Other Percentage Tax

Particulars Rate Explanation

1. Not VAT 3% - Pre-CREATE law -Applied in Gross Sales (must be net of sales
registered (before July 2020) returns and allowances, sales discounts)
entity

1% - CREATE law
(applicable only from July
2020 to June 30, 2023)

2. Common 3% -Tax base is the higher between actual quarterly

Carrier Tax gross receipts and minimum quarterly receipts
(CCT) -Applicable only to land passengers serviced by
local companies (not cargoes)

3. Percentage 3% -Only applicable to transport of goods by

Tax on international shipping and aviation companies
International (including collections from excess baggage)
Carriers
4. Franchise 2% -Does not include activities not under the
taxes for franchise
water,
utilities, etc.
5. Franchise 3% -Applicable to non-VAT registered entities
taxes for meaning they have less than 10M gross receipts
radio, TV, from the previous year
broadcasting
companies -Does not include activities not under the
franchise
6. Overseas 10% -Applicable only to calls made locally to
Communicatio international points and also billed locally
n Tax
Exemptions:
1. Calls made by the government
2. Diplomatic services calls
 3. International Organizations
4. News Services
7. Dividends, 0% or 5% -0% if performing quasi-banking functions
Equity Income -5% if not performing quasi-banking functions
in Subsidiary
8. Rentals of 7% or 5% -7% if performing quasi-banking functions
Property, -5% if not performing quasi-banking functions
Rentals of
Safety Deposit
Boxes
9. Interest 7% or 5% -7% if performing quasi-banking functions
Income on -5% if not performing quasi-banking functions
Bank Deposits
-Gross up before applying 7%
10. Trading Gains 7% or 5% -7% if performing quasi-banking functions
-5% if not performing quasi-banking functions
11. Interest in 5% or 1% -5% for short term (five years and below
Bank Loans maturity)
-1% for long term (above five years maturities)

-If GRT on interest on loans is passed-on to

clients – compute for the applicable rate (5% or
1%) then multiply by 7% or 5% whichever is
applicable
12. Preterminatio Procedural
n of loans 1. Compute taxes
on interest from
loans
2. Make tables on
the actual and
preterminated
payments
3. Apply tax on
pretermination
fees (7%)
4. Add
Pretermination
payments and
pretermination
fees tax less total
actual payments
13. Premiums Tax 2% -Not applicable for reinsurance premiums and
foreign companies not residing in the
Philippines
-Does not include premiums refunded within 6
months after payment
14. Amusement 18% - night and day
 Tax clubs, cabarets
15% - Basketball games
10% - boxing exhibitions
30% - Jai-Alai and
racetracks (all receipts)
15. Tax on 10% - Bettor based on
Winnings winnings (winnings – cost
of ticket)
4% - for bettors of
double, forecast, quinella
and trifecta bets
(winnings)
10% - owners of race
horses on winnings/
prizes
16. Stock 0.6% - on gross selling
Transaction price
Tax For IPO to be applied in
the gross selling price:

Excise Tax

Excise taxes - apply to goods manufactured or produced in the Philippines for domestic sales or
consumption or for any other disposition and to things imported as well as services performed in the
Philippines

Excise tax:

a. Specific tax - excise taxes based on weight or volume capacity or any other physical unit of
measurement
b. Ad valorem tax - tax imposed and based on selling price or other specified value of the good
A. Alcoholic Beverages
a. Distilled Spirits
 b. Wines

c. Fermented Liquors

B. Tobacco Products
a. Heated Tobacco Products

b. Vapor Products

i. Nicotine Salt

ii. Conventional Free base Nicotine

C. Cigars and Cigarettes
a. Cigars

b. Cigarettes packed by hand

 c. Cigarettes packed by machine

d. Tobacco Products

D. Petroleum
E. Importation of Vehicles

F. Excise tax on Minerals

 G. Sweetened Beverages

H. Services

DST:
*If less than 200,000 considered as personal use and not subject to DST

*If stock traded in PSE exempted from DST

*DST rate for no par share transfer – 50%

*DST rate for the sale, agreements to sell, memoranda of sales, deliveries or transfer of shares or
certificates of stock - .0075

Life insurance exceeding 1,000,000 – 200 pesos DST

Policies on insurance on property - 0.125 pesos DST

Leases and other hiring agreements shall be imposed with a DST of P6.00 for the first P2,000, or
fraction thereof, and additional P2.00 for every P1,000 or fraction thereof, in excess of the first
P2,000 per year. 

(Contract to Sell) On each certificate of damages or otherwise, and on every other certificate or
document issued by any customs officer, marine surveyor, or other person acting as such, and on
each certificate issued by a notary public, and on each certificate of any description required by
law or by rules or regulations of a public office, or which is issued for the purpose of giving
information, or establishing proof of a fact, and not otherwise specified herein, there shall be
collected a documentary stamp tax of Thirty pesos

Deeds of sale and conveyances of real property shall be imposed with a DST of P15.00 if the
consideration is P1,000 or less, and P15.00 on each P1,000 or fraction thereof in excess of
P1,000. 

Tax Remedies
-As prescribed by Sec. 248 (A) of the Tax Code, there shall be imposed, in addition to the tax required to
be paid, a penalty equivalent to 25% of the amount due in the following cases: 1. Failure to file any
return and pay the tax due thereon as required under the provisions of this Code or rules and
regulations on the date prescribed; or 2. Unless otherwise authorized by the Commissioner, filing a
return with an internal revenue officer other than those with whom the return is required to be filed; or
3. Failure to pay the deficiency tax within the time prescribed for its payment in the notice of
assessment; or 4. Failure to pay the full or part of the amount of tax shown on any return required to be
filed under the provisions of this Code or rules and regulations, or the full amount of tax due for which
no return is required to be filed, on or before the date prescribed for its payment

-Under RR No. 21-2018, interest was imposed on any deficiency tax due. Interest shall be assessed and
collected from the date prescribed for its payment until (a) full payment thereof or (2) upon issuance of
a notice and demand by the Commissioner or his authorized representative. As per the rate, Sec. 249 of
the Tax code states “double the legal interest for loans or forbearance of any money in the absence of
an express stipulation as set by the Bangko Sentral ng Pilipinas (BSP). Hence, legal interest of 6% x 2 is
12%.

-According to Sec. 248(B), in case of willful neglect to file the return within the period prescribed by the
Code or false or fraudulent return is willfully made, the penalty to be imposed shall be 50% of the tax or
the deficiency tax. Furthermore, failure to report sales, receipts or income in an amount exceeding 30%
of that declared per return, and a claim of deductions in an amount exceeding 30% of actual deductions,
shall render the taxpayer liable for substantial under-declaration of sales, receipts, or income or for
overstatement of deductions.

-Delinquency interest is computed by adding the deficiency tax of P96,000 and surcharge of P24,000
multiplied by 12% and again multiplied to the period of 16 days (October 15 – October 31) as illustrated
below.