Introduction to Business Tax

Florendo Dauz Jr., CPA, MBA, MSA

Nature of Business Tax
1. Relative Consumption tax – imposed
when the seller is engaged in
business.
2. Indirect tax – collected from the
seller while imposed on the buyer.
3. Privilege tax – tax on privilege of
doing business.
4. National tax – imposed by and
remitted to the national government.
Business Activity
Business refers to a habitual engagement in a
commercial activity in the sale of goods or services
for profit.
Elements of Business:
1. Habitual – repetitive or made regularly
2. Commercial activity – sale of goods or service for
profit.
Tax Base:
Sale of Goods or Properties: Gross Selling Price
Sale of Service: Gross Receipts