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INCOME TAXATION

TAXES = are the mainspring of the


nation’s income. Every Filipino citizen
receives valuable services from the gov’t.
Money to pay for these services come
from taxes.
INCOME TAXATION
TAXES =is money that is levied on
persons or corporations by the gov’t. To
finance vaious kinds of public services
such as Economics development, Social
development, National defense, General
Government & Debt service.
INCOME TAXATION
Economic Development includes infrastructures
projects, public works like building of roads ,
Bridges, & shoolhouses, power & electrification
In the rural areas, Development of transportation
Communication, agriculture & natural resources.
Social Development includes preservation of
National peace & order of the country and
Enhancement of National Security. General gov’t
includes general administration, general research
And international development aid. Debt service
Provides payments for the loans the gov’t has
Incurred on behalf of its people.
INCOME TAXATION
Sources of Government Revenues:
The government is dividend into three groups:
1.) The national Government which derives income from the national taxes such
as:
a.) INCOME TAX – a tax on income like salary, gain from business or
profits from any activity or transaction.
b.) ESTATE, INHERITANCE TAX - a tax imposed upon the estate or propert
of a person who dies.
c.) DONOR’S TAX – a tax on the privilege or right of a person to donate
property to another.
d.) SPECIFIC TAX - a tax based per unit, weight, or measurement like taxes
cigarettes, wine, films, gasoline, etc.
e.) PRIVILEGE TAX – a tax imposed for engaging in special kinds of business
like manufacturer’s tax, contractors tax, tax on
transportation operators etc.
INCOME TAXATION
Sources of Government Revenues:
The government is dividend into three groups:
1.) The national Government which derives income from the national taxes such
as:
f.) DOCUMENTARY STAMP TAX – a tax paid on stamps paid or affixed to
certain documents like deed of sale or
certificate of stock.
g.) MINING TAX - a tax imposed on the privileges of extracting mines from
the soil.
h.) MISCELLANEOUS TAX – a tax imposed on other sources like taxes on
banks, franchise taxes, taxes on insurance
companies, etc.
2.) The Provincial and City Government which derive income from real estate
taxes and from allotment received from the national government.
3.) The Municipal Government which derives income from real estate,
municipal licenses fees, market fees, etc.
INCOME TAXATION

Our GOVERNMENT SYSTEM considers the


tax on the INCOME of the PEOPLE as the major
SOURCE OF REVENUE. Every year in the Philippines
people must file their INCOME TAX RETURN with the
BUREAU of INTERNAL REVENUE on or before
MARCH 15 (for those with fixed income) and on
or before APRIL 15-16(for those with non-fixed income)
INCOME TAXATION

INCOME TAX COMPUTATION


The amount of tax due is based on the taxable income
which in turn is based on he GROSS INCOME less
DEDUCTION and exemptions.
The GROSS INCOME – refers to the total income derived
from all SOURCES such as SALARIES, WAGES
COMMISSIONS, FEES, BUSINESS GAINS,
CORPORATE STOCK DIVIDENDS, INTEREST
on savings accounts. Deductions are allowance
for living expenses while exemption are allowance
for supporting financially the persons within one’s
immediate family.