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Tax - Week 7 - Other Percentage Taxes - Coggle Diagram

- - - - 1. Domestic: Sec. 117, NIRC, RR 9-2007 - 3% of gross quarerly receipts.
        
        Tax Exemption - Gross receipts of common carriers derived from incoming and outgoing freight exempt from local taxes.
        
        2. International: Sec. 118, NIRC; RR 15-2002, as amended by RR 11-2011
        
        (A) International air carriers doing; business in the Philippines on their gross receipts derived from transport of cargo from the Philippines to another country shall pay a tax of three percent (3%) of their quarterly gross receipts.
        
        (B) International shipping carriers doing business in the Philippines on their gross receipts derived from transport of cargo from the Philippines to another country shall pay a tax equivalent to three percent (3%) of their quarterly gross receipts.
      - D. Franchise Tax Sec. 119, NIRC - IF gross annual receipts of the preceding year do not exceed P10M, then:
        
        3% tax
        
        2% on the gross receipts derived from business covered by law granting the franchise for gas and water utilities
        
        E. Overseas Communications Tax - Sec. 120, NIRC - 10% on the amount paid for such services. Applies to every overseas dispatch, message or conversation transmitted from
        the Philippines by telephone, telegraph, telewriter exchange,
        wireless and other communication equipment services,
        
        F. Tax on Banks and Financial Intermediaries Sec. 121, NIRC - gross receipts derived from sources within the Philippines by all banks and non-bank financial intermediaries in accordance with the following schedule
        
        How Computed - The generally accepted
        accounting principles as may be prescribed by the Bangko Sentral ng Pilipinas for the bank or nonbank financial intermediary performing quasi-banking functions shall likewise be the basis for the calculation of gross receipts.
        
        G. Tax on Other Non-Bank Financial Intermediaries Performing Quasi-Banking Functions
        
        Sec. 122, NIRC
        
        Tax on Life Insurance Premiums - Sec. 123, NIRC
        
        Rate - 2% of total Premiums Collected
        
        Imposed on: every person doing life insurance business of any sort in the Philippines
        
        XCPN - Purely cooperative companies or associations (non-profit)
        
        I. Tax on Agents of Foreign Insurance Companies - Sec. 124, NIRC
        
        Rate - twice the tax imposed in Sec. 123 (2% x 2)
        
        Who - Every fire, marine or miscellaneous insurance agent
        
        Exception
        
        J. Amusement Tax
        
        Sec. 125, NIRC
        
        RMC 18-2010
        
        K. POGO Taxation Sec 125-A introduced by RA 11590 - RR 20-2021; RA 11590 -
        
        2 more items...
        
        Exclusions from Taxable Premiums -
        
        Premiums Refunded within 6 months
        
        Reinsurance
        
        Premiums Collected on the life insurance of a nonresident insured
        
        Premium collected on variable contracts in excess of the amount necessary to insure the lives of variable contract owners
        
        Specific Rates -
        
        INTEREST - , commissions and discounts from lending activities as well as income from financial leasing, based on remaining maturities:
        a. 5 years or less – 5%
        b. More than 5 years – 1%
        
        DIVIDENDS - and equity shares and net income of subsidiaries – 0%
        
        ROYALTIES - , rentals of property, profits from exchange and all other items of gross income under Sec. 32, NIRC – 7%
        
        NET TRADING GAINS - within the year on foreign currency, debt securities, derivatives, and other financial instruments – 7%
        
        How Paid - payable by the person
        paying for the services rendered and shall be paid to the person rendering the services who is required to collect and pay the tax within twenty (20) days after the end of each quarter.
        
        Exceptions
        
        Government - Inclusive of any political subdivisions or intsrumentalities
        
        Diplomatic services - Covers any embassy and consular offices of a foreign government
        
        International organizations - public international organization or any of its agencies based in the Philippines enjoying privileges, exemptions and immunities which the Government of the Philippines is committed to recognize pursuant to an international agreement; and
        
        News services - any newspaper, press association, radio or television newspaper, broadcasting agency, or newstickers services, to any other newspaper, press association, radio or television newspaper broadcasting agency, or newsticker service or to a bona fide correspondent, which messages deal exclusively with the collection of news items for, or the dissemination of news item through, public press, radio or television broadcasting or a newsticker service furnishing a general news service similar to that of the public press.
        
        Radio and television broadcasting companies - have an option to be registered as a value-added taxpayer and pay the tax due thereon. Once exercised, irrevocable.
  - - - Self-employed individuals and/or professionals - Have option to avail of an eight percent (8%) tax on gross sales or gross receipts and other non-operating income in excess of Two hundred fifty thousand pesos (P250,000) in lieu of the graduated income tax rates under Subsection (A)(2)(a) of this Section and the percentage tax under Section 116 of this Code.
        
        BMBE - Exempt from income tax but liable to other internal revenue taxes. Thus, cannot apply to 8% Income tax rates.
        
        Income and Percentage Tax - No Double taxation. In Solidbank Corporation, this Court defined that a percentage tax is a national tax measured by a certain percentage of the gross selling price or gross value in money of goods sold, bartered or imported; or of the gross receipts or earnings derived by any person engaged in the sale of services. It is not subject to withholding. An income tax, on the other hand, is a national tax imposed on the net or the gross income realized in a taxable year. It is subject to withholding.