each member does not exceed P15,000 and regardless of the
aggregate capital and net surplus ratably distributed among the
members
 VAT-Exempt Transactions
o. Export sales by persons who are not VAT-registered
p. The following sales of real properties are exempt from VAT:
1. Sale of real property not primarily held for sale to customer or held for lease in the ordinary
course of trade or business.
2. Sale of real property utilized for low-cost
3. Sale of real property utilized for socialized housing
4. Sale of residential lot valued at P1,500,000 (before TRAIN law P1,919,500) and below and
house and lot and other residential dwellings valued at P2,500,000 (before TRAIN law
P3,199,200) and below.
Beginning January 1, 2021:
The VAT exemption shall not anymore apply to sale of low-cost housing and sale of residential lot
The threshold selling price amount for sale of house and lot, and other residential dwellings shall
be P2,000,000.00.
Every 3 years, the threshold amount shall be adjusted to its present value using the Consumer
Price Index, as published by the Philippine Statistics Authority (PSA)
 VAT-Exempt Transactions
q. Lease of residential units with a monthly rental per unit
not exceeding Fifteen Thousand Pesos (P15,000.00).
The foregoing notwithstanding, lease of residential units
where the monthly rental per unit exceeds Fifteen Thousand
Pesos (P15,000.00), but the aggregate of such rentals of the
lessor during the year do not exceed Three Million Pesos
(P3,000,000.00) shall likewise be exempt from VAT; however,
the same shall be subject to three percent (3%) percentage tax
under Section 116 of the Tax Code.
 VAT-Exempt Transactions
In cases where a lessor has several residential units for lease, some
are leased out for a monthly rental per unit of not exceeding
P15,000.00 while others are leased out for more than P15,000.00 per
unit, his tax liability will be as follows:
1. The gross receipts from rentals not exceeding P15,000.00 per
month per unit shall be exempt from VAT regardless of the
aggregate annual gross receipts. It is also exempt from the 3%
percentage tax.
2. The gross receipts from rentals exceeding P15,000.00 per month
per unit shall be subject to VAT if the aggregate annual gross
receipts from said units only exceeds P3,000,000.00. Otherwise,
the gross receipts will be subject to the 3% tax imposed under
Section 116 of the Tax Code.
Exercises: Lease of Residential Units
Monthly Rental Gross Receipts Treatment
(Annual)

<P15,000.00 > P3,000,000

<P15,000.00 < P3,000,000

>P15,000.00 > P3,000,000

>P15,000.00 < P3,000,000

 VAT-Exempt Transactions
r. Sale or importation, printing or publication of books and any
newspaper, magazine, review or bulletin which appears at regular
intervals with fixed prices for subscription and sale and which is not
devoted principally to the publication of paid advertisement
s. The transport of passengers by international carriers doing
business in the Philippines
t. Sale, importation or lease of passenger or cargo vessels and
aircraft, including engine, equipment and spare parts thereof for
domestic or international transport operations; Provided, however,
that the exemption from VAT on the importation and local
purchase of passenger and/or cargo vessels shall be subject to
the/requirements on restriction on vessel importation and
mandatory vessel retirement program of Maritime Industry
Authority (MARINA).
 VAT-Exempt Transactions
u. Importation of fuel, goods and supplies by persons engaged in
international shipping and air transport operations; Provided, that
the said fuel, goods and supplies shall be used exclusively or shall
pertain to the transport of goods and/or passengers from a port in
the Philippines directly to a foreign port, or vice-versa, without
docking or stopping at any other port in the Philippines unless the
docking or stopping at any other Philippine port is for the purpose
of unloading passengers and/or cargoes that originated from
abroad, or to load passengers and/or cargoes bound for abroad;
Provided further, that if any portion of such fuel, goods or supplies
is used for purposes other than that mentioned in this paragraph,
such fuel, goods and supplies shall be subject to 12% VAT
Provided, That the fuel, goods, and supplies shall be used for
international shipping or air transport operations.
 VAT-Exempt Transactions
v. Services of banks, non-bank financial intermediaries
performing quasi-banking functions, and other non-bank
financial intermediaries, such as money changers and
pawnshops
w. Sale or lease of goods and services to senior citizens and
person with disabilities
x. Transfer of property under Section 40(C)(2) of the NIRC
y. Association dues, membership fees, and other assessments
and charges collected by homeowners associations and
condominium corporations
z. Sale of gold to the Bangko Sentral ng Pilipinas
 VAT-Exempt Transactions
aa. Sale of drugs and medicines prescribed for diabetes, high
cholesterol, and hypertension beginning January 1, 2019
bb. Sale or lease of goods or properties or the performance of
services other than the transactions mentioned in the
preceding paragraphs, the gross annual sales and/or receipts
do not exceed the amount of P3,000,000
 Tax on Persons Exempt from VAT
Any person whose sales or receipts are exempt under Section
109 (1) (BB) of the Tax Code from the payment of value-added
tax and who is not a VAT-registered person shall pay a tax
equivalent to three percent (3%) of his gross quarterly sales or
receipts: Provided, however, that the following shall be
exempt from the payment of three percent (3%) percentage
tax:
1. Cooperatives: and
2. Self-employed individuals and professionals availing of the
8% tax on gross sales and/or receipts and other non-operating
income, under Sections 24(A)(2)(b) and 24(A)(2)(c)(2)(a) of the
Tax Code, as amended.
Kinds of Input Taxes
Regular input tax– 12% of
• Domestic purchase of goods or service from VAT-registered seller
• Importation of goods or service for business use
Transitional input tax – 2% of Beginning Inventory subject to VAT or actual
VAT paid in Beginning Inventory whichever is higher
Presumptive input tax – 4% of agricultural purchases of manufacturers of:
• Sardines Cooking Oil
• Mackerel Packed noodles
• Milk Refined sugar
Standard input tax – 7% of GSP / GR on sale to government
*Final VAT –5% of government withheld by the government, any of its
political subdivisions, instrumentalities, including GOCCs.
Treatment of Input Taxes
• Input tax attributable to regular sales is creditable against output
VAT
• Input tax attributable to zero-rated sales can be refunded
• Input tax attributable to VAT-exempt transactions are part of cost of
goods sold or expense
• Actual input tax attributable to sales to the government is compared
with the standard input tax
• If actual input tax > standard input VAT – deduction from gross
income
• If actual input tax < standard input VAT - item of gross income
 Zero-rated sale vs. Exempt Sale
Zero-rated sale Exempt sale
Sale Php 1,200,000.00 Sale Php 1,200,000.00
Rate 0% Rate 0%
Output tax 0.00 Output tax 0.00

