1)

 For those who’ve sold a property or who are still selling their property, you may
have been surprised to find out that there are taxes that come with a newly
purchased property—taxes that the seller pays for, and not the buyer.
 If you’re not familiar with the term, the capital gains tax is imposed on the seller’s
earnings, which has been acquired from the sale of capital assets.

Q: Who is this tax applicable to?

A: Again, if the property you’ve sold does not fall under the aforementioned conditions, it
is automatically considered as a capital asset. This includes properties under pacto de
retrosales and other forms of conditional sale.

A pacto de retro sale is defined as a transaction wherein the seller has the right to
repurchase the property being sold to him or her. This is done in order to immediately
transfer the title and ownership of said property to the vendee a retro.

A sale with pacto de retro transfers the legal title to the vendee a retro. The essence of a
pacto de retro sale is that the title and ownership of the property sold are immediately
vested in the vendee a retro.
 The failure of the vendee a retro to consolidate his title under Article 1607 of the New
Civil Code does not impair such title and ownership because the method prescribed
thereunder is merely for the purpose of registering and consolidating titles to the
property. all real properties have a capital gains tax of six percent.
 For example, if you’re selling a property for a total of Php 2,400,000, then the
capital gains tax will amount to Php 144,000.

2.)

 levy on documents, evidencing the acceptance, assignment, sale or transfer of an

obligation, right or property incident to it. It is usually collected at the time of registration
of the document with the recording authority.
 The BUYER pays for the cost of Registration: Documentary Stamp Tax - 1.5% of the
selling price or zonal value or fair market value, which ever is higher.

3.)
 Donations to relatives are taxed at 2% – 15%, each and every donation aggrgated, and
allowed deductions for dowry, diminutions, and encumbrances to a certain extent.
Donations of the donor to the relatives of not exceeding P100,000.00 within the calendar
year are not taxable.
 donor’s tax to facilitate the transfer of property from the donor to recipient. ... The rate of
the donor’s tax is 6 percent plus 1.5 documentary stamp .
4.

 computed based on a tax schedule where an estate worth P200,000 and over was taxed
from 5 percent to 20 percent. Under the TRAIN law, it will now be subject to a flat rate of
6 percent.
 if the net value of the estate of someone who died does not exceed Php
200,000.00 then the beneficiaries are exempted to pay the estate tax. If the net
value of the estate to be inherited is valued at Php 1,000,000.00, the estate tax
shall be Php 15,000.00 plus Php 40,000.00 (or eight percent of Php 500,000),
which totals Php 55,000.00.

5.
 Philippines is taxed progressively up to 32%. Resident citizens are taxed on all their net
income derived from sources within and without the Philippines.
 Taxable Income (PhP) Tax Rate
 Php 0 – 10,000 5%
 Php 10,000 – 30,000 10%
 Php 30,000 – 70,000 15%
 Php 70,000 – 140,000 20%
 Php140,000 – 250,000 25%
 Php 250,000 – 500,000 30%
 Php 500,000 and above 32%

6.

 also imposed on goods imported into the country.

 Value Added Tax (VAT) and Percentage Tax are both business taxes
collected from the sale of goods and services
 For small businesses with gross annual sales and receipts that do not
exceed Php1,919,500.00, and are not VAT-registered, percentage tax
is imposed for sold or leased goods, properties or services.

7.
 VAT is an indirect tax which means the end consumer is being
charged for the tax. In the Philippines, the rate of VAT is at 12%
except for export sales and other zero-rated sales which is at 0%.

 8 . Excise taxes are most often levied upon cigarettes, alcohol, gasoline and gambling.
These are often considered superfluous or unnecessary goods and services. To
raise taxes on them is to raise their price and to reduce the amount they are used.
 Excise taxes apply to alcoholic beverages, tobacco, firearms, airfares, telephone
service, and many other products and services. Alcohol and Tobacco Tax and Trade
Bureau (TTB) collects excise taxes and regulates businesses involved with alcoholic
beverages, tobacco products and firearms
 9.

What Is a Withholding Tax?

A withholding tax is an amount that an employer withholds from employees'
wages and pays directly to the government.

 tax withheld from income payments to individuals arising from an employer-employee

relationship.

10.

 Philippine corporations generally are taxed at a rate of 30%.

 The coverage of withholding tax agents who are required to withhold 1% or 2% from
regular suppliers of goods and services, respectively, and casual purchases worth
P10,000 or more was expanded to include Medium Taxpayers, and those under the
Taxpayer Account Management Program (TAMP),

 Expanded Withholding Tax is a kind of withholding tax which is prescribed on certain

income payments and is creditable against the income tax due of the payee for the
taxable quarter/year in which the particular income was earned.
 The following income payments are subject to Expanded Withholding Tax:
 1. Professional fees / talent fees for services rendered
 2. Professional fees, talent fees, etc for services of taxable juridical persons

11.

 Final Withholding Tax is a kind of withholding tax which is prescribed on

certain income payments and is not creditable against the income tax due of the payee
on other income subject t

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 Withholding tax on government money payments to suppliers – 1% on goods, 2% on

services
