11 Handout 1

BM1903
OTHER PERCENTAGE TAXES AND EXCISE TAXES ON CERTAIN GOODS
OTHER PERCENTAGE TAXES

The Scope of Percentage Tax
Percentage tax is a business tax imposed on persons, entities, or transactions specified under Sections 116–
127 of the National Internal Revenue Code (NIRC) of 1997, as amended and as required under special laws.
Persons refer to individuals and non-individuals that include, but are not limited to, estates, trusts, partnerships,
and corporations (Bureau of Internal Revenue, Percentage Tax, 2019).
List of Services Specifically Subject to Percentage Tax

1. Percentage Tax on Persons Exempt from Value-added Tax (VAT)
Any person whose sales or receipts are exempt under Section 109 (BB) of the NIRC from the payment of
the value-added tax (VAT) and who is a non-VAT registered person shall pay a tax equivalent to 3% of his
gross quarterly sales or receipts (Dascil, 2018).
Pursuant to TRAIN Law (R.A. 10963), the VAT threshold has been increased to P3,000,000 on sales or
receipts and mandated that if the taxpayer is not a VAT-registered person, s/he can pay the 3% tax on gross
quarterly sales or receipts.
2. Percentage Tax on Domestic Carriers and Keepers of Garages

Cars for rent or hire driven by the lessee; transportation contractors, including persons who transport
passengers for hire, and other domestic carriers by land for the transport of passengers (except owners of
bancas and owners of animal-drawn two-wheeled vehicle), and keepers of garages shall pay a tax
equivalent to 3% of their quarterly gross receipts.
Moreover, Section 4.108-3(d) of RR No. 16-05, as amended, provides:
“(d) All receipts from service, hire or operating lease of transportation equipment not subject to the
percentage tax on domestic common carriers and keepers of garages imposed under Sec. 117 of the Tax
Code shall be subject to VAT.
“Common carrier” refers to persons, corporations, firms, or associations engaged in the business of
carrying or transporting passengers or goods or both, by land, water, or air, for compensation, offering their
services to the public and shall include transportation contractors.
Common carriers by land with respect to their gross receipts from the transport of passengers, including
operators of taxicabs, utility cars for rent or hire driven by the lessees (rent-a-car companies), and tourist
buses used for the transport of passengers shall be subject to the percentage tax imposed under Sec. 117
of the Tax Code, but shall not be liable for VAT.
Pursuant to RR No. 9-2007, the following shall be considered as the minimum quarterly gross receipts in
each case of computing percentage tax on domestic carriers:
Minimum Gross Minimum Gross

DOMESTIC CARRIERS
Quarterly Receipts Monthly Receipts
Jeepney for hire Manila and other cities P 65,700 P 21,900
Provincial 32,900 10,967
Public utility bus Not exceeding 30 passengers P 98,600 P 32,867
Exceeding 30 but not exceeding 50 passengers 164,200 54,733
Exceeding 50 passengers 197,100 65,700
Taxi Manila and other cities P 98,600 P 32,867
Provincial 65,700 21,900
Car for hire with chauffeur P 82,100 P 27,376
without chauffeur P 49,300 P 16,434
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3. Percentage Tax on International Carriers

a. International air/shipping carriers doing business in the Philippines on their gross receipts derived from
the transport of cargo from the Philippines to another country shall pay a tax of 3% of their quarterly
gross receipts.
The term “international carriers” means air or sea carriers owned by foreign corporations that operate in the
Philippines and transport passengers or cargoes from the Philippines to overseas and vice versa.
Gross receipts of international air or shipping carriers doing business in the Philippines derived from
transport of passengers and cargo from the Philippines to another country shall be exempt from VAT;
however, they are still liable to a percentage tax of 3% based on their gross receipts derived from transport
of cargo from the Philippines to another country as provided in the NIRC (Dascil, 2018).
4. Percentage Tax on Franchises

Any provision of general or special law to the contrary notwithstanding, there shall be levied, assessed, and
collected in respect to all franchises on radio and/or television broadcasting companies whose annual gross
receipts of the preceding year do not exceed P10,000,000, subject to Section 236 of the NIRC, a tax of 3%
and on gas and water utilities, and a tax of 2% on the gross receipts derived from the business covered by
the law granting the franchise. Provided, however, that radio and television broadcasting companies
referred to in this Section shall have an option to be registered as a value-added taxpayer and pay the tax
due thereon. Provided further that once the option is exercised, the said option shall be irrevocable (Dascil,
2018).
5. Percentage Tax on Overseas Dispatch, Message or Conversation Originating from the Philippines
a. Persons Liable: There shall be collected upon every overseas dispatch, message, or conversation
transmitted from the Philippines by telephone, telegraph, telewriter exchange, wireless, and other
communication equipment services, a tax 10% on the amount paid for such services. The tax imposed
shall be payable by the person paying for the services rendered and shall be paid to the person
rendering the services who are required to collect and pay the tax within 20 days after the end of each
quarter.
b. Exemptions (Dascil, 2018):
i. Government – the amounts paid for messages transmitted by the Government of the Republic of
the Philippines or any of its political subdivisions or instrumentalities;
ii. Diplomatic Services – the amounts paid for messages transmitted by any embassy and consular
offices of a foreign government;
iii. International Organizations – the amounts paid for messages transmitted by a public international
organization or any of its agencies based in the Philippines enjoying privileges, exemptions, and
immunities which the Government of the Philippines is committed to recognizing pursuant to an
international agreement; and
iv. News Services – the amounts paid for messages from any newspaper, press association, radio or
television, newspaper, broadcasting agency, or news ticker services to any other newspaper, press
association, radio or television newspaper broadcasting agency, or news ticker service or to a bona
fide correspondent, which messages deal exclusively with the collection of news items for, or the
dissemination of news item through, public press, radio or television broadcasting, or a news service
similar to that of the public press.
6. Percentage Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking

Functions
There shall be collected a tax on gross receipts derived from sources within the Philippines by all banks
and non-bank financial intermediaries in accordance with the following schedule:
a. On interest, commissions, and discounts from lending activities, as well as income from
financial leasing, based on remaining maturities of instruments from which such receipts are
derived:

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- Maturity period is five (5) years or less …………………………………………………………… 5%

