1. PricewaterhouseCoopers. VAT/GST/Sales Tax rates: Global survey on books and electronic publication. Introduction. The International Publishers Association . VAT and cash flow. There are a variety of opportunities to improve VAT cash flow and these typically involve deferring the payment of VAT due or improving the. Prescribing the Use of Electronic Official Register Book for Manufacturers of Download the newly-revised BIR Form Q pdf file format under the BIR.
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barter or exchange of goods or properties, a value-added tax equivalent to twelve .. Sale, importation, printing or publication of books and any newspaper. PDF | The publishing sector has experienced an important change linked to the emergence of electronics books. This new reality has an impact. PDF | On Feb 13, , V Anojan and others published Value Added Tax In book: Advanced Business Taxation: Principles and Pracctices.
If he has ceased to carry on his trade or business, and does not expect to recommence any trade or business within the next twelve 12 months. Taxable income means the pertinent items of gross income specified in the Tax Code as amended, less the deductions, if any, authorized for such types of income, by the Tax Code or other special laws. Suspension of the Implementation of Revenue Regulations No. April 2, January 30, Amends further RR No.
It shall also include the transitional input tax determined in accordance with Section of the Tax Code, presumptive input tax and deferred input tax from previous period. Does amortization of input VAT still allowable? Yes , but is only allowed until December 31, after which taxpayers with unutilized input VAT on capital goods purchased or imported shall be allowed to apply the same as scheduled until fully utilized: Provided, That in the case of purchase of services, lease or use of properties, the input tax shall be creditable to the purchaser, lessee or licensee upon payment of the compensation, rental, royalty or fee.
What will be the basis of the date of cancellation? It is the date of issuance of tax clearance by the BIR, after full settlement of all tax liabilities relative to cessation of business or change of status of concerned taxpayer.
What comprises "goods or properties"? The term "goods or properties" shall mean all tangible and intangible objects, which are capable of pecuniary estimation and shall include, among others: Real properties held primarily for sale to customers or held for lease in the ordinary course of trade or business;. The right or the privilege to use patent, copyright, design or model, plan, secret formula or process, goodwill, trademark, trade brand or other like property or right;. The right or privilege to use in the Philippines of any industrial, commercial or scientific equipment;.
The right or the privilege to use motion picture films, films, tapes and discs; and. Radio, television, satellite transmission and cable television time. What comprises "sale or exchange of services"? The term "sale or exchange of services" means the performance of all kinds of services in the Philippines for others for a fee, remuneration or consideration, whether in kind or in cash, including those performed or rendered by the following: Stock, real estate, commercial, customs and immigration brokers;.
Persons engaged in milling, processing, manufacturing or repacking goods for others;. Proprietors, operators or keepers of hotels, motels, rest houses, pension houses, inns, resorts, theatres, and movie houses;. Proprietors or operators of restaurants, refreshment parlors, cafes, and other eating places, including clubs and caterers;. Transportation contractors on their transport of goods or cargoes, including persons who transport goods or cargoes for hire and other domestic common carriers by land relative to their transport of goods or cargoes;.
Common carriers by air and sea relative to their transport of passengers, goods or cargoes from one place in the Philippines to another place in the Philippines;.
Non-life insurance companies except their crop insurances , including surety, fidelity, indemnity and bonding companies; and.
Similar services regardless of whether or not the performance thereof calls for the exercise of use of the physical or mental faculties. The phrase "sale or exchange of services" shall likewise include: The lease of use of or the right or privilege to use any copyright, patent, design or model, plan, secret formula or process, goodwill, trademark, trade brand or other like property or right;.
The lease or the use of, or the right to use of any industrial, commercial or scientific equipment;. The supply of scientific, technical, industrial or commercial knowledge or information;.
The supply of any assistance that is ancillary and subsidiary to and is furnished as a means of enabling the application or enjoyment of any such property, or right or any such knowledge or information;.
The supply of services by a nonresident person or his employee in connection with the use of property or rights belonging to, or the installation or operation of any brand, machinery or other apparatus purchased from such non-resident person;. The supply of technical advice, assistance or services rendered in connection with technical management or administration of any scientific, industrial or commercial undertaking, venture, project or scheme;.
The lease of motion picture films, films, tapes and discs; and. The lease or the use of or the right to use radio, television, satellite transmission and cable television time. What is a zero-rated sale? It is a taxable transaction for VAT purposes, but shall not result in any output tax. However, the input tax on purchases of goods, properties or services, related to such zero-rated sales, shall be available as tax credit or refund in accordance with existing regulations.
