Professional Documents
Culture Documents
Tax Base:
Example:
Example:
1. Sale of goods
- Deemed Sale Transactions
2. Sale of services
3. Importation of goods
VAT on Sale of goods or properties
i. dealers in securities;
j. lending investors;
Transactions Value 100% Custom 10% Excise 12% VAT 30% Income
Duties Tax Tax
1. Domestic Purchase 800 (96)
2. Imported goods 250 250 50 (66)
3. Expenses 200 (24)
Business taxes (250+50) 300
4. Sales 2,000 240
5. Income before income tax 450
(2,000-800-250-200-300)
6. Income tax 135 135
7. Income after tax 315 250 50 54 135
8. Revenue contributed to the
government 489
VAT-exempt transactions; subject to Other
Percentage Tax
DOMESTIC:
Rate: 10%
Amusement Tax
Tax Rates:
Boxing exhibition -10%
Cockpits, night clubs or cabarets -18%
Professional basketball -15%
Jai-alai and race tracks -30%
Rates:
Winnings in horse race/jai alai -10%
Winnings from double forecast,
quinella and trifect bets - 4%
Owner of winning horse -10%
Stock Transaction Tax
Rate: of 1%
Basis: gross selling price or the gross value of
money
Illustration:
Assume that S, a VAT-registered business,
sold merchandise worth P100,000 to the
government. The net proceeds would be:
Sales P100,000
Add: VAT 12,000
Total 112,000
Less: Final withholding VAT P5,000
CWIT on sales 1,000 6,000
Net amount P106,000