Who /

RA TAX
TYPE What are Additional Notes:
TE BASIS
subject
Sec 116 VAT-exempt persons 3% Sale of goods: Exempt under TRAIN Law:
Percentage Tax GROSS SALES 1. Cooperatives
on VAT-exempt Requisites for 2. Self-employed persons opting to be taxed at
person applicability: Sale of services: 8% of gross sales/receipts + other non-
1. Gross GROSS RECEIPTS operating income
sales/receipts ≤ a. Pure
3M b. Mixed
2. Not VAT-
registered VAT-exempt sales are also exempt from Sec 116
3. Not subject to OPT [except for Sec 109 (BB)]
other percentage
taxes except Sec
116

Sec 117 Domestic common 3% Quarterly gross receipts A person can be subject to VAT or Sec 116 and
Common carriers of passengers still be charged with OPT from Sec 117-127
Carrier’s Tax by land and keepers or
(CCT) of garages Exempt:
Minimum quarterly 1. Owners of bancas
Percentage tax gross receipts 2. Animal draw 2-wheeled vehicles
on domestic
common carriers
and keepers of whichever is HIGHER Minimum Quarterly Gross Receipts per unit
garages carrier
Jeepney for hire
1. Manila and other 2,400
cities………………………
2. Provincial…………………… 1,200
 …………………………
Public Utility Bus
1. Passengers ≤ 3,600
30……………………………
……
2. 30 < Passengers ≤ 6,000
50…………………………
3. 50 < 7,200
Passengers……………………
……………
Taxi
1. Manila and other 3,600
cities………………………
2. Provincial…………………… 2,400
………………………….
Cars for hire
1. With 3,000
chauffeur……………………
……………….
2. Without 1,800
chauffeur……………………
………..
Sec 118 International air and 3% Quarterly gross receipts Not subject to Sec 118
Common shipping carriers derived from transport 1. International air and shipping carriers of
Carrier’s Tax on transporting cargo of cargo from the PH to passengers from PH to another country
Int’l Carriers and doing business in another country 2. Off-line carrier
the Philippines 3. Domestic air or shipping carrier of
Percentage tax (resident foreign passengers  VAT or Sec 116
on international corporations) 4. Domestic land carrier of passengers  Sec
carriers 117
5. Domestic land, air, or shipping carrier of
cargo  VAT or Sec 116
6. Int’l flight or shipment of domestic carrier
 0% VAT if VAT-registered, exempt if
not

Sec 119 Radio and TV Gross receipts of preceding year:

Tax on Franchise broadcasting 3% Annual gross receipts of  Used to determine whether the entity is
(government- entities current year subject to VAT or OPT
granted)
Requisite: Gross receipts of current year:
1. Annual gross  Used as tax basis for current year
receipt of
preceding year
≤ 10M

*if it exceeds 10M,

then the entity is
subject to VAT
Gas and water 2% Gross receipts
utilities
PAGCOR from its 5% Gross revenue (from
gaming operations gaming operations)
Sec 120 Payor of dispatch, 10% Amount paid for the Not subject to Sec 120
Overseas message, or service 1. Government
Communication conversation 2. Diplomatic services
Tax transmitted from the 3. International organizations
PH by telephone, 4. News services
Tax on Overseas telegraph, telewriter
Dispatch, exchange, wireless
Message or and other
Conversation communication
Originating from equipment service
the Philippines
Collected and
remitted by: payee

Sec 121 Banks Ex.

Gross Receipts TYPE OF INCOME & RAT  money changers
Tax Non-bank financial TAX BASIS E
intermediaries Interest, commissions,
performing quasi- and discounts from
banking functions lending activities and
financial leasing on the
basis of remaining
maturities of
instruments from which
such interests are
derived
1. maturity is 5
years or less. 5%

2. maturity is more
than 5 years 1%

Dividends and equity

shares in net income of 0%
 subsidiaries
Royalties, rentals of
personal/real property,
profits from exchange,
and all other income
subject to FWT 7%

Net trading gains w/in

the taxable year on
foreign currency, debt
securities, derivative,
and other similar
financial instruments 7%

Sec 122 Other non-bank 5% for Gross receipts derived Ex.

Gross Receipts financial short- from:  pawnshops
Tax intermediaries not term  interests  non-stock savings and loan associations on
performing quasi-  commissions income derived from real/personal property
banking activities 1% for  discounts or any activity conducted for profit
long-
term
Not subject to GRT
1. Lending investors  subject to VAT
2. Non-stock savings and loan associations on
income received (ex. interest)
Preferential Tax Microfinance NGOs 2% Income from (in lieu of ALL national taxes)
Rate microfinance operations
with duly issued
Certificate of
Accreditation from
the Microfinance
NGO Regulatory
Council
Sec 123 Every person, 2% Total premium collected Not subject to Sec 123
Tax on life company, or 1. PURELY cooperative companies or
insurance corporation doing life  Cash associations doing life insurance business
premiums insurance business of  Notes in the PH
any sort in the PH  Credit 2. Non-life insurance business  VAT
 Or any substitute
for money Not included in taxable receipts
1. Premiums refunded within 6 months after
payment on account of rejection of risk or
returned for other reasons to the insured
2. Reinsurance premiums where tax has
previously been paid
3. Premiums collected or received by any
branch of a domestic
corporation/firm/association doing business
OUTSIDE the PH on account of any life
insurance of a NON-RESIDENT insured, if
any tax on such premium is imposed by a
foreign country where the branch is
established
4. Premiums collected or received on account
of REINSURANCE, if the insured, in the
case of personal insurance, RESIDES
OUTSIDE THE PH, if any tax on such
premiums is imposed by a foreign country
where the original insurance has been
issued or perfected
5. Portion of the premiums collected or
received on variable contracts in excess of
the amounts necessary to insure the lives of
the variable contract workers (ex. in VUL,
only a portion is taxable under this section)