What transactions are considered as zero-rated sales? Processing, manufacturing or repacking goods for other persons doing business outside the Philippines which goods are subsequently exported where the services are paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas BSP ;.
Services other than processing, manufacturing or repacking rendered to a person engaged in business conducted outside the Philippines or to a non-resident person engaged in business who is outside the Philippines when the services are performed, the consideration for which is paid for in acceptable foreign currency and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas BSP ;.
Services rendered to persons engaged in international shipping or air transport operations, including leases of property for use thereof; Provided, that these services shall be exclusively for international shipping or air transport operations. Transport of passengers and cargo by domestic air or sea carriers from the Philippines to a foreign country. Sale of power or fuel generated through renewable sources of energy such as, but not limited to, biomass, solar, wind, hydropower, geothermal and steam, ocean energy, and other shipping sources using technologies such as fuel cells and hydrogen fuels; Provided, however that zero-rating shall apply strictly to the sale of power or fuel generated through renewable sources of energy, and shall not extend to the sale of services related to the maintenance or operation of plants generating said power.
The sale and actual shipment of goods from the Philippines to a foreign country, irrespective of any shipping arrangement that may be agreed upon which may influence or determine the transfer of ownership of the goods so exported, paid in acceptable foreign currency or its equivalent in goods or services, and accounted for in accordance with the rules and regulations of the Bangko Sentral ng Pilipinas BSP ;.
The sale of raw materials or packaging materials to a non-resident buyer for delivery to as a resident local export-oriented enterprise to be used in manufacturing, processing, packing or repacking in the Philippines of the said buyer's goods, paid for in acceptable foreign currency, and accounted for in accordance with the rules and regulations of the BSP;.
Transactions considered export sales under Executive Order No. Sale of goods or property to persons or entities who are tax-exempt under special laws or international agreements to which the Philippines is a signatory, such as, Asian Development Bank ADB , International Rice Research Institute IRRI , subject such sales to zero rate. The sale of raw materials or packaging materials to a non-resident buyer for delivery to a resident local export-oriented enterprise to be used in manufacturing, processing, packing or repacking in the Philippines of the said buyer's goods, paid for in acceptable foreign currency, and accounted for in accordance with the rules and regulations of the BSP;.
What transactions are considered deemed sales? The following transactions are considered as deemed sales: Transfer, use or consumption, not in the course of business, of goods or properties originally intended for sale or for use in the course of business. Transfer of goods or properties not in the course of business can take place when VAT-registered person withdraws goods from his business for his personal use;. Shareholders or investors as share in the profits of the VAT-registered person; or.
Consignment of goods if actual sale is not made within sixty 60 days following the date such goods were consigned. Consigned goods returned by the consignee within the day period are not deemed sold;.
Retirement from or cessation of business, with respect to all goods on hand, whether capital goods, stock-in-trade, supplies or materials as of the date of such retirement or cessation, whether or not the business is continued by the new owner or successor.
The following circumstances shall, among others, give rise to transactions "deemed sale";. Change of ownership of the business. There is a change in the ownership of the business when a single proprietorship incorporated; or the proprietor of a single proprietorship sells his entire business. Dissolution of a partnership and creation of a new partnership which takes over the business.
What is VAT-exempt sale? It is a sale of goods, properties or service and the use or lease of properties which is not subject to output tax and whereby the buyer is not allowed any tax credit or input tax related to such exempt sale. What are the VAT-exempt transactions? Sale or importation of agricultural and marine food products in their original state, livestock and poultry of a kind generally used as, or yielding or producing foods for human consumption; and breeding stock and genetic materials therefore;.
Sale or importation of fertilizers; seeds, seedlings and fingerlings; fish, prawn, livestock and poultry feeds, including ingredients, whether locally produced or imported, used in the manufacture of finished feeds except specialty feeds for race horses, fighting cocks, aquarium fish, zoo animals and other animals considered as pets ;.
Importation of personal and household effects belonging to residents of the Philippines returning from abroad and non-resident citizens coming to resettle in the Philippines; Provided, that such goods are exempt from custom duties under the Tariff and Customs Code of the Philippines;.
Services subject to percentage tax under Title V of the Tax Code, as amended;. Services by agricultural contract growers and milling for others of palay into rice, corn into grits, and sugar cane into raw sugar;. Medical, dental, hospital and veterinary services except those rendered by professionals;.
