1. PERCENTAGE TAX

2. PERCENTAGE TAXES NIRC/Ref. Taxable Taxable Base Tax rate Sec. 116
VAT-exempt persons under Sec. 109 (V) and did not opt to register as VAT taxpayers
Cooperatives are exempt
Annual Gross Sales/ Receipts Not Exceeding P1,919,500.00 3%

3. Percentage taxes Sec. 117 Domestic carriers Car driven by lessee
NIRC/Ref.
Taxable
Taxable base
Tax rate
Sec. 117
Domestic carriers
Car driven by lessee
Transportation contractors/ who transport passengers by land
Keepers of garage
Except:
Bancas
Animal-drawn two wheeled vehicles
Gross receipts 3%

4. Updated Minimum Gross Monthly Receipts
DOMESTIC CARRIERS
Sec. 117/RR
Year 2006
Updated Minimum Gross Monthly Receipts
Jeepney for hire –
Manila and other cities
Provincial
P21,900.00
10,967.00
Public Utility Bus –
Not exceeding 30 passengers
Exceeding 30 passengers but
not exceeding 50 passengers
Exceeding 50 passengers
P32,867.88
54,733.00
65,700.00

5. Updated Minimum Gross Monthly Receipts
DOMESTIC CARRIERS
Sec. 117/RR
Year 2006
Updated Minimum Gross Monthly Receipts
Taxis-
1. Manila and other Cities
2. Provincial
P32,867.00
21,900.00
Car for hire (with chauffeur)
P27,367.00
Car for hire (without chauffeur)
P16,434.00

6. Transport of Passenger
Common Carrier -Land
Transport of Passenger
Subject to Common Carrier’s tax
Transport of Cargoes
Subject to VAT

7. What is a common carrier?
"any person, corporation, firm or association engaged in the business of carrying or transporting passengers or goods or both, by land, water, or air, for compensation, offering their services to the public."
Exemption from CCT, owners of bancas and owners of animal drawn two wheeled vehicles (calesa)

8. Percentage taxes Sec. 118 International air/ shipping carriers
NIRC/Ref.
Taxable
Taxable base
Tax rate
Sec. 118
International air/ shipping carriers
Gross receipts 3%

9. Domestic Carriers - Air & Sea
FLIGHTS
VAT (12%)
INTERNATIONAL FLIGHTS
ORIGINATING FROM PHILS.
ZERO RATED (0%)

10. International Carriers- Air & Sea
INTERNATIONAL FLIGHTS
ORIGINATING FROM PHILS. 3%
International carriers tax(no qualification whether on-line or off-line carrier)
Outbound from Philippines= Consumed within the country
% considered as export of services RMC
Foreign Country to Phil= exempted
Incidentally, in computation of income tax classification whether on-line or off-line is considered.

11. Percentage taxes NIRC/Ref Taxable Tax rate Sec. 119
Taxable base
Tax rate
Sec. 119
Tax on franchises Radio/TV (with the option to register as VAT)
Not exceeding P10M Annual Receipts 3%
Gas and water utilities
Gross Receipts 2%
Sec. 120
Tax on Overseas Dispatch, Message or Conversation Phil. Origin
Amount Paid
10%

12. Overseas Communication Tax
Composition of total billings = ( IDD charge + 10% OCT)
Exemptions:
Government
Diplomatic Services
International Organizations
News Services

13. Percentage taxes Sec. 121 R.A. 9238 RR 9-2004 R.A. No. 9337
Section/Ref.
Taxable
Taxable base
Tax rate
Sec. 121
R.A. 9238 RR
R.A. No. 9337
Banks and non-bank financial intermediaries performing quasi banking functions
Interest,
commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities of instruments
5 yrs. or less
More than 5yrs.
Dividends and
equity shares in the net income of subsidiaries 5% 1% 0%

14. PERCENTAGE TAXES R.A. No. 9337 R.A. No.9337 c. Royalties, rental of
Section/Ref.
Taxable
Taxable base
Tax rate
R.A. No. 9337
R.A. No.9337
c. Royalties, rental of
property, real or
personal, profit
from exchange
and all other items
gross income
d. On net trading
gains within the
taxable year on
foreign currency,
debt securities,
derivatives and
other similar
instruments 7%

15. % taxes Taxable Tax rate Sec. 122 R.A. 9238 RR 9-2004 RR16-2005
Section /Ref.
Taxable
Taxable base
Tax rate
Sec. 122
R.A. 9238 RR RR
Other non-bank financial intermediaries(non-bank financial intermediary not performing quasi banking functions) including pawnshops and moneychangers doing business in the Phils.
Pawnshops are classified as Other Non-bank Financial Intermediaries under RR
Interest, commissions, discounts and all other items of gross income
Interest, commissions and discounts from lending activities as well as income from financial leasing, on the basis of remaining maturities of the instruments from which such receipts are derived: 5%

16. percentage taxes Taxable Tax rate Maturity of 5yrs. or less
Section /Ref.
Taxable
Taxable base
Tax rate
Maturity of 5yrs. or less
More than 5 yrs. 5% 1%

