Classes of Taxes

as to Scope of
Authority
a.) National Tax
-refers to those taxes imposed
by the national government
through the Bureau of Internal
Revenue or the Bureau of
Customs.

Example:
Corporate Income Tax,
Customs Duties
b.) Local Tax
- refers to those taxes
imposed by the local government
such as cities, municipalities or
provinces.

Example:
Real Estate
 National Tax
• Generally, 10% value-added tax
(VAT) imposed on:
- Importation of goods
- Sale, barter, exchange, or lease of
goods, properties, services in the
Philippines, with certain exceptions
• Gross receipt tax on the following
endeavors:
- 0%-5%, on bank and other non-
bank financial intermediaries
- 5%, on insurance companies
- 3%, on common passenger carriers
- 2%, on electric, gas, and water
utilities
- 3%-30%, on other businesses
Local Tax
•Real estate tax
•Documentary stamp tax
•Overseas communication tax
•On manufacturers,
wholesalers, exporters, and
contractors:
-Percentage tax on sales or
gross receipts, imposable rate
depending on the place where
the business is situated
•Percentage tax on banks and
other financial institutions

• Excise tax on certain products (e.g.,

tobacco, alcohol, mineral and
petroleum products, jewelry,
Classes of Taxes
as to Purpose
 General, fiscal or
revenue
• Imposed for the general purpose
of supporting the government.
• Ex. Income tax, percentage tax
 Special or regulatory
• Imposed for a special purpose, to
achieve some social or economic
• Ex. Protective tariffs or customs
duties on imported goods
intended to protect local
industries
Classes of Taxes
as to Liabilities
 Direct Tax
• Tax on income
• A tax that is levied directly on
the income or capital of a person
or organization, rather than as
part of the price of goods or
services.
• A tax whose burden falls directly
on the person or thing taxed and
cannot be shifted to another
person or thing.
• A poll tax is an example of a
 Indirect Tax
• Tax on goods and services
• A tax levied on goods or services,
instead of directly on companies and
individual people
• A tax imposed on one person or thing
but whose burden is borne indirectly
by another.
• A sales tax though imposed on and
collected from the seller, is an
indirect tax on the buyer.