PERCENTAGE TAXES. 41. The pe tcentage taxes in the National Internal Revenue Code are: y (a) 3% percentage tax on persons who are exempt from the value- added tax because their gross annual sales or receipts do not exceed one million nine hundred nineteen thousand five hun- Gred pesos (P1,919,500), and who are not required to pay any other percentage tax; (b) Tax on domestic carriers; (c) Tax on international carriers (c) Franchise tax; (d) Overseas communications tax; (e) Tax on banks and non-bank financial intermediaries with qua- si-banking activitios; (f) Tax on other non-bank financial intermediaries; (g) Tax on life insurance companies; (h) Tax on agents of foreign insurance companies; {i) Amusement tax; (j) Tax on winnings; and (k) Tax on stock transactions. (See next page.) 2. The basic rule: Those who are subject to the percentage tax/es are not subject on the same business to the value-added tax. however, a registered taxpayer may have two lines of activities, one of which is subject to the value-added tax, and the other subject toa percentage tax. A percentage tax is not an indirect tax because the law does not allow the seller to shift the tax to the buyer. One cannot see in a sales invoice an additional item for percentage tax. But this is more apparent than real. Actually, a seller's selling price has @ built-in recovery of percentage tax on the sale. 2 4. (a) Percentage taxes are imposed on sales of services, except the 3% percentage tax, which may be on services or goods; (b) Perrentage taxes are paid by the service provider, except the overseas communications tax (and on outgoing messages only) which Is paid by the user of the communication facilities (buyer of the services);23-2 Taxation: Reviewer and Quizze, Summary of the percentage taxes Gross sales/ A, 3% percentage tax Gross recal MY B. Domestic common carrier's tax (Irom ‘pts passengers); International carrier's tax Gross receip! 3 C. Franchise tax on: Gas and water facilities Radio and/or broadcasting companies Gross receipts Whose gross receipts in the preceding Sine year did not exceed P10,000,000 D.. Overseas communication tax Amount paid 10% —+— Tax on banks and non-bank financial in- Gross receipts from 1% termediaries performing quas! -banking lending/financial and functions leasing 5% Gross receipts from other gross income tems 7% Dividends 0% jOwends | F. Tax on other non-bank financial inter. Gross receipts from 1% mediaries lending/financial and leasing 5% Gross receipts from other gross income items 5% G._Tax cn insurance companies ~ ‘Premiums collected Be H. Tax on agents of foreign insurance T companies Premiums collected 4% | Amusement taxes on Boxing exhibitions Gross receipts 10% Professional basketball games Gross receipts 15% Cockpits, cabarets and night clubs Gross receipts 18% / Jai-alai and race tracks Gross receipts aon J Taconwmangs, Smeets | on On winnings or dividends of persons In horse races or jai-alai but i from double, forcast, quinella Wonings 1% and trifecta bets On winnings of owners of winning Winnings % horses Winnings K. Stock transactio n tax (Secondary offering), L Initial offering resutting in public control: Up to 25% Over 25%, but not 33. W3% Over 33-1/3, ee Selling price Salling price ah, Selling price 2%) Selling priceTaxation: Reviewer and Quizze, a 23-3 c) Pi tt) mone. taxes are based on gross receipts except: lected erat insurance, which is based on premiums col- for money; er in money, notes, credits, or any substitute (2) The stock’ pric Stock transactions tax, which Is based on the selling A nat rocaivable although income from it is earned already, Is ng ‘able. There are no deductions from gross receipts arrive at the taxable gross receipts. = Which statement is wrong? 