Common Carrier’s Tax

On Domestic Carriers
On International Carriers
Common Carriers

 A common carrier refers to a private or public entity that transports

goods or people from one place to another for a fee.

 Domestic Common Carriers

 International Common Carriers
Sec 117 – 3% Common Carriers Tax on
Domestic Common Carriers

On the quarterly gross receipts of:

 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
banca and owners of animal-drawn two-wheeled vehicle) and keepers of
garages
 Domestic Common Carriers

LOCAL PHILS to ABROAD

LAND AIR/SEA AIR/SEA

Transport
of

Business Tax SEC 117 VAT OR 116 VAT OR SEC 116 0% VAT OR EXEMPT
EXPORT SALE OF SERVICES [SEC 108(B)]

6. TRANSPORT OF PASSENGERS AND CARGO BY DOMESTIC

AIR OR SEA VESSELS FROM THE PHILIPPINES TO A
FOREIGN COUNTRY
Transportation Network Companies (TNCs)

 TNC or Transportation Network Vehicle System (TNVS) is a pool of land

transportation vehicles whose accessibility to the riding public is facilitated
through the use of common point of contact which may be in the form of text,
telephone and/or cellular calls, email, mobile applications or by other means. The
vehicles used in transporting passengers and/or goods in the TNC may be
owned by other people and/or entities other than the TNC, and shall be referred
herein as “Partners”.
Transportation Network Companies (TNCs)

Applicable Business Taxes for TNCs and “Partners”

 TNCs/Partners with valid “Certificate of Public Convenience (CPC)” engaged in
the transport of passengers are subject to 3% CCT under Section 117 of the Tax
Code.
 TNCs/Partners without valid CPC are classified as land transportation contractor
subject to either 12% VAT or 3% OPT under Section 116 of the Tax Code.
International Carriers

(Air transport or shipping company)

PHILS to ABROAD

Transport of

Business Tax EXEMPT SEC 118

Sec 109(S) – VAT EXEMPT TRANSACTION

Transport of passengers by international carriers doing business in the Philippines.

The same shall not be subject to Other Percentage Taxes as amended under
RA10378.

Transport of cargo by international carriers doing business in the Philippines, as

the same is subject to 3% common carrier’s tax as amended under RA10378 and
RR15-2015.
Sec 118 – CCT on International Carriers

(A)International air carriers doing business in the Philippines on their gross

receipts derived from transport of cargo from the Philippines to another country
shall pay a tax of three percent (3%) of their quarterly gross receipts.
(B)International shipping carriers doing business in the Philippines on their gross
receipts derived from transport of cargo from the Philippines to another country
shall pay a tax equivalent to three percent (3%) of their quarterly gross receipts.