Services rendered by individuals pursuant to an employer-employee relationship;. Services rendered by regional or area headquarters established in the Philippines by multinational corporations which act as supervisory, communications and coordinating centers for their affiliates, subsidiaries or branches in the Asia-Pacific Region and do not earn or derive income from the Philippines;.
Transactions which are exempt under international agreements to which the Philippines is a signatory or under special laws except those granted under P.
Gross receipts from lending activities by credit or multi-purpose cooperatives duly registered and in good standing with the Cooperative Development Authority;. Sales by non-agricultural, non-electric and non-credit cooperatives duly registered with and in good standing with CDA; Provided, that the share capital contribution of each member does not exceed Fifteen Thousand Pesos P15, Sale of real properties not primarily held for sale to customers or held for lease in the ordinary course of trade or business.
Sale of real properties utilized for low-cost housing as defined by RA No. Sale of real properties utilized for specialized housing as defined under RA No.
If two or more adjacent lots are sold or disposed in favor of one buyer, for the purpose of utilizing the lots as one residential lot, the sale shall be exempt from VAT only if the aggregate value of the lots do not exceed One Million Five Hundred Thousand Pesos P1,, Lease of residential units with a monthly rental per unit not exceeding Fifteen Thousand Pesos P15, Sale, importation, printing or publication of books and any newspaper, magazine, review or bulletin which appears at regular intervals with fixed prices for subscription and sale and which is not devoted principally to the publication of paid advertisements;.
Services of banks, non-bank financial intermediaries performing quasi-banking functions, and other non-bank financial intermediaries, such as money changers and pawnshops, subject to percentage tax under Sections and , respectively of the Tax Code; and.
Sale or lease of goods and services to senior citizens and persons with disabilities, as provided under Republic Act Nos. Transfer of property in merger or consolidation pursuant to Section 40 C 2 of the Tax Code, as amended ;. Sale of drugs and medicines prescribed for diabetes, high cholesterol, and hypertension beginning on January 1, as determined by the Department of Health ; and.
What is the difference between a low-cost and a socialized housing? It shall also refer to projects intended for the underprivileged and homeless wherein the housing package selling price is within the lowest interest rates under the Unified Lending Program UHLP or any equivalent housing program of the Government, the private sector or non-government organizations.
It supports the third party information program of the Bureau through the cross referencing of third party information from the taxpayers' Summary Lists of Sales and Purchases prescribed to be submitted on a quarterly basis. Who are required to submit Summary List of Sales? Who are required to submit Summary List of Purchases?
What are the Summary Lists required to be submitted? When is the deadline for submission of the above Summary Lists? What are the penalties for failure to submit the Summary Lists? Lease or use of properties or property rights owned by non-residents; and. Other services rendered in the Philippines by non-residents. In what grounds can the Commissioner of Internal Revenue suspend the business operations of a taxpayer? The Commissioner or his authorized representative is empowered to suspend the business operations and temporarily close the business establishment of any person for any of the following violations: Failure to issue receipts or invoices;.
Failure to file a value-added-tax return as required under Section ; or. Failure to any Person to Register as Required under Section Index for Income Tax: Income Tax Description. Income Tax is a tax on a person's income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of Tax Code , as amended, less the deductions if any, authorized for such types of income, by the Tax Code, as amended, or other special laws.
Resident citizens receiving income from sources within or outside the Philippines. Employees deriving purely compensation income from two or more employers, concurrently or successively at any time during the taxable year. Employees deriving purely compensation income regardless of the amount, whether from a single or several employers during the calendar year, the income tax of which has not been withheld correctly i. Individuals deriving mixed income, i.
Individuals deriving other non-business, non-professional related income in addition to compensation income not otherwise subject to a final tax. Individuals receiving purely compensation income from a single employer, although the income of which has been correctly withheld, but whose spouse is not entitled to substituted filing. Non-resident citizens receiving income from sources within the Philippines. Aliens, whether resident or not, receiving income from sources within the Philippines.
Corporations including partnerships, no matter how created or organized. Domestic corporations receiving income from sources within and outside the Philippines. Foreign corporations receiving income from sources within the Philippines.
Proofs of Foreign Tax Credits, if applicable. For Manual Filer. On or before the 15th day of April of each year covering taxable income for calendar year and thereafter. Proof of Foreign Tax Credits, if applicable.
