Business Tax- “selling”, “trading”, “barter” transactions
• Value Added Tax
• Percentage Tax
• Excise Tax (articles)
Marginal income earners- not employed, earns P100k or less in a yearexempt from business tax but subject to income tax (sarisari
store, farmers, fishermen,tricycle driver)
Regular Business Taxpayers subject to business tax and income tax
-Vat taxpayers
-Non-Vat taxpayers
How register in BIR as regular business taxpayers
BIR Form 1901/ 1903
Pay BIR Form 0605- P500
DTI/SEC registration
Mayor’s Permit
Books of accounts
Official receipt or sales invoice
--Certificate of registration
--Registered books of accounts
--Registered Receipts/Invoices
•
is a business tax
imposed on persons, entities, or
transactions specified under Sections 116 to
127 of the National Internal Revenue Code
of 1997 (also known as Tax Code), as
amended, and as required under special
laws.
Who are required to file?
1.) under Sections 116 to 126 of the Tax Code, as amended
-BIR Form 2551Qv2018 - Quarterly Percentage Tax Return
-Within twenty-five (25) days after the end of each taxable quarter
2.) under Section 127 of the Tax Code, as amended
-BIR Form 2552 - Percentage Tax Return for Transactions Involving
Shares of Stocks Listed and Traded Through The Local Stock Exchange
or Through Initial and/or Secondary Public Offering
-within 5 or 30 days
1.)under Sections 116 to 126 of the Tax Code, as
amended ( Quarterly Percentage Tax )
• Persons refer to individuals and non-individuals, which include, but are not
limited to, estates, trusts, partnerships, and corporations.
A. Persons, who are not VAT-registered, who sell goods, properties or
services, whose annual gross sales and/or receipts do not exceed three
million pesos (Php3,000,000.00) and are exempt from value-added tax (VAT)
under Section 109 (BB) of the National Internal Revenue Code, as amended
by Republic Act (RA) No. 10963.
B. Persons who lease residential units where the monthly rental per unit
exceeds fifteen thousand pesos (Php15,000.00) but the aggregate of such
rentals of the lessor during the year does not exceed three million pesos
(Php3,000,000.00)
Gross sales or receipts
x 3%
1.)under Sections 116 to 126 of the Tax Code, as
amended ( Quarterly Percentage Tax )
• Persons refer to individuals and non-individuals, which include, but are not
limited to, estates, trusts, partnerships, and corporations.
C. 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 bancas
and owners of animal-drawn two-wheeled vehicle) and keepers of garages
*with Minimum presumptive gross receipts
Gross receipts
x 3%
A,common carrier by land is engaged in the transport of
passengers, goods and cargoes. A’s gross receipts
amounted to 3,000,000.00, 50% of which came from
transport of passengers. The taxpayer is not VATregistered. What business taxes will it pay?
1.)under Sections 116 to 126 of the Tax Code, as
amended ( Quarterly Percentage Tax )
• Persons refer to individuals and non-individuals, which include, but are not
limited to, estates, trusts, partnerships, and corporations.
D. International (foreign airline)air/shipping carriers doing business in the
Philippines on their gross receipts derived from transport of cargo from the
Philippines to another country (Outgoing flights only- from Phil to Abroad,
continuous and uninterrupted (non-stop) flights)
Gross Philippine Billings
x 3%
1.)under Sections 116 to 126 of the Tax Code, as
amended ( Quarterly Percentage Tax )
• Persons refer to individuals and non-individuals, which include, but are
not limited to, estates, trusts, partnerships, and corporations.
E. Franchise grantees of –
----radio and/or television broadcasting companies whose annual gross
receipts for the preceding year do not exceed Php 10,000,000.00 and did
not opt to register as VAT taxpayers, and
Gross Receipts
x 3%
Gross Receipts
x 2%
---gas and water utilities.
1.)under Sections 116 to 126 of the Tax Code, as
amended ( Quarterly Percentage Tax )
• Persons refer to individuals and non-individuals, which include, but are not
limited to, estates, trusts, partnerships, and corporations.
F. Overseas dispatch, message or conversation transmitted from the
Philippines by telephone, telegraph, tele-writer exchange, wireless and other
communication equipment services, except those transmitted by:
The Philippine Government or any of its political subdivisions or
instrumentalities;Diplomatic services; Public international organizations ;News services
*** Liable-Caller; remitted to Owner of facility
Amount paid for the service
x 10%
1.)under Sections 116 to 126 of the Tax Code, as
amended ( Quarterly Percentage Tax )
• Persons refer to individuals and non-individuals, which include, but are not
limited to, estates, trusts, partnerships, and corporations.