8 Tr Percentage taxes. are basically on sales of services; ( the percentage taxes are paid monthly, « ‘c) The percentage taxes are not allowed by law to be shifted to the cus- . tomers or clients; (d) An isolated transaction not in the course of business shall liability tor a percentage tax. sec ote Be Le pur Answer. d ‘The percentage taxes are basically on sale of services (although the 3% percentage tax may be on sale of goods) One \solated transaction may be Subject to a kind of percentage tax For example. & gale thru a local stock ‘exchange of shares of stock of a domestic corporation by a person other than @ dealer in securities, hough an isolated lansaction, and therefore. does not constitute doing business. is subject to the slock transaction tax of S12 of 1%, to be withheld by the stock broker Tax on winnings may be on an isolated occurrence. ‘Overseas communication may be cnce only, and yet there shall be a percentage 1x « Which of the following is not true? The percentage tax fa) Isa tax ona sale of Services (b) May be imposed on 2 sale of goods; (c) May be imposed together with the value-added tax; (" be cmp (d) May be imposed together with ‘the excise tax. eee. Ar wercontage (ek of 3% may be imposed on sale of goods (if the tax- payer's gross: ‘sales or receipts did not exceed one million five hundred thou- Bay pesos [P 1,500,000] in the preceding year). (3%) Parcentage Tax. —, The tax Is imposed on those who are exempt from the value- added tax under Section 109 (v) ~ their sales in the preceding ai ‘one million nine hundred nineteen thousand pesos (P1,919,500). But although exempt from the hoose to be under the VAT system. If jed tax, they may © oose to be under the VAT system, they shall register as not result in @Taxation: Reviewer and Quizzer 4 y internal Revenue, and the rules VAT taxpayer with the Bureau of Ii ‘domestic as well ag on value-added tax shall apply on their sales, exports. * Q Co. never exceeded sales of P'1,919,500 in any year, Purchases were from VAT-registered taxpayers. In January, 2013, any tax luded: P300,000 Sales, exports: 20 000 Sales, domestic 432.000” Purchases, for exports sine Purchases, for domestic sales Percentage tax if its line of items handled are general merchandise item: and it did not choose to be VAT registered for 20137 (8) P15,600, (b) P9000; (c) P6600, (d) Some other amount. Answera | weed Ive Gross annual sales do not exceed the benchmark of P1,919,500. Net value-added tax refundable if its line of items handled are general merchandise items and it chose to be registered under the VAT system? (2) P1,320, — (b) P15,840; — (c) P26,400; (d) Some other amount. Answer = de = 1ab pe Percentage tax if Q Co. was not VAT-registered; Sales, exports 300,000 Sales, domestic 220,000 Total P: 3% of P520,000 pean Net value-added tax refundable if Q Co. was VAT-registered Input taxes attributable tc goods exported {P 132,000 x 12%) 15,840 Value-adced tay payable on domestic sales — Output taxes (220.000 x 1296) 26,400 Less: Input taxes (P99,000 x 12%) 11880 14,520 “ Net value-added tax refundable P1320 6. The Common Carrier's Tax. The following are subject to the “Common Carrier's Tax" Pereemage tx. krcw 9 {a) Cars for rent or hire driven by the lessee (rent-a-car); (b) Transportation contractors, includ : passengers for keet ing persons who transport (c) Other domestic carriers by land for their transport of passen- gers, except owners of animal-drawn two-wheeled vehicles; j &Taxation: Reviewer and Quizzer rs] 8 a (d) Keepers of garages, Because or customer 7 Common carriers issue receipts to passengers certain common ‘Gmae on for minimum gross receipts. of . 1 and imposes the tax on that amount (Example: Jeepneys) — See Appendices. On domestic common carriers: Value-added tax or Percentage tax?" Common carriers on land: , Transporting goods or cargoes Value-added tax of 12% ransporting passengers Percentage tax of 3% Common carriers by air or Sea: From one paint in the Philippines to another point in the Philippines: Transporting goods or cargoes Value-added tax of 12% Transporting passengers Value-added tax of 12% Common carriers by air or sea: From one point in the Philippines to a point outside the Philippines: Transporting goods or cargoes Transporting passengers . Value-added tax of 0%, Value-added tax of 0% * See list of services subject to value-added tax in the Appendices. perators of transport facilities are: . ing is wrong:_Of One of the following gross receipts from transporting pas- (a) Subject to the value-added !ax on or engers; Bircind 2 () Subject to the value-added tax on gross receipts from transporting \d cargoes; , é es Sorcentage tax on gross receipts from transporting pas- @ ere ak Ided tax on gross receipts from renting out its trans- portation facilities. v . Answer 2 « Revenues of the current period 400,000 Collections during the period 50,000 Of ravenues of prior PEFOES 309,000 | Sc-> Of revenues of 8 