Taxation Law Bar Reviewer

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TAX
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s.
above)
ber
]o
within
E:
following
trust
estate
compensation
except
taxable
of
expense
are
paid
in
Prosecutor
date
the
or
tip
Co.,
month.
sources
property
E:
authority
only
institutions
disposition
taxable
be
to
by
on
in
[real
to
Un
less
Sec.
AND
under
from
a
of
to
with
used
a
e;
banks
y
the
its
&
[Ph
an
6
Sec.
the
to
if
such
from
sales
of
106
SCR
at
the
the
income
(with
of
sold:
30%
109]
of
]or
A
for
any
the
le
both
certifcates,
machineries:
receipts,
224-225)
shall
be
exempt
for
remittances
injury;
are
INCOME
EXCEPT
12%
taxab
VAT
foreign
BASE
currency
loans
paid
and
tax
upon
the
an aggregate
period
of
more
than
180
days
during
any
calendar
Gross
selling
price
oby
C
ORP
TA
O
RATIO
NS
DOMAIN
Intangible
Reven
(Please
Tax
Appointment
manufacture
the
(p)
E
xemp
Computed
ue
Gamb
Interest
The
refer
amount
Annual
i.
a
Reg
personal
Any
For
ti
decision
Surcharges
Requisites
ons
to
continuo
le
ula
expense
22.
purposes
P
of
in
ti
e
hil
distribution
xist
ons
same
properties
and
shall
Invoicing
tax
ip
in
nes
shall
on
busines
g
be
manner
Deductibility:
bef
of
final,
or
vs
Requirements
be
or
with
computing
.made
o
e
reduced
Mu
executory
&of
suc
the
situs
an
on
due
nic
the
ipal
a
kin
by
in
date
by
the
it
and
the
th
y
ia
c
E
Gros
(1987
xamp
It
622];
(6
Short
Composition
d.
b)
(a
iii.
sIncome
connotes
Constitution
NOTE:
Dissolution,
lCAS
Rece
Pub
Majority
Property
An
submission
ii.
educational
short,
y
C
Period
Contemplates
There
continuo
altex
lic
Ascertainment
Not
received
psettled
ts
Any
er
the
W
it
corporations
:so
vote
orks
married,
–to
is
Passing
Article
is
integration
n
total
aincome
merger
ils
for
a
taxpayer
,actually
institutions:
no
by
other
.an
trust
of
[V
amount
G.R
a
approval
X
.the
of
not
COA
particular
Section
Congress
substantial
Under
where
.payment
uninterrupt
and
Worthlessness
following
of
or
than
No.
may
gainfully
,ocated
ofrealized
consolidation
5,LGC
the
have
L-10
In
by
money
General
the
for
which
title
the
405,
ae
flight
or
can
is from
Toll
prescriptive
system,
The
the
amount
of
income
tax
Limitation
A
(per
o
INCOME
-d
POWER

Actual
gain
Philippines
is
the
amount
exchange
of
close
of
the
taxable
Interest
income
earned
20


The
Strict

An
A
Imposed
amount
construction
worker
by
not
which
on
in
exceeding
so
the
the
as
tax
private
not
sale,
forty
imposed
to
percent
extend
barter,
sector

See
Every
Estate
The
general
capital
of
professional
Fidel
RESIDENT
losses
Reyes,
partnership
CTA
from
expenses
recipient,
Exemptions:
there
employment
Shares
compensation
when
borne
is
–stamps
the
before
limitation
creditors
estate
transactions
derived
intention
is
or
in
periodic
from
within
the
the
in
the
(4)
Under
the
Tax
Code
APPLICABLE
TAX
–by
EXAMPLES
TAXPAYER
OF
2-YEAR
TAX
EXAMPLES
TAXABLE
OF
ON
system
===========
================
should
be
============
================
Power
(CITE
LAW)
TA
TOL
i.
proper
–
Inter-corporate
Common
classifcation
stocks:
use
dividends
made;
BOOK
by
to
a
be
Expanded
Withholding
Tax
(EWT)
capable
of
being
properly
and
eficiently

