LOCAL TRANSIER TAX [tax base Receual oF tax Ter ied oF payment 6 ReSA ‘The Review School of Accountancy ‘Bel. No. 735-9807 & 734-3989 oF LOCAL TAXES. Seo — ihe Tate market valor “consideration oF | Total | whichever s# higher Le pag ec [From the effective date of transfer of ownership of | eitie over real property ya fron the accrual of the tax” 2 ‘vines where the property Ia located Must not exceed Sou of ie (/z oF it) Grosa annual receipts fer the preceding calendar yeas PAcerual of tax Januaty 1 Period of payment of tax | subsequent Within the first 20 daya of January ox oF each quarter, as the case may be, dinary rules of situs proscribed under the tocal Government Code Rule 1: If the taxpayer maintains or operates a branch of saley outlet where the sale or transaction is made and recorded, the tax on such sale or transaction Should be paid to the province wieze such Branch or Sales outlet is located, Rule 2: In case where there Ls no branch or sales Sutiet in the province where the sale or transsction {3 made and recorded, the tax on such sale or Transaction should be paid to the province where the principal office is located. MOCAL FRANCHISE TAX Tax Fate Wage Wot exceed s0e oF Tt (7 ef Tw = Tax base Gross aAtual reco ipts for tha preceding calendar year ‘Accrual of tax January 1 Period Of payment OF tax Within the first 20 days of January or of each Subsequent quarter, as the case may be subject to extension for s maximum period of 6 months Sivas of tax Sidinary Tuies Of situa prescribed under the Local Government Code Rule 2: If the taxpayer maintains or operates a branch Gf sales outlet where the sale or transaction is made Gna recorded, the tax on such sale or transaction Should be paid to the province where such branch or Sales outlet is lecated. Rule 2: In case where there is no branch or seles Outies in the province where the sale oz transaction {3'made and cecorded, the tax on such sale or transaction should be paid to the province where the principal office is located. (TAX OM _EXTRACHION OF SAND, GRAVEL AND OTHER QUARNT RESOURCES Tax rate Mgat aot exceed 100 Tax bese Fairnarket vaiue in the locality par cubic meter of the extracted quarry resources Receaal of tax ‘January 1 Period of payment of tax Situs of tax Within the Fivst 20 days of January oF of each Subsequent quarter, as the case may be subject to Gxtonsion fora maximum period of 6 months Province where the quarry resodrces are extractedReSA: The Review School of Accountancy PROFESSIONAL Tax Amount of tax [Reerual of tax ~ | Period of payment of tax Mast not exceed PI00.00~ — —— January 7 — en ‘On or before January 3i (a person beginning to practice a profession after the month of January mast pay the full tax before engaging in such profession) | Situs oF tax Province where the professional practices his eestor” " Principal office | profezsion of where he maintains hi LOCAL AMUSEMENT TAX Hust fot exceed 10% Tax base: Gross receipts trom admission fees [Reerual of tax ‘As prescribed by the Sangguniang Panlalayigan As prescribed by the Sangguniang Panlalawigan Periog of paynent of Fax Situs of tax [recast ot ee EXXED TAX ON DELIVERY TRUCKS AND VANS EEXED TAX ON DELIVERY TRUCKS AND VANS, Province where the amusement activity is neld oF The amusement is located Wust not enced PS00.00 Tor every delivery vehicle ——] January 1 Period of payment of tax Within the first 20 daya of January oF OF each Subsequent quarter, as the case may be subject to extension for a maximum period of 6 months: Sisus of tar Province where the sales outlets or consumers to non | the taxpayer makes the delivery are located conmenrry TAX Tadiviauals Coxporations Annual community tax | Five poses (PS-00y Five hundred pesos (P500.00) 2agttfonal community [one peso (1.00) for every | Two pasos TPP G0) Tor eee cee 21, 000. || esroo0 Basis of additional ‘income regaraless oF Worth of teal property in the community tax wether from business, Philippines owned by it gxoreise of protession or | duzing the precediny year From property based on the valuation used for the payment of the real Property tax under existing laws, found in the assessment rolls of the city or municipalizy where the real Property is situated Gross receipts or earnings derived by It from ite Business in the Philippines during the precoding year The dividends received by a corporacion from another corporstion honever shall, for the purpose of the additional tax, be considered 28 part of the grovs receipes OF earnings of said corporation. Weximom annual additional community Five thousand pesos Ten thousand pesos (5,000.00) (P19, 000.00) Accrual of tax OE cach Se yy a! OF January | First (iat) Gay GF January oF of each year each year Period of payment oF tax Wot later than the last Gay of February of each year | of ebruary of cach seer Not Tater than the Tast day Situs oF tax Residence of the individual | 6etncipal SEice oF Eh corporation is located ERDReSA ‘The ReviewSchool of Accountancy ‘Wel. No. 735-9807 & 734-3989 PAXATION TAMAYO/LIM/GARCIA PRE-WEEK LECTURE (CASES ON LOCAL TAXES! Multiple Choice: Choose the best possible answer Tex on Transfer of Real Pr Ownershaj i. Which of the follow: ownership? a. Sale or donation of real properties janster of real properties through testate and intestate succession ¢: Transfer of real property in complete liquidation by a corporation of its real properties to its stockholder Zzansfer of ownership of real property pursuant to the Comprehensive Agrarian Reform Law (CARP Daw) ‘The tax base of the local tax on + ng is not subject to tax on transfer of real property 9 ransfer of rea) property ownership is rfu/yfucs's a. total consideration involved in the acquisition of the property, s fair market value in case the monetary consideration involved in the Fonal vaue/OA "transfer is not substantial. ‘ total consideration involved in the acquisition of the property e: {aca Tax - otis fair market value in case the monotary consideration involved in che ‘Miva transfer is not substantial, whichever is lower “jue «d+ Eotad consideration involved in the acquisition of the property ox fair market value in case the adnetary consideration involved th-the Eransfer as not substantial, whichever is higher. ftansfer is not substantial, whichever is higher. [Phere is a view that fair market value shall refer to the FW reflected cr indicated in the prevailing Schedule of Market Value prepared by the Assessor and duly-enacte: ed Sangqunian. The Supreme Court has not _yet affirmed this view 3. When does the local tax on transfer of real property ownership accrue? &. From the effective date of transfer of ownership of title oves seal Property 7 ate of registration of ng Deed of Conveyance ©: Any time within six (€) after tne transfor of real property d. Any time the taxpayer signifies his desire to pay the local tax Effective date of transfer of Owership or title over real property ( from the date of execution and notarization of the Deed of Sale date of decedent's death.) oe or from the Section 135 allows = period of 60 days from the accrual of the tax for transferor to pay the same. The transferor need not wait for the issuance by the BIR of the Certificate Authorizing Registration (CAR) before he can | pay the local transfer tax 4. Who shall have authority to collect the local transfer tax? a. Province where the property is located b. Residence of the transferor where che property is located ©. Principal office of the transferor where the prop 4. Residence of the transteree where the property y 18 lecated Sated While the Local Government Code is silent on the Situs where the property Te located of this tax, it should be understood that the province where the real property is Located (and nat rhe residence or the transferor is located) shall have the principal office of \e authority to collect. 5. An individual taxpayer sold his residential house and let for PS,000,000 (fair market value was P4,000,008) Question 1 — How much is the capital gains tax? '2300,000 e+ BIS, 000 b. 200,000 G! Nong oF the choices