gucoeeding period (advances) 410,000 Of revenues of ic common carrier of passengers: pusness 5 fe comeo2 800; (e) P10.800, (d)P21,000. Answer: GTaxation: Reviewer and Quizzer 23-6 Collections during the period Of revenues of prior periods P 50,000 Of revenues of the current period 300,000 Advances . pone Taxable gross receipts 360,000 Common carriers tax (P360,000 x 3%) P 10800 + D Co. is acommon carrier with passenger buses and cargo trucks. For the month of June, 2013, it had the data on revenues and receipts, taxes not included: For transporting passengers, gross revenues and receipts of P330,000; For transporting carages. aross revenues of P220,000, of which, P200,000) was received, ne For renting out to the MMDA its towing trucks, gross receipts of P50,000,.re- presenting P10,000 from gross revenues of the quarter ending March 31 and P40,000 for the month of June. V/: Percentage tax? a. P17,400; b. P9,900; c. P16,500; d. P15,900. Answer. b ee ee = 1460 Output vaiue-aages tax? (a) P24,000; (>) P30,000; (c)P20,000; (d) P25,000. Answer: b WC )y as Ye035 Gross receipts for transporting passengers : P; Percentage tax (common carrier's tax) at 3% paeoe Note: Gross receipts from transporting cargoes added tax. as follows: sa shall be subject to value- Gross receipts for trensporting cargoes Gross receipts from rent }000 Total 250,000 Output value-added tax at 12% P 20.000 P za.cee * Atin Transport Co. is a common carer Philippines. Ithad the folowing dala inamongy, 2"? a4 888 within the On iano carriers: ~ Gross receipts from cargoes \ |. ~ Gross receipts from Passengers” P§00,000 On Sea carriers: yn, + (700,000 ) ‘Gross receipts from cargoes seotio is 6 mover ai om Passengers 4,000,000 {(a) P21,000; (b) P36,000; (c) P15,000. @ ; _ (d) Some other amount. 90 600% Og 21599‘Taxation; Reviewer and Quizzer Answer: a 23-7 ‘The Output value-added tax? {2)P240,000; (6) 120,000, ((c} 288,000, (d) Some other amount. Answer c (se Md veces - . . 1) In = dignd Percentage tax on gross (700.0005 9) feceipts from land cafriers on Passengers: a Output value-added tax: Gross receipts from land carriers on cargoes P 500,000 Gross receipts from carriers by sea on cargoes 900,000 Gross receipts from carriers by sea on passengers 1,900,000 Total P2,400.000 {12% of P2,400,000 Fae.000 * Sail-ho Inc. is a domestic corporation operating sea vessels that transport Passengers and cargoes from one point in the Philippines to another point in the Philippines, or a point abroad. Data on operations of @ month, any tax not included, follow. Gross receipts on cargoes: _7From points in the Philippines to points in the Philippines 1,000,000 >” From points in the Philippines to points abroad 2,000,000 Gross receipts from passengers: _/F rom points in the Philippines to points in the Philippines 3,000,000 9 From points in the Philippine to points abroad 4,000,000 ‘Purchases of goods, supplies and services from VAT suppliers <5.000,0005 Value-added tax payable and value-added tax refundable? (a) P360,000, —(b) P240,000; (¢ P120, 000 (d) Some other amount Answer: €, refundable 12% VAT 0% vat P1,000,000 _-P2;000,000 From cargoes 000; 3.000.000 —_41000,000 ssengers Total 4.000.000 P&, 000,000 Output taxes P , 480,000> Pp oO” Caeasas from VAT suppliors 1286 1s P600,000 - Ps gar? 10,000,000 x 600,000 © 240,000 6.000,000/P 10,000,000 x P600,000 , VAT payable (refundable) P 240,000 ae ay er] = The J Co isa land transport operate. In a month, it had gross receipts and feoeivables and payments, any tax not included, that follow: a Gross receipts from transporting passengers 4,000, Gross receipts from transporting cargoes “300,000 yee23-8 Taxation: Reviewer and Quizzer Receivables from transporting cargoes 2,000,000 Proceeds from insurance policies on transportation units 800,000 x Amounts paid, any VAT or percentage tax not included: For repairs of transportation units : 700,000 9/5 For materials used for repairs 218° "°° 4,400,000 °/; For premiums on insurance of transport units 350,000 » Ie For operating expenses 1,600,000 '* The percantage tax payable? (a) P270,000; (b) P120,000, (c)P150,000; + (d) Some other amount. Answer: b ’ The value-added tax payable? (@) P252,000; | (b) P234,000 (c) P354.000; (d) Some other amount. Answer: b Transporting of: Passengers Cargo Gross receipts 4,000,000 —_—-P3,000,000 Output taxes (3,000,000 x 