(a)
R.A.
6938
Cooperative
Code
of
the
to
relent
fraudulent
Act
that
Created
the
Court
of
Tax
CODE
night/graveyard
OF
shift
not
exceeding
25%
zero-rated,
being
subject
to
VAT,
are
Be
n
ef
iIn
tsources
Tax
fled,
(2)
the
return
is
false
or
II.NATIONAL
III.
LOCAL
GOVERNMENT
INTERNAL
treasurer
nNOTE
refund
cases
and
cannot
be
evade
payment
of
taxes
Refers
to
the
rate
fixed
by
the
Regional
Tripartite
withholding
.than
S
R
AX
T
..................................................138
CITIZEN
CITIZE
BUSINE
1lease
surcharge
more
Phils.
Upon
not
a
exceeding
recommendation
mere
cannot
replacement
successfully
twenty
of
five
NEDA
of
resort
percent
in
parts
the
to
particular
(Sec.
195,
TCC
industry,
LGC)
and
other
business
laws
administered
or
activity
by
shall
BIR
individuals)
A
taxpayer’s
Rule
45
of
suit
CERTIFICATE
is
properly
OF
brought
INPUT
TAX
only
when
localities,
part
of
the
the
gross
above
receipts
given
mentioned
for
or
earnings
the
benefit
70%
of
said
of
shall
LGUs
CANNOT
LEVY:
[
IDECTA_BEV_TRELEBI
]
The
value
of
any
part
of
the
Aircrafts
imported
by
agro
industrial
or
before
CLASSIFICATION
telecommunication
or
Taxpayer
simultaneously
within
system
with
15
the
days
institution
funded
from
and
of
kinds
the
of
delinquent
imported
articles
real
property,
under
certain
or
person
tax
duties,
by
fees,
due
reason
and
other
of
charges.
force
majeure,
civil
Assessment
charges
from
distraint
which
(LGC
Sec.
x
200%
6,00
Relief
the
1996]
otherwise
prohibited
local
5]
states
a
Commissioner
Gro
ss
Ph
il.
Billin
gs
=
amount
of
gross
revenue
derived
certain
from
imported
carriage
materials
of
persons,
as
a
excess
result
of;
253
5,
TCC
]
Area
shall
Nonresident
aircraft
up
to
under
the
owner
fourth
any
or
of
civil
lessor
the
Commissioner
degree.
following
of
vessels
chartered
by
the
Phil.
4.5%
Nationals
gross
rentals,
or
charter
fees
Defcien
(a
or
2.
Income
ii
tax,
Judicial
except
on
banks
financi
1.
(E)
Cause
Oficials
Method
all
of
Five.
articles
the
BOC,
–
Fallback
for
district
importation
Value.
collectors,
to
–
be
TRADE
/
–
Importation
Terminates:
C
Damage
C
incurred
during
voyage;
C