- Maturity period is more than five (5) years ……………………………………………………… 1%
b. On dividends and equity shares and net income of subsidiaries ………………………………….. 0%
c. On royalties, rentals of property, real or personal, profits, form exchange, and all other items
treated as gross income under Section 32 of the Code ……………………………………………. 7%
d. On net trading gains within the taxable year on foreign currency, debt securities, derivatives,
and other similar financial instruments ………………………………………………………………. 7%
Provided, however, that in case the maturity period referred to in paragraph (a) is shortened through pre-
termination, then the maturity period shall be reckoned to end as of the date of pre-termination for purposes
of classifying the transaction, and the correct rate of tax shall be applied accordingly.
Provided, finally, that the generally accepted accounting principles as may be prescribed by the Bangko
Sentral ng Pilipinas for the bank or non-bank financial intermediary performing quasi-banking functions shall
likewise be the basis for the calculation of gross receipts (Dascil, 2018).
Definitions:
• Banks or Banking Institutions – As defined in Section 2 of Republic Act No. 337, as amended, otherwise
known as the General Banking Act, may either be a commercial bank, a thrift bank, a development
bank, a rural bank or specialized government bank.
• Non-Bank Financial Intermediary – A financial intermediary, as defined in Section 2(D)(C) of Republic
Act No. 337, as amended, authorized by the Bangko Sentral ng Pilipinas (BSP) to perform quasi-
banking activities.
• Quasi-banking functions – It refers to the borrowing of funds from 20 or more personal or corporate
lenders at any one time through the issuance, endorsement, or acceptance of debt instruments of any
kind other than deposits for the borrower’s own account, or through the issuance of certificates of
assignment or similar instruments, with recourse, or of repurchase agreements for purposes of re-
lending or purchasing receivables and other similar obligations. Provided, however, that commercial,
industrial, and other non-financial companies that borrow funds through any of these means for the
limited purpose of financing their own needs or the needs of their agents or dealers shall not be
considered as performing quasi-banking functions.
• Deposit Substitute – It shall mean an alternative form of obtaining funds from the public (the term “public”
means borrowing from 20 or more individuals or corporate lenders at any one time) other than deposits
through the issuance, endorsement, or acceptance of debt instruments for the borrowers own account
for re-lending or purchasing of receivables and other obligations or financing their own needs or the
needs of their agent or dealer.
7. Tax on Other Non-Bank Financial Intermediaries

There shall be collected a tax of 5% on the gross receipts derived by all finance companies, as well as other
financial intermediaries not performing quasi-banking functions doing business in the Philippines, from
interest, discounts, and all other items treated as gross income under this Code. Provided that interests,
commissions, and discounts from lending activities, as well as income from financial leasing, shall be taxed
based on the remaining maturities of the instruments from which such receipts are derived, in accordance
with the following schedule:
Maturity period is five (5) years or less …………………………………… 5%

Maturity period is more than five (5) years ………………………………… 1%
Provided, however, that in case the maturity period is shortened through pre-termination, then the maturity
period shall be reckoned to end as of the date of pre-termination to classify the transaction as short, medium,
or long term, and the correct rate of tax shall be applied accordingly.
8. Tax on Life Insurance Premiums

There shall be a 2% tax from the total premiums collected from every person, company, or corporation
(except purely cooperative companies or associations) doing life insurance business of any sort in the

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Philippines, whether such premiums are paid in money, notes, credits or any substitute for money; but
premiums refunded within six (6) months after payment on account of rejection of risk or returned for other
reasons to a person insured shall not be included in the taxable receipts; nor shall any tax be paid upon
reinsurance by a company that has already paid the tax; nor upon premiums collected or received by any
branch of a domestic corporation, firm, or association doing business outside the Philippines on account of
any life insurance of the insured who is a nonresident, if any tax on such premium is imposed by the foreign
country where the branch is established nor upon premiums collected or received on account of any
reinsurance, if the insured, in case of personal insurance, resides outside the Philippines, if any tax on such
premiums is imposed by the foreign country where the original insurance has been issued or perfected; nor
upon that portion of the premiums collected or received by the insurance companies on variable contracts,
in excess of the amounts necessary to insure the lives of the variable contract workers (Dascil, 2018).
Cooperative companies or associations are such as are conducted by the members thereof with the money
collected from among themselves and solely for their own protection and not for profit.
9. Tax on Agents of Foreign Insurance Companies

Every fire, marines, or miscellaneous insurance agent authorized under the Insurance Code to procure
policies as he may have previously been legally authorized to transact on risks located in the Philippines
for companies not authorized to transact business in the Philippines shall pay a tax equal to twice the tax
imposed in Section 123 and provided that the provisions of this Section shall not apply to reinsurance.
Provided, however, that the provisions of the Section shall not affect the right of an owner of the property to
apply for and obtain for himself policies in foreign companies in cases where said owner does not make use
of the services of any agent, company, or corporation residing or doing business in the Philippines.
In all cases where owners of property obtain insurance directly with foreign companies, it shall be the duty
of said owners to report to the Insurance Commissioner and to the Commissioner each case where
insurance has been so affected and shall pay the tax of 5% on premiums paid, in the manner required by
Section 123 (Dascil, 2018).
Coverage Taxable Base Tax Rate

Insurance agents authorized under the Insurance Code to
procure policies of insurance for companies not authorized to Total premiums collected 4%
transact business in the Philippines
Owners of property obtaining insurance directly with foreign
Total premiums paid 5%
insurance companies
10. Amusement Taxes

There shall be collected from the proprietor, lessee, or operator of cockpits, cabarets, night or day clubs,
boxing exhibitions, professional basketball games, Jai-Alai and racetracks, a tax equivalent to:
a. 18% in the case of cockpits;
b. 18% in the case of cabarets, night or day clubs, videoke bars, karaoke bars, karaoke televisions,
karaoke boxes, and music lounges;
c. 10% in the case of boxing exhibitions, provided, however, that the boxing exhibitions wherein World or
Oriental Championships in any division are at stake shall be exempt from amusement tax. Provided
further that at least one (1) of the contenders for World or Oriental Championship is a citizen of the
Philippines and said exhibitions are promoted by a citizen/s of the Philippines or by a corporation or
association at least 60% of the capital of which is owned by such citizens;
Illustration 1: Mr. X, a Filipino citizen, is a boxing promoter. During a taxable period, he promoted the World
Championship fight for a featherweight division where Boxer X, a Filipino and defending champion, fought
Boxer Y, a Japanese and number one contender. The contest was held in the Philippines. The total gross
receipts for this boxing exhibition amounted to P10,000,000. How much is the total percentage tax?
Analysis: There is no percentage tax on the above transaction because under Sec. 125 (c) of the Tax Code,
such is exempt from the amusement tax (Valencia & Roxas, 2017).

