TAXATION IN THE

PHILIPPINES
 TAXATION

 In today’s world, taxation is a reality that all citizens must contend with, for primary reason
the governments raise revenue from the people they govern to be able to function fully.
 Taxation, as a government mechanism to raise funds, developed and evolved through time
and in the context of the Philippines, we must understand that it came with our colonial
experience.
HISTORY OF TAXATION IN THE PHILIPPINES

STAGES
 Ancient Filipinos/ Pre Colonial Period
 Invasion of Spaniards
 Sedula
 Under American Period
 1987 Philippine Constitution
 Train Law
ANCIENT FILIPINOS

It all started from the Ancient

Filipinos, where they pay their taxes
to their Datu or the Chiefs for the
protection they gave to them, the
tax was termed Buwis. Punishment
for not paying taxes was also
implemented on this period.
INVASION OF
SPANIARDS

The arrival or invasion of the

Spanish people from 1521 to
1898, gave the Filipinos modern
concept of taxation, wherein 16
to 60 years olds were force to pay
tributes or tributo to the king of
Spain through colonial
government worth 8 reales.
SEDULA
A sedula is a certificate
identifying the tax payer that
needs to be carried all the time.
If someone is not able to present
their cedula to a guardia civil
they will be imprisoned for being
“indocumentado”.
OTHER FORMS
 SANCTORIUM
 DONATIVO DE ZAMBOANGA
 VINTA
 FALLA
 ENCOMIENDA
 DIEZMOS PREDIALES
TRAIN LAW
Lately, the current President of the
Philippines, President Rodrigo Duterte,
implemented the Train Law or Tax
Reform for acceleration and inclusion
which was signed last January 01, 2018.
Which seeks to correct a number of
deficiencies in the tax system. Wherein
the rich will have a bigger contribution
and the poor will benefit more.
AMERICAN PERIOD
The Americans who acquired the
Philippines aimed to make the economy
self-sufficient by running the
government with the smallest possible
sum of revenue and create surplus in
the budget. From 1898 to 1903, the
Americans followed the Spanish system
of taxation with some modification,
noting that the system introduced by
the Spaniards were outdated and
aggressive.
1987 PHILIPPINE
CONSTITUTION

It was followed by the 1987

Philippines Constitution, stating the
is “sets limitation on the exercise of
the power to tax. The rule of
taxation shall be uniform and
equitable. The congress shall
evolved a progressive system of
taxation”, wherein the Philippines
converse both National and Local.
WHY TAX IS IMPORTANT IN NATION?
 FOR EXPENDITURES ON WAR
 THE ENFORCEMENT OF LAW IN PUBLIC ORDER
 PROTECTION OF PROPERTY
 ECONOMIC INFRASTRUCTURE
 PUBLIC WORKS
 SOCIAL ENGINEERING
 TO FUND WELFARE AND PUBLIC SERVICES
 AND OPERATION OF GOVERNMENT ITSELF.
10 MAJOR SOURCES OF REVENUES
 LICENSED TAXES ON FIRMS DEALING IN ALCOHOLIC BEVERAGES AND TOBACCO
 EXCISE TAXES ON ALCOHOLIC BEVERAGES AND TOBACCO PRODUCTS
 TAXES ON BANK AND BANKERS
 DOCUMENT STAMP TAXES
 THE CEDULA
 TAXES ON INSURANCE AND INSURANCE COMPANY
 TAXES ON FOREST PRODUCTS
 MINING CONCESSIONS
 TAXES ON BUSINESS AND MANUFACTURING
 OCCUPATIONAL LICENSES