IV.
Situs
of
Local
–

For
scientific,
experimental,
propagation,
of
an
assn.,
a
joint
account
or
a
joint
Animals
and
plants
which
are
not
entirely
attributable
to
Sec.
28,
ART
VI
of
the
1987
Constitution
G
OVERNMENT
1.
If
the
R
EMEDIES
conveyance
has
been
used
for
G
OVERNMENT
R
EMEDIES
G
OVERNMENT
R
EMEDIES
realized
from
the
sale
of
the
asset
pamphlets,
and
others
of
from
the
tax.
of
to
VAT
a
Nondue
Resident
which
was
maturity
of
5
years
or
more)
Current
Liabilites)
of
2:1
is
indicative
of
the
subject
to
15%
tax
on
le
granted
by
depository
deemed
paid.
from
tortuous
acts)
withholding
Business
a.
cannot
order
A
deducting
withhe
the
exempt
reorganization
of
(e)
Government,
General
liable
pleading.
died
suspension
decedent’s
Obligation
claim
essential
irrevocably
carried
the
real
bonded
regulations
from:
conspicuous
and
term
donee
M
[2
alleged
to
CIT
leaving
to
R
deduction
or
year)
allowances,
Development
1,
separation
The
clothes.
register
u
persons:
property
"zero-rated
deductible
as
rules
input
possessor
reside
li
Ra
in
the
from
n
may
as
amount
installments:
trading
stock
tderived
g
goods
loss
e
or
domicile
to
during
with
market
sum
a
VAT,
of
[given
=
unearned
D
closure
maintain
if:
deed
be
abroad,
fishpond;
2%
the
Since
A
place
proves
depends
the
by
In
-course
or
commissions
for
elected
of
for
(C
of
sale"
the
of
the
BSP
up
warehouses
the
Act
of
value.
-335)
allowable
securities
athe
tax
gross
the
date
any
of
donation
control
as
in
case
that
confidentiality
real-estate
shall
exception
revenue,
taxable
aor
period
of
naked
by
credit
on
income
immigrant
in
business
the
cause
of
1h
the
a
1992
be
5
and
(e.g.
goods
deductions,
-09]
in
number
in
allowed
taxpayer
title
barrio
loss
written
supplying
year,
sale
from
which
that
another
benefit
beyond
dealer,
of
under
or
had
to
of
the
for
he
or
B,
is
EFFECTIVELY
required
multinational
alleged
Chairman
corporate
Electronic
desire
employer-employee
aluminum
b.
commercial
for
useful
compensation
television,
subsidiary
within
proceedings
Sec
for
Output
whether
NOTE:
located
maintained
CIR,
register/which
[4
State,
property
services:
remittance
personal
husband
to
depreciation
when
primarily
heirs/beneficiaries
Pe
payment
The
109
of
of
foreign
persons
international
employ
(35%
income
opl
companies,
Filing
have
the
tax
life
returns/allowances
in
the
be
optional
Tax
return
(2)
plates
locally
invoices
there
you
e
the
taxpayer’s
each
radio
located
to,
Phils
2006-2008)
Commission
of
injury.
whether
and
income.
been
of
v
of
filed
in
actually
until
is
on
.tax
&
the
country
has
for
or
zone
surcharges
and
the
regardless
must
or
M
Payment
is
to
whom
the
registration
rate
(1)
Tax
a
without
final
or
If
excessively
before
the
RATED
furnished
amortization
gd
jurisdiction
earlier
organizations
motion
ordinary
no
or
or
be
on
recourse
pay
upon
for
date
a
(except
be
area
property
unemployed
the
withholding
personal
lto
on
not
u
corporations.
System
y
used
cash
a
the
imposed
Audit.
o
where
tax
continuity
of
picture
such
,president,
SALES
as
under
printer
share
course
&
payment.
as
or
[is
when
is
for
over
G
a
death
is
injury,
in
.or
to
(EFPS).
in
the
a
means
R
tax,
the
to
[tax:
taxes
of
S
.-sales
VAT
ec.
of
any
can
file
(2)
be
an
Philippines
4
under
E
ffecti
-2
007]
(GPA)
merchandise
before
the
vit
of
y
Ja
VAT
distributive
the
of
na,
us
the
9
L
4
GC:
s,
f8
y
for
sd
e

n
For their
.e:
its
Sec.
own
equivalent
[three
taxable
)Duties
208
129)
otherwise
revert
use,
De
grant
person
(proof
addition
SCRA
.or
factors:
cember
competition,
change
us
taxpayer
NOT
period
back
of
of
726]
for
individuals.
under
two
of
tax
29
sale,
AND
.years
in
,lim
d
not
barter,
the
upon
a
ed
the
hire
,by
country):
year

X
registration
same
an
demandable
15,000
amount
corporation
basis
fee.
-the
0
as
(NOTE:
to
its
See
shareholders
the
CTA
case
out
donations
corporations
Power
of
local
juridical
employed,
chief
of
shall
person;
executive
immovable
be
not
exempted
more
properties);
than
from
21
years
The
The
filing
Sale
uniformity
Penalties
of
tax
Real
or
returns
and
property
fines
equity
and
incident
located
clause
payment
to
in
refers
this
Chapter
(40%)
paid
exchange
plain
of
of
Case
shall
file
No.
the
a
6747,
sale
year
prior
to
the
from
deposit
(in
NOT
the
form
%
period
payee
to
(GIRL
is
be
CRM)
counted
taxpayer,
"from
the
person
date
on
of
goods
or
properties
in
instant
case,
[1]
Requisites
Any
b.
iv.
a
The
IV.
deduction
period
a.
Rate:
exempt
services
payme
ii.
TARIFF
person
remedy
Tax
SCRA
equal
i.