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d. Fifteen percent in the case of professional basketball games as envisioned in Presidential Decree No.
871. Provided, however, that the tax herein shall be in lieu of all other percentage taxes of whatever
nature and description; and
e. Thirty percent in the case of Jai-Alai and racetracks of their gross receipts, irrespective of whether any
amount is charged for admission.
For the purpose of the amusement tax, gross receipts embrace all the receipts of the proprietor, lessee, or
operator of the amusement place. Said gross receipts also include income from television, radio, and motion
picture rights, if any. A person or entity or association conducting any activity subject to the tax herein
imposed shall be similarly liable for said tax with respect to such a portion of the receipts derived by him or
it (Dascil, 2018).
The taxes imposed herein shall be payable at the end of each quarter, and it shall be the duty of the proprietor,
lessee, or operator concerned, as well as any party liable, 20 days after the end of each quarter, to make a true
and complete return of the amount of the gross receipts derived during the preceding quarter and pay the tax
due thereon (Dascil, 2018).
11. Tax on Winnings
Every person who wins in horse races shall pay a tax equivalent to 10% of his winning or ‘dividends,’ the
tax to be based on the actual amount paid to him for every winning ticket after deducting the cost of the
ticket. Provided that in the case of winnings from double, forecastiquinella, and trifecta bets, the tax shall
be 4%. In the case of owners of winning racehorses, the tax shall be 10% of the prizes (Dascil, 2018).
The tax herein prescribed shall be deducted from the ‘dividends’ corresponding to each winning ticket or
the ‘prize’ of each winning racehorse owner and withheld by the operator, manager, or person in charge of
the horse races before paying the dividends or prizes to the persons entitled thereto (Dascil, 2018).
The operator, manager, or person in charge of horse races shall file a true and correct return with the
Commissioner within 20 days from the date the tax was deducted and withheld, and pay within the same
period the total amount of tax deducted and withheld (Dascil, 2018).
Illustration 2: Mr. X bought a P200 ticket and put his bet on racehorse ‘Petra Horse,’ which eventually won
the race. If the prize for the winning ticket is P20,000, and the winning horse is P200,000, determine the
percentage taxes of Mr. X and the owner of Petra Horse.
Analysis:
The percentage tax of Mr. X would be: The amusement tax of the owner of Petra Horse
Prize P 20,000 is computed as follows:
Less: Cost of Ticket 200 Prize P 200,000
Net Winnings P 19,800 Multiplied by amusement tax rate 10%
Multiplied by Amusement Tax Rate 10% Amusement Tax P 20,000
Amusement Tax P 1,980
12. Tax on Sale, Barter, or Exchange of Shares of Stock Listed and Traded Through the Local Stock
Exchange or Through Initial Public Offering
a. Tax on Sale, Barter, or Exchange of Shares of Stock Listed and Traded Through the Local Stock
Exchange
There shall be levied, assessed, and collected on every sale, barter, exchange, or other disposition of
shares of stock listed and traded through the local stock exchange other than the sale by a dealer in
securities, a tax at the rate of six-tenths (6/10) of 1% of the gross selling price or gross value in money
of the shares of stock sold, bartered, exchanged, or otherwise disposed, which shall be paid by the
seller or transferor, as amended by Section 39 of R.A. 10963 (Dascil, 2018).

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b. Tax on Shares of Stock Sold or Exchanged Through Initial Public Offering

There shall be levied, assessed, and on every sale, barter, exchange, or other disposition through an
initial public offering of shares of stock in closely held corporations. Taxes at the rates provided are
based on the gross selling price or gross value in money of the shares of stock sold, bartered,
exchanged, or otherwise disposed in accordance with the proportion of shares of stock sold, bartered,
exchanged, or otherwise disposed to the total outstanding share s of stock after the listing in the local
stock exchange:
Up to 25% ……………………………………………………………………. 4%
Over 25% but not over 33 ⅓% ………………………………………… 2%
Over 33 ⅓% ……………………………………………………………… 1%
The tax imposed shall be paid by the issuing corporation in primary offering or by the seller in secondary
offering (Dascil, 2018).
Returns and Payment of Percentage Taxes
Returns Gross Sales, Receipts or Earnings and Payment of Tax
1. Persons Liable to Pay Percentage Taxes – Every person subject to the percentage taxes imposed shall file
a quarterly return of the amount of his gross sales, receipts, or earnings and pay the tax due thereon within
25 days after the end of each taxable quarter. Provided that, in the case of a person whose VAT-registration
is canceled and who becomes liable to the tax imposed in Section 116 of the NIRC, the tax shall accrue
from the date of cancellation and shall be paid in accordance with the provisions of the Section (Dascil,
2018).
2. Person Retiring from Business – Any person retiring from business subject to percentage tax shall notify
the nearest internal revenue officer, file his return, and pay the tax due thereon within 20 days after closing
his business (Dascil, 2018).
3. Determination of Correct Sales or Receipts – When it is found that a person has failed to issue receipts or
invoices, or when no return is filed, or when there is reason to believe that the books of accounts or other
records do not correctly reflect the declarations made or to be made in return required to be filed under the
provisions of the Code, the Commissioner, after taking into account the sales, receipts, or other taxable
base of other persons engaged in similar businesses under similar situations or circumstances, or after
considering other relevant information, may prescribe a minimum amount of such gross receipts, sales, and
taxable base and such amount so prescribed shall be prima facie correct for purposes of determining the
internal revenue tax liabilities of such person (Dascil, 2018).
Where to File
Except when the Commissioner otherwise permits, every person liable to the percentage tax under the Title
may, at his option, file a separate return for each branch or place of business, or a consolidated return for all
branches or places of business with the authorized agent bank, Revenue District Officer, Collection Agent, or
duly authorized Treasurer of the city or municipality where said business or principal place of business is located,
as the case may be (Dascil, 2018).
How to File
BIR Form No. 2551Q (Quarterly Percentage Return) (Bureau of Internal Revenue, Revenue Memorandum
Circular No. 26-2018, 2018)
The taxpayer shall file and/or pay through any of the following modes:
1. Manual Form
a. Manual filers shall download the PDF format of BIR Form No. 2551Q and print it, then fill out the
applicable items/fields.