12%) P 360,000 Less: Inout taxes- For repairs (3/7 x P700,000 x 12%) ( 36,000) For materials (3/7 x P1,400,000 x 12%) ( 72,000) For premiums on insurance (3/7 x P350,000 x 12%) (18,000) / Value added tax payable P 234,000 Percentage tax payable at 3% P 120,000 7. The Franchise Tax. The following are subject to “franchise tax”, _ Gas and water utilities (2%) Radio and/or television broadcasting companies whose gross — receipts of the preceding year did not exceed P10,000,000 3% (but may choose to be subject to the value-added tax) “ If the gross receipts in the pi receding year exceeded P 10,000,000, the tax is the value-added tax. (Other franchise grantees are Subject to the value-added tax on sale of services (See list of services subject to the value-added tax in the Appendices). The franchise tax of 2% or 3% is on gross receipts from acti- vities covered by the franchise. Other gross receipts may be sub- ject to the value-added tax.Taxation: iewer i ‘axation: Revi and Quizzer gus wiby eediogy vn? . Poher ber ihin 1G franchise to sell electricity in the Calabarzon area in the @ month, data on operations, any tax not included, were: Gross receipts vi ” 2,000,000 ‘ayments for goods and services purchasad from VAT suppliers ‘900,000 Business tax payable? . (a) P600,000; ((b) P132,000; (c) P240,000; Answer: b, value-added ] (d) None of the above. y ln= lhe Output taxes (P2,000,000 x 12%) 240,000 Less: Input taxes (P900,000 x 12%) 408,000 Value-added tax payable 132,000 * Y Co. was given a franchise to operate a radio and television station, 2013 its id year of operations. In 2012, its gross receipts from ‘Operations was P9,000.000. For January 2013, ithad: n> 115 Gross receipts, any tax not included P3,000,000 Payments to VAT-registered supplier of goods, supplies and services 1,800,000 Business tax payable? (a) P90,000; (b) P36,000; (c)P144,000, (d) Some other amount. Answer: a, franchise tax (P3,000,000 x 3%) + As franchisee, Mr. Gaudencio Tomacruz had the following data on reve- nues and receivables, taxes not included: pewraties 2 |r Revenues Beginning End From rations: overed by the franchise 2,000,000 300,000 —- P400,000 Not covered by the franchise 600,000 80,000 reantage 1a, if operating a water system: re eeo00. b'P38.000, €. PS0,000, d. P190,000 [9x0 -V P.0L~ Bgl Answer: b mye ren~ gf ae Receivables, beginning P_ 300,000 Revenues during the period 2,000,000 Total 2,300,000 Less: Receivables, end ‘400,000 Gross receipts subjecl 10 franchise tax 4,800,000 Franchise tax (P1,200,000 x 2%) P 33,000 -23-10 Taxation. Reviewer and Quizze; ~ The Polez Group of Companies has franchises on public utilities. P Co, is a in ‘radio broadcasting, O Co. is in generating and selling electricity, and L Co. in distributing water in their franchise areas. The radio broadcasting is in its first year of Operations, and it did not register as a VAT taxpayer. Data in 8 particular month, any tax not included, follow: Gross receipts: P Co., for time sold to its clients 2,000,000 9 Co , for electricity supplied to its customers rt ©. Co., for leasing electrical equipment to a subdivision ver 900,000 \ Co., for water supplied to its customers 2,900,000 \ Co., for leasing recreation areas within its water filter sites 200,000 How much was the aggregate of the franchise taxes paid? (a) P58,000; — (b) PGO,000, (©) P448,000; (d) Some other amount. Answerc ( UI ev 3,000,000 yc 4 (2900 ¥ P Go. (P2,000,000 x 3%) P 60,000 L Co. (P2,900,000 x 2%) P 58.000 Aggregate F 418,000 The Overseas Communication Tax. ‘The overseas communications tax is: (a) Imposed on the user of the communication facility (not on the operator of the communication facility); (b) Imposed on outgoing messages from the Philippines. only; (c) The tax is/10% . On other services, the Operator of the communication facility is Subject to the value-added tax. 7 Mr. K is 2 businessman with transactions in and out of the Philippines. Local and overseas calls for a period involved (any tax not included): Overseas calls: 1, FOr cats originating from the Philippines: '\"\/Paid by the subscriber in the Philippines v 65/000 Paid by the receiver of the call outside the Philippines 14,500 For calls coming into the Philippines: Paid by Mr. K 15,000 Paid by callers 23,000 Local calls, paid by. Mr. K: ~ Pitter Whyed VAT Other than long distance y 1 7,000 Long