Type
Essay
Pages
4 pages
Word Count
1621 words
School
California Western Schoo
Course Code
accounting

Other Percentage Tax

March 10, 2020
WESTERN MINDANAO STATE UNIVERSITY
ACCOUNTANCY DEPARTMENT
COLLEGE OF LIBERAL ARTS
Business Taxes (Percentage tax)
Percentage tax is a business tax that is other than 12%. PT and VAT are mutually exclusive, meaning that if a
good/service is subject to VAT it can’t be subject to PT. Isa lang dapat But this doesn’t pertain to the
business itself. A business can have goods/services subject to VAT and as well as subject to PT.
Unlike VAT, PT is a direct tax to the seller. This means that PT is paid by the seller and is not allowed to shift it
to the buyer. You can see VAT as a breakdown in the invoices that you receive from VAT-registered
establishments but you can’t see PT as a breakdown right? This explains why.
Persons refer to individuals and non-individuals, which include, but are not limited to, estates, trusts,
partnerships, and corporations.
1. Persons, who are not VAT-registered, who sell goods, properties or services, whose annual gross sales
and/or receipts do not exceed three million pesos (Php3,000,000.00) and are exempt from value-added
tax (VAT) under Section 109 (BB) of the National Internal Revenue Code, as amended by Republic Act
(RA) No. 10963.
2. Persons who lease residential units where the monthly rental per unit exceeds fifteen thousand pesos
(Php15,000.00) but the aggregate of such rentals of the lessor during the year does not exceed three
million pesos (Php3,000,000.00)
3. Persons engaged in the following industries/transactions:
Cars for rent or hire driven by the lessee, transportation contractors, including persons who
transport passengers for hire, and other domestic carriers by land for the transport of
passengers (except owners of bancas and owners of animal-drawn two-wheeled vehicle) and
keepers of garages
International air/shipping carriers doing business in the Philippines on their gross receipts
derived from transport of cargo from the Philippines to another country
Franchise grantees of
A. radio and/or television broadcasting companies whose annual gross receipts for the
preceding year do not exceed Php 10,000,000.00 and did not opt to register as VAT
taxpayers, and
B. gas and water utilities.
Overseas dispatch, message or conversation transmitted from the Philippines by telephone,
telegraph, tele-writer exchange, wireless and other communication equipment services, except
those transmitted by:
A. The Philippine Government or any of its political subdivisions or instrumentalities;
B. Diplomatic services;
C. Public international organizations or any of their agencies based in the Philippines

Subscribe Now

Sign up to view full document

View Document