Chapterr 13

Classification of taxes:
As to subject matter:

Personal, poll or capitation taxes

o Tax of a fixed amount imposed on persons residing within a specified
territory.
Property tax
o Tax imposed on property
Excise Tax
o A charge imposed upon the performance of an act, the enjoyment of a
privilege or engaging in a occupation.

As to Purpose

General / fiscal / revenue tax

o Imposed for he purpose of raising funds for the service of the
government.
Special / regulatory
o Imposed primarily for the regulation of useful or non-useful occupation
secondarily only for the purpose of raising public funds.

As to who bears the burden

Direct tax
Indirect

As to scope of the tax

National tax
o Imposed by the national government
Local tax
o Impose by the LGUs

As to the determination of amount

Specific Tax
o Requires no assessment
Ad valorem tax (depends)
o Requires assessment

As to Gradation or rate

Proportional
o Fixed percentage amount ; real estate tax
Progressive or graduated tax

o Increases as the tax bracket increase.

o Digressive tax: progression of tax eventually stops.
Regressive Tax
o Tax decreases as tax bracket increase; none in the Philippines

Double Taxation taxing twice by the same taxing authority within the same
jurisdiction for the same purpose in the same year some of the property in the
territory.
Tax evasion use by the taxpayer of illegal or fraudulent means to defeat or lessen
the payment of a tax. (Tax Dodging)