distance 20,000 Value-added tax billed to Mr. K? ((@) P3,240; (b) P2400; (¢) P84D; —(d) Some other amount. Answer. a ec Y P< ayoTaxation: Reviewer and Quizzer 23-14 Percentage tax billed to Mr. K2 Choos KG KR b= G56n (a) P8200; (b) P8500; \(C)P6.500; (d) Some other amount Answer: Value-added tax billed to Mr. K: Other than long distance calls P 7.000 Long distance calls 20.000 Total P 27,000 Value-added tax at 12% P anda Percentage tax (overseas communications tax) billed to Mr. K. For calls originating from the Philippines and paid by the subscriber in the Philippines Pss.009 Percentage tax at 10% P 6,500 9. The Tax on Banks. The tax is known as “Gross Receipts Tax” of banks Banks are subject to percentage tax on gross receipts from within the Philippines, as follows: (a) On interest, commission and discounts from lending ac- tivities, as well as income from financial leasing, on the basis of the remaining maturities of instruments fram which such receipts were derived: (1) If the maturity period Is five (5) years or less 5% (2) If the maturity period is more than five years 1% (b) On dividend and equity shares in the income of sub- sidiaries 0% (c) On royatties, rentals of property, real or personal, profits from exchanges and all other items treated as gross income under ‘the income tax law T% {d) On net trading gains on foreign currency, debt instru- ments, derivatives and other similar financial instru- ments % In case the maturity period is shortened thru preter- mination, the maturity period shall be reckoned to end as of the date of pretermination. « Statement 1: Banks are subject to the value-added tax; |") ( Statement 2: Banks. are subject to the gross receipts tax, which is a per- cantage tax ie ns (2) True, true; (b) False, false; (c) True, false; (d) Fal Answer: d . true. + X Bank, ine, is a domestic bank operating in the City of Manila. From the fol-Taxal 23-12 lowing data in a month - Rentals from safety deposit boxes and real property acquired through foreciosure proceedings for bad loans the vane Net foreign exchange gains (difference between foreygn Currericles: suid anid purchased) nmercial , Net trading gains from trading of securities, COF papers and other financial instruments (difference between the yield or selling price and the east of obtaining the same) Trust fees ) 357,156, (c)P2.5,780, (4) Some oe amount, 146 30F Answer a Percentage 'ax (amusement tax) payable?Taxation Quizzer and Reviewer 23-16 Ieqeng (ee acum (a)40,123, ((0)P387,196 (c)P256,780. (a) Some olner amount Answer. b Gourmet’s Place Dreamboat 400,000 —-P1,360,000 Cash sales " 624, Credit card sales 243,000 824.200 Toxable sales pg43,000 P:1.984.200 Output taxes (PE43,000 x 12%) P 77,160 Less: Input taxes - Operating expenses - 60% of (P400,000 + P243,000) P365,600 VAT-paid expenses < 80% of P385,800 P 308,640 VAT payments on expanses 12% of P308,640 37,037 Value-added tax payable P 40,1 Percentage tax al 18% P 357,156 + Revenues of the current period . 600,000 Collections during the period: | t' Of revenues of prior periods ' 80,000 4 Of revenues of the current period 400000 | saa Of revenues of the succeeding period (advances) 20,000 \ Business tax if a.aight club? (a)P12,000, (b) P22,600,((€),P90,000; (0) P21,000. Answer. ¢ yee bono i Collections during the penod: = Of revenues of prior periods P 80,000 Of revenues of the current period 400,000 { Advances "20.009 Taxable gross receipts 500,000 Amusement tax (PS00,000 x 18%) P 90.000 + Revenues of the current period ..,*\, Collections during the period Pa,000.090 Of revenues of prior periods 4,008, A Of revenues af the current period tae | wd Of revenues of the succeeding period (advances) 120,000 Business tax if a race track? ; (a) P2.656,000, “(b) P1,500,000, (©)P1.598000 (4) P1,200,000. Answer: c - Meet rp ws ypTaxation: Quizzer and Reviewer Collections aunng the Penodg: Of revenues of prior periods Of revenues of tt Alvencee he current period Taxable aross receipts Amusement tax (P§,120,000 x 30%) * Mr. A is a hotel operator. Purchases of goods and services from VAT- taxpayers amounted te total invoice costs of P336,000. The data that follow do not include taxes: o Revenues Collection From room occupancy 400,000 P350,000 For use of hotel gym 30,000 28,000 For rent of garden for a garden party 20,000 20,000 From the dining halt Sale of food 