Types of taxes

National and Local Direct and Indirect Individual and Juridical

Individual
National A human person, Filipino,
Direct
Taxes paid to the Bureau of Internal Revenue (BIR) are resident.
Directly paid to the government
automatically credited as national taxes which goes to the This is included because an
national treasury individual person is liable to
pay professional tax.
Example: Example: Example:
Income; value-added tax; Income tax; documentary stamp Income tax; Capital gains tax; Real property Professional tax
tax, and also Estate tax. tax; Donor’s tax
Juridical person
Local
Indirect Corporations or
Paid to the local government units in the treasurer’s office.
Initially paid to the government by an intermediary, partnerships. However, a
As for us locals of Lapu-Lapu City, every year we go to the
who then adds the amount of the tax to be paid to the juridical person does not pay
treasurer’s office of Lapu-Lapu City to pay for our
value of the goods/services and then passes on the total professional tax. Although still
professional tax and real property tax assessed by the
amount to the end-user. liable to income taxes as well
assessor’s office.
as a value-added tax.
Example:
Example:
Real property tax; Transfer tax;
Value-added tax
Professional tax.

Examples of taxes much.  Also, the remedies in case, one is assessed.

Although these examples are named in the types of tax, here is
a list to simplify them as these are the taxes to be tackled in
Law School. We will allot a specific lesson explaining each.
 Capital gains tax
 Donor’s tax
 Income tax
 Value-added tax
 Community tax
 Documentary stamp tax
 Estate tax
 Real property tax
 Transfer tax
 Professional tax 
Laws Governing Taxation in the Philippines
Only the first one is based on the constitution while the rest
are statutory laws:
The 1987 Constitution;
 Article VI, Section 28:
o 1st Paragraph: Rule on taxation: uniform and also
equitable; and progressive system;
o 2nd Paragraph: President’s power to fix tariff rates,
import as well as export quotas, tonnage, and
wharfage dues, and other duties or imposts;
o 3rd Paragraph: Exemption from taxation of select
institutions; and
o 4th Paragraph: The requirement for tax exemption
law passage: Concurrence of a majority of all
members of Congress.
The National-International Revenue Code (RA 8424);
 As mentioned, a while ago that national taxes are
administered by the Bureau of Internal Revenue (BIR),
actually the NIRC covers the Organization and
function of the BIR. As well as types and rates of all
taxes including as to when it is payable and how
Collection concerns that would include. and also, the
offenses and penalties in case of the violation of the
NIRC.
The Tax Reform for Acceleration and Inclusion act (RA
10963): TRAIN Law;
 However, the NIRC has been updated such that there
is what we called the TRAIN Law. This law is newly
made effective on January 1, 2018, during the
administration of President Rodrigo Duterte. The aim
of this law is to make the tax system of the
Philippines simpler, fairer, as well as more efficient.
Basically, it was a way of raising the government
revenues to fund the projects of the administration. It
covers taxes income taxes and estate taxes. Actually,
there are new rates imposed. We will allot another
lesson on TRAIN law alone.
The Tariff and Customs Code of 1978 (PD 1464, as
amended); and
 Basically, it covers the import and export of cargoes
of international freight. One of the functions of the
Bureau of Customs really two safeguard the
Philippines from smuggling. In a way to raise the
revenue of the government.  Examples of most
imported products are vehicles and also petroleum
which is not naturally manufactured or produced in
the Philippines. Also, there are taxes imposed on
these products.
Local Government Code of 1991 (RA 7160)
 These are taxes administered by the local government
units. The local government units involved in the
administration of local taxation would be your
province, your city, your municipality, as well as your
barangay. Moreover, community tax is collected by the
barangay. Even if the barangay is the smallest unit of
government in the Philippines, still it has the power to
collect community tax.