PERCENTAGE TAX

PERCENTAGE TAXES
NIRC/Ref. Taxable Taxable Base Tax rate 3%

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

PERCENTAGE TAXES
NIRC/Ref. Taxable Taxable base Tax rate

Sec. 117

Domestic carriers Gross receipts a. Car driven by lessee b. Transportation contractors/ who transport passengers by land c. Keepers of garage Except: a. Bancas b. Animal-drawn two wheeled vehicles

3%

DOMESTIC CARRIERS Sec. 117/RR 9-2007

Year 2006
Updated Minimum Gross Monthly Receipts

Jeepney for hire 1.Manila and other cities 2.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
4

DOMESTIC CARRIERS Sec. 117/RR 9-2007

Year 2006
Updated Minimum Gross Monthly Receipts

Taxis1. 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
5

COMMON CARRIER -LAND

Transport 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. Taxable Taxable base Tax rate

Sec. 118

International air/ shipping carriers

Gross receipts

3%

DOMESTIC CARRIERS - AIR & SEA

DOMESTIC FLIGHTS INTERNATIONAL FLIGHTS ORIGINATING FROM PHILS.

VAT (12%)
ZERO RATED (0%)

PERCENTAGE TAXES
NIRC/Ref Sec. 119 Taxable Tax on franchises Radio/TV (with the option to register as VAT) Gas and water utilities
Taxable base

Tax rate

Not exceeding 3% P10M Annual Receipts

Sec. 119

Gross Receipts Amount Paid

2%

Sec. 120

Tax on Overseas Dispatch, Message or Conversation Phil. Origin

10%
11

OVERSEAS COMMUNICATION TAX

Composition of total billings =
( IDD charge + 10% OCT) Exemptions: 1. Government 2. Diplomatic Services 3. International Organizations 4. News Services
12

PERCENTAGE TAXES
Section/Ref. Taxable
Taxable base

Tax rate

Sec. 121 R.A. 9238 RR 9-2004

Banks and nona. Interest, bank financial commissions and intermediaries discounts from lending performing quasi activities as well as banking functions income from financial leasing, on the basis of remaining maturities of instruments 5 yrs. or less More than 5yrs. b. Dividends and equity shares in the net income of subsidiaries

5% 1% 0%
13

R.A. No. 9337

PERCENTAGE TAXES
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%

7%

14

% TAXES
Section /Ref.

Taxable 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 10-2004

Taxable base

Tax rate 5%

Sec. 122 R.A. 9238 RR 9-2004

a. Interest, commissions, discounts and all other items of gross income b. 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:

RR162005

15

PERCENTAGE TAXES
Section /Ref.

Taxable

Taxable base

Tax rate 5%

Maturity of 5yrs. or less More than 5 yrs.

1%

16

Financial Institutions

5% 1% 7%

Banks

Non-bank Financial Intermediaries

Performing quasibanking function

Not performing quasibanking function (INCLUDES FINANCING COMPANIES)

17

5%, 1%, 7%

5%, 1%

PERCENTAGE TAXES
Section /Ref.

Taxable

Taxable base

Tax rate

Sec. 123 Sec. 124

Tax on Life Insurance Premiums Tax on agents of Foreign Insurance Companies not authorized in the Phils. Tax on agents of Foreign Insurance Companies authorized in the Phils.
Amusement Taxes on Cockpits

Total Premium Total Premium

2%
(RMC 22-2010)

10%

Sec. 124

Total Premium

5%

Sec. 125

Gross Receipts

18%

18

PERCENTAGE TAXES
Section /Ref.

Taxable

Taxable base

Tax rate

Sec. 125 RMC 182010

Cabarets, Nights or Day Clubs

Gross Receipts

18%

Karaoke bars, karaoke televisions, karaoke boxes & videoke bars Gross Receipts

18%

Sec. 125

Boxing Exhibitions

Gross Receipts

10%

Sec. 125

Professional basketball games

Gross receipts

15%

Sec. 125

Jai-Alai and racetracks

Gross receipts

30%
19

% TAXES
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%

Sec. 126

Owners of winning horses

Prize

10%
20

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 Through Initial and secondary public offering-proportion of shares of stocks dispose to total outstanding shares up to 25%

Gross selling of 1% price (GSP)

Sec. 127

GSP Over 25% but not over 33 1/3% GSP Over 33 1/3% GSP

4% 2%

1%
21

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

22

TAX FORMS AND DEADLINES - EFPS

Form 2551M Group A - 25 days ff. the end of the month Group B - 24 days -doGroup C - 23 days -doGroup D - 22 days -doGroup E - 21 days -doForm 2551Q Deadline 20th day after end of each quarter for for Sec. 125 Amusement Taxes
23

The end

24