Corporation generally term is all about establishing solid and loyal partnership among investors

that are willing to explore and invest in the purpose of business transaction….It does not only
imply on certain organizations, joint accounts, association, joint-stock companies. However in
the larger scale, in terms of general professional partnerships and a joint venture with the
government, the corporation has to deal with the operating consortium agreement. It means
there is one binding agreement or a memorandum of agreement (MOA)

(Ibig sabihin ang isang corporation sa pakikipagtransact sa government, kailangang pagkasunduan ang
ilang policies that are both beneficial to them)

Corporation can be noted as a profit-oriented or a non-profit institutions such as charitable

institutions( an orphanage, or a sector that promotes the rights of individual, providing
scholarships sa mga underprivileged na mga estudyante but deserving.) cooperatives,
government agencies and instrumentalities..)

Domestic corporation- itoy inorganizang institusyon alinsunod sa Batas ng Pilipinas (ask your
classmates;;may alam ba kayong halimbawa ng domestic corporation?
Mga halimbawa ng domestic corporation tulad ng
1. Social Security System (SSS) for social security.
2. Philippine Health Insurance Corporation (PhilHealth) for health insurance benefits.
3. Home Development Mutual Fund (HDMF or Pag-Ibig Fund) for housing benefits.

Foreign Corporation
- Isang korporasyon that is organized in accordance with the foreign laws. Example :(Texas
Instrument in Baguio City)

Resident Foreign Corp.- a business corp. ditto sa Pilipinas na nag-ooperate ay may mga branch
ditto sa Pilipinas to promote their products
Non-resident Foreign Corp. A foreign business na hindi nag-ooperate sa ating bansa. Ibig sabihin
ay walang mandato ang pamahalaan to establish certain agreement or policies.

It means all the corporation na nag-ooperate sa ating bansa bagaman itoy controlado ng
foreigners, they can be labeled as domestic corporation dahil sa tinatawag nating incorporation
test.
Incorporation Test na ito ay naglalayong malaman ang background nito kung ito ay domestic or
foreign. Ang basic rule nito dapat ay walang legal existence outside sa boundary ng ating bansa..
..Tinutukoy nito maging ang mga nationalities o citizenship ng mga stakeholders.

Requisites ( o mga kailangan o requirement na may layong mag-operate ng isang corporation)

for a foreign corporation to transact business in the Philippines:
1. A license or permit to do so; and
2. A certificate of authority from the appropriate government agency.
 Sa Pagpapataw ng buwis sa mga FRC, hindi ito ipinapataw sa branch o sangay nya sa ating bansa
kung hindi, ito ay directing ipinapataw sa Main branch na nasa labas ng bansa.

Special corporation ay maaaring domestic corp or foreign corporation na kung saan ipinapataw
ang special tax rules based on their tax rates and tax base ( example. SM, BDO, San Miguel)…

Partnership- it ay samahan ng mga businessman (two or more persons) na may layong magshare
ng kanilang resources to a common fund and for the purpose na hati-hatiin ang mga kita sa
kanilang inorganizang korporasyon.

General Professional partnership (GPP)- - ito ay samahan ng may pare-parehong profession with
a common objectives and perspectives.
Sa pagpataw ng buwis… hindi ito itinuturing na isang corporations kasi nga it talks about
partnership itself. Pero papatawan ng buwis ang mga taong mismong nag-invest based on his or
her income capacity.

Business partnership - Kapag Business partnership ang pinag-uusapan for the purpose of profit.
Then tax is being applied to a corporation.
Joint Venture– it is organized by both parties based on their respective agreement…( Gaya daw
ng joint-exploration ng china at pilipinas sa west Philippine sea dahil sa possibleng langis dito.
Hopefully that our country is still in good favor.

Types of joint venture

-Exempt JV- ay binuo na may layuning mag-construct ng project o may kinalaman sa petroleum, coal
or geothermal.... It is still binded sa service contract ng government– Ito ay hindi itinuturing na
korporasyon tulad ng GPP (General professional Partnership),, at exempted sa regular income nito.

Taxable joint ventures- lahat ng joint ventures ay taxable corporations.

Co-ownership means kabahagi ka na nagmamay-ari ng isang ari-arian na binuo na may layong

ipreserve o hati-hatiin ang incomeang co-oownerhip na limitado lamang sa pagpapanatili ng property
or income collection(ibig sabihin walang pagtaas ng income or any form ng irregularities)ay hindi
papatawan ng buwis. But taxable sa co-owners base sa share na natatanggap nito sa co-owned
property.

Mga pwedeng patawan ng buwis: ( within –sa loob ng bansa, without, nasa labas ng bansa)

Resident – magbabayad ng buwis

Non-resident citizen- magbabayd ng buwis

Domestic corporation – taxable

Resident foreign – taxable

Non-resident foreign - taxable