BUSINESS TAX: Other Percentage Taxes JLM

GROSS RECEIPTS
Juliet Land company, a taxpayer subject to percentage tax, provided the following data
for the second quarter of the year:
Services rendered to customers Php 1,250,000
Cost of services (labor, materials, and overhead) 875,000
Cash received as payment for services 800,000
Receivables on account of services rendered 450,000
Operating expenses paid in cash 220,000
1. How much is the total gross receipt subject to percentage tax?

Jovie Service Company provided the following information for the year;
March April
Revenue from services Php 800,000 Php 760,000
Cost of services provided 560,000 532,000
Cash collected from services:
March 350,000 280,000
April 430,000
Operating expenses paid 280,000 350,000
2. How much is the total gross receipt subject to percentage tax for April?

Noey is the owner of a small variety st0re. His gross sales in any one year do not exceed
Php 3,000,000. He is not VAT registered. The following data are taken from the books of
the variety store for the quarter ending March 31, 2019:
Merchandise inventory, December 31, 2018 Php 100, 000
Gross sales 450, 000
Purchases from VAT-registered suppliers 350, 000
3. How much is the percentage tax due?
A. Php 10, 000
B. Php 13, 500
C. Php 16, 500
D. none

In the third quarter of 2019, Neil, a taxpayer engaged in the sale of services whose annual
gross receipts do not exceed Php 3,000,000 has the following data
Accounts receivable, beginning of the quarter Php 50, 000
Sales during the quarter 100, 000
Accounts receivable, end of the quarter 75, 000
Purchases of supplies, total invoice amount 11, 200
4. How much is the percentage tax due for the quarter?
A. Php 2, 250
B. Php 3, 000
C. Php 7, 500
D. Php 6, 500

Nello opened a business in January 2018. For 2018, the annual gross sales of the
business totaled Php 1,100,000. In January 2019, the business gross sales amounted to

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Php 280,000 with purchases from VAT registered suppliers of Php 110, 000, exclusive of
VAT.
5. Which business tax/es is/are applicable to the business of Nello in year 2020?

DOMESTIC CARRIERS AND KEEPERS OF GARAGES

(Sec. 117, NIRC, as amended)
Lourdes Transport Company, a domestic common carrier, has a fleet of vehicles used to
transport passengers and cargoes from Batangas to Manila. For February, the company
had gross receipts of P500,000 from transporting passengers and P180,000 from
transporting cargoes.
6. What is the tax liability of the company?

Angel is a jeepney operator with three jeepney units operating in Mabini, Batangas. For
the second quarter of the current taxable year, the gross receipts are as follows:
April P28,000
May P30,000
June P26,000
7. What is the tax liability of the taxpayer for the quarter?

Princess, a jeepney operator in Bauan, has 12 units of jeepneys authorized to ply the
route back and forth between Bauan and Batangas city. For the third quarter of the current
taxable year, the actual gross receipts of the 10 units amounted to P358,000 while the
gross receipts of the two remaining units amounted only to P52,000 because of major
repairs in both body and engine of the jeepneys.
8. How much will be the common carrier's tax?

Tug operates a ferryboat. During a particular quarter, its receipts consist of the following
Gross receipts: (without VAT)
Transport of passengers Php 1, 000, 000
Transport of goods 1, 500, 000
Transport of cargoes 500, 000
9. How much is the common carriers’ tax payable?
A. Php 30, 000
B. Php 90, 000
C. Php 100, 000
D. None

10. Using the above data, how much is the output VAT?
A. Php 360, 000
B. Php 90, 000
C. Php 100, 000
D. Php 240, 000

IxaT Corporation is a common carrier operating several units of transportation by land,

air and sea. It had the following data on gross receipts for the month of April (tax not
included):

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From To Land Air Sea

Cargoes Passenger Cargoes Passenger Cargoes Passenger
Phils. Phils 400,000 1M 800,000 2M 1.6M 1M
Phils. Abroad 1.4M 1.8M
11. How much is the VAT/percentage tax due for the month?

ObeR Corporation is a holder of franchise to operate transportation units on land. The

records for the month show (net of any tax):
Cargo Passenger
Gross receipts from transporting Php 2, 000, 000 Php 3, 000, 000
VAT Supplier Non-VAT Supplier
Payments to Php 800, 000 Php 300, 000
12. How much is the percentage tax due?
A. Php 150, 000
B. Php 60, 000
C. Php 90, 000
D. Php 144, 000

13. Using the above data, but franchise is for air and sea transport, within the Philippines,
the VAT due is?
A. Php 144, 000
B. Php 600, 000
C. Php 468, 000
D. Php 504, 000

Calix, provided the following data for the 1 st quarter of the year 2020:
Gross Receipts
Taxi 1, Plying Manila Php 100, 000
2, Plying Manila 80, 000
3, Plying Provincial routes 70, 000
4, Plying Provincial routes 60, 000
Bus 1, Plying Manila (25-seater) 100, 000
2, Plying Manila (55-seater) 150, 000
3, Plying Provincial routes (50-seater) 180, 000
Car for hire With chauffeur 100, 000
Without chauffeur 40, 000
Jeepney 1, Plying Manila 100, 000
2, Plying Manila 60, 000
3, Plying Provincial routes 50, 000
4, Plying Provincial routes 30, 000

The composite index for 1978 = 6.38; 2020 = 174. 60

14. How much is the total percentage tax due for the taxis?
15. How much is the total percentage tax due for the buses?
16. How much is the total percentage tax due for the cars for hire?
17. How much is the total percentage tax due for the jeepneys?

