SINGLE PROPRIETORSHIP PARTNERSHIP IN GENERAL PROFESSIONAL

PARTNERSHIP

INCOME TAX a.) Schedular rate TAXABLE AS CORPORATION NOT TAXABLE

OR

b.) Eight percent (8%) tax on

gross sales or receipts and
other non-operating income in
excess of (P250,000.00) in lieu
of the graduated income tax
rates under Section 24(A) and
the percentage tax under
Section 1 16 all under the Tax
Code, as amended.
*The share of an individual
in the distributable net
income after tax of a
general partnership is
subject to a final tax
*The distributive share of the
partners in the net income is
reportable and taxable as
part of the partner’s gross
income subject to the
scheduled rate.

BUSINESS a.) PERCENTAGE TAX (NON-VAT) a.) PERCENTAGE TAX (NON- a.) PERCENTAGE TAX (NON-
TAX when the gross income does VAT) when the gross VAT) when the gross
not exceed P3M. income does not exceed income does not exceed
P3M. P3M.

b.) VALUE ADDED TAX b.) VALUE ADDED TAX b.) VALUE ADDED TAX

b.1) Mandatory- when gross
income exceeds 3M
b2.) Optional- when the
taxpayer elected to be a VAT
registered.
c.) When opted to be tax at 8%,
no business tax
b.1) Mandatory- when
gross income exceeds
3M
b2.) Optional- when the
taxpayer elected to be a
VAT registered.
b.1) Mandatory- when
gross income exceeds 3M
b2.) Optional- when the
taxpayer elected to be a
VAT registered.