Source: Tabag (2021) and Banggawan (2019)
SUMMARY ON PERCENTAGE TAXES
KIND OF INCOME
RATE
BASIS
General Other Percentage Tax (Section 116)
a.
Prior July 01, 2020
3% GOPT
b.
From July 01, 2020 until June 30, 2023
1% GOPT
c.
From July 01, 2023 onwards
3%
Gross Receipts/Sales
GOPT
Banks and non-bank financial intermediaries (Section 121)
a.
Interest, commissions, and discounts from lending activities
and financial leasing also applied to banks NOT performing quasi - banking
 5 years or less (short term)
 More than 5 years (long term)
5%
1%
Gross Receipts
b.
Dividends and equity shares in net income of subsidiaries
0%
Dividends
c.
Royalties, Rentals, real or personal, profits from exchange
and other type under Sec. 32
Net trading gains WITHIN the taxable year on Foreign
currencies, Debts, Securities, Derivative, and other similar
fin. instruments. Net trading loss shall ONLY be deducted to net trading gain
7%
Gross Receipts
7%
Gross Receipts
Exempt
Exempt
Gross Receipts
3% OPT/ICT/CCT
Exempt
Gross Receipts
d.
International Carriers (Section 118) including FATMOD
a.
b.
Passengers
 Outgoing
 Incoming
Goods, mails, or cargoes
 Outgoing
 Incoming
Common Carriers’ Tax (Section 117) On transport of passengers via land, and keepers of garages
a.
b.
c.
d.
By land (transport)
 Passengers regardless of amount
 Goods, mails, or cargoes if GR ≤ P 3,000,000 and NVR
By water (shipment)
 Passengers if GR ≤ P 3,000,000 and NVR
 Goods, mails, or cargoes if GR ≤ P 3,000,000 and NVR
By air (flight)
 Passengers if GR ≤ P 3,000,000 and NVR
 Goods, mails, or cargoes if GR ≤ P 3,000,000 and NVR
International Flights/Shipments of Domestic Carriers
 VAT – Registered
 If not VAT – Registered
3%
12% VAT or 3% GOPT
Actual or Minimum Gross
Receipts whichever is higher
12% VAT or 3% GOPT
12% VAT or 3% GOPT
Gross Receipts
12% VAT or 3% GOPT
12% VAT or 3% GOPT
Gross Receipts
0% VAT (creditable)
VAT Exempt
Gross Receipts
Amusement Taxes (Section 125) Inclusive of income from television, radio, and motion picture rights, if any.
a.
b.
Jai – alia and racetracks
Cockpits, cabarets, night or day clubs
videoke bars, karaoke bars, karaoke televisions, karaoke boxes, and music lounges
c.
Professional Basketball Games
P.D. 871 and shall be in lieu with other OPT
d.
Boxing Exhibitions
EXEMPTED provided that:
30%
Gross Receipts
18%
Gross Receipts
15%
Gross Receipts
10%
Gross Receipts
PREPARED BY: ALLAN JAY SOSA Percentage Taxes | 1
Source: Tabag (2021) and Banggawan (2019)
At least one Filipino Contender on World or Oriental Championship in any divisions and promoted
by Filipino citizens or corporation owned by Fil. by at least 60% capital.
PSE - Stock Transaction Taxes (Section 127) Sale of shares made through the PSE, as well as IPOs (exempt from CGT and income tax)
a.
Requisites:
 Not a dealer of securities
 It is based on Gross Selling Price (GSP) or Gross Value in
money.
(6/10 of 1%)
A tax of six-tenths of one percent
Gross Selling Price or
Gross Value
gain or loss are ignored, parang ikaw veh, ignored kay crush #awawak
Franchise Taxes (Section 119)
a.
Radio or television broadcasting
 Annual GR ≤ P10,000,000 and Non-VAT Registered
 Annual GR exceeding > P10,000,000
 Opt to use VAT which is irrevocable as long as grantee exist
b.
Gas and water utilities
c.
All other types of franchise such as
i.
Electricity
ii.
Telecommunication except outgoing messages (10% CCT)
iii.
Transportations except subjected under 3% CCTs
3%
12% VAT
2%
regardless of GR
Gross Receipts
Gross Receipts
Either:
12% VAT or;
3% GOPT (Sec. 116) if non-VAT
Gross Receipts
registered or GR ≤ P3,000,000
Either:
d.
Private Franchises
12% VAT or;
3% GOPT (Sec. 116) if non-VAT
Gross Receipts
registered or GR ≤ P3,000,000
Life insurance companies (Section 123) and Foreign insurance agents (Section 124)
a.
To every person, company, or corporation doing life
insurance of any sort in the Philippines.
2%
Premiums Collected
12% VAT
Premiums Collected
Except purely cooperative companies or associations
b.
Non – Life Insurance
c.
Legally authorized fire, marine or miscellaneous insurance
agent authorized under Insurance Code to agents of Nonresident foreign insurance companies
4%
twice that rate tax imposed under Sec.
This involves both life and non - life insurance.
d.
Owners of property who obtain insurance DIRECTLY from
foreign companies
Premiums Collected
123
5%
Premiums Collected
This involves both life and non - life insurance.
Overseas Communications Taxes (Telephone Companies) (Section 120)
a.
b.
c.
d.
Domestic – within Philippines
12% VAT
Gross Receipts
Outgoing – Philippines to Abroad
10% OCT
Gross Receipts
Income – Abroad to Philippines
Exempt
Gross Receipts
Exemptions:
Diplomatic Services, International Organizations, News Services, and Government (D – I – N – G)
Winnings from cockpit operators and Jai-Alai (Section 125)
a.
Bettor
 Regular Bet

b.
Double/ forecast/quinella and trifecta bets
Horse Owners
10%
4%
10%
Winnings or dividends
less cost of tickets
Winnings or dividends
less cost of tickets
Gross Winnings
PREPARED BY: ALLAN JAY SOSA Percentage Taxes | 2