SUMMARY OF YOUTUBE VIDEO CONTENTS OF

FUNDAMENTALS OF TAXATION BY REX BANGGAWAN

The primary purpose of taxation is to provide funds or property with which the
government discharges its appropriate functions for the protection and general welfare of the
its citizens. Taxes may be imposed retroactively by law but, unless so expressed by such law,
these taxes must only be imposed prospectively. Individual taxpayers are obligated to pay taxes
to a federal, state, or local government. They may be a resident citizen, non-resident citizen,
resident alien, or nonresident alien who are generally individuals who earn an income from a
salary, commission, fees, etc. Corporate tax includes tax paid by companies or close
corporations, as well as trusts, on their annual income. Two-fold taxpayer’s obligation is filing
and payment of tax under self-assessment method. Withholding tax and remittance of tax
under the withholding tax system is also relevant.

The tax concepts of income are measured in terms of transactions which the business
enterprise enters into with third parties in its operational activities. It is not exempted by law,
constitution, contracts or treaty. Final income tax, capital gains tax, and regular income tax are
under the income tax schemes