Taxes
Class: Marketing 3
Room: 305T
Days:
Monday-Wednesday
Time: 12:00 1:30 p.m.
Gross Estate
1. Gross estate includes real properties
a) Land
b) Building
c) Anything attached to the soil with
permanence
Classification of Decedent
Class A
1) Citizen of the Philippines, residing in
the Philippines
2) Citizen of the Philippines, residing
abroad
3) Citizen of a foreign country, residing in
the Philippines
Class B
)Citizen of a foreign country, residing
abroad
regardless of location.
Gross estate of a non-resident whos not a
citizen of the Philippines (Class B) consists of
1) real estate located in the Philippines and
2) tangible personal property in the Philippines, and
3) subject to exception (reciprocity clause),
intangible personal property in the Philippines.
Insurance Proceeds
Life insurance proceeds are included in
the gross estate if beneficiary is:
1) Estate of the decedent, his executor or
administrator
2) A revocable third person beneficiary
but not
over
200,000
200,000
tax shall
be
of excess
over
plus
exempt
500,000
5%
200,000
500,000 2,000,000
15,000
8%
500,000
11% 2,000,000
15% 5,000,000
10,000,00
20%
0
Tax 2 Assignment
Read about and explain briefly:
1) Donors Tax
2) Business Taxes
3) Business Transactions
4) VAT Taxable Transactions
5) Mixed Business Transactions
6) Other percentage taxes
Submit written answers on Nov 19,
2014
Gross gifts:
1. Transfers for insufficient consideration
2. Cancellation of indebtedness
Exemptions - Donations to:
1. International Rice Research Institute (IRRI)
2. Ramon Magsaysay Award Foundation (RMAF)
3. Philippine Inventors Commission (PIC)
4. Integrated Bar of the Philippines (IBP)
5. Development Academy of the Philippines (DAP
6. Social Welfare, cultural or charitable
institution, no part of the net income of which
benefits any individual
C. Other deductions:
1. Encumbrance on the property donated, if
assumed by the donee
2. Those specifically provided by the donor as a
diminution of the property donated
When donee is a stranger, tax shall be 30% of the
net gifts.
Stranger is a person who is:
1. not a brother, sister, spouse, ancestor or
lineal descendant
2. not a relative by consanguinity in the
collateral liner within the fourth degree of
relationship
tax shall be
plus
of excess
over
100,000
exempt
100,000
200,000
2%
100,000
200,000
500,000
2,000
4%
200,000
500,000
1,000,000
14,000
6%
500,000
1,000,000
3,000,000
44,000
8%
1,000,000
3,000,000
5,000,000
204,000
10%
3,000,000
5,000,000
10,000,000
404,000
12%
5,000,000
10,000,000
1,004,000
15%
10,000,000
Limitation B
tax shall be
plus
of excess
over
100,000
exempt
100,000
200,000
2%
100,000
200,000
500,000
2,000
4%
200,000
500,000
1,000,000
14,000
6%
500,000
1,000,000
3,000,000
44,000
8%
1,000,000
3,000,000
5,000,000
204,000
10%
3,000,000
5,000,000
10,000,000
404,000
12%
5,000,000
10,000,000
1,004,000
15%
10,000,000
Business Taxes
Business regular conduct or pursuit of
a commercial or economic activity.
Three major business taxes
1) Percentage tax
2) Excise tax
3) Value-added tax
Regular - more than one isolated
transaction.
Requires
repetition
and
continuity of action.
Commercial or economic activity
purpose is profit or income
Percentage Taxes
1) 3% percentage tax on sale of goods,
properties or services (exempt from VAT
because gross sale of preceding year did
not exceed P1,500,000) 3%
2) Common carriers tax on domestic carriers
3%
3) Common carriers tax on international
carriers3%
4) Franchise tax
a) Gas & water facilities
2%
b) Broadcasting companies receipts <P10M
3%
7) Tax on other
intermediaries
non-bank
7%
financial
Excise Taxes
Manufacturing & importing of the
following 10 categories only:
1) distilled spirits
2) wines
3) fermented liquors
4) tobacco products
5) cigars
6) cigarettes
7) automobiles
8) manufactured fuel oils
9) mineral products
10) non-essential goods
Proof of liter
- Liter
Number
- Selling price
Actual market value - Kilogram or metric ton
Wholesale price
End of Midterm