Section 116.

 Tax on Persons Exempt from Value-Added Tax (VAT)

Jackie is starting a business with the following projected result of operations within 1

Sales for fertilizers, seeds and poultry feeds 900,000

Receipts from receipts from bus operations - passenger 1,200,000
Sales from clothes* 2,400,000
Total Sales 4,500,000

*The raw materials amounted to 1,000,000

How much is the total business tax?

VAT
OPT
Excise
t of operations within 12 months:
Section 117. Percentage Tax on Domestic Carriers and Keepers of Garages.

Jackie Rabbit Inc, is a domestic corporation engaged in the transport of passengers

to different destinations by land. This taxable quarter, it had the following receipts from differen
(all places are within the Philippines)

Source Destination Amount

Manila Angeles 715,000
Angeles Manila 727,000
Manila Tarlac 206,000
Tarlac Manila 880,000
Manila Camiling 344,000
Camiling Manila 861,000
Manila Gapan 703,000
Gapan Manila 875,000
5,311,000

How much is Jackie Rabbit's common carrier's tax?

Suppose Jackie Rabbit is instead engaged in the transport of cargoes, how much is Jac
of passengers
ng receipts from different routes

goes, how much is Jackie Rabbit's common carrier's tax?

Section 118. Percentage Tax on International Carriers. -

The Philippine operations of Malaysian Airlines, a foreign air carrier, reported the following
gross receipts for the month of April 2020

Incoming Outgoing Total

Transport of passengers 24,000,000 36,000,000 60,000,000
Transport of baggage 8,000,000 11,000,000 19,000,000
32,000,000 47,000,000 79,000,000

20% of the outgoing freights was billed abroad while 40% of the incoming
freight was billed in the Philippines.

How much is the percentage tax?

ted the following
Section 119. Tax on Franchises.

Radio Balita Company is a radio company granted franchise by the government.

Radio Balita had the following gross receipts related to its radio operations for three years.
Radio Balita has been properly registered with the BIR annually.

2019 1,500,000
2020 4,500,000
2021 10,500,000
16,500,000

How much is franchise tax in 2020?

How much is franchise tax in 2021?

e government.
erations for three years.
Section 120. Tax on Overseas Dispatch, Message or Conversation Originating from the Philip

A certain telephone company had the following collections from its customers during the quart

Regular monthly bills 770,000

Domestic Calls 501,600
Overseas Calls (outgoing) 533,500

The overseas communication tax to be remitted is:

 ation Originating from the Philippines. -

m its customers during the quarter:

Section 121. Tax on Banks and Non-bank Financial Intermediaries. 
Section 122. Tax on Finance Companies.

Jackie Banks, a banking institution, had the following transactions

for the taxable month:

Interest from loans, three years before maturity

Interest from loans, seven years before maturity
Dividends and equity shares in net income of subsidiaries
Royalties received
Rental payments received
Net trading gains
Total

How much is the percentage tax?

ntermediaries. 

transactions

772,000
270,000
856,000
517,000
838,000
407,000
3,660,000
Section 123. Tax on Life Insurance Premiums.
Section 124. Tax on Agents of Foreign Insurance Companies.

Jackie Insurance underwrites both life and non-life insurance policies.

The following were the premiums collected in a month:

Life Policies Non-life

Cash Collections 2,000,000 1,500,000
Checks 400,000 600,000
Promissory Note 500,000 400,000
Total 2,900,000 2,500,000

How much is the premiums tax?

Section 125. Amusement Taxes.

