PERCENTAGE TAX 1 PERCENTAGE TAXES NIRCRef Sec 116

PERCENTAGE TAX 1

PERCENTAGE TAXES NIRC/Ref. Sec. 116 Taxable VAT-exempt persons under Sec. 109 (V) and did not opt to register as VAT taxpayers • Cooperatives are exempt Taxable Base Tax rate Annual Gross 3% Sales/ Receipts Not Exceeding P 1, 919, 500. 00 2

PERCENTAGE TAXES NIRC/Ref. Sec. 117 Taxable base Domestic carriers Gross receipts a. Car driven by lessee b. Transportation contractors/ who transport passengers by land c. Keepers of garage Tax rate 3% Except: a. Bancas b. Animal-drawn two wheeled vehicles 3

DOMESTIC CARRIERS Sec. 117/RR 9 -2007 Jeepney for hire – 1. Manila and other cities 2. Provincial Public Utility Bus – Not exceeding 30 passengers Exceeding 30 passengers but not exceeding 50 passengers Exceeding 50 passengers Year 2006 Updated Minimum Gross Monthly Receipts P 21, 900. 00 10, 967. 00 P 32, 867. 88 54, 733. 00 65, 700. 00 4

DOMESTIC CARRIERS Sec. 117/RR 9 -2007 Year 2006 Updated Minimum Gross Monthly Receipts Taxis 1. Manila and other Cities 2. Provincial P 32, 867. 00 21, 900. 00 Car for hire (with chauffeur) P 27, 367. 00 Car for hire (without chauffeur) P 16, 434. 00 5

COMMON CARRIER -LAND Transport of Passenger Subject to Common Carrier’s tax Transport of Cargoes Subject to VAT 6

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. " 7

PERCENTAGE TAXES NIRC/Ref. Sec. 118 Taxable base International air/ Gross receipts shipping carriers Tax rate 3% 8

DOMESTIC CARRIERS - AIR & SEA DOMESTIC FLIGHTS INTERNATIONAL FLIGHTS ORIGINATING FROM PHILS. VAT (12%) ZERO RATED (0%) 9

PERCENTAGE TAXES NIRC/Ref Taxable base Tax rate Sec. 119 Tax on franchises Radio/TV (with the option to register as VAT) Not exceeding P 10 M Annual Receipts 3% Sec. 119 Gas and water utilities Gross Receipts 2% Sec. 120 Tax on Overseas Amount Paid Dispatch, Message or Conversation Phil. Origin 10% 11

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

PERCENTAGE TAXES Section/Ref. Sec. 121 R. A. 9238 RR 9 -2004 Taxable base Taxable Banks and nonbank financial intermediaries performing quasi banking functions a. b. R. A. No. 9337 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 5 yrs. Dividends and equity shares in the net income of subsidiaries Tax rate 5% 1% 0% 13

PERCENTAGE TAXES Section/Ref. R. A. No. 9337 Taxable base 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 Tax rate 7% 7% 14

% TAXES Section /Ref. Sec. 122 R. A. 9238 RR 9 -2004 RR 16 -2005 Taxable base Other non-bank financial a. Interest, commissions, intermediaries(non-bank discounts and all other financial intermediary not items of gross income performing quasi banking functions) including b. Interest, commissions and pawnshops and discounts from lending moneychangers doing activities as well as business in the Phils. income from financial Pawnshops are classified as leasing, on the basis of Other Non-bank Financial remaining maturities of Intermediaries under RR 10 the instruments from 2004 which such receipts are derived: Tax rate 5% 15

PERCENTAGE TAXES Section /Ref. Taxable base Maturity of 5 yrs. or less More than 5 yrs. Tax rate 5% 1% 16

Financial Institutions 5% 1% 7% Non-bank Financial Intermediaries Banks Performing quasibanking function Not performing quasibanking function (INCLUDES FINANCING COMPANIES) 17 5%, 1%, 7% 5%, 1%

PERCENTAGE TAXES Section /Ref. Sec. 123 Taxable base Tax rate Tax on Life Insurance Premiums Total Premium 2% Sec. 124 Tax on agents of Foreign Insurance Companies not authorized in the Phils. Total Premium 10% Sec. 124 Tax on agents of Foreign Insurance Companies authorized in the Phils. Total Premium 5% Sec. 125 Amusement Taxes on Cockpits Gross Receipts 18% (RMC 22 -2010) 18

PERCENTAGE TAXES Section /Ref. Taxable Sec. 125 Cabarets, Nights or Day Clubs RMC 182010 Taxable base Tax rate 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. Sec. 126 Taxable base Taxable Tax on Winnings Every Person Who wins Owners of winning horses Winnings or dividends based on the actual amount paid for every winning ticket after deducting the cost of ticket Tax rate 10% Winnings from double forecast/quinella/ trifecta/other winnings 4% Prize 10% 20

PERCENTAGE TAXES Section /Ref. Taxable Sec. 127 Tax on Barter or Exchange of Shares of Stock listed and traded through the local stock exchange Sec. 127 Through Initial and secondary public offering-proportion of shares of stocks dispose to total outstanding shares up to 25% Taxable base Tax rate Gross selling ½ of 1% price (GSP) GSP 4% GSP 2% GSP 1% Over 25% but not over 33 1/3% Over 33 1/3% 21

TAX FORMS AND DEADLINES MANUAL Form 2551 M Deadline- 20 th day after end of the month Form 2551 Q Deadline – 20 th day after end of each quarter for Sec. 125 – Amusement Taxes 22

TAX FORMS AND DEADLINES - EFPS Form 2551 M Group 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 2551 Q Deadline – 20 th day after end of each quarter for Sec. 125 – Amusement Taxes 23

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