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INTERNATIONAL AIR AND SHIPPING CARRIERS (Sec. 118, NIRC, as amended)

Aries Air Transport, an international air carrier, showed the following gross receipts during
the second quarter of the taxable year.

Point of Origin Point of Destination Gross Receipts Derived from Transport

Cargoes Passengers Total
Singapore Australia 900,000 1,800,000 2,700,000
Philippines China 1,200,000 5,100,000 6,300,000
Philippines Iran 700,000 2,800,000 3,500,000

18. Thirty percent of the shipments from the Philippines to Iran, both cargoes and
passengers, were later shipped from Iran to Turkey by another international carrier.
How much is the percentage tax due?

FRANCHISE TAX (Sec. 119, NIRC, as amended)

Cheline Atlas company, a Non-VAT business franchisee reported the following gross
receipts:
Year 2019 9,000,000
Year 2020 P11,000,000
Determine the business tax liability of the taxpayer for 2019 and 2020 assuming the
business is a franchise holder of:
19. Radio and/or television broadcasting
20. Gas and water utilities

21. ABS-CBA is a radio – TV broadcasting franchise grantee. During the preceding year,
its gross receipts did not exceed Php 10, 000, 000. During the first quarter of the
current year, it has the following data:
Gross receipts, sale of airtime Php 2, 000, 000
Gross receipts, use of radio station’s communication facilities 500, 000
Business expenses 700, 000

How much is the franchise tax due for the first quarter?
A. Php 60, 000
B. Php 40, 000
C. Php 75, 000
D. Php 39, 000

OVERSEAS COMMUNICATION TAX (Sec. 120, NIRC, as amended)

During the current taxable quarter, PLD Telecommunication company presented the
following data on its gross receipts:
Gross receipts from domestic calls and messages Php 450,000
Gross receipts from overseas calls and messages 700,000
22. How much is the business tax liability of the company?

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TAX ON BANKS AND NON-BANK FINANCIAL INTERMEDIARIES

(SEC. 121, NIRC, as amended)
BIP commercial bank presented the following gross receipts for June of the current
taxable year:
Service fee from bank customers Php 290,000
Rentals (on foreclosed property and safe
deposit boxes) 600,000
Net gains from foreign exchange transactions 520,000
Dividends received from gold leasing company,
a bank subsidiary 350,000
Net gains from trading securities and
other financial instruments 410,000
Lending activities on instruments with a remaining
Maturity period of four years 300,000
23. What is the amount of percentage tax liability?

On November 12, 2015, Ronald executed a long-term loan from First ABC bank in the
amount of P500,000 payable within 10 years with the first installment due on or before
November 12, 2016 and the succeeding yearly installments on the same date of the
subsequent years.
On November 12, 2020, the loan was pre-terminated, and the interest paid and other fees
received from year 2016 up to 2020 amounting to p80,000 annually were received and
declared by First ABC bank correctly.
24. Determine the amount of percentage tax still due upon the termination of the
instrument in 2020.

Angel premier bank has the following income/loss for the months of June and July 2015:
Income for June 2015
Interest income with maturity of less than 5 years Php 50,000
Rentals 50,000
Net trading loss (10,000)
Income for July 2015
Interest income with maturity of less than 5 years Php 100,000
Rentals 50,000
Net trading gain 20,000
25. What is the percentage tax due of angel premier bank for the months of June and July
2015?

TAX on Life Insurance Companies (Sec. 123, NIRC, as amended)

Pro Life Insurance Corporation, a domestic corporation, received the following premiums
(net of any tax):
INSURANCE
LIFE FIRE MARINE
Cash received Php 400, 000 Php 300, 000 Php 200, 000
Promissory notes 100, 000 -0- -0-
Totals Php 500, 000 Php 300, 000 Php 200, 000

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26. How much is the amount subject to percentage tax?

