TAXING POWERS OF LGU

Tax on Transfer of Real Property Ownership (Sec. 135, LGC)

 Tax on Business of Printing and Publication (Sec. 136, LGC) 

Franchise Tax (Sec. 137, LGC) 

Tax on Sand, Gravel and Other Quarry Resources (Sec. 138, LGC)

 Professional Tax (with required government examination) (Sec. 139, LGC)

 Amusement Tax (Sec. 140, LGC)

 Annual Fixed Tax for every delivery truck or van (Sec. 141, LGC) 

Real Property Tax (Sec. 232, LGC)

 Additional Levy on Real Property for  the Special Education Fund (SEF) (Sec. 235, LGC)

 Additional Ad Valorem Tax on Idle  lands (Sec.236, LGC)

 Special Levy on Lands Benefited by Public Works, Projects or Improvements Funded by LGU concerned
(Sec.240, LGC)

 Service Fees and Charges (Sec. 153, LGC) 

Public Utility Charges (Sec. 154, LGC)

 Toll Fees or Charges (Sec. 155, LGC)

 Tax on Business (Sec. 143, LGC)  Community Tax (Sec. 156, LGC)

 Fees and Charges on Business and Occupation (Sec. 147, LGC)

 Fees for Sealing and Licensing of Weights and Measures (Sec. 148, LGC) 

Fishery Rentals, Fees and

TAXING POWERS OF PROVINCES

Tax on Transfer of Real Property Ownership (Sec. 135, LGC)

 Tax on Business of Printing and Publication (Sec. 136, LGC)

 Franchise Tax (Sec. 137, LGC)

 Tax on Sand, Gravel and Other Quarry Resources (Sec. 138, LGC)

 Professional Tax (with required government examination) (Sec. 139, LGC)

 Amusement Tax (Sec. 140, LGC)

 Annual Fixed Tax for every delivery truck or van (Sec. 141, LGC)
 Real Property Tax (Sec. 232, LGC)

 Additional Levy on Real Property for the Special Education Fund (SEF) (Sec. 235, LGC)

 Additional Ad Valorem Tax on Idle lands (Sec.236, LGC)

 Special Levy on Lands Benefited by Public Works, Projects or Improvements Funded by LGU
concerned (Sec.240, LGC)

 Service Fees and Charges (Sec. 153, LGC)

 Public Utility Charges (Sec. 154, LGC)

 Toll Fees or Charges (Sec. 155, LGC)

TAXING POWERS OF MUNICIPALITIES

Tax on Business (Sec. 143, LGC)

 Community Tax (Sec. 156, LGC)

 Fees and Charges on Business and Occupation (Sec. 147, LGC)

 Fees for Sealing and Licensing of Weights and Measures (Sec. 148, LGC)

 Fishery Rentals, Fees and Charges (Sec. 149, LGC)

 Service Fees and Charges (Sec. 153, LGC)

 Public Utility Charges (Sec. 154, LGC)

 Toll Fees or Charges (Sec. 155, LGC)

Definition of Terms
PRINCIPAL •The main or head office of the business appearing in the pertinent documents submitted to
the SEC, DTI, or other appropriate agencies as the case may be •Official address in AI or registration
papers considered as situs for tax purposes

BRANCH •A fixed place in a locality which conducts the operations of the business as an extension of the
principal office •Display offices even if allowed to take orders are not considered branches

WAREHOUSE •a building used for storage of goods; if it accepts orders and issue sales invoices, treated
as sales office PLANTATIOn

•A tract of agricultural land planted to trees or seedlings… •Includes inland fishing

EXPERIMENTAL FARMS •Used for studies, tests, researches or experiments

RULE ON SITUS - SALES ALLOCATION  IF;
• With branch, sales office or warehouse

• Where located

• No branch, sales office or warehouse • Sales recorded in principal office and taxes accrue to such city
or municipality • With factory, project office, plant or plantation in pursuit of business

•30% - principal office

• 70% - where factory, project office, plant or plantation is located

• The 70% will be divided as follows:

60% to where the factory is located •

40% to where the plant is located •

With 2 or more factories, project offices, plants or plantation in different localities • PRORATE in
proportion to volume of production