• issuances that provide directives or instructions; prescribe guidelines; and outline processes, operations, activities, workflows, methods and procedures

• issuances that publish pertinent and applicable portions

• issuances that cover subject matters dealing strictly with the permanent administrative set-up of the Bureau

• Department of Finance (DOF) — Department of Budget and Management

• Income Tax

• Transfer Taxes (property for free)

• Business Tax

• Fiscal Adequacy

• Equity or Theoretical Justice

• Administrative Feasibility

Online Filing & Payment Site

Onsite Filing & Payment

 President (decision making)

Senate & House of Representatives—Congressman (law making bodies)

•  Municipality Court, Regional Trial Court, Supreme Court (interpret the law)

SIGNED

NOT SIGNED

Power to Tax

Police Power

Eminent Domain

• power inherent in every sovereign state to impose a charge or burden upon persons, properties or rights, to raise revenues for the use and support of the government and enable it to discharge its appropriate functions

• enforced proportional contributions from persons and property

• tax of a fixed amount imposed upon individual

• tax imposed on property, whether real or personal

• any tax does not fall within the classification of a poll tax or property tax

•  fixed amount based on volume, weight or quantity of goods as measured by tools, instruments or standards

• this imposition is based on the value of the property subject to tax

• levied without a specific or pre-determined purpose

• those intended to achieve some social or economic goals

•  imposed by the National Government

•  imposed by municipal or city government

• unitary or single rate

• as the base grows the tax rate increases

• the tax rate increases as the tax base decreases

• pecuniary aid directly granted by the government to an individual or private commercial enterprise deemed beneficial to the public

• funds or income derived by the government, whether from tax os any other source

final tax at the rate of ___ % is hereby imposed upon the net capital gains realized during the taxable year from the sale, barter, exchange or other disposition of shares of stock in a domestic corporation, except shares sold, or disposed of through the stock exchange

 final tax of ___% based on the gross selling price or current fair market value, whichever is higher, is hereby imposed upon capital gains presumed to have been realized from the sale, exchange, or other disposition of real property

In the case of cash sale, the selling price shall be the___?

In the case of sale or disposition, the selling price shall be the___?

In the case of exchange, the selling price shall be the___?

In the case of fair market value, the selling price shall be the___?

the book value based on the latest available financial statements duly certified by a Certified Public Accountant prior to the date of sale

 the liquidation value, which is equal to the redemption price of the preferred shares as of the balance sheet date nearest to the transaction  date, including any premium and cumulative preferred dividends in arrears, shall be considered as the fair market value

the book value per common share is computed by deducting the liquidation value of preferred shares from the total equity of the corporation and dividing the result by the number of outstanding common shares as of balance sheet date to the transaction date

the fair market value of the shares of stock at the time of sale shall be determined using the___?

To be subjected to CGT, the shares of stock sold shall be classified as___?

Sale of shares of stock of a foreign corporation is not subject to basic income tax

TAX BASE: Selling Price of Fair Market Value, whichever is lower

If there is no full utilization of the proceeds of sale or disposition, the portion of the gain presumed to have been realized from the sale or disposition shall be subject to capital gains tax

1. Final Withholding Tax on passive income

2. ___day of the month following the month the withholding was made

• 30 days after each transaction

• 30 days following each sale or other disposition

shall be filed and the tax paid/remitted not later than the last day of the month following the close of the quarter during which withholding was made

• Purely Compensation Income Earners; April 15 of the succeeding year

The individual taxpayer is required to file a quarterly tax return - 1st Quarter

The individual taxpayer is required to file a quarterly tax return - 2nd Quarter

The individual taxpayer is required to file a quarterly tax return - 3rd Quarter

The individual taxpayer is required to file a quarterly tax return - Annual Return

one of the taxpayer required are the Individuals deriving other non-business, non-profession-related income in addition to compensation income not otherwise subject to final tax

one of the taxpayer required are the Individuals earning purely compensation income whose taxable income does not exceed P 250,000

also known as the REVISED CORPORATION CODE (RCC) of the Philippines

also known as the Bayanihan Act II

commercial undertaking by two or more persons differing from a partnership in that it relates to the disposition of a single lot of goods or the completion of a single project

covered by a special license and funded project that international bidding is allowed under the Bilateral Agreement

Final Withholding Tax is the co-venturer

Basic Tax is the co-venturer

1. created or organized in the Philippines or under its laws

1. created or organized in a foreign country or under the laws of a foreign country and engaged in business in the Philippines

1. created or organized in a foreign country or under the laws of a foreign country and not engaged in business in the Philippines

subject to normal tax or basic tax or the regular corporate income tax

subject to income tax rate which is lower than the regular income tax

tax rate of Non-resident cinematographic film owner, lessor or distribution

tax rate of Non-resident owner or lessor of vessels chartered by Philippine nationals

tax rate of Non-resident owner or lessor of aircraft, machieneries and other equipment

is PCSO taxable?

1. Source of Income Subject to Tax

2. Domestic Corporation

1. Source of Income Subject to Tax

2. Resident Foreign Corporations

1. Source of Income Subject to Tax

2. Non-Resident Foreign Corporations

Basis of Income Subject to Tax

Domestic Corporation

Basis of Income Subject to Tax

Resident Foreign Corporation

Basis of Income Subject to Tax

Non-Resident Foreign Corporation

applicable tax of regular or ordinary income

applicable tax of passive income

applicable tax of capital gains on sale of shares of stocks of domestic corporation sold directly to a buyer

applicable tax of capital gains on sale of real property

MINIMUM CORPORATE INCOME TAX (MCIT) has

In MINIMUM CORPORATE INCOME TAX (MCIT), how many percent of the gross income as of the end of the taxable year is imposed upon any domestic corporations and resident foreign corporations

• Whenever the amount of MCIT is greater than the regular corporate income tax (RCIT) due from such corporation. Hence, MCIT is not always computed and compared to RCIT starting in the fourth year of operations. 

• Under RR 12-2007, MCIT shall be computed not only on a yearly basis but also in the computation of quarterly income tax due.

Any excess of the MCIT over RCIT shall be carried forward and credited against the RCIT for the ___ immediately succeeding taxable years.

Net Operating Loss (NOL) means the excess of allowable deductions over gross income of the business in a taxable year

Taxable year NOL was incurred prior to 2020, the deductible as NOLCO within is ___ consecutive years

Taxable year NOL was incurred 2020 to 2021, the deductible as NOLCO within is ___ consecutive years

Taxable year NOL was incurred beginning of 2022, the deductible as NOLCO within is ___ consecutive years