PART 2:

Are you ready in BCLTE?

1. Percent of share by the PROVINCE in Internal Revenue Allotment from SHARES of LGU from
NATIONAL REVENUE.
a. 23%
b. 46%
c. 20%

2. Percent of share by the Cities in Internal Revenue Allotment from SHARES of LGU from
NATIONAL REVENUE
a. 46%
b. 23%
c. 34%

3. Percent of share by the Municipalities in Internal Revenue Allotment from SHARES of LGU from
NATIONAL REVENUE
a. 23%
b. 34%
c. 46%

4. Percent of share by the BARANGAYS in Internal Revenue Allotment from SHARES of LGU from
NATIONAL REVENUE
a. 30%
b. 20%
c. 23%

5. Let’s assume that the declared National Revenue 2019 by the STATE is 50 Million pesos. What
amount would be the share of all provinces in Philippines.
a. 6.8 Million
b. 11.5 Million
c. 4.6 million

6. Let’s assume that the declared National Revenue 2019 by the STATE is 50 Million pesos. What
amount would be the share of all CITIES in Philippines?
a. 6.8M
b. 11.5M
c. 4.6M

7. Let’s assume that the declared National Revenue 2019 by the STATE is 50 Million pesos. What
amount would be the share of all municipalities in Philippines?
a. 6.8M
b. 17M
c. 4.6M

8. Let’s assume that the declared National Revenue 2019 by the STATE is 50 Million pesos. What
amount would be the share of all Barangays in Philippines?
a. 10M
b. 4M
c. 4.6M

9. Percent of shares by the Local government units in NATIONAL REVEUNE.

a. 30%
b. 40%
c. 23%
 10. What percentage will be the determination basis in POPULATION when it comes to allocation of
shares of LGU from National revenue?
a. 25%
b. 50%
c. 20%

11. What percentage will be the determination basis in LAND when it comes to allocation of shares
of LGU from National revenue?
a. 25%
b. 50%
c. 20%

12. What percentage will be the determination basis in EQUAL SHARING when it comes to allocation
of shares of LGU from National revenue?
a. 25%
b. 50%
c. 20%

13. Rate of share on excise tax on Virginia cigarettes.

a. 20%
b. 15%
c. 10%

14. Rate of share of an LGU from National collection from royalties, mining etc.
a. 40%
b. 35%
c. 30%

15. Amount of IRA for BARANGAY with at least 100 INHABITANTs.

a. 100,000
b. 80,000
c. 60,000

IMPORTANT NOTES:

Rates/Sharing to be Memorize

 INTERNAL REVENUE ALLOTMENT

- 40% share of LGU from National revenue
Allocation of 40% to LGU’S:

Province: 23%
City-23%
Municipality-34%
Barangay-20%

- Determination basis:

Population: 50%
Land Area: 25%
Equal sharing: 25%
 LGU’S Share from GOCCs
Formula:
-Whichever is HIGHER?
1% of Gross sales/receipts
BETWEEN
40% of Mining taxes, royalties, forestry etc.

ALLOCATION:

a. Natural resources (province located)

Province: 20%
City/Municipality:45%
Barangay: 20%
 If two or more provinces natural resources situated:
Population: 70%
Land Area: 30%

b. Natural Resources (Highly urbanized)

City: 65%
Barangay: 35%

 Share in the Special Economic Zones OF LGU from National Government:

 5% tax rate on economic zone business and it should be allocated in this way:
National Government: 3%
Local Government: 1%
Barangay/contiguous area: 1%

 Share from excess collection in vat

 Atleast 50% increase in collected, allocation:
City/municipality:20%
National Government: 80%

 Additional Condition
1. Vat paid without branch /sales office
Municipality/city: 100%

2. With factories/project offices/plantation or plants:

City/Municipality (Principal office) : 30%
City/municipality (Factory/project offices): 70%

3. Plantation located at a place other than the place where factory is located:
Cities/Municipality:
Principal: 30%
Factory: 42%
Plantation: 28%

4. Two or More factories, plant and plantations

Principal: 30%
Factory/etc: 70%

 Real Property Tax

 Basic RPT rate:
Province: 1%
City: 2%
Tax base: Assessed value
 Additional SEF: 1%
  Advalorem tax on idle land: 5% (ASSESSED VALUE TB)
Note: it is the maximum but it can be a minimum also lets say : 3% basis:
ORDINANCE

