TAXATION | OTHER PERCENTAGE TAX

What is a Percentage Tax?

Percentage tax is a business tax imposed on persons, entities, or transactions specified under Sections
116 to 127 of the National Internal Revenue Code of 1997 (also known as Tax Code), as amended, and
as required under special laws.

Who are required to file a Percentage Tax?

Persons refer to individuals and non-individuals, which include, but are not limited to, estates, trusts,
partnerships, and corporations.

1. Persons, who are not VAT-registered, who sell goods, properties or services, whose
annual gross sales and/or receipts do not exceed one million nine hundred nineteen thousand five
hundred pesos (Php1,919,500)1 and are exempt from value-added tax (VAT) under Section 109
(BB) of the National Internal Revenue Code, as amended by Republic Act (RA) No. 10963. (Sec.
116)

2. Persons who lease residential units where the monthly rental per unit exceeds twelve
thousand eight hundred pesos (Php12,800.00 2) but the aggregate of such rentals of the lessor
during the year one million nine hundred nineteen thousand five hundred pesos (Php1,919,500) 3
(Sec. 116)

3. Persons engaged in the following industries/transactions:

a. Cars for rent or hire driven by the lessee, transportation contractors, including persons who
transport passengers for hire, and other domestic carriers by land for the transport of passengers
(except owners of bancas and owners of animal-drawn two-wheeled vehicle) and keepers of
garages (Sec. 117)

Common carriers (Sec. 117) – refers to the persons, corporations, firms or associations engaged in the
business of carrying or transporting passengers or goods, or both by land for compensation, offering their
services to the public, and shall include transportation contractors.

Formula:
Tax base (Actual Gross Receipts vs Minimum Gross Receipts whichever is higher) xx
Rate 3%
Common Carriers Tax xx

DOMESTIC CARRIERS Year 1978 Old Minimum Year 2006 Updated Minimum
Gross Quarterly Receipts Gross Quarterly Receipts
Jeepney for hire –
1. Manila and other cities P2,400 P65,700
2. Provincial 1,200 32,900
Public Utility Bus –
1. Not exceeding 30 Passengers 3,600 98,600
2. Exceeding 30 Passengers but not 6,000 164,200
exceeding 50 Passengers
3. Exceeding 50 Passengers 7,200 197,100
Taxis –
1. Manila and other cities 3,600 98,600
2. Provincial 2,400 65,700
1
Under TRAIN act, the VAT threshold of Php1,919,500 was increased to Php3,000,000
2
Under TRAIN act, the VAT threshold of Php12,800 was increased to Php15,000
3
Please see footnote 1
 TAXATION | OTHER PERCENTAGE TAX

Car for hire with chauffer 3,000 82,100

Car for hire without chauffer 1,800 49,300

Note: The application of the updated Minimum Quarterly Receipts has been suspended by
Congress

b. International air/shipping carriers doing business in the Philippines on their gross receipts
derived from transport of cargo from the Philippines to another country (Sec. 118)

Gross receipts – shall include, but shall not be limited to, the total amount of money or its equivalent
representing the contract, freight/cargo fees, mail fees, deposits applied as payments, advance payments
and other service charges and fees actually or constructively received during the taxable quarter from
cargo and/or mail, originating from the Philippines in a continuous and uninterrupted flight, irrespective of
the place of sale or issue and the place of payment of the passage documents. (RA No. 10378, RR No.
15-2013)

Formula:
Gross Receipts xx
Rate 3%
Common Carriers Tax xx

c. Franchise grantees of – (Sec. 119)

i. radio and/or television broadcasting companies whose annual gross receipts for the preceding
year do not exceed Php 10,000,000.00 and did not opt to register as VAT taxpayers, and

ii. gas and water utilities.

