TAXATION is defined in many ways.

Commonly heard definitions include:

It is the process by which the sovereign, through its law

making body, races revenues use to defray expenses of
government.
It is a means of government in increasing its revenue
under the authority of the law, purposely used to promote
welfare and protection of its citizenry.
It is the collection of the share of individual and
organizational income by a government under the authority
of the law.
Distinction of
Tax
It is enforced contribution. Its payment is not voluntary nature,
and the imposition is not dependent upon the will of the person
taxed.

It is generally payable in cash. This means that payment by

checks, promissory notes, or in kind is not accepted.

It is proportionate in character. Payment of taxes should be base

on the ability to pay principle; the higher income of the tax payer
the bigger amount of the tax paid.

It is levied (to impose; collect) on person or property. There are

taxes that are imposed or levied on acts, rights or privileges. Ex.
Documentary tax.
It is levied by the state which has jurisdiction over the
person or property. As a general rule, only persons,
properties, acts, right or transaction with in the jurisdiction
of the taxing state are subject for taxation.

It is levied by the law making body of the state. This

means that a prior law must be enacted first by the
congress before assessment and collection may be
implemented of the 1987 constitution.

It is levied for public purposes. Taxes or imposed to

support the government for implementation of projects and
programs.
1. As to subject matter
• Personal, Poll or Capitation Tax (ex. Residence Tax)
• Property Tax. (ex. Real State Tax)
2. As to who bears the burden
• Direct Tax (ex. Income Tax)
• Indirect Tax (ex. Buying of goods and services (RVAT) )
3. As to purpose
General Tax (ex. Almost All Taxes)
Special Tax

4. As to scope
National Tax (ex. National Revenue Taxes)
Local Tax

MODYUL 22 ANG PAMBANSANG BADYET.pdf

 How to Compute Income Tax in the
Philippines
Computing income tax expense and payable is different for
individuals and corporations. Taxable corporations may be taxed
using a fixed income tax rate.
On the other hand, if you are a self-employed professional
or an owner of a single proprietorship business, your income tax
expense is computed using a graduated tax rate. It is a progressive
tax which the tax rate increases as the taxable base amount increases.
This means that the higher taxable income you have, the
higher your income tax expense is.
 Personal Excemption
1. Single or divorced P50,000
without dependent
2. Head of the Family P50,000

3. Married individuals P50,000

 In ,
government spending, government
expenditure, or government spending on
goods and services includes all government
consumption and investment by a state.

DBM Files\2012 Annual Report.pdf

Government acquisition of goods and
services for current use to directly satisfy
individual or collective needs of the
members of the community is called
government final consumption
expenditure (GFCE.)

Government acquisition of goods and

services intended to create future benefits,
such as infrastructure investment or research
spending, is called gross fixed capital
formation, or government investment, which
usually is the largest part of the government
DBM Files\Budget
Deficit Financing.pdf
Internet:

Others:
National Statistical Coordination Board (NSCB)
Batayang Ekonomiks