Basis- certain percentage on the gross selling price or receipts

-unlike vat which is defined as either subject to 12%, vat exempt or zero rated, PT doesn’t have a defined percentage to
be used
-subject to opt because the gross receipts of 1.8 M does not exceed the 3M threshold, under the create law tax rate
subject to 1% from July 1, 2020 to June 30, 2023.

12% subject to vat because ABC opted to register under VAT System
2.5 M comes from the gross receipts of tracking business and practice of accountancy- and that 2.5 M does not exceed
the VAT Threshold 3M so applicable business tax is OPT then 1% tax rate under CREATE Law. Lease of apartment is not
included in the gross receipts because if the monthly rental is below 15k which is exempt from business tax like in the
VAT.
Compensation income is not subject to business tax but it is subject to income tax

Lesee- nagrent or naglease

Lessor- yung may ari/owner

>SEC.117 IS for local or domestic while SEC.118 is for international
 -
from Sec. 118 A- international air carriers … transport of cargo from Philippines to another country
Q1. Subject to VAT because according to sec.119- radio or tv broadcasting will be subject to 12% VAT if the gross
receipts of the preceding year is greater than 10M, and because the problem indicated that preceding year has GR of
12M-Vat; 11M is the one multiplied to 12% because it is the current year and not the 12 M because they just served as a
reference of whether th e business reached the threshold of 10m
-not a franchise tax but VAT