A. Php 400, 000
B. Php 500, 000
C. Php 900, 000
D. Php 1, 000, 000

27. How much is the output tax?

A. Php 36, 000
B. Php 24, 000
C. Php 60, 000
D. Php 120, 000

TAX ON AGENTS OF FOREIGN INSURANCE COMPANIES

(Sec. 124, NIRC as amended)
On January 2 of the current taxable Year, Faye, a taxpayer, plans to insure her property
with a foreign insurance company. She is evaluating the two alternatives as follows:
Alternative A: insuring the property directly with the foreign insurance company
Alternative B: Insuring with the foreign insurance company through its authorized agent
In case Faye directly insures with the foreign insurance company, she will pay a premium
of Php 230, 000. However, if she insures her property through the authorize agent, she
will pay a premium of Php 240, 000.
Determine the following under both alternatives:
28. Amount of percentage tax
29. Total cost on the part of Faye

AMUSEMENT PLACES (Sec. 125, NIRC, as amended)

Abong operates a cockpit. Inside the cockpit, he also operates a restaurant. Data for the
particular quarter follow
Gross receipts:
Cockpit operations Php 500, 000
Restaurant operations:
Sale of foods 100, 000
Sale of liquor 150, 000
30. How much is the amusement tax due from A?
A. Php 90, 000
B. Php 135, 000
C. Php 225, 000
D. Php 75, 000

31. Using the above data, except that the restaurant is not owned by Abong but is owned
by another person, BatMan, not VAT registered and whose annual gross sales never
exceeded Php 3,000,000. How much is the amusement tax due from Abong?
A. Php 90, 000
B. Php 135, 000
C. Php 225, 000
D. Php 75, 000

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32. Continuing the preceding question, how much is the percentage tax due from
BatMan?
A. Php 90, 000
B. Php 135, 000
C. Php 225, 000
D. Php 7, 500

33. Ala, a resident citizen, promoted a world boxing championship in Manila featuring
Money Pokyaw, a Filipino champion. Gate receipts amounted to Php 3, 000, 000 and
additional receipts from television coverage were Php 2, 000, 000. How much is the
amusement tax due?
A. None
B. Php 500, 000
C. Php 300, 000
D. Php 900, 000

34. Assuming that the above data is not a world championship but a Philippine national
boxing championship, how much is the amusement tax due?
A. None
B. Php 500, 000
C. Php 300, 000
D. Php 900, 000

TAX ON WINNINGS (SEC. 126, NIRC as amended)

Horsi, horseracing enthusiast has the following winnings during a particular racing day
Total winnings (winner take all) Php 10, 000
Cost of winning tickets 500
35. How much is the tax on winnings?
A. Php 1, 000
B. Php 400
C. Php 950
D. Php -0-

36. Using the above data, but the total winnings came from double bet, how much is the
percentage tax on winnings?
A. Php 1, 000
B. Php 400
C. Php 950
D. Php 380

SALE OF SHARES OF STOCK (Sec. 127(A), NIRC, as amended)

On March 1 of the current taxable year, Jearyl bought shares of stocks through her stock
broker from publicly listed companies at the PSE as follows:
From Jollibee Foods Corp. (JFC) 8, 000 shs Php 400, 000
From Universal Robina Corp. (URC) 6, 000 shs 420, 000

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Two months later, she sold 5, 000 shs of JFC for Php 325, 000 and 2, 000 shs of URC
for Php 180, 000.
37. How much is the stock transaction tax liability of Jearyl?

SHARES OF STOCK SOLD THROUGH Initial Public Offering (IPO)

(Sec. 127(B), NIRC, as amended)
38. GMC domestic corporation paid Php 40, 000 stock transaction tax on IPO of Php 500,
000 shares. After the IPO, there were 800, 000 shares outstanding. How much is the
selling price of the shares?
A. Php 10
B. Php 8
C. Php 4
D. Php 2

ABC-SBN Corporation, closely held corporation has an authorized capital stock of 1, 000,
000 shares with a par value of Php 100/shares as of January 1, 2020. Of the 1, 000, 000
authorized shares, 250, 000 thereof is subscribed and fully paid by the following
stockholders:
A 150, 000
B 50, 000
C 25, 000
D 12, 500
E 12, 500
Total shares outstanding 250, 000

On March 1, 2020, ABC-SBN Corporation finally decides to conduct an IPO and initially
offers 250, 000 of its unissued shares to the investing public at Php 150. 00/share. At
the IPO, two of the existing stockholders, Arman and Brian likewise decided to sell their
entire 150, 000 and 50, 000 shares respectively to the public also at Php 150. 00/share.
39. How much is the percentage tax due for the primary offering?
A. Php 375, 000
B. Php 750, 000
C. Php 1, 500, 000
D. Php -0-

40. How much is the percentage tax due for the sale of Arman’s share?
A. Php 225, 000
B. Php 450, 000
C. Php 900, 000
D. Php -0-

41. How much is the percentage tax due for the sale of Brian’s share?
A. Php 75, 000
B. Php 150, 000
C. Php 300, 000
D. Php -0-

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42. Later, on August 1, 2020, another stockholder Charing, sold his 25, 000 shares to the
public subsequent to the IPO at Php 200. 00/share. How much is the percentage tax
due?
A. Php 25, 000
B. Php 50, 000
C. Php 100, 000
D. Php 200, 000

43. Using the preceding number, on September 1, 2020 ABC-SBN Corporation again
decides to increase capitalization by offering another 300, 000 of unissued shares to
the public at Php 200.00/shares consequently bringing the total issued shares to 800,
000 shares, how much is the percentage tax due?
A. Php 600, 000
B. Php 1, 200, 000
C. Php 2, 400, 000
D. Php -0-

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