SUMMARIZED RULES ON PERCENTAGE TAXES UNDER THE NIRC (SEC.

116 TO 127)

NIRC Non-VAT Registered Person Taxable Base Tax Rate

Section 116 Vat Exempt Persons in Sec. l09(V)
a. Seller of Goods Gross Sales Price of Goods 3%
b. Seller of Services Gross Receipts from Sales of 3%
Services - labor, materials,
parts,
Section 117 Domestic Common Carriers
a. Domestic Common Carriers by Gross Receipts from Sales of 3%
Land only for the transport of Services - passengers fares
passengers
b. Keepers of Garage Gross Receipts from Sales of 3%
Services - labor, materials,
parts,
Section 118 International Common Carriers
a. International Air Carriers for the Gross Receipts from Sales of 3%
transport of passengers, goods Services - passengers, cargoes,
cargoes goods,
b. International Shipping Carriers Gross Receipts from Sales of 3%
for the transport of passengers, Services - passengers, cargoes,
goods cargoes goods,
Section 119 Franchise Grantees
a. Water Utility Gross Receipts from Sales of 2%
b. Gas Utility Services - utilities; water, gas,
c. Radio Broadcasting Station Gross Receipts from Sales of 3%
d. Television Broadcast Station Services - airtime, etc.
Section 120 Overseas Communications Gross Payments/Receipts from 10%
Originating from the Philippines to Sales of Services - dispatches,
abroad messages, etc.
Section 121 Banks, Non-Bank Financial Gross Receipts from Sales of 0,1, 5,
Intermediaries Services - income items 7%

Section 122 Other Non-Bank Financial Gross Receipts from Sales of 1%, 5%
Intermediaries Not Performing Services – income
Quasi-Banking Functions
Section 123 Life Insurance Company Gross Receipts from Sales of 2%, 0%
Services(life insurance
premium)
Section Agents of Foreign Insurance
124 Companies
a. Indirect Insurance by Agents Gross Receipts from Sales of 4%, 0%
Services (non-life insurance
premiums)
b. Direct Insurance by property Gross Payments/Receipts from 5%
owner Sales of Services (non-life
insurance premiums)
Section 125 Amusements Places
a. Boxing Gross Receipts from Sales of 0%, 10%
Services – income
b. Professional Basketball Gross Receipts from Sales of 15%
Services – income
c. Clubs, Cabarets, Cockpits Gross Receipts from Sales of 18%
Services - income
d. Jai-Alai, Racetracks Gross Receipts from Sales of 30%
Services - income
Section 126 Winners in Horse races
 NIRC Non-VAT Registered Person Taxable Base Tax Rate
a. Owners of Winning Horses Gross Winnings on Horses 10%
b. Bettors Gross Winnings on Bets 4%, 10%
Section 127 Seller, Transferor of Stocks
a. Through the Local Stock Gross Sales Price of Stocks 6/10 of
Exchange 1%
b. Through the Initial Public Gross Sales Price of Stocks 1,2,4%
Offerings
c. Through the Secondary Public Gross Sales Price of Stocks 6/10 of
Offerings 1%