Income Tax Return previously filed and proof of payment, if filing an amended return for the same year. Account Information Form or Financial Statements not necessarily audited by an independent CPA if the gross annual sales, earnings, receipts or output do not exceed P3,, Pursuant to Sec. In lieu thereof, they may file their annual income tax returns accompanied by balance sheets, profit and loss statement, schedules listing income-producing properties and the corresponding income therefrom, and other relevant statements duly certified by an independent CPA.
Attach the same to BIR Form Same deadline as BIR Form - On or before the 15th day of April of each year covering taxable income for calendar year and thereafter. Receive your copy of the duly stamped and validated form from the RDO. Previously filed return, if an amended return is filed for the same quarter. Sworn declaration as to dividends declared taken from the covered year's earnings and the corresponding tax withheld, if any.
Fill-up BIR Form in triplicate. Proceed to the Revenue District Office where you are registered and present the duly accomplished BIR Form , together with the required attachments. Receive your copy of the duly stamped and validated form from the RDO representative. Within fifteen 15 days after the close of the taxable year. For Income from Compensation: Based on Graduated Income Tax Rates; and. Interest Income from long-term deposit or investment in the form of savings, common or individual trust funds, deposit substitutes, investment management accounts and other investments evidenced by certificates in such form prescribed by the Bangko Sentral ng Pilipinas BSP.
Upon pre-termination before the fifth year, there should be imposed on the entire income from the proceeds of the long-term deposit based on the remaining maturity thereof: Holding Period. For General Professional Partnerships. For Domestic Corporations. For Resident Foreign Corporation. Frequently Asked Questions. Income means all wealth which flows into the taxpayer other than as a mere return of capital.
Taxable income means the pertinent items of gross income specified in the Tax Code as amended, less the deductions, if any, authorized for such types of income, by the Tax Code or other special laws. Gross income means all income derived from whatever source. Gross income includes, but is not limited to the following: An individual earning purely compensation income whose taxable income does not exceed P, An individual whose income tax has been withheld correctly by his employer, provided that such individual has only one employer for the taxable year.
An individual whose sole income has been subjected to final withholding tax or who is exempt from income tax pursuant to the Tax Code and other special laws.
An individual who is a minimum wage earner. However, substituted filing applies only if all of the following requirements are present: Who are exempt from Income Tax? Income from abroad of a non-resident citizen who is: A citizen of the Philippines who establishes to the satisfaction of the Commissioner the fact of his physical presence abroad with a definite intention to reside therein.
A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis.
A citizen of the Philippines who works and derives income from abroad and whose employment thereat requires him to be physically present abroad most of the time during the taxable year. A citizen who has been previously considered as a non-resident citizen and who arrives in the Philippines at any time during the year to reside permanently in the Philippines will likewise be treated as a non-resident citizen during the taxable year in which he arrives in the Philippines, with respect to his income derived from sources abroad until the date of his arrival in the Philippines.
An individual citizen of the Philippines who is working and deriving income from abroad as an overseas Filipino worker is taxable only on income from sources within the Philippines; provided, that a seaman who is a citizen of the Philippines and who receives compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in international trade will be treated as an overseas Filipino worker.
General Professional Partnership. File the return in triplicate two copies for the BIR and one copy for the taxpayer with the Authorized Agent Bank AAB of the place where taxpayer is registered or required to be registered. In places where there are no AABs, file the return directly with the Revenue Collection Officer or duly Authorized Treasurer of the city or municipality in which such person has his legal residence or principal place of business in the Philippines, or if there is none, filing of the return will be at the Office of the Commissioner.
Based on Graduated Income Tax Rate. Taxpayers source of income is purely from self-employment. Mixed Income Earner. Through withholding. Pay the balance as you file the tax return, computed as follows: When the tax due exceeds P2, No, the MCIT is not an additional tax. The MCIT is compared with the regular income tax, which is due from a corporation.
The MCIT covers domestic and resident foreign corporations which are subject to the regular income tax. Thus, corporations which are subject to a special corporate tax or to preferential rates under special laws do not fall within the coverage of the MCIT. For corporations whose operations or activities are partly covered by the regular income tax and partly covered by the preferential rate under special law, the MCIT shall apply the regular income tax rate on its operations not covered by the tax incentives.
Newly established corporations or firms which are on their first 3 years of operations are not covered by the MCIT.
A corporation starts to be covered by the MCIT on the 4th year following the year of the commencement of its business operations. The period of reckoning which is the start of its business operations is the year when the corporation was registered with the BIR. This rule will apply regardless of whether the corporation is using the calendar year or fiscal year as its taxable year.