Graduated
appointment
of
for
22,
His
who,
in
The
persons,
there
not
other
AND
of
to
the
own
in
distraint
contribution
less
amount
the
the
knowledge
CUSTOMS
a
processing,
than
of
entities
a
prescrib
of
and
local
%
five
P1,000,000
of
or
of
levy
trade
or
agent,
CODE
gift
for
unde
may
an
must
and
shall
OF
incom
of
be
not
th
ar
ifbotanical,
RE
FMV
Every
Although
representing
(Refer
j.
a
(4
GE
IV.
Wh
SIDE
The
e.
a.
NE
(2)
(c
(4
(3
Income
TARIFF
d
o
of
Denial
Iss
RAL
o
sale,
to
a
NT
196
investigation
following
nUNDER
rE
uance
[5
the
i.
S
e
both
of
RU
irrespective
April
family
A
barter
liab
tax
’the
General
sale
ND
certain
of
the
LE
AND
of
are
le
20,
–ZERO
constitute
of
home
contract
pre
3
to
goods
CUSTOMS
oficers
or
taxed
administration
exchange
fle
of
but
ina
d
or
after
price,
similarly,
not
o
and
accumulation
ry
properties
n
place
of
the
compensation,
exceed
goods
and
date
of
automatic
sale
and/or
the
of
or
o
Prescribed
zonal
value
of
real
A
If
the
jeopardy
(4)
amended
Optional
assessment
return
standard
is
is
deduction
substantially
a
tax
assessment
(OSD)
Internatio
Taxable
[As
14.
Person
5%
Every
of
total
corporation
premiums
shall,
collected
within
thirty
OBJECT
End
to
be
achieved,
BASIS
i.e.,
SITUS
the
FOR
payment
of
Recovery
To
the

defrayed
which
purchaser
classifcation
income
December,
of
VAT
domestic
VALUE
capital
damages
by
rendered
is
relatives
of
good
passed
the
pertaining
is
unfit
refund
and
acquired
from
on
for
friends
shall
to
to
sources
use
the
be
and
given
resident
the
refund
within
to
assessment

action
through
current
the
incoming
must
Philippines
month
the
on
amortizations,
courts;
not
and
certain
and
or
have
collection
quarter
outgoing
by
or
all
banks
int.
of
freight
taxes
and
deducted
is
nonnot
inn to
MODE
INCOME
INCOME
PERIOD
BASE
INCOME
INCOME
S
administered
FILING
AND
Par
ti
c
ul
a
rs
Net
A
c
tthe
ua
limposed,
Fo
re
iintent
g
Resident
Citizen
An
alien
Taxable
actually
Within
present
and
in
the

5
X
L
corporati
fro
anoth
domest
Kind
of
Demand
Demand
of
How
to
–
determine
Fair
The
1987
Constitution
provides
Articles
enter
customs


Pension
–[the
lump
sum
payment
or
on
ais,
Philippines
Agricultural
multi-purpose
fraudulent
with
intent
to
evade
TOPIC
UNDER
by
THE
the
SYLLABUS:
TOPIC
THE
SYLLABUS:
the
two
year
per
od
the
basic
minimum
wage
on
a
per
region
discovery
of
fraud
or
required
to
register
while
registration
is
Wage
and
return
as
determined
by
the
Productivity
Board
(RTWPB),
as
defined
by
the
compute
the
reportable
breeding,
zoological
and
national
(25%)
involving
interest
of
capital
the
of
unpaid
national
expenditures
the
taxes,
second
economic
fees
and
option
or
development.
labor.
charges
(awaiting
not
not
be
and
considered
BOC
where
within
principal
the
definition
amount
of
of
there
court
is
civil
consideration.
an
action
...............................
for
collection
of
delinquent
90
tax)
E.
Requirements
for
Importation
proceeds
of
any
subsequent
resale,
T
R
EMED
ES
T
AXPAYER
REMED
ES
T
AXPAYER
R
EMED
ES
be
prorated
among
taxpayer,
the
localities
and
itis
is
where
his
choice
conditions
having
These
legal
interest
are
=
or
his
for
0
the
disturbance,
natural
calamity
or
any
cause
constructed
by
the
LGU
concerned.
Except:
within
ten
(10)
yrs.
from
discovery
of
CONCE
PT
OF
LO
CUS
companies,
within
Appeals
15
days
spare
(CTA),
from
parts
as
and
amended,
and
assessment.
in
excess
of
Payment
the
cost
to
under
the
protest
cy
217)
the
or
municipality
treasurer
provided
within
warning
by
the
5
or
LGC
10
that
years
(*a,
in
b,
as
c,
the
provided
h,
I,
event
j)
in
the
TYPE
OF
)3.Natu
levy
and
)withheld
other
action
al
determined
entered
police
oficers,
in
by
the
using
not
exceed
by
50%
the
maximum
rates
baggage,
cargo
&
mail
1.
The
Imprisonment
Treasurer
or
No
imprisonment
his
duly
venture
or
consortium
taxable
as
a
corp.
Where
Taxation
institutio
can
you
appeal
a
decision
of
a
2.
Injunction
Before
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th
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725
imposed
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PRINCIPLE,
executor
otherwise;
of
y
or
ve
revenue
administrator
or
makes
a– agrees
.received
IM
PO
Exclusion
a
output
)Certificate
SIT
sale
2
ION
2,
exchanged
tax
of
1955]
O
charitable,
F
re
nvest
gat
on
w
th
n
]pt
non-members
for
a
period
of
ten
(10)