ASSESSMENT LEVELS OF REAL PROPERTY

CLASSIFICATION LAND MACHINERIE

S
Residential 20% 50%
Timberland 20% 0
Agricultural 40% 40%
Commercial/industrial 50% 80%
Mineral 50% 0
SPECIAL CLASSES:
Cultural/hospital/scientific 15% 15%
Local Water districts 10% 10%
Goccs/supply/generation of 10% 10%
electric power

Formula for assessed value:

 Fair market value times assessment level
= Assessed value x Rate
=Real property tax due

Note: If province : 1% If City: 2%

 If my SEF: Additional 1% TO basic rpt

 Note: same formula (basic RPT)
 In case of Penalty:
a. Maximum of 36 months irregardless of exceeded on 3 years.
b. 2% PENALTY per month.

 60%- special levy on lands benefited of actual cost in public works

 Discount of real property tax payment:
PROMPT: 10%
ADVANCE: 20%
Base: Real property tax due

 Distribution/ allocation of proceeds including interest,penalty/sef of rpt collected:

a. Province
 Province: 35%
 Municipality: 40%
 Barangay: 25%

b. Cities
 City: 70%
 Barangay: 30%
Note: Allocation defends:
Barangay property where located: 50%
All component barangay: 50%

c. Municipality with Metro Manila Area:

MMDA: 35%
Municipality: 35%
Barangay: 30%
 50%: property location>
 50% : all component barangay
 Business and other local taxes:

Province and Cities

1. Tax on transfer of real property ownership

Province: 0.005
Cities: 0.0075

2. Printing Business:

Province Basis Cities Basis

Old Gross receipt (1 0.0075 Gross
0.005 year) receipt (1
year)
New Capital 0.0015 Capital
0.0005 investment (start investment
of business) (start of
business

3. Franchise

Province Basis Cities Basis

Old Gross receipt (1 0.0075 Gross
0.005 year) receipt (1
year)
New Capital 0.0015 Capital
0.0005 investment (start investment
of business) (start of
business

4. Tax on sand, gravel etc

 Province: 10%
Allocation:
Province: 30%
Municipality: 30%
Barangay: 40%

 Cities(Highly urbanized): 15%

Allocation:
Cities: 60%
Barangay: 40%

5. Amusement Tax: Not exceeding 10%

Allocation:
City/Province: 50%
Brgy/Municipality: 50%

6. Professional tax: Not exceeding 300pesos

7. Peddlers tax: Not exceeding 50 pesos annual
8. Delivery truck/vans: 500 PESOS every truck/van

 Taxing power of Municipality

1. Business tax on retailer
 400,000 or less annual gross receipt: 2% OF GR preceding (NOT EXCEEDING)
  400,000 ABOVE: 1% OF annual gross receipt.

2. Domestic construction project

 30%: GR/ CITY/Municipality/principal
 70%: project office

3. Bank and Other financial institution

 Rate: 0.005

4. Credit Company:
 RATE: 0.005

5. Business tax or any business (subject of vat or non vat NIRC)

 Rate: 2% of GROSS RECEIPTS (not exceeding)

 Taxing power of BARANGAY:

ADVERTISEMENT:

1. Billboard fro advertisement of Business

 Single face: 10 Pesos per sq. meter
 Double: 20 pesos per sq. meter

2. Professional: 8pesos per sq. meter

3. Businesses and Professional painted in any Building: 9 pesos per sq. meter
4. By means of SLIDES: 100 PESOS
5. Vehicles/balloon/Kites
 40 pesos per day
 60pesos per week
 80 pesos per month
Note: Use of light/neon add: 10 pesos

 Additional (Municipality/Cities Tax)

Sales allocation (Manufacturers, assemblers, contractors)
When Factory, plant/project in business
 Principal office-30%
 Factory/project plantation: 70%
Note: If distribution, allocated:
- If plantation in locality other than factory:
60%- Factory
40%- plantation

 COMMUNITY TAX
 Individual:
Single: 5 pesos plus 1 peso for every 1000 pesos of Gross Receipts/sales
Married: Separate on 5 pesos but jointly on 1 peso per 1000 PESOS
NOTE: Maximum of 5,000 pesos

 Corporation:
Basic: 500 pesos
Additional: P2 for every 5,000 of Gross sales/receipts and real property assessed
value
Note: Maximum of 10,000 pesos
 Note: The following are exempted to pay community tax:
1. Diplomatic and consular representatives
 2. Transient visitors when their stay in the Philippines does not exceed 3
months.

