Podcast
Questions and Answers
What is the primary purpose of taxation in the Philippines?
What is the primary purpose of taxation in the Philippines?
- To redistribute wealth among citizens
- To reduce the cost of living for citizens
- To fund private enterprises
- To generate income for government programs and services (correct)
Which of the following taxes is imposed on the sale or exchange of capital assets?
Which of the following taxes is imposed on the sale or exchange of capital assets?
- Capital Gains Tax (correct)
- Estate Tax
- Income Tax
- Documentary Stamp Tax
Which act governs the national taxation system in the Philippines?
Which act governs the national taxation system in the Philippines?
- Local Government Code of 1991
- Republic Act No. 7160
- National Internal Revenue Code of 1997 (correct)
- Tax Reform Act of 1997
What type of tax is levied on an individual’s income or profits?
What type of tax is levied on an individual’s income or profits?
Which of the following taxes is specifically related to property transfers at the time of death?
Which of the following taxes is specifically related to property transfers at the time of death?
Local Taxes in the Philippines are governed by which law?
Local Taxes in the Philippines are governed by which law?
What type of tax is applied to goods produced for domestic sale or consumption?
What type of tax is applied to goods produced for domestic sale or consumption?
What type of tax is assessed when property is transferred as a gift?
What type of tax is assessed when property is transferred as a gift?
Which of the following is NOT considered a national tax in the Philippines?
Which of the following is NOT considered a national tax in the Philippines?
Which tax is collected from sellers during business transactions on every sale of properties?
Which tax is collected from sellers during business transactions on every sale of properties?
What is the purpose of the percentage tax?
What is the purpose of the percentage tax?
Who is subject to the professional tax?
Who is subject to the professional tax?
Which tax is levied on the transfer of ownership of real property?
Which tax is levied on the transfer of ownership of real property?
What is required for individuals to be subject to community tax?
What is required for individuals to be subject to community tax?
What is the function of the amusement tax?
What is the function of the amusement tax?
What triggers the need for a barangay clearance?
What triggers the need for a barangay clearance?
What tax is imposed prior to issuing a business license or permit?
What tax is imposed prior to issuing a business license or permit?
What qualifies as a reason for being subject to community tax?
What qualifies as a reason for being subject to community tax?
Which of the following accurately describes service fees or charges?
Which of the following accurately describes service fees or charges?
Which of the following is NOT a type of local tax mentioned?
Which of the following is NOT a type of local tax mentioned?
Flashcards
Taxation
Taxation
The process where the government collects revenue from individuals and businesses to fund public services and programs.
National Taxes
National Taxes
Taxes collected by the national government through the Bureau of Internal Revenue.
Local Taxes
Local Taxes
Taxes collected by local governments (provinces, cities, municipalities, and barangays) based on the Local Government Code of 1991.
Capital Gains Tax
Capital Gains Tax
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Documentary Stamp Tax
Documentary Stamp Tax
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Estate Tax
Estate Tax
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Donor's Tax
Donor's Tax
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Income Tax
Income Tax
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Excise Tax
Excise Tax
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Value-Added Tax (VAT)
Value-Added Tax (VAT)
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Percentage Tax
Percentage Tax
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Transfer Tax
Transfer Tax
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Amusement Tax
Amusement Tax
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Professional Tax
Professional Tax
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Tax on Business
Tax on Business
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Community Tax
Community Tax
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Barangay Clearance
Barangay Clearance
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Service Fees or Charges
Service Fees or Charges
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What is the key difference between percentage tax and VAT?
What is the key difference between percentage tax and VAT?
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Study Notes
Taxation in the Philippines
- Taxation is a way for the government to collect funds to operate and provide services for citizens.
- Taxes are a contribution based on the taxpayer's ability to pay, levied on people, property, business transactions, privileges, and benefits.
Types of Taxes
National Taxes
- National taxes are collected by the Bureau of Internal Revenue.
- The national taxation system is based on the National Internal Revenue Code of 1997 (Republic Act No. 8424), amended.
Local Taxes
- Local taxes are based on the local government taxation, as stated in Republic Act 7160 (the Local Government Code of 1991), amended.
- Local taxes, fees, or charges are imposed by local government units (provinces, cities, municipalities, barangays).
Specific Tax Types
Capital Gains Tax
- A tax on gains realized by selling, exchanging, or disposing of capital assets in the Philippines.
Documentary Stamp Tax
- A tax on documents, instruments, loan agreements, and papers related to transactions like sales, transfers, or obligations.
Estate Tax
- A tax on the right of a deceased person to transfer their estate to heirs and beneficiaries, equivalent to a testamentary disposition.
Donor's Tax
- A tax imposed on the gratuitous transfer of property between living people.
Income Tax
- A tax on annual profits from property ownership, professions, trades, or offices, as well as income, emoluments, and profits.
Excise Tax
- A tax on goods manufactured or produced in the Philippines for domestic sale, consumption, or other disposition, including imported goods.
Value-Added Tax (VAT)
- A business tax collected from sellers for sales of properties, services, or leases.
Percentage Tax
- A business tax on sellers or lessors of goods, services, or properties, exceeding a specific amount.
Transfer Tax
- A tax on the sale, donation, barter, or any other transfer of real property ownership.
Amusement Tax
- Tax collected from owners or operators of theaters, cinemas, concert halls, circuses, or other places of amusement.
Professional Tax
- An annual tax on professionals for practicing their occupation.
Tax on Businesses
- Businesses are subject to taxes imposed by cities or municipalities for licenses or permits, based on predefined rates.
Community Tax
- A tax levied by cities or municipalities on:
- Residents aged 18 and above.
- Those employed for 30 consecutive days.
- Owners of real property valued at P1,000 or more.
- Individuals required to file income tax returns.
Barangay Clearance Taxes
- A cost collected by barangays for the issuance of clearances, often required for multiple government transactions.
Service Fees/Charges
- Fees or charges collected by barangays for services related to using or regulating property.
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Description
This quiz covers the various aspects of taxation in the Philippines, including types of taxes, national and local taxation systems, and specific tax types like the Capital Gains Tax and Documentary Stamp Tax. Test your knowledge on how the government collects funds and manages different tax codes.