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b. The taxable amount to be indicated in the quarterly percentage tax return shall be the total gross
sales/receipts for the quarter.
c. Payment of the percentage tax due thereon shall be made through:
a. Manual Payment
 Authorized Agent Bank (AAB) located within the territorial jurisdiction of the Revenue District
Office (RDO) where the taxpayer is registered;
Office (RDO) where the taxpayer is registered.
b. Online Payment
 GCash Mobile Payment;
 Landbank of the Philippines (LBP) Linkbiz Portal, for taxpayers who have ATM account with
LBP and/or holders of Bancnet ATM/Debit Card; or
 DBP Tax Online, for holders of VISA/Master Credit Card and/or Bancnet ATM/Debit.
d. In case manual filers paid the percentage taxes due for the first and second months of the quarter using
BIR Form No. 2551M, the taxpayer still needs to file the quarterly percentage tax return (BIR Form No.
2551Q) and indicate in the return the total gross sales/receipts for the quarter and the total payment
made in the first two (2) month/s. The payment/s made shall be reflected in Item No. 17 - Other
Credit/Payment Made of the newly revised BIR Form No. 2551Q.
e. If manual filers also paid the percentage tax due for the third month using BIR Form No. 2551M, the
taxpayer still needs to file the quarterly percentage tax return (BIR Form No. 2551Q) and indicate in the
return the total gross sales/receipts for the quarter and the total payments made for the three (3) month/s
in Item No. 17 - Other Credit/Payment made of the newly revised BIR Form No. 2551Q.
2. Electronic Bureau of Internal Revenue Forms (eBIRForms)

a. The newly revised BIR Form No. 2551Q is not yet available in eBIRForms.
b. eBIRForms filers shall use the enhanced old BIR Form No. 2551Q in Offline eBIRForms Package v7,
which contains all the alphanumeric tax codes (ATCs) enumerated in BIR Form No. 2551M (i.e., PT010,
PT040, PT041, PT120, PT130, etc.), in filing the return.
c. The taxable amount to be indicated in the quarterly percentage tax return shall be the total gross
d. In case eBIRForms filers already paid the percentage taxes for the first and/or second and/or third
month of the quarter, as a workaround procedure, payment/s made are to be reflected in Item No. 20A-
Creditable Percentage Tax Withheld per BIR Form No. 2307.
e. Payment of the percentage tax due thereon shall be made through:
a. Manual Payment
Office (RDO) where the taxpayer is registered;
Office (RDO) where the taxpayer is registered.
b. Online Payment
 GCash Mobile Payment;
 Landbank of the Philippines (LBP) Linkbiz Portal, for taxpayers who have ATM account with
LBP and/or holders of Bancnet ATM/Debit Card; or
 DBP Tax Online, for holders of VISA/Master Credit Card and/or Bancnet ATM/Debit.
3. Electronic Filing and Payment System (eFPS)

a. The newly revised BIR Form No. 2551Q is not yet available in eFPS.
b. eFPS Filers shall use the enhanced old BIR Form No. 2551in the system, which contains all the
alphanumeric tax codes (ATCs) enumerated in BIR Form No. 2551M (i.e., PT010, PT040, PT041,
PT120, PT130, etc.) in filing the return.
c. The taxable amount to be indicated in the quarterly percentage return shall be the total gross
d. In case eFPS filers already paid the percentage taxes for the first and/or second and/or third month of
the quarter, as a workaround procedure, payment/s made are to be reflected in Item No. 20A-Creditable
Percentage Tax Withheld per BIR Form No. 2307.
e. After e-filing, proceed to online payment by clicking the Proceed to Payment button and pay the
percentage tax due.

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Percentage Tax for Transactions Involving Shares of Stocks

BIR Form 2552 – Percentage Tax Return for Transactions Involving Shares of Stocks Listed and Traded
Through The Local Stock Exchange or Through Initial and/or Secondary Public Offering
1. How to File
a. For manual filing and/or payment:
1. Properly fill up the existing old BIR Form 2552 in triplicate copies using the new tax rate then
compute the tax due thereon.
2. Proceed to any AAB located within the territorial jurisdiction of the RDO where the broker or
corporate issuer is registered, and present the duly accomplished old BIR Form 2552 together with
the required attachments.
3. If paying manually, present the aforementioned documents together with BIR-prescribed deposit
slip, and payment to the respective AAB. The Percentage Tax Involving Shares of Stocks shall be
paid at the time the return is filed by the taxpayer.
4. Receive the BIR Form 2552 taxpayer’s copy duly validated and stamp-received by the teller of the
AAB.
5. Manual filers who want to pay online can pay through GCash Mobile Payment, LandBank of the
Philippines (LBP) Linkbiz Portal (for taxpayers who have ATM account with LBP/Bancnet ATM or
Debit Card), or DBP Tax Online (for holders of VISA/Master Credit Card/Bancnet ATM or Debit
Card).
b. For eFPS filing and/or payment;
1. File online using the existing BIR Form 2552 in the eFPS and pay online the corresponding taxes
due thereon by proceeding to payment. The result of this transaction is the deficiency tax.
2. To cover the deficiency tax, eFPS filers shall likewise file and pay online the deficiency tax using
BIR Form No. 0605 and fill in the corresponding information in the Tax Type (ST Percentage Tax –
Stocks) and ATC field (ATC MC 031 – Deficiency Tax) in lieu of the correct BIR form that should
have been used.
3. eFPS filers who want to pay online can pay through GCash Mobile Payment, LandBank of the
Philippines (LBP) Linkbiz Portal (for taxpayers who have ATM account with LBP/Bancnet ATM or
Debit Card), or DBP Tax Online (for holders of VISA/Master Credit Card/Bancnet ATM or Debit
Card).
4. Note: Once the enhanced version of the BIR Form 2552 is available in eFPS, there will be a
notification/announcement through a Revenue Memorandum Circular (RMC). Guidelines shall be
issued accordingly if there is a necessity whether or not to amend the previously filed returns in
eFPS.
c. For eBIRForms filing and payment:
1. File online using the existing BIR Form 2552 in the eBIRForms Package and pay the corresponding
tax dues via over-the-counter (OTC) of AAB under the jurisdiction of the RDO where the taxpayer
is registered.
2. eBIRForms filers who want to pay online can pay through GCash Mobile Payment, LandBank of
the Philippines (LBP) Linkbiz Portal (for taxpayers who have ATM account with LBP/Bancnet ATM
or Debit Card), or DBP Tax Online (for holders of VISA/Master Credit Card/Bancnet ATM or Debit
Card).
3. The result of this transaction through eBIRForms is deficiency tax.
4. To cover the resulting deficiency tax, eBIRForms filers shall likewise file and pay online the
deficiency tax using BIR Form No. 0605 and fill in the corresponding information in the Tax Type
(ST Percentage Tax – Stocks) and ATC field (ATC MC 031 – Deficiency Tax) in lieu of the BIR
Form 2552 that should have been used.
2. When to File/Pay
a. For tax on the sale of shares of stocks listed and traded through the local stock exchange (LSE) – within
five (5) banking days from the date of collection
b. For tax on shares of stocks sold or exchanged through primary offering – within 30 days from the date
of listing in the LSE
c. For tax on shares of stocks sold or exchanged through secondary public offering – within five (5) banking
days from the date of collection