Sabungan sa Bambang is operated by Jackie. During the first quarter of 2019, it had the follow

Entrance fees for audience

Registration fees for cockfighters
Receipts from restaurant owned by Jackie inside the cockpit
Lease payments made by private concessionaire with places inside the
cockpit
Advertisement fees

How much is the amusement tax due?

uarter of 2019, it had the following receipts:

5,150,000
5,930,000
3,580,000

4,270,000
4,200,000
23,130,000
Section 127. Tax on Sale, Barter or Exchange of Shares of Stock Listed and Traded through

Close Open Corporation, a closely held corporation, decided to open itself to the public. The in
selling price of P6,250,000 which is 22.5% of its total outstanding shares after listing in the loc

The percentage tax due is:

 Listed and Traded through the Local Stock Exchange or through Initial Public Offering

pen itself to the public. The initial public offering of its shares had a
shares after listing in the local stock exchange.
Jackie Corporation plans to remove 100 crates of beer from its manufacturing plant.
Each crate contains 20 cases; each case contains 24 bottles of 330ml beer each, sold at 25 p

How much is the total excise tax if the rate of fermented liquor is Php 25.42 per liter of v
acturing plant.
beer each, sold at 25 per bottle.

Php 25.42 per liter of volume capacity?

On January 23, 2020, BSM Corp. removes from its tobacco plant 100 cases of Brand GTR he
1 case contains 50 reams while 1 ream contains 10 packs.

How much is the excise tax?

ases of Brand GTR heated tobacco.
Petrochem pumps crude oil from its oilfield and feed them to its oil refinery which transform the

The following were produced by the plant from a batch of crude oil in 2020:

In Liters
45,000 Unleaded premium gas 10 450,000
20,000 Kerosene 5 100,000
25,000 Diesel fuel oil 6 150,000

How much is the excise tax?

y which transform the crude oil into various petroleum products.
Ditto-Luck Cars manufactures various automobile models. It completed the following un

WHOLESALE
MODEL CLASS
PRICE
Snail Runner SUV - gasoline 800,000
Turtle Lander Pick-up truck-diesel 1,200,000
Rabbit Cruiser Electric car 3,000,000
Pteranodon Bus - diesel 5,000,000
Cicada Luxury Sports car - hybrid 7,000,000

How much is the excise tax?

eted the following units:

PRODUCED SOLD

8 6
7 5
5 4
4 2
4 3
Affy Cionado Inc. manufactures perfumes, precious jewelry, fashion bags and clothes. It produ

Suggested
Wholesale Price
Retail Price
Perfumes 5,000,000 12,000,000
Jewelry 7,000,000 15,000,000
Fashion bags 1,500,000 4,000,000
Designer clothes 4,000,000 11,000,000

How much is the excise tax?

n bags and clothes. It produced the following during the month
Angca Cola Manufacturing Company is about to remove 100 cases of Super Cola using HFCS
case contains 6 bottles of 1.5 liters each

How much is the excise tax?

uper Cola using HFCS (High fructose corn sugar) and non-caloric sweeteners. Each
Wanting to boost her self-esteem, Jackie decided to undergo two cosmetic procedures
with the following contract price which is already inclusive of VAT but exclusive of excise
tax: rhinoplasty – P140,000, botox – P39,200. How much is the excise tax that Jackie will
pay?
metic procedures
exclusive of excise
e tax that Jackie will
Jackie sold 10,000 P50-par ordinary shares of a domestic company through
the local exchange. How much is the resulting documentary stamp tax?
Jackie sold a real property considered as a capital asset for P2,000,000. Said property was ac
ten years ago for P700,000. The property had a fair market value of P2,600,000 at the date of
How much is the documentary stamp tax on the transfer?
,000. Said property was acquired
P2,600,000 at the date of sale.
Sour Corporation, a domestic corporation primarily engaged in the sale of strawberry ice crea
issued 12,000 shares to Olivia, a non-resident citizen. The shares have a par value of P20 and
were issued to Olivia by fully paying the market value of 23 per share.
At a time when the market value is 33, Olivia sold half of her shareholdings directly to Sabrina

How much is the documentary stamp tax due on the issuance of shares by Sour Corporation t

How much is the documentary stamp tax due on the sale of Olivia to Sabrina?
he sale of strawberry ice cream,
s have a par value of P20 and

eholdings directly to Sabrina, a resident citizen.

shares by Sour Corporation to Olivia?

a to Sabrina?
Lola Remedios borrowed 200,000 from the Bank with a term of 180 days for the purchase of a
and executed a promissory note therefor. If the rate of DST is 1.50 for each 200, how much is
80 days for the purchase of a personal computer
0 for each 200, how much is the DST due, if any?