 Deadline of CT to pay is on February 28. Penalties shall imposed based on this

table:
January-No penalty July: 14%
February-No penalty August: 16%
March- 6% September: 18%
April-8% October: 20%
May: 10% November: 22%
June: 12% December: 24%

COMPUTATION:

1. Real property Tax due

Classification: Commercial
Lot: 15,000 square meters
Price: 2,000 per sqm

a. Assume that the City treasurer collected the basic RPT and the additional SEF. Compute the
Total tax due
Solution:

15,000 x 2,000= 30,000,000 –Acquisition cost

X 50% -Assessment level
15,000,000.00 -Assessed value
x 3% - tax rate
___________________
450,000.00- Basic RPT And SEF

b. Considered the total tax due, the payee paid an early payment and the other one is advance
payment:

Prompt payment: 450,000 X 10% = 45,000

Tax due: 450,000- 45,000= 405,000.00

ADVANCE PAYMENT: 450,000 x 20%= 90,000.00

Tax due: 450,000-90,000= 360,000.00

c. Let us assume that the payee has 1 year delinquent rpt. And next year he paid it including
penalty. Compute the total tax due plus penalty/interest. Considered the tax due in letter A.
Compute also the proceeds assuming that the collecting agency is provincial and plus city.

Solution:
450,000 X 24% = 108,000 penalty
Tax due: 450,000 + 108,000= 558,000

 Distribution of proceeds: 558,000.00 (PROVINCE)

Province (35%): 195,300
Municipality (40%): 223,200.00
Barangay (25%): 139,500.00

 City (558,000 proceeds)

 City( 70%) : 390,600.00
Barangay(30%): 167,400.00

Note: 2% penalty every month of delay. Maximum of 36 months interest only

regardless of months of delinquency.

2. Tax transfer on real property ownership

Given:
Lot
Market Value: 20,000.00
Acquisition cost: 50,000.00
Zonal Value: 60,000.00
Location: Province

Solution:
 Choose whichever is higher:
Zonal Value: 60,000
Times .005
Equals :300PESOS

3. Sand and gravel tax:

Fair Market Value: 200 per cubic meters

Extracted: 30 cubic meters
Location: Province, whereby maximum tax rate was implemented.

Solution:
200 x 10% = 20per cubic meter x 30 = 600.00
Proceeds distribution:
Province (30%): 180.00
Municipality (30%): 180.00
Brgy (40%): 240.00

4. Community Tax (Poll tax)

a. Individual
Given:
Monthly salary: 5,000 PESOS
Gross receipts last year: 35,000.00
Date of Payment: February
Solution:

Basic 5.00
Salary (5000 times 12) : 60,000
Business : 35,000
Equals 95,000
Divide by: 1,000
Equals 95.00
Total Community tax 100.00

Assume that the individual pay the ctc on May

Compute the penalty and tax due.
Solution:

Tax due: 100.00

Penalty (100 times 10%) 10.00
Total P110.00
 b. Corporation
Given:
Assessed value of property: 100,000
Gross receipts: 1,000,000
Paid: May

Solution:
Annual tax 500
Property and GR:
(1.1M/5000 TIMES 2) 440
Tax due w/o penalty 940 940
x 10%
Penalty + 94
Total tax due: 1,034.00

5. Internal Revenue Allotment:

Give:
National revenue: 1,000,000
Solution:

Share of all LGU IRA: 1,000,000 X 40% = 400,000.00

Distribution:
Province (23%) : 92,000
City (23%): 92,000
Municipality (34%) : 136,000
Brgy (20%): 80,000

6. Franchise/Printing business:
a. Capital Investment: 1,000,000
City
Tax due: 1,000,000 X 0.0015 = 1,500
b. Gross Receipt: 1,000,000
Province
Tax due: 1,000,000 times 0.005= 5,000.00

Revenue Assignments of LGU

TAXES
Tax Base Provinces Cities Municipalities Barangays
Business NO YES YES NO
Real Property Yes YES SHARE SHARE
Idle land Yes YES NO NO
Real property transfer Yes YES NO NO
Printing and Yes YES NO NO
Publication
Sand gravel and other Yes YES SHARE SHARE
quarry resources
Delivery Vans and Yes YES NO NO
trucks
Amusement Yes YES SHARE NO
Professionals Yes YES NO NO
Community tax No YES YES SHARE
Franchise Yes YES NO NO