Bond=
1
½
xsfed
of
ascertained
in
an
inventory
duties,
of
taxes
the
and
taxpayer,
if
Equipment,
thing
Aircraft
or
right
belongs
to
different
======================
registered
buyer
3/1/1913
(2
b.
iii.
B.
The
Withholding
Understatement
(a
Forms
Initial
The
NOTE:
[g

i.
of
Commissioner
Cash
ts
An
Loss
inure
"CLAIM-OF-RIGHT"
payments:
VAT
Gain
advance
of
of
to
Dividend
Return
useful
or
m
taxable
loss
the
Covers
value
payment
(BIR
shall
on
is
sales
immaterial
–
any
of
valued
capital
or
and
DOCTRINE
an
is
down
receipts
to
not
privat
since
and
y
NOTE:
E
4.
xpor
d.
(2)
(4
Husb
(a
(b
Marcos
Within

Disposition
t
iii.
The
The
payment
Return
an
[3
In
d
person
capital
[
10
Donations
an
G.R
depreciable
the
d
of
.
under
days
capital
No.
of
liable
of
case
funds
1
to
protest
20082,
after
for
(cost
surviving
of
assets
tax
recovered
of
married
is
or
their
sales
necessary
for
required
spouse
NGOs
the
or
approval,
in
to
of
When
.
a
exchange,
fringe
only;
benefit
and
is
given
solely
for
the
e
ct
f
d
ssat
w
th
pub
shed
the
va
profits
ue
for
remittance
Royalties
Government
(no
(similar
suit
or
within
Code
the
to
report
in
HO
no
and
case
Branch
shall
are
on
total
the
interest
disputed
on
assessment
the
unpaid
of
entire
Inc
a
associations
(
2)
VAT-registered
transaction
,
is
Art.
generally
is
a
recognized
person
reduction
issues
of
bot
a
of
th

D
ONOR’
goods,
ii.

dissolved.
business
Retirement
An
S
110,000
properties
estate
style
is
Benefits,
taxable
and
services
Pensions,
as
a
separate
by
a.
Registration
General,
law
fiscal
the
or
duly
existence
revenue
validated
of
Taxable
a
Annual
gain
[
1958]
===========
nonresident
alien,
Parent
Company
may
elect
and
const
tut
ona
ty
or
ega
summon
comprising
the
owners
the
of
the
properties
to
be
Limitations
for
after
service
of
warrant)
by
posting
e
Tax
from
on
proprietary-educational
the
That
judgments,
in
so
doing,
resolutions
he
acted
or
order
in

No.
corporation
11725
refunded
His
retrenchment
(tax)
4,
earnings
Ja
from
nuar
or
law
sociedad
y
(i.e.
cannot
remittable
come
holiday,
anonima
be
amount
under
given

A
special


benefit
to
specific
individual
Received
A.
Income
Taxation
15.
Tax
&
yield
or
any
other
monetary
benefit
Protection
e.
Taxation
of
No
or
Market
Value
or
1.
other
Ordinary/
evidence
Regular
to
show
Duties
that
they
were
Inheritance
Cabarets,
(include
night
Fair
market
or
day
clubs
value
as
of
18%
the
b

Losses

These
Minimum
Timing
Accompanying
cannot
of
should
corporate
Withholding
be
imposed
such
not
persons
be
without
claimed
or
arriving
as
c
2.
IMPACT
Gross
Withholding
financial
income
OF
institutions
(whether
v.
Income
on
net
filed
where
income
with
v.
the
BIR,
the
Employee
by
the

proft
depends
on
cost
of
the
all
criminal,
civil
liability
As
to
discounts
IAET,
from
court
lending
held
asset
that
use
there
is
in
no
th
Tangibl
onl
brother
&
sisters,
Physical
location
although
the
generally,
a
party
Tariff
will
be
and
allowed
to
litigate
only
SPE
CIAL
rests
RU
primarily
LES
ON
INT
ANGIBLE
port
exemption
of
exportation
may
be
to
claimed
the
only
port
by
of


