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National Internal Revenue Taxes: Based in The Case of Vincente Vs Raffierty G.R. No. L-12287
National Internal Revenue Taxes: Based in The Case of Vincente Vs Raffierty G.R. No. L-12287
Sec 21 nirc
Income tax
Estate
Donor
Vat
Other percentage tase
Excise
Doc stamp
Imposed by the bir.
National internal revenue tax - lahat ng nasa list (exclusive list) taxes collected by the national govt. - Bir
(wc is part of the national govt. not all national tax are national internal revenue tax.
Income tax system - there will be only an income tax when there is an income, whether actual or
presumed. Privileged tax (excise tax)
1. Global tax system - all income are not classified or all grouped into one taxable income. Regardless
of the type, nature, source.
Tax rate - single or uniform. Applicable to a corporation. Subj to creditable withholding tax?
2. Schedular - kabaliktaran ng global. - classified income, categorised into diff taxable income.
Applicable to an individual tax payer. Subj to final withholding tax system.
Criteria in imposing IT
(comprehensive)
1. Citizenship principle - Citizen whether within or without - taxable in the ph. or alien
Resident citizen, domestic corp - are subj to income tax and if the question is what kind of income tax
will apply, within and without may apply.
4. Residence principle -
5. Source principle
Associations dues are subj to IT? SC - held no. it only constitute a contribution for the operation and
preservation of these association. It constitutes as an infusion of capital.
1. Interest - nagkakaroon tayo ng interest income from bank deposits and loans.
- BP - governed by the law on loans
- Loans - titignan ang residence ng debtor and not his nationality. The place of payment or where the
contract was made is immaterial.
6. Dividend - kappa nag invest sa sang corp at sang stock holder. Kappa kumita and corp your are a
share holder and they declare dividends
- if less than 50% ang galing sa ph? 100 % of the diviend income will be considered as income from
without the ph.
7. Services - look at the place of performance of the service. If performed in the ph - within
If outside - without. Place of execution of contract or payment is immaterial
9. Sale of real property - look at the place where the property is located.
Exception- sale of shares of stock a domestic corp regardless of the place - it is income from within the
ph. - intangible
a. Normal/net income tax - taxable income subj to schedular rate to 0 to 35 percent under the law.
d. Final income
e. Regular corporate income tax - parehong taxable income basehan, tax rate -30% will be applied.
f. Minimum corpo -
g. Improperly accumulated earnings tax 10% and domestic corp lang ang subject to this.
h. Optional corporate income tax - not applicable at this time.
Kinds of taxpayers
note: non resident works abroad and derives income from abroad and whose employment thereat
required him to be physically present most of the time during the taxable year. (you have foreign
employment and time spent abroad)
BIR’s explanation - aggregate period of 183 days hence your are a non resident
resident alien - not a citizen but resident in the ph - look at their length of stay and purpose.
non resident alien not engaged - they have sources of income like dividends, interests etc.
and engaged in trade or business - 1. Only engaged in business 2. Non resident stayed an aggregate
180 days in a given calendar year. 3. Exercise of their profession
11. Corporation - domestic - taxable from within and without and foreign - without
Partnership - trade partnership. General profession partnership is not considered as a corporation it is for a
purpose of exercise of a common profession.
12. Estate
13. Trust