Formula:
Gross Receipts xxx
Rate x%*
Franchise Tax xxx

* Rate:
 Gas and water – 2%
 Radio and/or Television Broadcasting Companies – 3%

a. Overseas dispatch, message or conversation transmitted from the Philippines by

telephone, telegraph, tele-writer exchange, wireless and other communication equipment
services, except those transmitted by: (DING) (Sec. 120)

i. The Philippine Government or any of its political subdivisions or instrumentalities;

ii. Diplomatic services;

iii. Public international organizations or any of their agencies based in the Philippines enjoying
privileges, exemptions and immunities which the Philippine Government is committed to
recognize pursuant to international agreement; and

iv. News services for messages which deal exclusively with the collection of news items for, or
the dissemination of news item through, public press, radio or television broadcasting or a
newsticker service furnishing a general news service similar to that of the public press.

Persons Liable – THE CALLER

 TAXATION | OTHER PERCENTAGE TAX

Formula:
Payment for Services xxx
Rate 10%
Overseas Communication Tax xxx

b. Banks, non-bank financial intermediaries performing quasi-banking functions (Sec.

121)

Banks or Banking Institutions – refer to those entities as defined under Section 3 of Republic Act No.
8791, otherwise known as the General Banking Law of 2000 or more specifically, to entities engaged in
the lending of funds obtained in the form of deposits. The term “banks” or “banking institutions” are
synonymous and interchangeable and specifically include universal banks, commercial banks, thrift banks
(savings and mortgage banks, stock savings and loan associations, and private development banks),
cooperative banks, rural banks, Islamic banks and other classifications of banks as may be determined by
the Monetary Board of the BSP (RR No. 8-2008)

Non-bank Financial Intermediaries – shall refer to persons or entities whose principal function include the
lending, investing or placement of funds or evidences of indebtedness or equity deposited with them,
acquired by them or otherwise coursed through them, either for their own account or for the account of
others. This includes all entities regularly engaged in the lending of funds or purchasing of receivables or
other obligations with funds obtained from the public through the issuance, endorsement or acceptance of
debt instruments of any kind for their own account, or through the issuance of certificates, or of
repurchase agreements, whether any of these means of obtaining funds from the public is done on a
regular basis or only occasionally.

Quasi-banking Functions - shall refer to the borrowing of funds from twenty (20) or more personal or
corporate lenders at any one time, through the issuance, endorsement or acceptance of debt instruments
of any kind, other than deposits, for the borrower’s own account or through the issuance of certificates of
assignment or similar instruments, with recourse, or of repurchase agreements for purposes of relending
or purchasing receivables or other similar obligations. Provided, however, that commercial, industrial and
other non-financial companies, which borrows funds through any of these means for the limited purpose
of financing their own needs or the needs if their agents or dealers, shall not be considered as performing
quasi-banking functions.
 TAXATION | OTHER PERCENTAGE TAX

Net gain/or loss from foreign currency:

a. Computation is cumulative, i.e. net gain/loss to date less gain/loss to date of the previous month/s to
arrive at the net gain/loss for the current month
b. Net loss from foreign currency for a month should not be deducted from the other items of receipts and
c. Cumulative computation covers only one year

c. Other non-bank financial intermediaries (including pawnshops as clarified under

Revenue Regulations [RR] No. 10 – 2004) (Sec. 122)
 TAXATION | OTHER PERCENTAGE TAX

d. Person, company or corporation (except purely cooperative companies or

associations) doing life insurance business in the Philippines (Sec. 123)

The following premiums are exempt from tax:

1. Premiums refund within 6 months after payment on account of rejection of risk or returned for other
reason to a person paid the tax

2. Premiums paid upon re-issuance by a company that has already paid the tax

3. Premiums collected or received by any branch of a domestic corporation, firm, or association doing
business outside the Philippines, on account of any life insurance of the insured who is a non-resident, if
any tax on such premiums is imposed by the foreign country where the branch is established

4. Premiums collected or received on account of any reinsurance, if the insured, in case of personal
insurance, resides outside the Philippines, if any tax on such premiums is imposed by the foreign country
wherethe original insurance has been issued or perfected

