A.

Classification of taxes
a. As to subject matter or object
i. Personal, poll or capitation – fixed amount imposed on individuals
residing within a specified territory without regard to their property or
occupation
ii. Property – imposed on property (real or personal) in proportion either to
its value or in accordance with some other reasonable method of
apportionment
iii. Excise – tax imposed on the performance of an act, enjoyment of a
privilege, or the engaging in an occupation
b. As to incidence or who bears the burden
i. Direct
- demanded from persons who are bound by law to pay the tax
- Liability for payment of tax as well as the burden of the tax falls on
the same person
- Ex. Income tax
ii. Indirect
- Liability for the payment of the tax falls on one person but the
burden can be shifted or passed to another
- Ex. VAT; Excise
c. As to the determination of amount
i. Ad Valorem
- Tax of fixed proportion of the value of the property with respect to
which the tax is assessed
- Ex. VAT, Income tax; Donor’s tax
ii. Specific
- Tax of a fixed amount imposed by the head or number, or by
some standard of weight or measurement.
- Requires no assessment other than a listing or classification of the
subject to be taxed
- Ex. Excise tax on liquor
d. As to purpose
i. Revenue or Fiscal – Raise revenue for government needs
ii. Special, Regulatory or Sumptuary – To achieve some social or economic
ends irrespective of whether revenue is actually raised or not
e. As to authority imposing the tax
i. National - those found in NIRC
ii. Local - local revenue codes of the city/municipality
f. As to graduation or rate
i. Proportional – Based on a fixed percentage of the amount of the
property, income or other basis to be taxed
ii. Progressive or graduated – Rate increases as the tax base increases
iii. Regressive – Rate decreases as the tax base increase; not employed in
the Philippines