EXCISE TAX

I.
ALCOHOL PRODUCTS net of vat and excise tax
a. Distilled Spirits
i. P11.65 per proof liter if came from Nipa, Coconut, Cassava, Camote, Buri or
Sugar Cane
ii. Others depends on Net Retail Price per 750 ml
1. Less than P250
=
P126/proof liter
2. P250-675
=
P252/proof liter
3. More than P675
=
P504/proof liter
iii. 1000 ml = 1 liter
b. Wines
i. Sparkling wine 382.40 (25:75)
1. P500 and less
=
P145.60/liter
2. More than P500
=
P436.80
ii. Still wine 34.94 (1/3;2/3)
iii. Still wine, 14% or less
=
P17.47
iv. Still wine, >14%-25%
=
P34.94
v. Fortified wines, 25% more=
Same as DS
c. Fermented Liquor beer, lager, ale porter excluding Tuba, Basi, Tapoy (8.27+4.03
3 kinds)
i. Less than 14.50/liter
=
P8.27/liter
ii. 14.50-22.00
=
P12.30
iii. More than 22.00
=
P16.33
II.
TOBACCO PRODUCTS net of vat and excise tax
a. Cigars
i. P500 or less/cigar
=
10%
ii. More than P500
=
P50 plus 15% excess P500
b. Cigarettes
i. Packed by hand
=
P2.72/pack
ii. Packed by machine
1. Below P5/pack
=
P2.72
2. P5-P6.50
=
P7.56
3. P6.50-P10.00
=
P12.00
4. Over P10.00
=
P28.30
III.
PETROLEUM PRODUCTS
a. P4.50/liter grease and oil
b. P0.05/liter processed gas (LPG not included)
IV.
AUTOMOBILES 4 or more wheeled, net of vat and excise tax
a. Up to P600000
=
2%
b. Over 600k-1100000
=
12k plus 20% of excess
c. Over 1.1M-2100000
=
112k plus 40% of excess
d. Over 2100000
=
512k plus 60% excess
V.
NON-ESSENTIAL GOODS jewelries, perfume, yachts
a. 20% of WHOLESALE PRICE or the value used by BC
b. Mineral Products
i. 10/metric ton of coal and coke
ii. Nonmetallic = 2% actual market value
iii. Metallic
1. Copper
a. 1% first 3 years
b. 1 % 4th and 5th
c. 2% 6th
2. Gold and chromite = 2%
3. Indigenous petroleum = 3%

ESTATE TAX 6 months from death, 30 days extension may be given

GROSS ESTATE real, tangible, intangible, revocable transfers, transfers in
contemplation of death, general power of appointment, insufficient consideration, accrued
interest, life insurance revocable, CLAIMS AGAINST INSOLVENT and RA No. 4917 (exclusive
always, not if NRA)
LESS: ORDINARY DEDUCTIONS
ELITE:
Funeral expenses 200000, actual amount, 5% of GE, whichever is lowest;
memorial plan can deducted but should be included in GE too
Judicial expenses
Claims against estate
Claims against insolvent person cannot be collected
Unpaid mortgage full mortgage must be included in GE
Unpaid taxes before death
Casualty Losses must be incurred not later than last day of payment of estate
tax
Transfer for Public Use bequests, legacies, devises for use of government, deduc in
exclusive
Vanishing Deductions Initial Basis proportionate deduction allowed (ELITETPUxIB/GE)
= VD x rate
NET ESTATE BEFORE SPECIAL DEDUCTIONS basis of SSS
LESS: SPECIAL DEDUCTIONS resident citizens only
Standard Deduction 1M
Family Home max of 1M
Medical Expenses max of 500000, one year prior to death
RA 4917
NET ESTATE BEFORE SSS
LESS: SSS of community net estate before SD
NET TAXABLE ESTATE
0
200000
500000
2000000
5000000
10000000

200000
500000
2000000
5000000
10000000
Over

Exempt
0
15000
135000
465000
1215000

0%
5%
8%
11%
15%
20%

Estate Tax Credit resident citizen only

Limit A Net estate per foreign/Entire net estate x Phil. Estate Tax vs. Actual, lower
Limit B Net estate all foreign/Entire net estate x Phil. Estate Tax
ETC lower of A or B
Allocated Deductions
Funeral/Medical allocate 200000/500000 to given actual amount
Other deductions not traceable allocate using GE
Reciprocity for NRA only

