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© STsRe TABLE OF CONTENTS Preface Message from Sen. Franklin M. Drilon Senate President Message from Sen. Sonny Angara Chairperson, Committee on Ways and Means Message from Atty. Oscar G. Yabes Secretary of the Senate Message from Atty. Rodelio T. Dascil, MNSA Director General, STSRO- Introduction - Basic Concepts on Taxation Principles of a Sound Tax System Impositions Under the Basic Philippine Tax Law. - National Internal Revenue Code (NIRC), as amended Income Tax Estate and Donor’s Tax Value-Added Tax (VAT) Other Percentage Taxes Excise Taxes Documentary Stamp Taxes (DST) Others Impositions Under Basic Philippine Tax Laws. — Local Government Code (LGC) of 1994 15 15 20 22 28 32 33 33 Republic ofthe Philippines Senate Pasay City PREFACE This is prepared specifically for the Senators, their Staff, Officers and Secretariat personnel of the 17th Congress. This latest publication of the Senate Tax Study and Research Office (STSRO) aims to inform the reader of the fundamentals and basics of taxation in a clear and concise format. The subject of taxation is presented in its simplest form and discussed in an easily understandable manner. It is hoped that this publication - TAXATION 101 - would serve as a guide to the lawmakers, their staff complement and to the Senate Secretariat. July 18, 2016. STSRO’s Officers and Staff