BUSINESS TAXATION

Gratuitous Transfer ---> Transfer Taxes

Onerous Transfer ---> Business Taxes

Business Taxes are imposed upon Onerous Transfer & Importation.

Cash
Sales Tax (NICR) Consideration
1) VAT Non Cash
2) OPT
3) Excise Tax

Sales XXX -----> Sales Tax

COS (XXX)
GP XXX
Allowable Ded. (XXX)
Taxable Income (XXX) -----> Income Tax
 Exempt provided it was explicityly stated under the law - e.g. Non Stock non for
Even once or personal yung transaction -> Subject to business tax

Regularity of Conduct
Sales
In the ordinary course of trade or business ----
Non Cash Barter or Exchange
Kahit walang regulari

Personal Transaction ----> Not Subject to Busi

Marginal Income Earner - Kahit regular in cond

[Threshold:Check the GS --> Pag less than P10

Limited to Indivudual
.g. Non Stock non for Profit Educ. Inst. Transfer from exempt to non-exempt enity.

{Ordinary Assets}
Incidental Transactions ---> Subject to Business Tax

trade or business ----> Subject to Business Tax

Kahit walang regularity in conduct - > Pag NRA --> Subject to Business Tax

> Not Subject to Business Tax

- Kahit regular in conduct --> Hindi subhject sa Business Tax

--> Pag less than P100K hindi subject sa Business Tax}

VAT Withholding System

Sales 100
VAT -12% 12
88
IT -25% 25
Net Amount 63
n-exempt enity.

Taxpayer Category is hindi

Importante on determining
whether subject to business tax
or not.
It doesn't matter kahit Tax
exmpt or not / Private or
Govnt.
EXCISE TAX
Applicable to Manufacturer and Importer
Sin products / non-essential / luxurious products

eg. Wine & Liquour

Tobacco
Automobile
Perfumes and Jewerly

100 L of Wines ---P100,000

30 Php per Liter
10% Ad valorem excise tax

Value of the products 100,000.00

Excise -Specific 3,000.00
Excise - Ad valorem 10,000.00
Product Cost 113,000.00
VAT

General Concepts

Vatable
Taxpayer - Vat Registered

Exempt

Computation

Sales - output tax

Purchase - Input tax
Output tax less input tax = Vat Payable

Sales - 100
VAT 12 12
Vat Inclusive 112

Purchases 50
VAT 6 6
Vat Inclusive 56 6 Vat Payable

100
12
12% VAT Sales of Service --> Gross Receipt
Sales of Goods --> Gross Sale
0% VAT - Zero Rated Transaction Lease
Importation

Purchase of Sales and Service

Purchase of Capital Goods
Presumptive Input Tax
Transitional Input Tax
 Service --> Gross Receipt
Goods --> Gross Sale
Output Tax

e of Sales and Service

e of Capital Goods
Input Tax
ptive Input Tax
onal Input Tax
OPT

General Concepts

Specific yun subject sa OPT

1. Exempt from VAT
2. Domestic Carrier
3. International Carrier
4. Franchise
5. Overseas Communication
6. Banks and Non Banks
7. Life Insurance
8. Amusement
9. SOS - Traded

Computation

TB X TR = TD