Is it quarterly? The MCIT is paid on an annual basis and quarterly basis. The rules are governed by Revenue Regulations No. The computation and the payment of MCIT, shall likewise apply at the time of filing the quarterly corporate income tax as prescribed under Section 75 and Section 77 of the Tax Code, as amended.
Passive income, which have been subject to a final tax at source do not form part of gross income for purposes of computing the MCIT. Cost of goods sold includes all business expenses directly incurred to produce the merchandise to bring them to their present location and use. For trading or merchandising concern, cost of goods sold means the invoice cost of goods sold, plus import duties, freight in transporting the goods to the place where the goods are actually sold, including insurance while the goods are in transit.
For a manufacturing concern, cost of goods manufactured and sold means all costs of production of finished goods such as raw materials used, direct labor and manufacturing overhead, freight cost, insurance premiums and other costs incurred to bring the raw materials to the factory or warehouse.
For sale of services, gross income means gross receipts less discounts and cost of services which cover all direct costs and expenses necessarily incurred to provide the services required by the customers and clients including: Interest Expense is not included as part of cost of service, except in the case of banks and other financial institutions.
However, for taxpayers employing the accrual basis of accounting, it means amounts earned as gross income. Any excess of the MCIT over the normal income tax may be carried forward and credited against the normal income tax for the three 3 immediately succeeding taxable years.
There is no prescription period for amending the return. When the taxpayer has been issued a Letter of Authority, he can no longer amend the return.
No, pursuant to Revenue Regulations , the benefactor of a senior citizen cannot claim the additional exemption. Further, additional exemptions of individual taxpayers are removed under RA Tax Reform for Acceleration and Inclusion.
You are here: Excise Tax is a tax on the production, sale or consumption of a commodity in a country.
On goods manufactured or produced in the Philippines for domestic sale or consumption or for any other disposition; and On goods imported. Fermented Liquors Section 2. Inspection Fee Section 3. In General: On Domestic or Local Articles Manufacturer Producer Owner or person having possession of articles removed from the place of production without the payment of the tax b.
On Imported Articles Importer Owner Person who is found in possession of articles which are exempt from excise taxes other than those legally entitled to exemption Others: 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. Using purely caloric sweeteners, and purely non-caloric sweeteners, or a mix of caloric and non-caloric sweeteners.
Using purely high fructose corn syrup or in combination with any caloric or non-caloric sweetener. Informs all taxpayers and others concerned of the new and upgraded internal revenue stamp design for cigarette products.
Amends Section 9 of RR No. Clarifies the implementation of the increase in Excise Tax rates on locally-manufactured cigarettes effective January 1, in relation to the new Internal Revenue Stamps. Further amends the provisions of RR No. Amends the provisions of RR No. Jacinto-Henares Vs. Representative Carmelo F.
Amending Section 2 of Revenue Regulations No. It encourages voluntary compliance; It reduces cost of collection effort; It prevents delinquencies and revenue loss; and It prevents dry spell in the fiscal conditions of the government by providing revenues throughout the taxable year. Income Tax withheld constitutes the full and final payment of the Income Tax due from the payee on the particular income subjected to final withholding tax. What are the Quarterly Percentage Tax Rates?
Persons refer to individuals and non-individuals, which include, but are not limited to, estates, trusts, partnerships, and corporations. Deadline Within twenty five 25 days following the close of the taxable quarter. All content is public domain unless otherwise stated. Legislative Senate of the Philippines House of Representatives. Remarks onwards. More than Php Php More than Php Chewing tobacco unsuitable for use in any other manner. January 1, - Php All Metallic Minerals locally extracted or produced copper, gold, chromite and other metallic minerals.
Using purely coconut sap sugar and purely steviol glycosides. Performance of Services on Invasive Cosmetic Procedures. Transitory guidelines relative to the implementation of TRAIN Law governing Excise Tax on petroleum products, automobiles and sweetened beverages, pending the issuance of the Implementing Rules and Regulations.
Amends certain provisions of RMO No. Amends further Section 3 of RR No. OM No. Taxpayers subject to Excise Tax and using eFPS are mandated to e-file and e-pay the corresponding Excise Taxes due on removals, effective January 1, Payment Form for Excise Tax due on sweetened beverages.