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EXCISE TAXES ON CERTAIN GOODS
Nature of Excise Tax
An excise tax is a tax on the production, sale, or consumption of a commodity in a country. This tax is applicable
to goods manufactured or produced in the Philippines for domestic sale or consumption, for any other
disposition, and on the goods imported. In addition, excise taxes also apply to services performed in the
Philippines (Bureau of Internal Revenue, Excise Tax, 2019).
Goods Subject to Excise Taxes
Excise taxes apply to goods manufactured or produced in the Philippines for domestic sales or consumption or
for any other disposition and to things imported as well as services performed in the Philippines. The excise tax
imposed herein shall be in addition to the value-added tax (Dascil, 2018).
Types of Excise Tax

- Specific taxes are excise taxes imposed and are based on weight or volume capacity or any other physical
unit of measurement.
- Ad Valorem Taxes are excise taxes imposed and are based on selling price or other specified value of the
goods or services performed.
With the TRAIN Law implemented, excise tax now includes services performed. Thus, excise tax shall now refer
to tax imposed on a) goods either as 1) imported to the country, 2) manufactured or produced in the country for
domestic sale, or 3) manufactured or produced for consumption or any other disposition; and b) on services
performed in the country (Dascil, 2018).
Manner of Computation
Specific Tax
𝑁𝑁𝑁𝑁. 𝑜𝑜𝑜𝑜 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑜𝑜𝑜𝑜 𝑜𝑜𝑜𝑜ℎ𝑒𝑒𝑒𝑒 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 × 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝑇𝑇𝑇𝑇𝑇𝑇 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅
Ad Valorem Tax
𝑁𝑁𝑁𝑁. 𝑜𝑜𝑜𝑜 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 𝑜𝑜𝑜𝑜 𝑜𝑜𝑜𝑜ℎ𝑒𝑒𝑒𝑒 𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚𝑚 × 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃𝑃 𝑜𝑜𝑜𝑜 𝑎𝑎𝑎𝑎𝑎𝑎 𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆𝑆 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 𝑝𝑝𝑝𝑝𝑝𝑝 𝑢𝑢𝑢𝑢𝑢𝑢𝑢𝑢 × 𝐴𝐴𝐴𝐴 𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉𝑉 𝑇𝑇𝑇𝑇𝑇𝑇 𝑅𝑅𝑅𝑅𝑅𝑅𝑅𝑅
Classes of Excise Tax
1. Alcohol Products
a. Distilled Spirits, Ad Valorem, and Specific Tax (see next page)
2018
Particulars 2013 2014 2015 2016 2017
onwards
1. Ad Valorem Tax Rate –
Based on the Net Retail Price
(NRP) per proof (excluding 15% 15% 20% 20% 20% 20%
the excise and value-added
taxes)
Effective
01/01/2016,
specific tax
2. Specific Tax – per proof liter 20.00 20.00 20.00 20.80 21.63 rate shall be
increased by
4% every year
thereafter.
Source: https://www.bir.gov.ph/index.php/tax-information/excise-tax.html#concepts

BM1903
b. Wines, per liter of volume capacity

2018
Particulars 2013 2014 2015 2016 2017
onwards
1. Sparkling wines/champagnes,
where the NRP (excluding the
excise and VAT) per bottle of
750 mL volume capacity,
regardless of proof is:
- P500.00 or less 250.00 260.00 270.40 281.22 292.47
- More than Php 500.00 700.00 728.00 757.12 787.40 818.90 Effective
01/01/2014, the
2. Still wines and carbonated specific tax rate
wines containing 14% of 30.00 31.20 32.45 33.75 35.10 shall be
alcohol by volume or less increased by
4% every year
3. Still wines and carbonated thereafter.
wines containing more than
14% (of alcohol by volume) 60.00 62.40 64.90 67.50 70.20
but not more 25% of alcohol
by volume
4. Fortified wines containing

more than 25% of alcohol by Taxed as distilled spirits
volume
c. Fermented Liquors, per liter of volume capacity

2018
Particulars 2013 2014 2015 2016 2017
onwards
1. If the NRP (excluding excise
and VAT) per liter of volume Effective
capacity is: 01/01/2018, the
specific tax rate
shall be
- P50.60 and below 15.00 17.00 19.00 21.00 23.50 increased by
4% every year
thereafter.
- More than P50.60 20.00 21.00 22.00 23.00 23.50
Effective
2. If brewed and sold at 01/01/2014, the
microbreweries or small specific tax rate
establishments such as pubs 28.00 29.12 30.28 31.50 32.76 shall be
and restaurants, regardless of increased by
the NRP 4% every year
thereafter.
NOTE: In the case of fermented liquors affected by the “no downward reclassification” provision, the
4% increase shall apply to their respective applicable tax rates.