17. Financial Institutions
Banks
Non-bank Financial Intermediaries
Performing quasi-banking function
Not performing quasi-banking function (INCLUDES FINANCING COMPANIES) 5% 1% 7%
Banks (Universal, Commercial, Thrift < savings & mortgage banks, stocks savings and loan associations, private development bank>, coop banks, islamic banks and any other classification as determined by the monetary board of the BSP
At first, Pawnshops were VATABLE
Pawnshops are considered as non-bank financial intermediaries pursuant to RR (June 21, 2004) ., by virtue thereof, the CIR thus classified the services rendered by pawnshops as those being performed by non-bank financial intermediaries, hence subject to GRT. As reiterated by RR dated October 14, 2004.
One of the interesting features of the RR is the definition of "stock classified as capital assets." Under this RR, "stock classified as capital assets" has been defined to refer to all stocks and securities held by taxpayers other than dealers in securities. Accordingly, stock and securities owned by banks shall be considered as stock classified as capital assets, because banks are not considered dealers in securities.
Principle of steyriy d∂saysis (to abide by or adhere to decided cases)
RMC
in the case Commissioner of Internal
Revenue vs. Michel J. Lhuillier Pawnshop, Inc. (G.R. No ), declared Revenue
Memorandum Order No and Revenue Memorandum Circular No ,
describing the pawnshop business as akin to the lending investor’s business and therefore
subject to the 5% lending investor’s tax, null and void
As a result thereof, the Supreme
Court then decided that pawnshops are not subject to 5% lending investor’s tax under
then Section 116 of the National Internal Revenue Code (NIRC) of 1977, as amended by
The law is clear that VAT is a tax on transactions imposed
at every stage of the distribution process on sale, barter, or
exchange of goods or property, and on the performance
of services. The Tax Code defines “sale of services” as the
performance of all kinds of services for others for a fee,
remuneration or consideration.
A pawnshop, on the other hand, refers to a person or
entity engaged in the business of lending money on
personal property delivered as security for loans, as
defined in the Pawnshop Regulations Act.
As long as the entity provides a service for a fee,
remuneration or consideration, the service rendered is
subject to VAT. The personal properties delivered by
clients as security for the loans are in the form of
remuneration or consideration because without such
personal properties, the pawnshop will not extend any loan
to the borrower. The phrase “all kinds of services” is broad
enough to cover lending money in consideration of
personal property delivered as security, a service provided
by pawnshops to their borrowers.
(Cebu Mabuhay Pawnshop, Inc. v. Commissioner of
Internal Revenue, CTA EB No. 20/CTA Case No 6266,
February 22, 2005)
Executive Order No. 273.
5%, 1%, 7%
5%, 1%

18. Percentage taxes Sec. 123 Tax on Life Insurance Premiums Total Premium
Section /Ref.
Taxable
Taxable base
Tax rate
Sec. 123
Tax on Life Insurance Premiums
Total Premium 2%
(RMC )
Sec. 124
Tax on agents of Foreign Insurance Companies not authorized in the Phils.
10%
Tax on agents of Foreign Insurance Companies authorized in the Phils. 5%
Sec. 125
Amusement
Taxes on Cockpits
Gross Receipts
18%

19. percentage taxes Taxable Tax rate Sec. 125 RMC 18-2010
Section /Ref.
Taxable
Taxable base
Tax rate
Sec. 125
RMC
Cabarets, Nights or Day Clubs
Karaoke bars, karaoke televisions, karaoke boxes & videoke bars
Gross
Receipts
Gross Receipts
18%
Boxing Exhibitions
10%
Professional basketball games
Gross receipts
15%
Jai-Alai and racetracks
30%

20. % TAXES Sec. 126 Tax on Winnings Every Person Who wins
Section /Ref.
Taxable
Taxable base
Tax rate
Sec. 126
Tax on Winnings Every Person Who wins
Winnings or dividends based on the actual amount paid for every winning ticket after deducting the cost of ticket
Winnings from double forecast/quinella/ trifecta/other winnings
10% 4%
Owners of winning horses
Prize

21. PERCENTAGE TAXES
Section /Ref.
Taxable
Taxable base
Tax rate
Sec. 127
Tax on Barter or Exchange of Shares of Stock listed and traded through the local stock exchange
Gross selling price (GSP)
½ of 1%
Through Initial and secondary public offering-proportion of shares of stocks dispose to total outstanding shares
up to 25%
Over 25% but not over 33 1/3%
Over 33 1/3%
GSP 4% 2% 1%

22. Tax Forms and Deadlines - manual
Form 2551M
Deadline- 20th day after end of the month
Form 2551Q
Deadline – 20th day after end of each quarter for
for Sec. 125 – Amusement Taxes

23. Tax Forms and Deadlines - EFPS
Form 2551M Group A - 25 days ff. the end of the month Group B - 24 days -do- Group C - 23 days -do- Group D - 22 days -do- Group E - 21 days -do- Form 2551Q Deadline – 20th day after end of each quarter for for Sec. 125 – Amusement Taxes

24. The end