5. Portion of the premiums collected or received by the insurance companies or variable contracts in
excess of the amounts necessary to insure the lives of the variable contract workers (as defined in Sec.
232(2) of Presidential Decree No. 612)

6. Premium collected by a purely cooperative company or association

Formula:
Premiums Collected xxx
Rate 2%
Premiums Tax xxx

e. Fire, marine or miscellaneous agents of foreign insurance companies (Sec. 124)

Agents of NRFC engaged in insurance business

Formula:
Premiums Collected xx
Rate 4%
 TAXATION | OTHER PERCENTAGE TAX

Premiums Tax xx
Owners of property directly obtaining insurance to NRFC engaged in insurance companies

Formula:
Premiums Collected xx
Rate 5%
Premiums Tax xx

f. Proprietor, lessee or operator of cockpits, cabarets, night or day clubs, boxing

exhibitions, professional basketball games, Jai-Alai and racetracks, including videoke bars,
karaoke bars, karaoke televisions, karaoke boxes and music lounges as clarified under Revenue
Memorandum Circular (RMC) No. 18 – 2010 (Sec. 125)

Formula:
Gross Receipts xxx
Rate xx%
Amusement Tax xxx

Gross receipts – embraces all the receipts (such as from television, radio and motion picture rights, if any)
of the proprietor, lessee or operator of the amusement places

Rates:
Amusement Places Tax Rate
Place for Boxing Exhibition 0% or 10%
Place for professional basketball games 15%
Cockpits, cabarets, night or day clubs 18%
Jai-alai and racetracks 30%

Requisites for exemption of boxing exhibitions:

1. World or Oriental Championships is at stake
2. One of the contenders is a citizen of the Philippines and
3. Promoted by citizens of the Philippines or by a corporation or association at least sixty percent (60%) of
the capital of which is owned by such citizen

g. Winnings or 'dividends' in horse races (Sec. 126)

Owner of the winning horse

Formula:
Prize/Winnings xxx
Rate 10%
Tax on Winnings xxx

Bettor in a horse race or jai-alai

Formula:
Gross Winnings xxx
Less: Cost of the Winning Ticket (xx)
Net Winnings xxx
Rate xx%*
Tax on Winnings xxx

*Rate:
Ordinary Winnings – 10%
TAXATION | OTHER PERCENTAGE TAX

Special Winnings – (Double, Forecast, Quinella, Trifecta) – 4%

h. Stock Transactions (Sec. 127)
Kinds:
1. Tax on Sale, Barter or Exchange of Shares of Stock LISTED AND TRADED THROUGH the Local
Stock Exchange

Formula:
Gross Selling Price xxx
Rate .0054
Stock Transaction Tax xxx

2. Tax on Shares of Stock Sold or Exchanged through Initial Public Offering

Formula:
Gross Selling Price xxx
Rate xx*
Stock Transaction Tax xxx

*Rate:
Rate will depend on this ration (shares sold/outstanding share after the sale)
Rate:
25% and below – 4%
> 25% but not > 33 1/3% - 2%
>33 1/3% - 1%

When to File/Pay

In general – 20 days from the end of the month

Exceptions:

1.For tax on sale of shares of stocks listed and traded through the local stock exchange (LSE) – within
five (5) banking days from the date of collection / date withheld by the broker

2.For tax on shares of stocks sold or exchanged through primary offering - within 30 days from the date
of listing in the LSE

3.For tax on shares of stocks sold or exchanged through secondary public offering - within five (5)
banking days from the date of collection

4. Amusement tax and Overseas Communication Tax – 20 days after the end of the quarter

4
Under the TRAIN Act, the rate was changed from ½ of 1% or .005 to 6/10 of 1% or .006
TAXATION | OTHER PERCENTAGE TAX

QUIZZER

Q1: Which of the following statements is incorrect?

A. The percentage tax is basically on sale of services.
B. The percentage tax may be imposed on a sale of goods.
C. The percentage tax may be imposed together with the value-added tax.
D. The percentage tax may be imposed together with excise tax.