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2. Tobacco Products
a. Tobacco products, per kilogram
2018
Particulars 2013 2014 2015 2016 2017
onwards
1. Tobacco products
a. Tobacco twisted by hand

or reduced into a
condition to be consumed
1.75 1.82 1.89 1.97 2.05
in any manner other than
the ordinary mode of
drying and curing
Effective
b. Tobacco prepared or 01/01/2014, the
partially prepared with or specific tax rate
without the use of any shall be
1.75 1.82 1.89 1.97 2.05 increased by
machine or instrument or
without being pressed or 4% every year
sweetened thereafter.
c. Fine-cut shorts and

refuse, scraps, clippings,
1.75 1.82 1.89 1.97 2.05
cuttings, stems, midribs,
and sweepings of tobacco
2. Chewing tobacco unsuitable

1.50 1.56 1.62 1.68 1.75
for use in any other manner
b. Cigars and Cigarettes

2018
Particulars 2013 2014 2015 2016 2017
onwards
1. Cigars, per cigar Effective
01/01/2014, the
a. Based on the NRP per
specific tax rate
cigar (excluding the excise 20% 20% 20% 20% 20%
shall be
and value-added taxes)
increased by
4% every year
b. Per cigar 5.00 5.20 5.41 5.62 5.85 thereafter.
01/01/2018 07/01/2018 01/01/2022 01/01/2022

01/01/2024
Particulars to to to to
onwards
06/30/2018 12/31/2019 12/31/2021 12/31/2023
2. Cigarettes per pack NEW TAX RATES based on RA No. 10963 (TRAIN Law)
Effective
a. Cigarettes 01/01/2024, the
32.50 35.00 37.50 40.00
packed by hand specific tax rate
shall be
b. Cigarettes increased by 4%
packed by 32.50 35.00 37.50 40.00 every year
machine thereafter.

BM1903
c. Inspection Fee – There shall be collected inspection fees on leaf tobacco, scrap, cigars, cigarettes, and
other manufactured tobacco and tobacco products, as follows:
Product Type Inspection Fee
1. Cigars 0.50 per thousand pieces or fraction thereof
2. Cigarettes 0.10 per thousand sticks or fraction thereof
3. Leaf tobacco 0.02 per kilogram or fraction thereof
4. Scrap and other manufactured tobacco 0.03 per kilogram or fraction thereof
3. Petroleum Products
Effectivity (R.A. 10963)
Product Type 01/01/2018 01/01/2019 01/01/2020
a. Lubricating oils and greases, including but not limited to
base stock for lube oils and greases, high vacuum
distillates, aromatic extracts, and other similar
preparations, and additives for lubricating oils and
greases, whether such additives are petroleum-based
or not, per liter and kilogram, respectively, of volume
capacity or weight
- Locally produced or imported oils previously taxed
but are subsequently reprocessed, re-refined, or 8.00 9.00 10.00
recycled, per liter, and a kilogram of volume
capacity or weight
b. Processed gas, per liter of volume capacity
c. Waxes and petrolatum, per kilogram
d. Denatured alcohol to be used for motive power, per liter
of volume capacity
e. Asphalt, per kilogram
f. Naphtha, regular gasoline, pyrolysis gasoline, and other
similar products of distillation, per liter of volume
capacity 7.00 9.00 10.00
g. Unleaded premium gasoline, per liter of volume
capacity
h. Kerosene, per liter of volume capacity 3.00 4.00 5.00
i. Aviation turbo jet fuel, aviation gas, per liter of volume
capacity
4.00 4.00 4.00
j. Kerosene when used as aviation fuel, per liter of
volume capacity
k. Diesel fuel oil, and on similar fuel oils having more or
less the same generating power, per liter of volume
capacity
l. Liquified petroleum gas used for motive power, per
kilogram 2.50 4.50 6.00
m. Bunker fuel oil, and on similar oils having more or less
the same generating power, per liter of volume capacity
n. Petroleum coke, per metric ton
o. Liquified petroleum gas, per kilogram 1.00 2.00 3.00

BM1903
p. Naphtha and pyrolysis gasoline, when used as a raw

material in the production of petrochemical products or
in the refining of petroleum products, or as a
replacement fuel for natural-gas-fired-combined cycle
power plant, in lieu of locally-extracted natural gas
during the non-availability thereof, per liter of volume
0.00 0.00 0.00
capacity
q. Liquified petroleum gas, when used as a raw material in
the production of petrochemical products, per kilogram
r. Petroleum coke when used as feedstock to any power
generating facility, per metric ton
4. Miscellaneous Articles
a. Automobiles and Other Motor Vehicles
Net Manufacturer’s Price/Importer’s Selling Price Tax Rate (R.A. 10963)

OVER UP TO RATE
0 600,000 4%
600,000 1,000,000 10%
1,100,000 4,000,000 20%
4,000,000 Over 50%
b. Non-Essential Goods – Twenty percent (20%) based on the wholesale price or the value of importation
used by the Bureau of Customs in determining tariff and customs duties, net of excise, and value-added
taxes (Bureau of Internal Revenue, Excise Tax, 2019).
c. Non-Essential Service
Service Tax Rate
Performance of Services on Invasive Cosmetic Procedures 5%
Invasive Cosmetic Procedure shall refer to a cosmetic surgery that is carried out by entering the body
through a body cavity or anatomical opening, but with the smallest damage possible to these structures.
Procedures shall include, but not be limited to, the following:
• Liposuction • Embedded Protein Threads
• Mammoplasty • Hair Restoration/Transplantation
• Breast Lift • Eyelid Surgery
• Buccal Fat Removal • Vaginal Plastic Surgery
• Buttocks Augmentation • Abdominoplasty or Tummy Tuck
• Chin Augmentation • Auto Grafting
• Facelift/Neck Lift • Rhinoplasty/Alar Trimming
• Thread Lift • Otoplasty
Illustrations:
1. The invasive cosmetic procedure is performed in a clinic or any place outside a hospital.
To improve her body shape, Miss X decided to undergo a liposuction procedure and sought the
services of Dok Salamat, a clinic operated outside the hospital and owned by Melo Medical Group,
Inc. Dok Salamat charged Miss X the amount of P50,000.00 (inclusive of 12% VAT but exclusive
of 5% excise tax) for the service rendered. The 5% excise tax shall be computed as follows:

BM1903
Original Price (inclusive of VAT) P 50,000.00

Gross Receipts (net of 12% VAT) (50,000/112%) P 44,642.86
Add: 5% excise tax (44,642.86 x 5%) 2,232.14
12% VAT [(44,642.86 + 2,232.14) x 12%] 5,625.00
Total amount to be collected from Miss X P 52,500.00
If the amount charged is inclusive of both 12% VAT and 5% excise tax, then the computation of the
excise tax will be as follows:
Original Price (inclusive of VAT and excise) P 50,000.00
Gross Receipts (net of 12% VAT, inclusive of excise) (50,000/112%) P 44,642.86
Gross Receipts (net of 12% VAT and excise) (44,642.86/105%) P 42,517.01

Add: 5% excise tax (42,517.01 x 5%) 2,125.85
12% VAT (44,642.86 x 12%) 5,357.14
2. An invasive procedure is performed within a hospital.

