1 / 15

PERCENTAGE TAXES

PERCENTAGE TAXES. What is Percentage Tax?. Percentage tax is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales and/or receipts do not exceed P750,000 and who are not VAT-registered.

rdelarosa
Download Presentation

PERCENTAGE TAXES

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. PERCENTAGE TAXES

  2. What is Percentage Tax? Percentage tax is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales and/or receipts do not exceed P750,000 and who are not VAT-registered.

  3. Who pays the Tax? The seller or transferor. [Sec. 127 (A) NIRC, as amended by R.A. No. 8424]

  4. Who are required to file Percentage Tax Returns? • Any person who is not a VAT-registered person (persons exempt from VAT under Sec. 109z of the Tax Code) • Domestic carriers and keepers of garages, except owners of bancas and owners of animal drawn two- wheeled vehicle • Operators of international air and shipping carriers doing business in the Philippines • Franchise grantees of electric, gas or water utilities • Franchise grantees of radio and/or television broadcasting companies whose gross annual receipts for the preceding year do not exceed Ten Million Pesos (P 10,000,000.00) and did not opt to register as VAT taxpayers

  5. Operators of communication equipment sending overseas dispatch, messages, or conversations from the Philippines, except on services involving the following: • Government of the Philippines - for messages transmitted by the Government of the Republic of the Philippines or any of its political subdivisions and instrumentalities • Diplomatic services - for messages transmitted by any embassy and consular offices of a foreign government • International organizations - for messages transmitted by a public international organization or any of its agencies based in the Philippines enjoying privileges, exemptions and immunities which the government of the Philippine is committed to recognize pursuant to an international agreement • News Services - for messages from any newspaper, press association, radio or television newspaper broadcasting agency, or newsticker services to any other newspaper, press association, radio or television, newspaper, broadcasting agency or newsticker services, or to bonafide correspondents, which messages deal exclusively with the collection of news items for, or the dissemination of news items through public press, radio or television broadcasting or a newsticker service furnishing a general news service similar to that of the public press

  6. What is the other option for Radio/TV Franchisees? The company may opt to register as VAT taxpayer. Provided, once the option is exercised, it shall not be revoked. (1st par., Sec. 119, NIRC as amended by R.A. No. 8424)

  7. Banks and non-bank financial intermediaries and finance companies • Life insurance premiums • Agents of foreign insurance companies • Proprietor, lessee, or operator of cockpits, cabarets, night or day clubs, boxing exhibitions, professional basketball games, jai-alai and race tracks • Every stock broker who effected a sale, barter, exchange or other disposition of shares of stock listed and traded through the Local Stock Exchange (LSE) other than the sale by a dealer in securities • Corporate issuer / stock broker, whether domestic of foreign, engaged in the sale, barter, exchange or other disposition through Initial Public Offering (IPO) seller in secondary public offering of shares of stock in closely held corporations

  8. What is Amusement Tax? A percentage tax collected from the proprietor, lessee or operator of duly designated places or activities fro pleasurable diversion or entertainment.

  9. What are places and activities subject to Amusement Tax? Shall be collected from the proprietor, lessee, or operator of cockpits, cabarets, night or day clubs, boxing exhibitions, professional basketball games, Jai-Alai and racetracks. (Sec. 125, NIRC as amended by R.A. No. 8424)

  10. Conditions for Exemption of Boxing Exhibitions: • Boxing exhibition wherein world or oriental championship is at stake; • At least one of the contenders is a Filipino citizen; • Promoted by Filipino citizens or by a corporation at least 60% Filipino owned

  11. Tax Rates:

  12. Table of Requirements:

More Related