500,000 480,000 Sale ot alcoholic beverages 200,000 195,000 From the disco: For admission to the disco 250,000 750,000 (| From the concessionaire who fumishes food and alcoholic beverages at the disco (whose gross receipts from sales is P800,000) 00,000 480,000 Total parcentage taxies of Mr A _ a, P345,540, b. 190,000, c P208,200, — (d) P131,400. J Answer. d Gross receipts from admission to the disco £260,000 Gross receipts from the concessionaire 180, Total 730,000 Amusement tax (P790,000 x 18%) 131,400 Note. > its tom Gross rece! - Room occupancy P 350,000 Use of motel gym 28,000 Rent of garden for @ garden party 30.000 Dining mall: Sale of food 480,000 Sale of alcoholic beverages 495.000 Taxable gross receipts: 4.073.000 shall be subject to the value-added tax thus: yt taxes (P1,073,000 x 12%) — P 128,760 oes. Has (396,000 x412/192)) > 36.000 Value-added tax payable ~ «con racaved on wings hae rsa aeTaxation: Quizzer and Reviewer 23-18 net of bet on the game, and net of withholding tax piasind ‘on winnings : , P192\ much was the percentage tax withheld’ — ore 000. (b) P7,680, (c) P7,200; (d) Some other amount. Answer UC" ye ! ! ai Cash received ~ (96%) 192,000 Winnings before percentage tax withheld (P192,000/96%) 200.000 Percentage tax (tax on winnings withheld > 8.000 (P200,000 x 4%) 8,000 12. The Stock Transactions Tax The percentage tax, known as the “Stock Transaction Tax” is im- posed: — {a) On a sale, barter, exchange or other disposition of shares) listed and traded thru a local stock exchange, other than bya dealer in securities, based on the gross selling price or gross value in money of the shares sold, bartered, exchanged ‘or otherwise disposed of, at one-half of one percent (4 of 41%), to be paid by the seller; and (b) On a sale, barter or exchange or other disposition thru initial public offering of shares. of stock of a closely-held corpo- ration, in accordance with the proportion of the shares sold, bartered, exchanged, or otherwise disposed of, to the total outstanding shares after the listing in the local stock ex- change, as follows: Up to twenty-five percent (25%), 4%; Over twenty-five percent (25%) but not over thirty-three and one- third percent (33-1/3%), 2%; Over thirty-three and one-third {33 13%), 1%, to be paid by the issuing corporation in prima- ty offering and the seller in secondary offering. A “closely-held corporation” means any corporation at least fifty percent (50%) in value of the outstanding capital stock or at least fifty percent (50%) of the total combined voting power of all classes of stock entitled to vote, is owned directly or indirectly by or for not more than twenty (20) individuals. + The taxpayer is not a dealer in securities, with the following sales of shares ‘Of stock of domestic corporations in the Philippine Stock Exchange: Shares of A Co., on a selling price of P1,200,000, on* February 6, 2013, and cost of P400,000, for a gain on the sale of : 800,000 ‘Shares of A Co., on alselling price of P600,000, onTaxation: Quizzer and Reviewer 23-19 February 11, 2013, ve loss on the sale of and a cost of 720,000, fora Shares of B Co., on aséliing price : rice of February 25, 2013 (and a seat of 250,000, fora loss on the sale of ~— 30,000 Aggregate of the stock transaction tax? . (a) P6000; (b) P7,600; /(c) 13,600, (d) Some other amount: 120,000 Answer: c (Aes cdg + caceae Faccec ) x Mak 14. On the sale of February 6, 2013, of A Co. shares (P 1,200,000 x 1% x %) ‘On the sale of February 11, 2013, of ACo shares (P600,000 x 1% x %) : . On the sale of February 15, 2013, of B Co. shares (P920,000 x 1% x 4%) Aggregate « The X Co., 2 Closely-heid corporation, was permitted to increase ils authorized capital stock and make an intial public offering for an ag- gregate selling price of P4,000,000. The proportion of ownership, after he 304, initial public offering would be a8 follows: To the original stockholders To the new stockholders 3 3 k transaction tax of X Co? tye 10.000. "fey 60,000. (c) P160,000; (d)Some other amount —:2'ly 000; (b) VY Answer. Db yous 066 K i> ts 4,000,000 x 2% rat 1, The percentage taxes should be paid within Wwenty (20) days + Stateme " after the coe ot tne Oe a withholding tax on @ payment which shall be (d) False, true. Statement 2. There tax on the recipient. ~ Pye ‘2t'p) False, false; (c) True, false; (a), . ‘ Answer. @