Podcast
Questions and Answers
Capital Gains Tax is imposed on gains realized by a seller from the sale, exchange, or disposition of ______ assets located in the Philippines
Capital Gains Tax is imposed on gains realized by a seller from the sale, exchange, or disposition of ______ assets located in the Philippines
capital
The seller pays the Capital Gains Tax based on the gross selling price or current fair market value, whichever is ______
The seller pays the Capital Gains Tax based on the gross selling price or current fair market value, whichever is ______
higher
For shares of stock not traded in the stock exchange, a flat rate of ______% is applied for Capital Gains Tax
For shares of stock not traded in the stock exchange, a flat rate of ______% is applied for Capital Gains Tax
15
Capital assets are generally properties that are not used in the trade or business of the ______
Capital assets are generally properties that are not used in the trade or business of the ______
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Ordinary assets are properties used in trade or business or primarily held for ______ by the taxpayer
Ordinary assets are properties used in trade or business or primarily held for ______ by the taxpayer
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A Capital Gains Tax example calculation would be a 200 square meter residential lot in Makati City being put up for sale for PHP 3 million. The owner is a person not engaged in the real estate ______
A Capital Gains Tax example calculation would be a 200 square meter residential lot in Makati City being put up for sale for PHP 3 million. The owner is a person not engaged in the real estate ______
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National Taxes are paid to the National Government through the Bureau of ______ Revenue
National Taxes are paid to the National Government through the Bureau of ______ Revenue
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Local Taxes are levied by local government units to individuals or juridical persons in the ______
Local Taxes are levied by local government units to individuals or juridical persons in the ______
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Percentage Tax is a type of tax that is included in the Local Taxes and may be levied on individuals or juridical persons in the ______
Percentage Tax is a type of tax that is included in the Local Taxes and may be levied on individuals or juridical persons in the ______
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Estate Tax is a type of tax that may be levied on the transfer of the net estate of a decedent in the ______
Estate Tax is a type of tax that may be levied on the transfer of the net estate of a decedent in the ______
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Study Notes
Income Tax
- Tax on all annual profits made from property, ownership, profession, trades, or offices
- Self-employed individuals and corporate taxpayers pay quarterly income tax from 1st-3rd quarter
- Annual income tax return for the taxable year
- Flat rate of 6% of the estate’s net worth, plus a standard deduction increased to P5M from P1.7M
Percentage Tax
- A business tax imposed on persons or entities who sell or lease goods, properties, or services
- Applies to those whose gross annual sales or receipts do not exceed P3,000,000.00
- Exempt from value-added tax (VAT) under Section 109 (BB) of the National Internal Revenue Code
Capital Gains Tax (CGT)
- Tax on gains from selling, exchanging, or disposing of capital assets
- 6% of the selling price or current fair market value, whichever is higher
- Applies to real property, shares of stock not traded in the stock exchange (15% flat rate)
- Seller pays the capital gains tax
- Capital assets: properties not used in trade or business of the taxpayer
- Ordinary assets: properties used in trade or business or primarily held for sale by the taxpayer
Donor's Tax
- A tax on donations or gifts
- 6% of the total gifts in excess of P250,000 exempt gift made during the calendar year
Estate Tax
- Tax on the right of the deceased person to transmit their estate to lawful heirs and beneficiaries
- Not a tax on property but on the privilege of transmitting property upon death
- 6% of the estate’s net worth, plus a standard deduction increased to P5M from P1.7M
Documentary Stamp Tax
- Tax on documents, instruments, loan agreements, and papers evidencing acceptance, assignment, sale, or transfer
- Computation: 1.5% x Selling Price/Consideration or Fair Market Value, whichever is higher
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Description
Test your knowledge on the Philippine income tax system, including the flat rate and standard deduction updates, as well as the percentage tax imposed on businesses. Learn about quarterly income tax payments for self-employed individuals and corporate taxpayers.