Effective January 1, to December 31, Filing - see Schedule in RR Payment - on or before the fiftenth 15th day of the following month. Professional entertainer such as, but not limited to actors and actresses, singers, lyricist, composers, emcees. All directors and producers involved in movies, stage, television and musical productions. Rentals Oon gross rental or lease for the continued use or possession of personal property in excess of P10, annually and real property used in business which the payor or obligor has not taken title or is not taking title, or in which has no equity; poles, satellites, transmission facilities and billboards.
Cinemathographic film rentals and other payments to resident indivduals and corporate cinematographic film owners, lessors and distributors. Gross Commission of service fees of customs, insurance, stock, immigration and commercial brokers, fees of agents of professional entertainers and real estate service practitioners RESPs i. Additional Income Payments to govt personnel from importers, shipping and airline companies or their agents for overtime services.
Income payments made to suppliers of agricultural supplier products in excess of cumulative amount of P, within the same taxable year. Income payments on purchases of minerals, mineral products and quarry resources, such as but not limited to silver, gold, granite, gravel, sand, boulders and other mineral products except purchases by Bangko Sentral ng Pilipinas. On gross amount of interest on the refund of meter deposits whether paid directly to the customers or applied against customer's billings of Residential and General Service customers whose monthly electricity consumption exceeds kwh as classified by MERALCO.
On gross amount of interest on the refund of meter deposits whether paid directly to the customers or applied against customer's billings of Non-Residential customers whose monthly electricity consumption exceeds kwh as classified by MERALCO. On gross amount of interest on the refund of meter deposits whether paid directly to the customers or applied against customer's billings of Non-Residential customers whose monthly electricity consumption exceeds kwh as classified by other electric Distribution Utilities DU.
Income payments made by political parties and candidates of local and national elections on all their purchases of goods and services relkated to campaign expenditures, and income payments made by individuals or juridical persons for their purchases of goods and services intented to be given as campaign contribution to political parties and candidates. Interest income denied from any other debt instruments not within the coverage of deposit substitutes and Revenue Regulations Cash dividend payment by domestic corporation to NFRCs whose countries allowed tax deemed paid credit subject to tax sparing rule.
Property dividend payment by domestic corporation to NFRCs whose countries allowed tax deemed paid credit subject to tax sparing rule. Share of NRAETB in the distributable net income after tax of a partnership except GPPs of which he is a partner, or share in the net income after tax of an association, joint account or a joint venture taxable as a corporation of which he is a member or a co-venturer.
Distributive share of individual partners in a taxable partnership, association, joint account or joint venture or consortium. On the gross rentals, lease and charter fees derived by non-resident owner or lessor of foreign vessels. On gross rentals, charter and other fees derived by non-resident lessor or aircraft, machineries and equipment.
Payments to non-resident alien not engage in trade or business within the Philippines NRANETB except on sale of shares in domestic corporation and real property. Final tax on interest or other payments upon tax-free covenant bonds, mortgages, deeds of trust or other obligations under Sec. Royalties paid to citizens, resident aliens and nraetb on books, other literary works and musical compositions.
VAT Withholding on Purchases of Services with waiver of privilege to claim input tax credit creditable. Applicable to Government Withholding Agent Only. Tax on amusement places, such as cabarets, night and day clubs, videoke bars, karaoke bars, karaoke televion, karaoke boxes, music lounges and other similar establishments.
On royalties, rentals of property, real or personal, profits from exchange and all other items treated as gross income under the Code. On net trading gains within the taxable year on foreign currency, debt securities, derivatives and other similar financial instruments.
Gas and water utilities Radio and television broadcasting companies whose annual gross receipts of the preceding year do not exceed Php10,, and did not opt to register as VAT taxpayer. Gross receipts Gross receipts. 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 of securities.
Gross selling price or gross value in money Proportion of disposed shares to total outstanding shares after the listing in the local stock exchange: Digest Full Text. Business Industry. Group A. Insurance and Pension Funding. Activities Auxiliary to Financial Intermediation. Water Transport. Hotels and Restaurants. Land Transport. Group B. Manufacture and Repair of Furniture. Manufacture of Basic Metals. Manufacture of Chemicals and Chemical Products. Manufacture of Fabricated Metal Products.
Manufacture of Medical, Precision, Optical Instruments. Manufacture of Other Transport Equipment. Manufacture of Other Wearing Apparel. Manufacture of Paper and Paper Products.
Manufacture of Textiles. Manufacture of Tobacco Products. Manufacturing N. Metallic Ore Mining. Group C. Retail Sale. Wholesale Trade and Commission Trade. Collection, Purification and Distribution of Water. Computer and Related Activities. Real Estate Activities.
