Professional Documents
Culture Documents
For
TAXATION
purposes..
Classification of Business Entities:
According to NATURE
Merchandising
Manufacturing
Service
Hybrid
According to FORM/OWNERSHIP
Sole Proprietorship
Partnership
Corporation
Cooperative
WHEN IS AN ACTIVITY ENGAGED IN BUSINESS?
Intended for Profit
Exception:
Importation of goods for personal use
Overseas communication
Regularly undertaken
Exception:
Single service rendered by NRA
Sale of house and lot and other forms of residence/dwelling
valued over P2,500,000
Single winning in horse race/jai-alai
Only sale of shares thru LSE by one who is not a securities trader
Financial in character
Exception:
Regular conduct of business whose gross sales/receipts in any month
during a 12 month period do not exceed P100,000 shall be considered
as a means of subsistence.
WHAT IS A BUSINESS TAX?