PERCENTAGE TAX*

PERCENTAGE TAXES*

NIRC/Ref.Taxable Taxable BaseTax rateSec. 116VAT-exempt persons under Sec. 109 (V) and did not opt to register as VAT taxpayersCooperatives are exempt Annual Gross Sales/ Receipts Not Exceeding P1,919,500.003%

PERCENTAGE TAXES*

NIRC/Ref.TaxableTaxable baseTax rateSec. 117 Domestic carriers Car driven by lesseeTransportation contractors/ who transport passengers by landKeepers of garage

Except:BancasAnimal-drawn two wheeled vehiclesGross receipts3%

*

DOMESTIC CARRIERSSec. 117/RR 9-2007Year 2006Updated Minimum Gross Monthly ReceiptsJeepney for hire Manila and other citiesProvincialP21,900.00 10,967.00Public Utility Bus Not exceeding 30 passengers Exceeding 30 passengers but not exceeding 50 passengersExceeding 50 passengers P32,867.88

54,733.00 65,700.00

*

DOMESTIC CARRIERSSec. 117/RR 9-2007Year 2006Updated Minimum Gross Monthly ReceiptsTaxis- 1. Manila and other Cities 2. ProvincialP32,867.00 21,900.00Car for hire (with chauffeur)P27,367.00Car for hire (without chauffeur)P16,434.00

COMMON CARRIER -LANDTransport of Passenger

Subject to Common Carriers tax

Transport of Cargoes

Subject to VAT*

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."*

PERCENTAGE TAXES*

NIRC/Ref.TaxableTaxable baseTax rateSec. 118International air/ shipping carriers Gross receipts3%

DOMESTIC CARRIERS - AIR & SEA*

DOMESTICFLIGHTSVAT (12%)INTERNATIONAL FLIGHTSORIGINATING FROM PHILS. ZERO RATED (0%)

INTERNATIONAL CARRIERS- AIR & SEA*

INTERNATIONAL FLIGHTSORIGINATING FROM PHILS.

PERCENTAGE TAXES*

NIRC/RefTaxableTaxable baseTax rateSec. 119Tax on franchises Radio/TV (with the option to register as VAT)Not exceeding P10M Annual Receipts3%Sec. 119 Gas and water utilitiesGross Receipts2%Sec. 120Tax on Overseas Dispatch, Message or Conversation Phil. OriginAmount Paid10%

OVERSEAS COMMUNICATION TAX

Composition of total billings =

( IDD charge + 10% OCT)

Exemptions:

GovernmentDiplomatic ServicesInternational OrganizationsNews Services*

PERCENTAGE TAXES*

Section/Ref.TaxableTaxable baseTax rateSec. 121

R.A. 9238RR 9-2004

R.A. No. 9337Banks 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%

PERCENTAGE TAXES*

Section/Ref.TaxableTaxable baseTax rateR.A. No. 9337

R.A. No.9337c. Royalties, rental of property, real or personal, profit from exchange and all other items gross incomed. On net trading gains within the taxable year on foreign currency, debt securities, derivatives and other similar instruments7%

7%

% TAXES*

Section /Ref.TaxableTaxable baseTax rateSec. 122

R.A. 9238RR 9-2004

RR16-2005Other 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 10-2004Interest, 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%

PERCENTAGE TAXES*

Section /Ref.TaxableTaxable baseTax rateMaturity of 5yrs. or lessMore than 5 yrs.5%

1%

5%1%7%5%, 1%, 7%5%, 1%*

PERCENTAGE TAXES*

Section /Ref.TaxableTaxable baseTax rateSec. 123Tax on Life Insurance PremiumsTotal Premium2%(RMC 22-2010)Sec. 124Tax on agents of Foreign Insurance Companies not authorized in the Phils.Total Premium10%Sec. 124Tax on agents of Foreign Insurance Companies authorized in the Phils.Total Premium5%Sec. 125Amusement Taxes on CockpitsGross Receipts18%

PERCENTAGE TAXES*

Section /Ref.TaxableTaxable baseTax rateSec. 125

RMC 18-2010Cabarets, Nights or Day Clubs

Karaoke bars, karaoke televisions, karaoke boxes & videoke barsGrossReceipts

Gross Receipts18%

18%Sec. 125Boxing ExhibitionsGross Receipts10%Sec. 125Professional basketball gamesGross receipts15%Sec. 125Jai-Alai and racetracksGross receipts30%

% TAXES*

Section /Ref.TaxableTaxable baseTax rateSec. 126Tax on Winnings Every Person Who winsWinnings 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 winnings10%

4%Sec. 126Owners of winning horsesPrize10%

PERCENTAGE TAXES*

Section /Ref.TaxableTaxable baseTax rateSec. 127Tax on Barter or Exchange of Shares of Stock listed and traded through the local stock exchangeGross selling price (GSP) of 1%Sec. 127Through 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

GSP

GSP

4%

2%

1%

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*

TAX FORMS AND DEADLINES - EFPSForm 2551MGroup 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*

The end*

*

*Exemption from CCT, owners of bancas and owners of animal drawn two wheeled vehicles (calesa)

**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 31-2008

Foreign Country to Phil= exempted

Incidentally, in computation of income tax classification whether on-line or off-line is considered.

*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 VATABLEPawnshops are considered as non-bank financial intermediaries pursuant to RR 9-2004 (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 10-2004 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 dsaysis (to abide by or adhere to decided cases)RMC 36-2004

in the case Commissioner of InternalRevenue vs. Michel J. Lhuillier Pawnshop, Inc. (G.R. No. 150947), declared RevenueMemorandum Order No. 15-91 and Revenue Memorandum Circular No. 43-91,describing the pawnshop business as akin to the lending investors business and thereforesubject to the 5% lending investors tax, null and void

As a result thereof, the SupremeCourt then decided that pawnshops are not subject to 5% lending investors tax underthen 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 imposedat every stage of the distribution process on sale, barter, orexchange of goods or property, and on the performanceof services. The Tax Code defines sale of services as theperformance of all kinds of services for others for a fee,remuneration or consideration.A pawnshop, on the other hand, refers to a person orentity engaged in the business of lending money onpersonal property delivered as security for loans, asdefined in the Pawnshop Regulations Act.As long as the entity provides a service for a fee,remuneration or consideration, the service rendered issubject to VAT. The personal properties delivered byclients as security for the loans are in the form ofremuneration or consideration because without suchpersonal properties, the pawnshop will not extend any loanto the borrower. The phrase all kinds of services is broadenough to cover lending money in consideration ofpersonal property delivered as security, a service providedby pawnshops to their borrowers.(Cebu Mabuhay Pawnshop, Inc. v. Commissioner ofInternal Revenue, CTA EB No. 20/CTA Case No 6266,February 22, 2005)

Executive Order No. 273.

*