Group D. Air Transport. Group E. Activities of Membership Organizations, Inc. Health and Social Work. Research and Development. Agricultural, Hunting, and Forestry. Farming of Animals. Other Service Activities. Miscellaneous Business Activities. Amends Revenue Regulations No.
Prescribes the policies and guidelines in the monitoring of service fees of professionals Published in Manila Bulletin on March 21, Digest Full Text. Clarifies the livestock and poultry feeds or ingredients used in the manufacture of finished feeds to be exempt from VAT Digest Full Text. Further clarifies RMC No. Clarifying the provisions of Republic Act No. Sales Price. P , Invoice Amount. Amount of Net Taxable Income. But Not Over.
Passive Income. Interest from currency deposits, trust funds and deposit substitutes. Prizes P10, or less. Graduated Income Tax Rates. Capital gains from sale, exchange or other disposition of real property located in the Philippines, classified as capital asset.
Net Capital gains from sale of shares of stock not traded in the stock exchange. Interest Income from long-term deposit or investment in the form of savings, common or individual trust funds, deposit substitutes, investment management accounts and other investments evidenced by certificates in such form prescribed by the Bangko Sentral ng Pilipinas BSP Upon pre-termination before the fifth year, there should be imposed on the entire income from the proceeds of the long-term deposit based on the remaining maturity thereof: Tax Rate in General — on taxable income from all sources within the Philippines.
Certain Passive Income. Tax Rates. Share of a non-resident alien individual in the distributable net income after tax of a partnership except GPPs of which he is a partner or from an association, a joint account, a joint venture or consortium taxable as corporation of which he is a member or co-venture.
Capital from the sale, exchange or other disposition of real property located in the Philippines classified as capital asset. Net Capital gains from sale of shares of stock not traded in the Stock Exchange. Gross amount of income derived from all sources within the Philippines. Capital gains from the exchange or other disposition of real property located in the Philippines.
Net Capital gains from the sale of shares of stock not traded in the Stock Exchange. On the gross income consisting of salaries, wages, annuities, compensation, remuneration and other emoluments, such as honoraria and emoluments derived from the Philippines. Net Income of the Partnerships.
Interest from currency deposits, trust funds, deposit substitutes and similar arrangements received by domestic corporations. Royalties from sources within the Philippines. Cash and Property Dividends received by a domestic corporation from another domestic corporation. In General — on taxable income derived from sources within the Philippines. Minimum Corporate Income Tax — on gross income. Improperly Accumulated Earnings — on improperly accumulated taxable income.
Regional or Area Headquarters of Multinational Companies. Rate specified under the respective special laws. Accomplish and submit BIR-prescribed deposit slip, which the bank teller shall machine validate as evidence that payment was received by the AAB.
The AAB receiving the tax return shall stamp mark the word "Received" on the return and machine validate the return as proof of filing the return and payment of the tax. Quarterly Value-Added Tax Return. BIR Form No. Previously filed return and proof of payment, for amended return. If there is no payment: Within twenty five 25 days following the close of the taxable quarter. Value-Added Tax Rates. Related Revenue Issuances. Issuance No. Subject Matter.
Date of Issue. RR No. April 5, March 15, February 20, Published in Manila Bulletin on January 20, January 18, June 1, Amends Sections 4. Published in Manila Bulletin on December 29, December 28, May 27, March 31, Amends RR No. March 17, Prescribes the policies and guidelines in the monitoring of service fees of professionals. Published in Manila Bulletin on March 21, March 20, Prescribes the guidelines on the preservation of books of accounts and other accounting records.
September 27, Amends Section 2 b of Revenue Regulations No. September 20, Prescribes the tax treatment of sale of jewelry, gold and other metallic minerals to a non-resident alien individual not engaged in trade or business within the Philippines or to a non-resident foreign corporation.
Published in Manila Bulletin on April 24, April 22, January 23, December 5, Prescribes the VAT treatment on sale of adjacent residential lots, house and lots or other residential dwellings, thereby amending certain provisions of RR No.
Published in Manila Bulletin on October 17, October 12, Clarifies the taxation on the sale of gold and other metallic minerals to Bangko Sentral ng Pilipinas and other persons or entities. Published in Manila Bulletin on April 4, April 2, Prescribes the effectivity of threshold amounts for sale of residential lot, sale of house and lot, lease of residential unit and sale or lease of goods or properties or performance of services covered by Section P , Q and V of the Tax Code of , as amended.