province
may
impose
a
tax
calendar
year,
within
======================
registration.
th
incom
ta
I.
violative
of
the
fundamental
principles
of
CITIZEN’S
a
adverse
SUIT
effect
on
the
individual
II.
I.
NATIONAL
GENERAL
PRINCIPLES
INTERNAL
OF
12.
Exclude
Non-resident
Aliens
Not
b.
Sus
pens
n
of
r
un
ni
ng
of
s
ta
tute
(for
further
af
te
r
the
60-day
period
withholdi
and
22.
WITHHOLDING
OF
VAT
2531)
4.
Purchase
of
property
by
local
TOPIC
UNDER
THE
SYLLABUS:
by
a
resident
citizen
or
3.
Tax
Lien
(Sec.
219)
Where
property,
other
than
a
real
property
fee
transshipment
or
charge,
including
of
passenger
the
related
takes
place
surcharge
at
any
port
capital
outside
the
paraphernalia/devices
Philippines
on
another
airline,
2.
physically-handicapped,
In
case
the
articles
are
and
free
disabled
of
duties,
other
agencies
charges
of
when
deficiency,
thereon
authorized
surcharges,
by
the
Comm.
interests
Of
Difficult
se
to
establish
gift
situations
if

I.
GENERAL
PRINCIPLES
since
it
is
not
attributable
to
income
“an
act
of
before
or
exceed
3
months.
cannot
years
impose
of
the
age,
same
or
even
become
on
banks
gainfully
d.
to
another
If
the
is
required
owner
is
when
financially
one
or
not
both
in
of
the
such
The
historical
cost
or
adjusted
.amount
discharged
purposes
of
only
this
by
Act
payment
if
they
fall
c)
in
full
within
no
of
tax
all
any
duties
refund
of
the
goods
(either
that
in
his
the
clear
gross
weight,
and
legal
unequivocal
weight
principles
which
tax
engage
ial
Taxes
assessed
Timberland
against
local
The
object
and
by
of
the
necessary,
exemption
participation
importer
incurred
from
in
the
abatement
in
or
VAT
paid
may
for
including
exercise
of
profession
but
on
the
place
x
in
which
the
act
is
the
rates
prescribed
in
the
LGC.
and
not
yet
to
the
CTA.
the
same
period.
calendar
year.
is
adverse
to
the
Administrati
Criminal
Offences
consecutive
years
beginning
with
sales
agreed
Amount
to
upon
diplomatic
in
writing
of
credit
before
missions
and
tax
A
VAT-registered
the
Revenue
person
District
whose
Ofice
where
gross
inLocal
the
concerned
iv.
stock
There
exchange
are
that
reasonable
the
grounds
registration
to
gains
during
the
during
the
Philippines
during
the
C.
Characteristic
Unpaid
who
shall
realty
intention
Expenses
become
of
Real
taxes
of
the
of
sale
Property
the
absolute
attach
taxpayer
date
owner
of
to
and
thereof.
account,
4.
1.
2.
Steps
Republic
With
taxpayer
within
iPhilippine
n
the
or
the
Act
a
amendment
Ass
twenty
joint
is
No.
ess
to
9295,
appeal
ment
venture
five
brought
(25)
otherwise
and
the
or
days
inaction
by
consortium
known
from
R.A.
of
No.
the
as
using
the
Consumer
Price
Index,
their
person/his
affiliates,
employees
3
subsidiaries
n
unct
on
in
connection
–the
or
fis
branches
rreparab
e
in
damage
–
assessed
The
in
customs
accordance
protest
is
with
required
some
to
executor
-of
or
administrator
of
the
estate
Government’s
Lien
–transfer
Local
taxes,
fees,
charges
estate.
passengers
for
hire,
and
other
domestic
other
shall
charges
be
treated
until
as
they
derived
have
lef
th
or
Gross
Value
Money
shall
be
paid
dividends
part
of
of
which
of
the
are
time
VAT
(i.e.
zero-rated
not
less
than
or
VAT183
Marginal
Income
Earners;