Same facts as the previous example, except this time, Miss X had another invasive cosmetic
procedure done by Doctor P, an individual practitioner operating a clinic inside a hospital. The
hospital billed Miss X’s other fees (supplies and fees for the use of the operating room and hospital
facilities) in the amount of P20,000, in addition to the fees charged by Doctor P of P50,000 (inclusive
of 12% VAT, excluding excise) for the service performed.
Notes:
1. Medical and dental hospitals and veterinary services are exempt from value-added tax, except
those rendered by professionals.
2. Doctor P is presumed to be self-employed, and his annual receipts exceeded the threshold for
VAT of P3,000,000.
Billings by hospital (VAT exempt) P 20,000.00

Add: 5% excise tax (20,000.00 x 5%) 1,000.00
Doctor’s Fee (50,000/112%) 44,642.86
Add: 5% excise tax (44,642.86 x 5%) 2,232.14
12% VAT [(44,642.86 + 2,232.14) x 12%] 5,625.00
d. Sweetened Beverages
Product Type Tax Rate

Per Liter of Volume Capacity
Using purely caloric sweeteners, and purely non-caloric sweeteners, or
6.00
a mix of caloric and non-caloric sweeteners
Using purely high fructose corn syrup (HFCS) or in combination with any
12.00
caloric or non-caloric sweetener
Using purely coconut sap sugar and purely steviol glycosides Exempt
Illustrations (Republic of the Philippines, 2018):

1. Carbonated Beverages
Dulce Manufacturing Corp. will remove from the place of production 100 cases of Super Cola using
HFCS and non-caloric sweetener. Each case contains six (6) bottles of 1.5 liters each.
No. of cases 100
Multiplied by: No. of bottles per case 6
Total no. of bottles 600

BM1903
Multiplied by content per bottle 1.5 L

Total volume in liters 900 L
Multiplied by the specific tax rate P 12.00
Total excise tax to be paid before removal P10,800.00
2. Powdered Juice
Sweety Import Corp. will remove from customs custody 50 cases of Four Seasons Powdered Juice
using caloric and non-caloric sweetener containing 144 packs by 25 grams. Each 25 grams pack
can make 1 liter (per serving suggestion appearing on the label).
No. of cases 50
Multiplied by: No. of bottles per case 144
Total no. of bottles 7,200
Multiplied by content per bottle 1L
Total volume in liters 7,200 L
Multiplied by the specific tax rate P 6.00
Total excise tax to be paid before removal P 43,200.00
5. Minerals and Mineral Products
Product Type Tax Rates (R.A. 10963)

- January 01, 2018 – P50.00
Coal and coke (domestic and imported) - January 01, 2019 – P100.00
- January 01, 2020, onwards – P150.00
Nonmetallic minerals and quarry Four percent (4%) based on the actual market value of the
resources (locally extracted or produced) gross output thereof at the time of removal
Four percent (4%) based on the value used by the Bureau
Nonmetallic minerals and quarry
of Customs (BOC) in determining tariff and customs duties,
resources (Imported)
net of excise tax, and value-added tax
Locally-extracted natural gas and
Exempt
liquefied natural gas
All metallic minerals (locally extracted or
Four percent (4%) based on the actual market value of the
produced copper, gold, chromite, and
gross output thereof at the time of removal
other metallic minerals)
Four percent (4%) based on the value used by BOC in
Imported copper, gold, chromite, and
determining tariff and customs duties, net of excise tax, and
other metallic minerals
value-added tax
Six percent (6%) of the fair international market price
thereof, on the first taxable sale, barter, exchange, or such
similar transaction, such tax to be paid by the buyer or
purchaser before removal from the place of production. The
phrase “first taxable sales, barter, exchange, or similar
transaction” means the transfer of indigenous petroleum in
its original state to a first taxable transferee. The fair
On indigenous petroleum
international market price shall be determined in
consultation with appropriate government agencies.
For the purpose of this Subsection, “indigenous petroleum” shall
include locally extracted mineral oil, hydrocarbon gas, bitumen,
crude asphalt, mineral gas, and all other similar or naturally
associated substances with the exception of coal, peat,
bituminous shale, and stratified mineral deposits."

BM1903
NOTE:
- In the case of mineral concentrates not traded in commodity exchanges in the Philippines or abroad, such
as copper concentrate, the actual market value shall be the world price quotations of the refined mineral
products content thereof prevailing in the said commodity exchanges, after deducting the smelting, refining,
and other charges incurred in the process of converting the mineral concentrates into refined metal traded
in those commodity exchanges.
- On minerals and mineral products sold or consigned abroad, the actual cost of ocean freight and insurance
shall be deducted from the tax base.
Persons Liable to File a Return, Filing of Return on Removal and Payment of Tax
Persons Liable to File a Return
Every person liable to pay excise tax imposed shall file a separate return for each place of production setting
forth, among others, the description and quantity or volume of products to be removed, the applicable tax base,
and the amount of tax due thereon. Provided, however, that in the case of indigenous petroleum, natural gas,
or liquified natural gas, the excise tax shall be paid by the first buyer, purchaser, or transferee for local sale,
barter, or transfer, while the excise tax exported products shall be paid by the owner, lessee, concessionaire,
or operation of the mining claim. Should domestic products be removed from the place of production without
the payment of the tax, the owner or person having possession thereof shall be liable for the tax due thereon
(Dascil, 2018).
Time for Filing of Return and Payment of Tax
Unless otherwise specifically allowed, the return shall be filed and the excise tax paid by the manufacturer or
producer before removal of domestic products from the place of production. Provided that the excise tax on
locally manufactured petroleum gas products and indigenous petroleum levied under Sections 148 and 151
(A)(4), respectively, shall be paid within 10 days from the date of removal of such products for the period from
January 01, 1998, to June 30, 1998; within five (5)s days from the date of removal of such products for the
period from July 01, 1998; and before removal from the place of production of such products from January 01,
1999, and thereafter. Provided further that the excise tax on nonmetallic mineral or mineral products or quarry
resources shall be due and payable upon removal of such products from the locality where mined or extracted,
but with respect to the excise tax on locally produced or extracted metallic mineral or mineral products, the
person liable shall file a return and pay the tax within 15 days after the end of the calendar quarter when such
products were removed subject to such conditions as may be prescribed by rules and regulations to be
promulgated by the Secretary of Finance, upon recommendation of the Commissioner. For this purpose, the
taxpayer shall file a bond in an amount that approximates the amount of excise tax due on the removals for the
said quarter. The foregoing rules notwithstanding, for imported mineral or mineral products, whether metallic or
non-metallic, the excise tax due thereon shall be paid before their removal from customs custody (Dascil, 2018).
Place for Filling of the Return and Payment of the Tax
Except when the Commissioner otherwise permits, the return shall be filed with and the tax paid to any
authorized agent bank or Revenue Collection Officer or duly authorized City or Municipal Treasurer in the
Philippines (Dascil, 2018).
Exceptions
The Secretary of Finance upon recommendation of the Commissioner may, by rules and regulations, prescribe:
a. The time for filing the return at intervals other than the time prescribed in the preceding paragraphs for a
class or classes of taxpayers after considering factors such as the volume of removals, adequate measures
of security such other relevant information required to be submitted under the pertinent provisions of the
Code; and
b. The manner and time of payment of excise taxes other than as herein prescribed, under a tax prepayment,
advance deposit, or similar schemes. In the case of locally produced or extracted minerals and mineral
products or quarry resources where the mine site or place of extraction is not the same as the place of
processing or production, the return shall be filed with and the tax paid to the Revenue District Office having
jurisdiction over the locality where the same are mined, extracted, or quarried. Provided, however, that for
metallic minerals processed abroad, the return shall be filed and the tax due thereon paid to the Revenue
District Office having jurisdiction over the locality where the same are mined, extracted, or quarried (Dascil,
2018).