Q2:
BUSINESS VAT REGISTRATION ANNUAL SALES
1. Barbershop VAT registered P 800 000
2. Restaurant Not VAT registered 800 000
3. Department store VAT registered 2 700 000
4. Lodging house Not VAT registered 2 800 000
5. Rice retailer Not VAT registered 2 650 000
6. Fertilizer distributor Not VAT registered 2 500 000

Which of the above establishments are not subject to VAT?

A. 2, 4 and 5 C. 1, 2 and 5
B. 2 and 6 only D. 2, 5 and 6

Q3: Che-che is a CPA. The following are her data during the period (amounts are net of tax):
Salary as accounting teacher and reviewer P 20 000
Motel business (amounts are exclusive of tax):
Gross receipts from business (VAT registered) 250 000
Discounts 25 000
Purchases:
From VAT-registered suppliers 28 000
From non-VAT suppliers 27 500
Business expenses (60% VAT) 25 000
Practice of profession (not VAT-registered):
Gross receipts 47 500
Purchases
From VAT registered sellers 21 200
From non-VAT sellers 18 000
Expenses- profession 24 000

1. The VAT payable is-

TAXATION | OTHER PERCENTAGE TAX

A. P 2 640 C. P 3 480
B. 3 336 D. 21 840
2. The percentage tax payable is-
A. P 225 C. P 201
B. 1 425 D. 681

Q6: A common carrier by land is engaged in the transport of passengers, goods and cargoes. He is
not VAT-registered. What business taxes is he liable to the government?
A. 12% VAT
B. 3% common carrier’s tax
C. 3% tax on VAT-exempt persons on gross receipts from transport of goods and cargoes and 3%
common carrier’s tax on gross receipts from transport of passengers.
D. 12% VAT on gross receipts from transport of goods and cargoes and 3% common carrier’s tax
on gross receipts from transport of passengers.

Q7: An international carrier is subject to the following tax-

A. 12% value-added tax and ordinary income tax on gross receipts within the Philippines.
B. 0% VAT and 2.5% income tax on gross receipts within the Philippines.
C. 3% other percentage tax on gross receipts
D. 3% other percentage tax on gross receipts and ordinary income tax on gross income.

Q8: The Socsksargen Group of Companies is engaged in different lines of business in region XII. Soc
Corporation (not VAT registered) is engaged in the business of radio and television broadcasting.
Ksar Corporation is a franchisee to supply water in the whole province of Sultan Kudarat and Gen
Corporation has a franchise to generate and distribute electricity in the entire area covered by
General Santos City. During the month, it had the following receipts:
Socs Corporation P 360 000
Ksar Corporation 4 800 000
Gen Corporation 8 250 000

How much is the total franchise tax on Socsksargen Group of Companies?

A. P 106 800 C. P 345 500
B. 175 800 D. 96 000

Q9: Malansa Company is a holder of a franchise to sell water. During the month, it had the following
data:
Gross receipts from the sale of water to the public P 3 000 000
Penalties imposed and collected on illegal connections 150 000
Rent of its heavy equipment to a private subdivision developer 50 000
Sale of scrap materials 20 000

The franchise tax is-

TAXATION | OTHER PERCENTAGE TAX

A. P 61 400 C. P 60 000
B. 60 400 D. 61 000

Q10: DYYY is a franchisee to operate a radio station. The data in its books are as follows:

Gross receipts last year P 8 000 000

Gross receipts during the month 700 000

Payment to VAT suppliers of goods and services 300 000

Payment to non-VAT suppliers of goods and services 20 000

The business tax payable if it is not VAT-registered/VAT registered:

Not VAT-registered VAT-registered
A. P 261 000 P 48 000
B. 261 000 24 000
C. 21 000 48 000
D. 21 000 24 000

Q13: the Bayani Telephone Company, a franchisee to operate a landline telephone, billed
TellyBabad the following:
Amount collected on calls:
Incoming calls (5% toll charges billed to local receiver) P 4 300
Outgoing overseas calls 9 350
Domestic long-distance calls 1 200
Monthly bills on subscribers 525