POWER
(in
from
without
Phil
for
assessment)
repair
and
subsequently
as
a
deficiency
collected
property
adm
n
strat
ve
or
ud
c
a act
on
taxable
year
shall
file
an
income
payments
horticultural
actually
organizations
or
constructively
received
caused
of
taxable
the
by
CTA,
the
sales,
taxpayer’s
zero-rated
failure
to
and
1)
exempt
comply
7]
TA
to
the
beneficiaries
the
term
of
the
lease
DOMAI
and
is
Headquarters
revocable
their
family
know
transfers
reside
deposits,
be
and
claimed
which
as
transfers
certified
sell
by
income
for
by
any
corporation
insuficient
Barangay
bond,
are
h.
Registration
Requirements
(see
of
import
to
the
Corporate
duty
total
(including
amount
fnance
any
advisory
of
necessary
the
tax
not
[like
A
taxpayer
the
former
who
elected
Phil-Am
to
Military
avail
of
Bases
the
Dividends
intentions
other
with
than
regard
those
to
derived
the
length
from
whether
liaison
ofices,
agencies
or
where
he
is
intending
Ishall
n
to
cin
o
me
transfer.
w
iforms
tof
hou
t,
if
less
Sheet
vivos
such
expenses
capital
function.
date,
or
mortis
inclusive
of
are
Compensation
corp.
allowed
causa,
is
of
held
accumulations
as
by
legacy
deductions
same
or

Bth
repair
made
on
article
shall
pay
30%
ad
1.
TARIFF:
Custom
duties,
month
toll
in
or
tribute
which
Contractor
&
retirement
pay;
given
guidelines
is
used
and
for
administrative
limitations
as
purposes
Congress
any
part
of
its
capital
stock,
including
a
30
days
from
rece
of
installment
Accompanying
state
of
mind
which
is
business
accounting
shall
important
be
who
6
is
%
Registration
and
written
Others
application
to
Commissioner
Citizenship
due
on
such
principle
importation
–paymen
a
citizen
shall
constitute
taxpayer
of
(g
paid
Exempt
v.
possession
anything
less
January
than
1,
what
2006
)a
COLLECTIO
protest
provides
Form
by
)Inventory-taking,
30%
payment
Accredit
]there
1600)
or
from
taxable
deductible
assets
benefit
that
is
made
a
sale
if
due
a
to
of
the
to
extent
of
Register,
y
amount
e
of
wof
the
of
Sales
npecuniary
legal
services)
Wife
)Any
Sept
publication
15
decedent
days
file
Fair
ember
proceedings
]sale
corporation
a
individuals,
from
market
return
expansion
in
11,
date
full
19
value
is
of
not
case
96]
the
of
engaged
as
of:
shown
in
in
trade
the
or
disposed
(service
quarter
and
provider)
merely
the
aircraft
not
available
locally
ord
nance
w
th
n
30
days
from

================
Tax
reduced
by
the
Philippines
should
be
considered
as
one
can
take
place
when
VATexceeds
b
individual
and/or
the
scientific,
input
who
indorsed
tax,
educational,
makes
the
excess
any
to
transfer
artistic,
shall
another
be
by
convenience
o
VAT
V
I]
invoice
when
of
the
because
employer,
of
the
h
CIR’s
e
T
A
VAT-registered
X
Gratuities
entity
when
it
purchase
persons.
price
of
For
property
acquired
shall
then
be
subject
to
15%
BPRT.
g
f.
NOTE:
3)
1.
b.
(2
Medical
local
affected
Period
constitute
iv.
Redemption
Shall
an
individuals
a.
To
water
shal
request
be
incurred
includ
for
be
and
districts,
valid
exempt
be
taxed
payment
of
for
and
Surveillance,
proof
publish
may
all
in
reinvestigation
from
on
trade
general
of
income
take
substantiation
of
donor’s
or
throug
Presumptive
business,
professional
depositions
earned
da
–two
tax
revenu
a
of
and
th
of
or
NOTE:
d
a.
k.
v.
b.
EX
4.
3.
Statutory
Instances
(a)
CE
institutions
(3
Withholding
The
sale
Withholding
(7
not
(g)
PTIO
NOTE:
Income
subject
absolute
Filing
or
v.
Depletion
where
(b
importation
basis
and
10
of
to
received
VAT
The
subject
and
-be
criminal
value-added
12%
income
a
actual
for
Return
of
pre-assessment
insured
oil
tax
to
by
taxation
and
of
action
shipment
limitations
(BIR
estates
refund
gas
agricultural
tax
Form
must
wells
of
a
1600)
notice
of
provided
and
die
goods
and
to
21,
retroactive
imposed
organized
1
999]

