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Questions and Answers
What is the Capital Gains Tax rate based on the given information?
Which value is used as the base for computing the CGT if the selling price is higher than the fair market value?
What determines the Donor's Tax for each calendar year?
What does the Estate Tax apply to according to the text?
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What is NOT true about Quarterly Income Tax Payments?
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When is an individual exempt from Percentage Tax?
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Who are required to file Percentage Tax?
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When do self-employed individuals and corporate taxpayers pay their quarterly income tax?
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What is the standard deduction for the estate's net worth in terms of income tax?
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Which individuals are exempt from paying Percentage Tax?
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What tax is imposed on all annual profits from property, ownership, profession, trades, or offices?
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What is the applicable rate for capital gains tax on real property in the Philippines?
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Which of the following is considered a capital asset?
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Who is responsible for paying the capital gains tax in the Philippines?
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When is Percentage Tax typically paid in the Philippines?
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Which of the following entities are usually exempt from paying Percentage Tax in the Philippines?
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What is the general requirement for filing Percentage Tax in the Philippines?
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Study Notes
Capital Gains Tax (CGT)
- CGT is a tax imposed on gains from the sale, exchange, or disposition of capital assets in the Philippines.
- The tax rate is 6% of the selling price or current fair market value, whichever is higher.
- The seller pays the CGT.
- For shares of stock not traded in the stock exchange, the flat rate is 15%.
- CGT is computed based on the gross selling price or current fair market value, whichever is higher.
Documentary Stamp Tax
- A tax on documents, instruments, loan agreements, and papers evidencing acceptance, assignment, sale, or transfer of an obligation, rights, or property incident thereto.
- The tax rate is 1.5% of the selling price or consideration or fair market value, whichever is higher.
Donor's Tax
- A tax on donations or gifts exceeding PHP 250,000.
- The tax rate is 6% of the total gifts in excess of PHP 250,000.
Estate Tax
- A tax on the privilege of transmitting property upon death of the owner.
- The tax rate is a flat rate of 6% of the estate's net worth, plus a standard deduction of PHP 5 million.
Income Tax
- A tax on annual profits made from property, ownership, profession, trades, or offices.
- Self-employed individuals and corporate taxpayers pay quarterly income tax returns for the taxable year.
Percentage Tax
- A business tax imposed on persons or entities who sell, or lease goods, properties, or services in the course of trade or business.
- The tax is applicable to those whose gross annual sales or receipts do not exceed PHP 3 million and are exempt from value-added tax (VAT).
Types of Taxes
- National Taxes: paid to the National Government through the Bureau of Internal Revenue.
- Local Taxes: levied by local government units (provinces, municipalities, cities, and barangays) to individuals or juridical persons in the Philippines.
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Description
Test your knowledge on Philippine income tax regulations, including flat rate of 6% of the estate's net worth, standard deductions, and quarterly payments. Also covers percentage tax imposed on businesses selling goods, properties, or services.