The overseas communication tax on TellyBabad is-

A. P 1 280.00 C. P 850.00
B. 1 452.50 D. 871.50

Q14: Filipinas Life Insurance Company had the following data on collections of premiums and
disbursements during the month:
Life insurance Non-life insurance
Cash collections P 150 000 P 145 700
Checks 45 000 34 600
Accounts receivable 25 200 58 900

Payments of expenses to VAT businesses 43 000

Payments of expenses to non-VAT businesses 35 000
TAXATION | OTHER PERCENTAGE TAX

The amounts indicated pertaining to VAT transactions do not include the value-added tax.
1. The premium tax due is-
A. P 11 010 C. P 9 750
B. 14 785 D. 3 900
2. The VAT payable is-
A. P 17 484 C. P 16 476
B. 12 324 D. 12 276

Q15: Boxing exhibitions shall be exempt from amusement tax when the following conditions are
present:
1- Involves World, Oriental or Philippine Championships in any division.
2- Both of the contenders are citizens of the Philippines.
3- Promoted by citizens of the Philippines, or association at 60% of the capital is owned by
Filipino citizens.
A. All of the three conditions are correct.
B. None of the three conditions are correct.
C. Only conditions 1 and 2 are correct.
D. Only condition 3 is correct.

Q16:
Revenues from the current period P 400 000
Collections during the period of:
Revenues of prior periods 50 000
Revenues of the current period 300 000
Revenues of the succeeding period (advances) 10 000

1. The business tax if a domestic common carrier by land for the transport of passengers:
A. P 12 000 C. P 10 800
B. 9 000 D. 22 800
2. The business tax if a night club:
A. P 54 000 C. 72 000
B. 64 800 D. 136 800
3. The business tax if a race track:
A. P 120 000 C. P 90 000
B. 228 000 D. 108 000

Q17: A horseracing aficionado has the following winnings during a particular race day:
Total winnings P 10 000
Cost of winning tickets 500
The tax on winnings is:
A. P 1 000 C. P 950
B. 400 D. 380
TAXATION | OTHER PERCENTAGE TAX

Q18: A corporation where at least fifty percent (50%) in value of the outstanding capital stock or
at least fifty (50%) of the total combined voting power of all classes of stock entitled to vote is
owned directly or indirectly by or for not more than twenty (20) individuals.
A. Closely held corporation C. Foreign corporation
B. Publicly held corporation D. domestic corporation

Q19: Yveth sold the following shares of stocks of a domestic corporations, thru her broker.
Cost Selling Price Date of Sale
Stocks of A Corporation P 100 000 P 180 000 10-03-12
Stocks of B Corporation 350 000 320 000 10-20-12

The total percentage tax if the stocks are:

Listed & traded Not listed & traded
A. P 2 500 P 8 000
B. 2 250 5 000
C. 2 500 None
D. 2 250 8 000

MULTIPLE CHOICE QUESTIONS

1. Which of the following statements in incorrect?
A. A taxpayer whose annual gross sales and/or receipts exceed P 1 919 500 shall pay VAT even
if he is not VAT-registered.
B. A taxpayer whose annual gross sales and/or receipts do not exceed P 1 919 500 but who is
VAT-registered shall pay VAT.
C. Percentage tax may be imposed together with VAT.
D. Percentage tax may be imposed together with excise tax.
2. First statement: Persons whose transactions are exempt from value-added tax because their
gross sales and/or receipts do not exceed P 1 919 500 may voluntarily apply for registration
under the VAT system.
Second statement: A VAT-registered person whose gross sales and/or receipts for two (2)
consecutive years did not exceed P 1 919 500 may apply for cancellation of VAT registration and
revert back to being VAT-exempt.
A. Both statements are correctC. only the first statement is correct
B. Both statements are incorrect D. only the second statement is correct
3. A seller of goods is not VAT-registered. His annual gross sales amount to P 1 919 500. To what
business tax is he liable?
A. 3% tax on VAT-exempt persons C. 3% common carrier’s tax
B. 12% value-added tax D. not subject to any percentage tax
4. Marino is an owner of a small variety store. His gross sales in any one year do not exceed P 1
919 500. He is not VAT-registered. The following sata are taken from the books of the variety
store for the quarter ending March 31, 2013:
Merchandise inventory, Dec. 31, 2012 P 10 000
Gross sales 45 000
Purchases from VAT-registered supplier 38 500
TAXATION | OTHER PERCENTAGE TAX