BM1903
References:
Banggawan, R. B. (2015). Business & transfer taxation (Laws, principles, and applications with tax remedies).
Manila: Real Excellence Publishing.
Bureau of Internal Revenue. (2017, July 24). Republic Act No. 10963. Retrieved from Bureau of Internal
Revenue: https://www.bir.gov.ph/images/bir_files/internal_communications_1/TRAIN%20matters/RA-
10963-RRD.pdf
Bureau of Internal Revenue. (2018). Revenue Memorandum Circular No. 26-2018. Retrieved from Bureau of
Internal Revenue:
https://www.bir.gov.ph/images/bir_files/internal_communications_2/RMCs/2018/RMC%2026-
2018/RMC%2026-2018.pdf
Bureau of Internal Revenue. (2019). Excise tax. Retrieved from Bureau of Internal Revenue:
https://www.bir.gov.ph/index.php/tax-information/excise-tax.html#concepts
Bureau of Internal Revenue. (2019). Percentage tax. Retrieved from Bureau of Internal Revenue:
https://www.bir.gov.ph/index.php/tax-information/percentage-tax.html
Chavez, J. J. (2018). The new tax code of the Philippines: For practitioners, entrepreneurs, and bar candidates.
Manila: REX Book Store.
Dascil, R. T. (2018). NIRC of the Philippines. Manila: REX Bookstore.
De Leon, H. S., & De Leon, Jr., H. M. (2013). The law on transfer and business taxation. Manila: REX Book
Store.
National Tax Research Center. (2019). Guide to Philippine Taxes. Retrieved from National Tax Research
Center: http://www.ntrc.gov.ph/images/Publications/guide-to-philippine-taxes-2016/documentary-
stamp-tax.pdf
Republic of the Philippines. (2018). Prescribing the Implementing Rules and Guidelines on the Imposition of
Excise Tax on Sweetened Beverages Pursuant to Section 47 of R.A. 10963. Quezon City: Bureau of
Internal Revenue.
Valencia, E. G., & Roxas, G. F. (2017). Transfer and business taxation (Principles and laws with accounting
applications). Baguio: Valencia Educational Supply.


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BM1903

OTHER PERCENTAGE TAXES AND EXCISE TAXES ON CERTAIN GOODS

OTHER PERCENTAGE TAXES

List of Services Specifically Subject to Percentage Tax

2. Percentage Tax on Domestic Carriers and Keepers of Garages

Moreover, Section 4.108-3(d) of RR No. 16-05, as amended, provides:

Minimum Gross Minimum Gross

11 Handout 1 *Property of STI

3. Percentage Tax on International Carriers

4. Percentage Tax on Franchises

6. Percentage Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi-Banking

11 Handout 1 *Property of STI

- Maturity period is five (5) years or less …………………………………………………………… 5%

7. Tax on Other Non-Bank Financial Intermediaries

Maturity period is five (5) years or less …………………………………… 5%

8. Tax on Life Insurance Premiums

11 Handout 1 *Property of STI

9. Tax on Agents of Foreign Insurance Companies

Coverage Taxable Base Tax Rate

10. Amusement Taxes

11 Handout 1 *Property of STI

11 Handout 1 *Property of STI

b. Tax on Shares of Stock Sold or Exchanged Through Initial Public Offering

Returns and Payment of Percentage Taxes

Returns Gross Sales, Receipts or Earnings and Payment of Tax

11 Handout 1 *Property of STI

2. Electronic Bureau of Internal Revenue Forms (eBIRForms)

3. Electronic Filing and Payment System (eFPS)

11 Handout 1 *Property of STI

Percentage Tax for Transactions Involving Shares of Stocks

11 Handout 1 *Property of STI

EXCISE TAXES ON CERTAIN GOODS

Nature of Excise Tax

Goods Subject to Excise Taxes

Types of Excise Tax

Classes of Excise Tax

11 Handout 1 *Property of STI

b. Wines, per liter of volume capacity

- P500.00 or less 250.00 260.00 270.40 281.22 292.47

4. Fortified wines containing

c. Fermented Liquors, per liter of volume capacity

11 Handout 1 *Property of STI

a. Tobacco twisted by hand

c. Fine-cut shorts and

2. Chewing tobacco unsuitable

b. Cigars and Cigarettes

01/01/2018 07/01/2018 01/01/2022 01/01/2022

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11 Handout 1 *Property of STI

p. Naphtha and pyrolysis gasoline, when used as a raw

Net Manufacturer’s Price/Importer’s Selling Price Tax Rate (R.A. 10963)

11 Handout 1 *Property of STI

Original Price (inclusive of VAT) P 50,000.00

Gross Receipts (net of 12% VAT and excise) (44,642.86/105%) P 42,517.01

2. An invasive procedure is performed within a hospital.

Billings by hospital (VAT exempt) P 20,000.00

Product Type Tax Rate

Illustrations (Republic of the Philippines, 2018):

11 Handout 1 *Property of STI

Multiplied by content per bottle 1.5 L

5. Minerals and Mineral Products

Product Type Tax Rates (R.A. 10963)

11 Handout 1 *Property of STI