Output tax Php 0.00 Output tax Php 0.00

Less: Input tax 120,000.00* Less: Input tax 0.00
Overpayment (Php120,000.00) VAT Payable Php 0.00
*Assumption of purchase of P1 M to VAT-registered seller

Input tax can be REFUNDED. Input tax is a COST/EXPENSE.

Source of Available Input Taxes
• Excess input tax carried over from previous period
• Input tax deferred on capital goods exceeding Php 1 Million
• Presumptive input tax
• Transitional input tax
• Others (Standard input tax)
• Current input taxes from:
• Purchase of capital goods
• Purchase of other than capital goods
• Purchase of service
• Input tax from importation
Deduction from Input Tax
• Input Tax on Purchases of Capital Goods exceeding P1Million
deferred for the succeeding period
• Input tax on sale to government closed to expense
• Input tax allocable to exempt sale
• VAT refunds
• VAT applied for Tax Credit Certificate, if applicable

Total Available Input Tax xxx

Deductions from Input tax xxx
Creditable/Allowable Input tax xxx
Cancellation of VAT Registration

• A VAT-registered taxpayer may cancel his registration for VAT

if:
• Gross sales or receipts do not exceed Php 3 Million
• Cessation or termination of business
• Change of ownership, in the case of single proprietorship
• Dissolution of partnership or corporation
• Merger or consolidation with respect to the dissolved
corporation/s
• A person who has registered prior to planned business
commencement, but failed to actually start his business
Transition from VAT to Non-VAT

Goods or properties originally intended for sale or use in

business, including capital goods, disposed of or existing as of
the date of change of status of a taxpayer from VAT to Non-
VAT are subject to VAT imposed under Section 106(A) of the
Tax Code of 1991, as amended. Hence, taxpayers are required
to file the quarterly VAT return covering the period when the
change of status transpired and pay the corresponding VAT
due thereon.

RMC 39-2018 published May 24, 2018

Filing of Returns and Payment of Taxes
Period Form Deadline

2550M 20th day after close

Monthly of month
2550Q 25th day after close
Quarterly of taxable quarter

Notes:
Consolidated filing (Head Office and Branches)
VAT will become quarterly only beginning January 1, 2023
 Application for Refunds
Situation Deadline

Excess input VAT on zero-rated transactions within two (2) years from
under Section 112 (A) of the Tax Code (Refund) the close of taxable quarter
of zero-rating sale

Excess input VAT upon dissolution under Section

112 (B) of the Tax Code (TCC; Refund if there is no two (2) years from date
other internal revenue taxes to be paid) of issuance of clearance

two (2) years from date of

Excessive or erroneous VAT payments under erroneous or excessive
Section 229 of the Tax Code (Refund or TCC) payment of value added tax
(VAT)
Venue of Application
Taxpayers Place

Direct exporters VAT Credit Audit Division (VCAD)

Large Taxpayers Service (LTS), Revenue District

Other than Direct Office (RDO)) having jurisdiction over the principal
exporters place of business of the taxpayer.
Timeframe to Process Refund
The Commissioner of Internal Revenue shall grant refund
for creditable input taxes within ninety (90) days from the
date of submission of the official receipts or invoices and other
documents in support of the application filed: Provided, That,
should the Commissioner find that the grant of refund is not
proper, the Commissioner must state in writing the legal and
factual basis for the denial.
 Remedy in Case of Denial
In case of full or partial denial of the claim for tax refund, the
taxpayer affected may, within thirty (30) days from the receipt of
the decision denying the claim, appeal the decision with the
Court of Tax Appeals.

Failure on the part of any official, agent, or employee of the BIR to

act on the application within the ninety (90)- day period shall be
punishable under Section 269 of the Tax Code, as amended.
Percentage Taxes
 Percentage Tax
1. Persons whose gross annual sales and/or receipts do not
exceed P3,000,000 and who are not VAT-registered persons
2. Domestic carriers and keepers of garages, except owners of bancas
and owners of animal-drawn two wheeled vehicle.
3. Operators of international air and shipping carriers doing
business in the Philippines.
4. Franchise grantees of gas or water utilities
5. Franchise grantees of radio and/or television broadcasting
companies whose gross annual receipts of the preceding year
do not exceed P10 Million and did not opt to register
as VAT
 Percentage Tax
6. Franchise grantees sending overseas dispatch, messages or
conversations from the Philippines, except on services involving
the following:
a. Government
b. Diplomatic service
c. International organizations
d. News services
7. Proprietors, lessees or operators of cockpits, cabarets, night or
day clubs, boxing exhibitions, professional basketball games, jai-
alai and racetracks.
 Percentage Tax
8. Banks, non-bank financial intermediaries and finance companies

9. Life insurance companies

10. Agents of foreign insurance companies

End of Presentation

Questions?

vcgudani@feu.edu.ph