The percentage tax due is:

A. P 1 000 C. 4 500
B. 1 350 D. none

Items 5 and 6 are based on the following information:

In the second quarter of 2013, a taxpayer engaged in the sale of services and whole annual gross
receipts do not exceed P 1 919 500 has the following data:
Accounts receivable, beginning of the quarter P 50 000
Sales during the quarter 100 000
Accounts receivable, end of quarter 75 000
Purchase of supplies, total invoice amount 11 200
5. The percentage tax due for the quarter is:
A. P 2 250 C. P 1 914
B. 3 000 D. 2 664
6. Assuming the taxpayer is VAT-registered, the VAT payable is:
A. P 2 250 C. 7 656
B. 9 000 D. 7 800
7. Which of the following franchise grantees is subject to the franchise tax?
A. Franchise on radio and/or television broadcasting companies the annual gross receipts in
the preceding year exceed P 10 000 000.
B. Franchise on gas and water utilities.
C. Franchise on toll road operations.
D. Franchise on telephone communications.
8. Franchise grantees of gas and water utilities are subject to a franchise tax of:
A. 2 % C. 4%
B. 3% D. 5%
9. The franchise tax of grantees of radio and/or television broadcasting whose annual gross
receipts of the preceding year do not exceed P 10 000 000 shall be:
A. 2% of the gross receipts C. 10% of the gross receipts
B. 3% of the gross receipts D. 12 % of the gross receipts
10. Kapatid is a radio-TV broadcasting franchise grantee. During the preceding year, its gross
receipts did not exceed P 10 000 000. During the first quarter of the current year, it has the
following data:
Gross receipts, sale of airtime P 2 000 000
Gross receipts, use of radio station’s communication facilities 500 000
Business expenses 700 000

The franchise tax due for the quarter is:

A. P 60 000 C. 75 000
B. 50 000 D. 54 000
11. Beneco is a holder of franchise to distribute and sell electricity. In a particular quarter, its gross
receipts amounted to P 2 000 000 from distribution and sale of electricity. It has also receipts
from the lease of its auditorium and theater amounting to P 600 000. The value-added tax or
percentage tax due for the quarter is.
A. P 40 000 percentage tax C. 52 000 percentage tax
B. 72 000 value-added tax D. 312 000 value-added tax
12. The operator of one of the following places is not subject to amusement tax:
TAXATION | OTHER PERCENTAGE TAX