Published in Manila Bulletin on February 22, Provides the penalties for violation of the requirement that Output Tax on the sale of goods and services should be separately indicated in the sales invoice or official receipt Published in Manila Bulletin on November 23, November 21, Increases the amount of threshold amounts for sale of residential lot, sale of house and lot, lease of residential unit and sale or lease of goods or properties or performance of services covered by Section P , Q and V of the Tax Code of , as amended, thereby amending certain provisions of RR No.
October 28, Amends certain provision of RR No. July 7, June 29, Provides the policies, guidelines and procedures on the application for change in accounting period. Published in Manila Bulletin on March 9, March 7, Promulgates the requirements for the maintenance, retention and submission of electronic records. December 29, September 9, Suspension of the Implementation of Revenue Regulations No.
May 9, January 11, October 19, Implementing Sec. May 21, March 26, December 1, November 20, October 9, February 4, December 20, Amends further RR No. December 19, June 24, Implementing Republic Act No. May 17, RMO No. May 3, July 21, Amends RMO No. August 14, April 3, October 11, March 21, September 10, September 5, August 31, April 30, February 28, October 21, May 24, Prescribing the guidelines and procedures in the implementation of RR No.
December 11, March 29, November 5, RMC No. Amends certain provisions of RMC Nos. March 8, Amends RMC No. October 24, Amends Question and Answer to No. March 2, Publishes the full text of Joint Circular No. December 2, June 27, June 17, August 29, January 25, November 23, September 3, August 22, Circularizes the full text of Executive Order No.
November 8, July 20, Clarifies the coverage of RMO No. July 13, Clarifies Revenue Memorandum Circular No. September 16, December 3, April 18, September 14, August 7, June 13, June 30, May 30, April 6, February 1, January 20, December 22, December 8, November 3, Attachments to the quarterly VAT return to be filed starting October 25, October 20, October 3, July 1, Clarification regarding the withholding of creditable Value-Added Tax by government offices for purchases of P1, September 23, Settlement of the Value-Added Tax liabilities of pawnshops for taxable years to June 16, January 7, January 22, October 8, August 27, July 23, December 18, July 2, March 18, Codal Reference.
General VAT Queries. Who are liable to register as VAT taxpayers? Any person who, in the course of trade or business, sells, barters or exchanges goods or properties or engages in the sale or exchange of services shall be liable to register if: His gross sales or receipts for the past twelve 12 months, other than those that are exempt under Section A to U , have exceeded Three Million Pesos P3,, When is a new VAT taxpayer required to apply for registration and pay the registration fee?
Thereafter, taxpayers are required to pay the annual registration fee of five hundred pesos P What compliance activities should a VAT taxpayer, after registration as such, do promptly or periodically?
The following compliance activities must be performed by a VAT-registered taxpayer: Pay the annual registration fee of P The monthly VAT Declaration and the Quarterly VAT Return shall reflect the consolidated total for all the taxable lines of activity and all the establishments - head office and branches ;.
What is the liability of a taxpayer becoming liable to VAT and did not register as such? Any person who becomes liable to VAT and fails to register as such shall be liable to pay the output tax as if he is a VAT-registered person, but without the benefit of input tax credits for the period in which he was not properly registered.
Who may opt to register as VAT and what will be his liability? Any person who is VAT-exempt under Sec. Any person who is VAT-registered but enters into transactions which are exempt from VAT mixed transactions may opt that the VAT apply to his transactions which would have been exempt under Section of the Tax Code, as amended. This option, once exercised, shall be irrevocable.
Any person who elects to register under optional registration shall not be allowed to cancel his registration for the next three 3 years. The above-stated taxpayers may apply for VAT registration not later than ten 10 days before the beginning of the calendar quarter and shall pay the registration fee unless they have already paid at the beginning of the year.
In any case, the Commissioner of Internal Revenue may, for administrative reason deny any application for registration.
Once registered as a VAT person, the taxpayer shall be liable to output tax and be entitled to input tax credit beginning on the first day of the month following registration. If he makes a written application and can demonstrate to the commissioner's satisfaction that his gross sales or receipts for the following twelve 12 months, other than those that are exempt under Section A to U , will not exceed Three Million Pesos P3,, If he has ceased to carry on his trade or business, and does not expect to recommence any trade or business within the next twelve 12 months.
When will the cancellation for registration be effective? The cancellation for registration will be effective from the first day of the following month the cancellation was approved.