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Under the NIRC, the 3% percentage tax is due quarterly upon the gross receipts of common carriers on their Common carriers are exempt from local taxes
transport of passengers by land. This is called the “common carriers tax.” In practice, this quarterly tax is paid in The gross receipts of common carriers derived from their incoming and outgoing freight shall not be subject to
three monthly payments. the local taxes under the Local Government Code.
The tax base of the quarterly percentage tax is subject to the following minimum presumptive gross receipts. Exemptions to the common carriers tax
Owner of bancas and animal drawn two wheeled vehicles are exempt from percentage tax.
Minimum presumptive gross receipts for common carriers and keepers of garage*
Amusement Taxes
Proprietor, lessee or operator of the following amusement places shall pay the following respective tax rates on
their quarterly gross receipts:
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21/04/2022
Tax on Sale Barter or Sale of Shares of Stock Listed and Traded through the local stock exchange or Determination of the proportion of stocks sold in IPO
through initial public offering The determination of the proportion of stocks sold in IPO depends upon the type of offering:
1. Primary Offering – unissued shares of the closely held corporation to be sold in the IPO
Tax on sale, barter or exchange of stocks listed and traded through the Philippine Stock Exchange 2. Secondary Offering – issued shares or shares of existing shareholders who wish to sell their shares in the
IPO
The sale, barter or exchange, including block sale, of listed stocks through the PSE, other than by dealers in
securities, is subject to a tax of 60% of 1% based on gross selling price or gross value in money of the shares Proportion of share offering
of stock sold. This percentage tax is commonly known as “stock transaction tax”* Primary offering = Primary shares / outstanding shares after IPO
Secondary offering = Secondary shares / outstanding shares before IPO*
Tax on the Shares of Stock Sold or Exchanged through an Initial Public Offering (IPO)
The sale, barter, exchange or other disposition through initial public offering of shares of stocks in a closely Summary of rules on Sales of Stocks
held corporation is subject to the following tax rates based on the gross selling price or gross value in money
proportion to the shares sold, bartered or exchanged or otherwise disposed:
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Tax on Franchises
Generally franchises are vatable. Exceptionally however, there are only two types of franchises that are
specifically subject to percentage taxes under the NIRC:*
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