A. Cockpits C. bowling alleys

B. Racetracks D. KTV karaoke joints
13. Gloria invested P 500 000 in the shares of stock of Tabako Corp. the corporation’s shares are
listed and are traded in the local stock exchange. Gloria sold the shares for P 350 000 through
the local stock exchange. The percentage tax on the sale is:
A. P 6 000 C. 1 750
B. 3 500 D. 2 500
14. Using the same data in no. 24 and assuming that Gloria sold the shares to Bayani, a direct buyer,
the percentage tax on the sale is:
A. none C. P 1 750
B. P 2 500 D. 10 000
15. One of the following is subject to common carrier’s tax.
A. Owners of bancas
B. Owners of animal-drawn to-wheeled vehicles
C. Common carriers by air or water for transport of passengers, goods or cargoes
D. Common carriers by land for transport of passengers
16. One of the following statements is wrong. Operators of transport facilities by land are:
A. Subject to the value-added tax on gross receipts from transporting passengers.
B. Subject to the value-added tax on gross receipts from transporting goods and cargoes.
C. Subject to percentage tax on gross receipts from transporting passengers.
D. Subject to the value-added tax on gross receipts from renting out its transporting facilities.
Items 17 and 18 are based on the following information:
Saulod is a common carrier with passenger buses and cargo trucks. For the month of June 2013, it
had the following data on revenues and receipts, taxes not included:
For transporting passengers, gross revenues and receipts of P 330 000.
For transporting cargoes, gross revenues of P 220 000, of which P 200 000 was received.
For renting out to the MMDA its towing trucks, gross receipts of P 50 000, representing P 10 000
from gross revenue of the quarter ending March 31 and P 40 000 for the month of june.
17. The percentage tax is:
A. P 17 400 C. 16 500
B. 9 900 D. 15 900
18. The output value-added tax is:
A. P 24 000 C. 25 000
B. 28 800 D. 30 000
19. MV Black Mountain is a common carrier by sea. During a particular quarter, its receipts consists
of the following:
Gross receipts, without tax:
Transport of passengers P 1 000 000
Transport of goods 1 500 000
Transport of cargoes 500 000
The output VAT and OPT due for the quarter are:
Output VAT OPT due Output VAT OPT due
A. P 240 000 P 30 000 C. P 0 P 90 000
B. 360 000 0 D. 360 000 30 000
20. One of the following is not subject to the 3% percentage tax.
A. International air carrier doing business in the Philippines.
B. International shipping carrier doing business in the Phils.
C. Domestic carriers by land and keepers of garage.
TAXATION | OTHER PERCENTAGE TAX

D. Franchise grantee of city gas and water utilities.

21. A telephone company, VAT-registered, provides services for domestic and overseas calls. What
business taxes are due from the services offered?
I. Value-added tax for domestic calls.
II. Overseas communications tax for overseas calls.
A. Yes to I and II C. yes to I only
B. No to I and II D. yes to II only
22. Banks and non-bank financial intermediaries performing quasi-banking functions are subject to:
A. Value-added tax C. Franchise tax
B. Gross receipts tax D. Amusement tax
23. Which of the following is subject to 0% gross receipts tax?
A. Gross receipts on interest, commissions and discounts from lending activities and income
from financial leasing.
B. Dividends and equity shares in net income of subsidiaries.
C. Royalties, rentals of property, real or personal, profits from exchange and all other items
treated as gross income in the Tax Code.
D. Net trading gains within the taxable year on foreign currency, debt securities, derivatives
and other similar financial instruments.
24. First statement: Just like value-added tax, percentage taxes are paid on a quarterly (cumulative)
basis.
Second statement: Generally, every person liable to pay the percentage taxes shall file a
monthly return within 20 days after the end of each taxable month.
A. Both statements are correct C. only the first statement is correct
B. Both statements are incorrect D. only the second statement is correct
25. First statement: The monthly percentage tax returns of taxpayers shall be filed, and taxes paid,
not later than the 20th day following the end of the month.
Second statement: With respect to taxpayers enrolled with EFPS, the deadline for e-filing the
monthly percentage tax return and e-paying the tax thereon shall be 5 days later than that set in
the first statement.
A. Both statements are correct C. only the first statement is correct
B. Both statements are incorrect D. only the second statement is correct
26. Which of the following percentage taxes are paid on a quarterly basis?
I. Overseas communications tax III. Taxes on winnings
II. Amusement tax IV. Stock transactions tax
A. All of the above C. III and IV only
B. I and II only D. II only
27. First statement: Other percentage taxes are indirect taxes that can be passed on by person
required to pay to another person who shall bear the burden of the tax.
Second statement: The persons liable to overseas communication tax may or may not be
engaged in trade or business.
A. Both statements are correct C. only the first statement is correct
B. Both statements are incorrect D. only the second statement is correct
TAXATION | OTHER PERCENTAGE TAX