Course Title Business Taxes

Course Code AE 25

Course Description This course is the study of transfer and business taxes. This
course introduces the students to the provisions of the Tax
Reform Act of 1997 (R. A. No. 8424) as amended by RA 10963 or
the TRAIN Law on estate and donor’s taxes, value-added taxes,
percentage taxes, excise taxes, and documentary stamp tax. This
course is offered to accountancy and business students to enable
them gain adequate and sound knowledge of transfer and
business taxes. This course aims to prepare the accountancy and
business students for the CPA and other government licensure
examinations.
Course Credits 3 units
Contact Hours 3 hours per week
Prerequisite

Course Outline
1.
1. Transfer taxes
1.1 Estate taxes
1.1.1 Gross estate
1.1.2 Deductions allowed to estate (ordinary and special deductions)
1.1.3 Tax credit for estate tax paid to a foreign country
1.1.4 Filing of estate tax returns, payment of estate tax requirements
1.1.5 Attachments to the estate tax return, including CPA certificate
1.2 Donor’s tax
1.2.1 Gross gift
1.2.2 Exemption of certain gifts and other deductions from gross gift
1.2.3 Tax rates in general and when the donee is a stranger
1.2.4 Filing of donor’s tax returns, payments and requirements
2. Value Added Tax
2.1 VAT-subject transactions
2.1.1 Sale of goods or properties
2.1.2 Sale of services and lease properties
2.1.3 Importation
2.2 VAT exempt transactions
2.3 Input Value Added Taxes
2.3.1 Passed-on VAT
2.3.2 Transitional VAT input
2.3.2.1 Presumptive VAT input
2.3.2.2 Withholding VAT (creditable and final)
2.3.2.3 Excess VAT input in previous return
2.1 Refund of VAT input
 2.2 Compliance requirements
3. Percentage Taxes
3.1 Taxpayer, tax base and tax rates
3.2 Tax on persons exempt from VAT
3.3 Tax on domestic or international carrier (including exemptions)
3.4 Tax on franchise
3.5 Overseas communications tax (including exemptions)
3.6 Tax on banks and non-bank financial intermediaries performing quasi-
banking functions
3.7 Tax on other non-bank financial intermediaries
3.8 Tax on life insurance
3.9 Tax on agents of foreign insurance companies
3.10 Amusement taxes
3.11 Tax on winnings
3.12 Stock transaction tax
3.13 Returns and payment of percentage tax (regular filing)
4. Local direct taxes
4.1 Community tax
4.2 Real estate tax
4.3 Other property taxes
5. Additions to tax
5.1 Surcharges (late filing/payment, wrong venue, willful neglect, false or
fraudulent returns)
5.2 Interests (on deficiency, on delinquency, on extended payments)
5.3 Compromise penalties, amount to be specified in the problem.
6. Tax planning and the application of appropriate tax planning measures
7. The use of computers for tax planning and for the preparation of tax returns
(electronic filing)
8. Ethical considerations – tax avoidance and the minimization of tax liabilities vs.
tax evasion
9. Road taxes
10. National insurance and social security schemes – SSS and GSIS