DONORS TAX 30 days after gift

(first donation)
GROSS GIFT
LESS: DEDUCTIONS
Dowries resident citizen only, 10k for each child, 1 year after marriage
Encumbrance assumed by donee mortgages, interest, taxes
Diminution of gift condition of the donor
Donations to National Government
Donations to NPO not more than 30% is their admin purposes
NET TAXABLE GIFTS
(subsequent)
GROSS GIFTS
LESS: EXEMPTIONS (DEDUCTIONS)
NET TAXABLE GIFTS
ADD: PREVIOUS NET GIFTS
AGGREGATE NET GIFTS
DONORS TAX ON AGGREGATE NET GIFTS
LESS: DT ON PREVIOUS NET GIFTS
DONORS TAX DUE, CURRENT GIFTS
0
100000
200000
500000
1000000
3000000
5000000
1000000

100000
200000
500000
1000000
3000000
5000000
10000000
Over

Exempt
0
2000
14000
44000
204000
404000
1004000

0
2%
4%
6%
8%
10%
12%
15%

30% to strangers
Donor Tax Credit resident citizen only
Limit A Net gifts per foreign/Entire net gifts x Phil. Donors Tax vs. Actual, lower
Limit B Net gifts all foreign/Entire net gifts x Phil. Donors Tax
ETC lower of A or B

BUSINESS TAX VAT

I.

Vat Transactions
a. Allowed with Input Vat Vat-registered business, deemed sales of vat-registered
b. Not allowed Input Vat Non-VAT business with gross receipts exceeding 1919500,
non-VAT franchise with gross receipts exceeding 10M, Importations, local payment
of rent of vessel or carriers
II.
ZERO-VAT Rated Transactions mainly exports sales by VAT-registered persons, can
claim input
a. Export sales paid in foreign currency
i. Sale from Philippines to foreign country
ii. Sale of materials to resident local for nonresident buyer
iii. Sale of goods, supplies, fuel, ad services to international shipping and air
transport
iv. Sale to export oriented enterprise with 70% export sales of total production
b. Sale of gold to BSP
c. Foreign currency denominated sales
d. Effectively zero-rated sales
i. Sale of power or fuel generated through renewable sources
ii. Sale to SBMA, CDA, PEZA, ADB, IRRI
e. Gross receipts of a domestic corporation for
i. Transport of passengers and cargo by air and sea from Philippines to foreign
III.
VAT-Exempt and OPT-Exempt transactions not entitle to claim input
a. Export sales of Non-VAT registered business
b. Importation of
i. Fuel, good, supplies by international shipping and air transport
ii. Personal and household belongings
c. Sales and importation of
i. Agricultural and marine food products
ii. Fertilizers, seeds, fingerlings, feeds except feeds for pets
d. Printing or publishing not devoted for paid advertisements
e. Services of
i. Agricultural contract growers and milling
ii. Medical, dental, hospital, veterinary, except professionals
iii. Private educational institutions accredited by DOE, CHED and TESDA
iv. Regional or area headquarters by multinational corporations
v. International agreements which Philippines is a signatory
f. Cooperatives
g. Sale/lease of real properties
i. Sale of low-cost housing and socialized housing
ii. Sale of residential lot at 1919500 and below and residential house and
lot at 3199200 and below
iii. Lease of residential units with monthly rental not exceeding 12800
h. Transactions with government
Sales
Add: VAT (12%)
Total
Less: Final withholding VAT (5% if VAT registered)/OPT (3% if non-VAT
registered)
Creditable withholding income tax (1% for goods/2% for services)
NET PROCEEDS