G. Banks, non-bank financial intermediaries performing quasi-banking
functions
Interest, commissions and discounts- 5 yrs or less maturity
Interest, commissions and discounts- more than 5 yrs maturity
Other income
Dividends and equity shares and net income of subsidiaries
x 5%
x 1%
x 7%
x 0%
1.)under Sections 116 to 126 of the Tax Code, as
amended ( Quarterly Percentage Tax )
• Persons refer to individuals and non-individuals, which include, but are not
limited to, estates, trusts, partnerships, and corporations.
H. Other non-bank financial intermediaries (including pawnshops as clarified
under Revenue Regulations [RR] No. 10 – 2004)
Interest, commissions and discounts- 5 yrs or less maturity
Interest, commissions and discounts- more than 5 yrs maturity
Other income
x 5%
x 1%
x 5%
1.)under Sections 116 to 126 of the Tax Code, as
amended ( Quarterly Percentage Tax )
• Persons refer to individuals and non-individuals, which include, but are not limited to,
estates, trusts, partnerships, and corporations.
I. Person, company or corporation (except purely cooperative companies or
associations) doing life insurance business in the Philippines
Total premiums collected
x 2%
J. Fire, marine or miscellaneous agents of foreign insurance companies
-Insurance agents authorized under the Insurance Code to procure policies of insurance
for companies not authorized to transact business in the Philippines
Total premiums collected
x 4%
-Owners of property obtaining insurance directly with foreign insurance companies
Total premiums paid
x 5%
1.)under Sections 116 to 126 of the Tax Code, as
amended ( Quarterly Percentage Tax )
• Persons refer to individuals and non-individuals, which include, but are not
limited to, estates, trusts, partnerships, and corporations.
K. Proprietor, lessee or operator of cockpits, cabarets, night or day clubs, boxing exhibitions, professional
basketball games, Jai-Alai and racetracks, including videoke bars, karaoke bars, karaoke televisions, karaoke
boxes and music lounges as clarified under Revenue Memorandum Circular (RMC) No. 18 – 2010
Cockpits
Gross receipts
x 18%
Cabarets, Night or Day Clubs, videoke bars, karaoke bars, karaoke televisions, karaoke boxes and
music lounges
Gross receipts
x 18%
Boxing exhibitions (except when the World or Oriental Championship is at stake in any division,
provided further that at least one of the contenders for World Championship is a citizen of the
Philippines and said exhibitions are promoted by a citizen/s of the Philippines or by a
corporation/ association at least 60% of the capital of which is owned by said citizen/s)
Gross receipts
x 10%
Professional basketball games (in lieu of all other percentage taxes of whatever nature and
description)
Gross receipts
x 15%
Jai-alai and race track
Gross receipts
x 30%
1.)under Sections 116 to 126 of the Tax Code, as
amended ( Quarterly Percentage Tax )
• Persons refer to individuals and non-individuals, which include, but are not
limited to, estates, trusts, partnerships, and corporations.
L. Winnings or 'dividends' in horse races
Winnings from double,
forecast/quinella and trifecta bets
Winnings or 'dividends'
Prizes of owners of winning race horses
Gross receipts Less Cost of
ticket
Gross receipts Less Cost of
ticket
Gross receipts
x 4%
x 10%
x 10%
2.)under Section 127 of the Tax Code, as amended
(within 5 or 30 days)
Transactions Involving Shares of Stocks Listed and Traded Through The Local
Stock Exchange (PSE) or Through Initial and/or Secondary Public Offering
(IPO/SPO)
• Every stock broker who effected a sale, barter or exchange of shares of stock
listed and traded through the local stock exchange other than the sale by a
dealer in securities, which tax shall be paid by the seller/transferor
• A corporate issuer, engaged in the sale, exchange or other disposition through
Initial Public Offering (IPO) of shares of stock in closely-held corporations
• A stock broker who effected a sale, exchange or other disposition through
secondary public offering of shares of stock in closely-held corporations
What
Tax Base
Rate
When
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
6/10 of 1% or 0.006
within five (5) banking days
from the date of collection
Proportion of disposed shares
to total outstanding shares
after the listing in the local
stock exchange:
Up to 25%------4%
Over 25% but not over 33
1/3%--------2%
Over 33 1/3%---------1%
within 30 days from the date
of listing in the LSE
Sale, barter or exchange or other disposition through:
Initial Public Offering (IPO) –
the issuing corporation shall
pay the imposed tax
Gross selling price or gross
value in money
Secondary Public Offering –
the seller shall pay the
imposed tax
Gross selling price or gross
value in money
within five (5) banking days
from the date of collection