The policy of taxation in the Philippines is governed chiefly by

the Constitution of the Philippines and three Republic Acts.

1. Constitution: Article VI, Section 28 of the Constitution states

that "the rule of taxation shall be uniform and equitable" and
that "Congress shall evolve a progressive system of taxation."
2. National law: National Internal Revenue Code—enacted as
Republic Act No. 8424 or the Tax Reform Act of 1997 and
subsequent laws amending it; the law was most recently
amended by Republic Act No. 10963 or the Tax Reform for
Acceleration and Inclusion Act;
3. Local laws: major sources of revenue for the local government
units (LGUs) are the taxes collected by virtue of Republic Act No.
7160 or the Local Government Code of 1991, and those sourced
from the proceeds collected by virtue of a local ordinance.

The Four R's of Taxation:

 Revenue. The taxes raises money to spend of armies, roads,

schools, and hospitals, and on more indirect government
functions like market regulations or legal systems.
 Redistribution. This refers to the transferring wealth from the
richer sections of the society to the poorer sections.
 Repricing. Taxes are levied to address externalities; for
example, tabacco is taxed to discourage smoking, and a carbon
tax discourages use of carbon based fuels.
 Representation. Rulers tax citizens and citizens demand
accountability from their rulers as the other part of this bargain.

The Branch of Government that is assigned in the

Tax Law

Congress. The congress may, by law, authorize the president to fix

with specified limits, and subject to such limitations and restrictions
as it may impose,, tariff taxes, import and export quotas, tonnage
and wharfage dues, and other duties or imposts within the
framework of the national development program of the government.
(Article VI, Section Section 8, Paragraph 2)

The Branches vis-à-vis the Tax Law

 President. The president shall have the power to veto any
particular item or items in an appreciation, revenue, or tariff bill,
but the veto shall shall not affect the item or items to which he
dies not object. (Article VI, Section 27, Paragraph 2)
 Supreme Court. The supreme court has the power to: review,
revise, reverse, modify, or affirm on appeal or certify, as the law
or the Rules of Court may provide, final judgments or orders of
lower court in "all cases involvement the legality of any tax,
impose, assessment, or toll, or any penalty impose n relation
thereto" (Article VIII, Sec 5, Paragraph 2b).

The Forms of Taxes Imposed on Person and

Property

A、Personal, Capitation, or Poll Taxes

These are taxes of fixed amount upon residents or persons of
a certain class without regard to their property or business.

B、Property Taxes
1　 Real Property Tax - Annual tax that may be imposed by a
province or city or municipality on real property such as land,
building, machinery, and other improvements affixed or attached to
real property.
2　 Estate Tax - a tax on the right of transmitting property at
the time of death and on the privilege that a person is given in
controlling to a certain extent the disposition of his property to take
effect upon death.
3　Gift or Donor Tax - a tax on the privilege of transmitting
one's property or property rights to another or other's adequate and
full valuable consideration.
4　Capital Gain Tax - tax impose on the sale of exchange of
property. Those impose are presumed to have been realize by the
seller for the sale, exchange or other disposition of real property
located in the Philippines, classified as capital assets.

C. Capital Taxes - Theses are the taxes impose on the income

of the tax payers from whatever sources it is derived. Tax on all
yearly profits arising from property possessions, trades, or income.
 D. Excise or License Taxes - Taxes impose on the privilege,
occupation, or business not falling within the classification of poll
taxes or property taxes. These are impose on alcohol products; on
tobacco products; on petroleum products like lubricating oils,
grease, processed gas etc; on mineral products such as coal and
coke and quarry resources; in miscellaneous articles such as
automobiles.

Under this lies two other taxes:

 Documentary Stamp Tax - a tax impose upon documents,

instruments, loan agreements and papers, and upon acceptance
of assignments, sales and transfer of obligation etc.

 Value Added Tax - a tax that is impose any person who, in

course of trade or business sells, barters, exchange, leases,
goods, or properties, renders services, or engages in similar
transactions.