TAX AND OTHER

CHARGES
JBCG
TAX
■ An enforced contribution levied by the State by
virtue of the sovereignty on persons and property
within its jurisdiction for the support of the
government and all public needs.
 ESSENTIAL CHARACTERISTICS
OF TAX
■ It is an enforced contribution
■ It is levied pursuant to legislative authority.
■ It is proportionate to character.
■ It is payable in money.
■ It is levied on persons and property within the jurisdiction of
the State.
■ It is levied and collected for the purpose of raising revenue
to be used for public purpose.
■ It is commonly required to be paid at regular intervals (not
all taxes).
 CLASSIFICATION OF TAXES
■ As to scope:
– National
– Local or Municipal
■ As to who bears the burden:
– Direct
– Indirect
■ As to the determination of the amount:
– Specific
– Ad Valorem
 CLASSIFICATION OF TAXES
■ As to purpose:
– General/Fiscal/Revenue
– Special/Regulatory
■ As to Object or Subject Matter:
– Personal/Poll/Capitation
– Property
– Excise
■ As to Rates or Gradation
– Proportional
– Progressive
– Regressive
 CLASSIFICATION OF TAXES
■ As to purpose:
– General/Fiscal/Revenue
– Special/Regulatory
■ As to Object or Subject Matter:
– Personal/Poll/Capitation
– Property
– Excise
■ As to Rates or Gradation
– Proportional
– Progressive
– Regressive
REGRESSIVE SYSTEM OF TAXATION
■ A regressive tax must not be confused with regressive
system of taxation. In a society where most of the people
have low income, it exists when there are more indirect
taxes imposed than direct taxes.
■ Studies reveal that the progressive elements of the
income and other direct taxes have not sufficiently offset
the regressive effects of the indirect.
REGRESSIVE SYSTEM OF TAXATION
■ A regressive tax must not be confused with regressive
system of taxation. In a society where most of the people
have low income, it exists when there are more indirect
taxes imposed than direct taxes.
■ Studies reveal that the progressive elements of the
income and other direct taxes have not sufficiently offset
the regressive effects of the indirect.
The problem with our tax system and how it
affects us ~JC Punongbayan(01212017)
■ We have some of the highest tax rates in the region.
■ Too many goods and services are not being taxed.
■ Too many people are evading the tax system.
■ Our tax system is too complicated.
■ Rich Filipinos are not paying their fair share of taxes.
We have some of the highest tax rates
in the region.
Too many goods and services are not being
taxed.
Too many people are evading the tax system.
Our tax system is too complicated.
Rich Filipinos are not paying their fair share
of taxes.
■ BASED on the latest record of the Philippine
Statistics Authority, a total of 1,080,810 business
enterprises operate in our country. Of these,
99.58 percent are micro, small and medium
enterprises (MSMEs). MSMEs also hold 63
percent of the country's workforce.
OTHER CHARGES

■Toll ■Subsidy
■Special ■Revenue
Assessment ■Internal Revenue
■License Fee ■Customs Duties
■Debt ■Tariff
■Penalty
National Taxes Imposed Under Special Laws
■ Custom Duties
■ Sugar Adjustment Tax
■ Tax on Narcotic Drugs
■ Specific Education Fund Tax
■ Science Fund Tax
■ Energy Taxes on Aircraft, Motorized Watercraft, and
Electric Power Consumption
■ Travel Tax
■ Private Motor Vehicle Tax
Sources of Tax Laws
■ Constitution
■ Statutes or Laws
■ Presidential Decrees
■ Revenue Regulations
■ Administrative Rulings and Opinions
■ Judicial Decisions
■ Provincial, City, Municipal, and Barangay Ordinances
■ Treaties and International Agreements
Basic Tax Laws in the Philippines
■ National Internal Revenue Code
■ Tariff and Customs Code
■ The Local Tax Code
■ The Real Property Tax Code
Exemptions from
Taxation
■ A grant of immunity, express
or implied, to particular
persons, or corporations, or
to persons or corporations of
a particular class, from a tax
upon property, or an excise
tax which persons and
corporations generally
within the same taxing
district, are obliged to pay.
CLASSIFICATION OF EXEMPTIONS
■ Express or Affirmitive – These are express
provisions in the Constitution, statutes, treaties,
ordinances. Franchises or contracts.
■ Implied or exemption by omission – This occurs
when a tax is levied on certain classes of persons,
properties or transactions without mentioning
other classes. Those not mentioned are deemed
exempted by omission.
INTERPRETATION OF EXEMPTION GRANT
■ Exemption grants are strictly construed against the person,
entity or property claiming exemption.
■ One claiming must justify such claim by clear and positive
grant.
RELATIONSHIP AMONG IMPACT,
SHIFTING AND INCIDENCE OF TAXATION
■ The impact of taxation corresponds to the imposition of
the tax, shifting refers to the transfer of tax and
incidence consists of the payment of the tax.
THANK YOU!