Output VAT
Less: SIV (7% always) compare to AIV of 12% of purchase (AIV>SIV,
expense; SIV>AIV, income)
Net Vat Payable
Less: Final withholding vat (5% always)
Output vat payables (should be 0)
VAT - OUTPUT
I. GOODS OR PROPERTIES tangible or intangible capable of estimation, consummated in the
PHILIPPINES
1. Sale/lease of real properties
2. Right to use patent, copyright, plan, secret formula, etc
3. Right to use industrial, commercial or scientific equipment
4. Right to use motion picture films, tapes, discs
5. Radio, tv, cable tv time
DEEMED SALE TRANSACTIONS - GOODS
1. Consumption of inventory
2. Distribution as profit share transfer of inventory as share of profits
3. Payments to creditors transfer of inventory as debt payment
4. Consignment beyond 6o das
5. Merchandise from retirement of business
6. Incorporation of single proprietorship lower of cost or market value
7. Sale of scrap materials
SALE OF PROPERTY
Commercial VAT ALWAYS
Residential lot above 1919500
Residential house and lot above 3199200
Initial Payments
25% below VAT on initial payment (DP+other payments+Excess of mortgage over costmortgage)
Above 25% - VAT on whole/FMV
FMV higher than SP Actual collection/Cost x FMV x 12%
AGRICULTURAL and MARINE PRODUCTS original state, salted eggs are vat and nonfood
products
II. SALE OF SERVICES services, lease or use of personal properties, lease of real properties
I. Professional/Technical Services
a. VAT on Professional fees 12%; 10% withholding income tax for 720000 and below
or 15% withholding income tax for above 720000 fee/year
Professional fee
Add: 12% Output VAT
Total bill inclusive of VAT
Less: Income tax withheld (10/15%)
Net amount collected
b. Service Contractors 12% VAT; if with government 5% final withholding VAT and
creditable withholding income tax of 1% for goods and 2% for services (see h)
c. Security Agency Fees only agency fee is subject to 12% VAT, 2& expanded
withholding tax on agency fees
d. Real estate brokers 12% if VAT-registered or exceed 1919500
e. Dealers in securities 12% on gross receipts (selling price less cost of securities)
f. Lending Investors
g. Transportation Services VAT on air and sea passengers, and cargoes air, sea, land
h. Freight Forwarders include local origin/destination charges, actual commission
income, currency adjustment factor; exclude offshore origin/destination charges,
freight, accessorial charges
i. Travel Agencies
Gross receipts

Less: Airline tickets

Passport and visa fees
Hotel room charges
Bus/car tour charges
Guide fees, resort fees
Meal charges
Add: Commission from airline ticket
Taxable base x 12%
j.

Hotels, Restaurants and Caterers except services billed separately, long distance
calls, local taxes
k. Media advertising provisional receipts not considered
l. Non-life insurance
i. Acquired from foreign/domestic authorized to transact risk business 12%
ii. Acquired from foreign not authorizes to transact
1. 10% if through an authorized agent
2. 5% if direct purchased

DOCUMENTARY STAMP TAX 10 days after close of taxable month

Bond certificate face amount /200 x 1.50
Shares of stock par value
Original - /200 x 2.00
Subsequent - /200 x 1.50
Promissory note/Letter of credit face amount /200 x 0.30
Insurance on life insurance/200 x 0.50
Other insurance insurance/4.00 x 0.50
Affidavit of Loss 15.00
Bill of Lading 10.00
Sale of real property 15.00 for first 1000 of balance net of mortgage, 15.00 for next 1000

REVIEW INPUT VAT

OTHER PERCENTAGE TAXES 20 days after end of taxable month/25 days after end of each
taxable quarter
I. Non-VAT business with annual sales of 1919500 and below 3% OPT
II. Domestic carriers and keepers of garages 3% OPT on quarterly gross receipts or
minimum, higher
Quarterly gross receipts Cities Provinces
Jeepney
2400 1200
30 bus passengers
3600
30-50 bus passengers
6000
> 30 bus passengers
7200
Taxi
3600 2400
Car with driver
3000
Car w/o driver
1800
III. International air and shipping carriers 3% of quarterly gross receipts
IV. Franchises
a. 2% on gross receipts of GAS and WATER (electricity is 12% VAT)
b. 3% on radio and tv broadcasting if gross receipts do not exceed 10M
c. Other franchise 12% VAT
V. Overseas dispatch, message or conversation 10%, pay 20 days after end each of
quarter
VI. Life Insurance 5% except if premium is refunded within 6 months and collected outside
the Philippis from non resident persons
VII. Amusement Taxes
a. Jai-alai and race tracts
30%
b. Cabarets, night & day clubs
18%
c. Cockpits
18%
d. Professional basketball
15%
e. Boxing
10%
i. Exempt if there is Filipino contender and there is Filipino promoter with 60%
capital
VIII.

Horse Race Winnings

a. 10% on Net Winnings (Prize less cost of ticket)
b. 4% on doubles, frocast, trifecta
IX. Issuance of shares through IPO
a. Up to 25%
4%
b. Over 25% but not over 33 1/3% 2%
c. Over 33 1/3%
1%
d. Primary offering pay 30 days on date of listing; Secondary 5 banking days from
collection
X. Sales of shares of stock through local stock exchange .005 5 banking days from
collection
XI. Gross Receipts Tax on Banks and Quasi-Banks
a. Interest, commission and discount
i. Maturity of 5 years or less5%
ii. More than 5 years
1%

b. Dividens and equity shares

c. Royalties, rentals
d. Net trading gains

0%
7%
7%