SMW,
exemption
for
or
effect.
the
(no
general
It
overtime,
purpose
of
does
Taxpayer
not
Identification
Number
(TIN)
•shall
Registration
o
and
Fee
publication
Return
Subsidiary
rsales
e
rpt
e
qu
are
iactuall
rcapital
e
d
tfringe
o
bas
e Cost
Philippines)
standard
deduction
of
40%
of
his
gross
Net
2.
gi
fts,
for
eign
coun
tr
y
X
Phil.
based
on
established
criteria
and
shall
Basis
Other
proceeding
special
laws
begun
such
after
the
as
Married
Gains
the
good
sales,
RTC
Organized
individuals
faith
in
receipts
their
&
operated
original
shall
or
income
file
exclusively
a
in
return
an
.regions
deduction
income
oficial
person
within
NOTE:
of
tax
taxes
receipt
90
in
withdraws
Commencement
the
withheld
for
from
fro
a
hi
compensation
of
VAT-exempt
busine
Business
for
.Capital
The
TAX
(5
ii.
(1)
taxable
iii
wages

Fiduciary
donor’s
General
Any
Retirement
income
tax
income
applies
benefits
payment
to
a
receive
completed
which
under
is
gift.

-or
those
which
are
imposed
ordinarily
as
aentirely
and
general
immediate
of
the
actually
from
deposit
incurred
substitutes
&
from
trust
Services
need
estimated
of
Place
useful
of
performance
life
property
of
the
or
of
assessment
shall
date
suspended
of
acquisition
for
(at
period
the
Premiums
The
night
GPA
is
shift
not
import
included
differential
and
in
export
the
and
taxable
hazard
quotas,
time
Department
part
limit
of
on
However,
business
of
Finance,
the
practice
sof
total
the
d
or
amount
policy
Board
of
e
of

Includes
Employer,


whether
y
an
s
individual
spouse,
e
immuni
civil
and
on
enjoying
a
its
territorial
activities
and
fnancial
leasing
(3)
Withholding
Religious
freedom
tax
shall
[the
Sec.
be
deducted
when
he
Prohibition
can
2.
demonstrate
on
use
that:
tax
levied
for
P
ROPE
RT
IE
S
TAX
TAX
RATE
If
entry
the
tax
in
is
From
date
of
There
is
no
Lessor
of
Vessels
6
Kinds
Originally,
Boxing
of
the
exhibitions
ancestors,
tax
is
imposed
lineal
against
descendants)
10%
the
Thereafter,
eonly
e
x
Administrative/Extraj
taxation
(*e,
owner
f,
g,
k,
resides
m,
n,
s)
in
another
th
e
h
ead
o
fice,
br
an
ch
o
fice,
stor
age
p
lace
TOPICS
TAXATION.........................5
UNDER
THE
SYLLABUS:
Engaged
in
of
B.
lbusinesses
Estate
imi
tat
io
ns
Tax
charges
================
Customs
Duties
Intangible
challenging
[3]
personal
it.
Sum
of
properties
years
digits
with
situs
in
the
government
units
for
want
of
ng
tax
Nonresident
Alien
exemption
shall
be
to
3.
Reduction
(a
of
customs
Sale
of
there
inventory
is
no
decision
of
goods
yet.
The
by
4.
Interest
Civil
on
Action
income
the
................................
payor
(Sec.
from
220,
as
a
205-B)
a
depositary
withholding
91
bank
agent.
under
the
7.5%
F
i
n
al
T
ax
7.5%
Exempt
F
ijurisdiction
n
al
T
from
ax
tax

resident
alien
from
FCD
that
has
been
Depreciable
discussion,
please
see
Exclusions
investment.
Taxpayers
16,
are
allowed
to
sue,
for
example,
Those
prohibited
under
Special
Laws
REVENUE
only
the
aliquot
CODE
portion
D.
Valueof
the
cost
of
the
ticket
corresponding
to
the
leg
flown
from
Hold
possession
of
all
imported
articles
until
and
penalties.
Customs;
within.
there
is
Rather,
an
it
is
specifically
employed
during
the
taxable
year,
citizens
who
other
fnancial
institutions.
The
exception
is
e.
places
is
a
port
of
entry.
[
S
ec.
906,
TC
C
]
Employerrelationsh
(A
benefits
of
a
kind
tending
to
liberality
expiration
whereby
a
of
person
the
5
yr.
disposes
Period
the
practice
of
profession,
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qualifes
under
LOI
105,
163,
210
basis
of
his
cases
on
missing
will
packages,
be
The
tax
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payable
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corporation
protestant,
of
which
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as
may
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result
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2
the
net
language
what
paid/incurred
Unallocated
to
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country
and
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revenues,
constitute
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lien,
superior
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MU
Tax
property
NICIPALITI
[LIPAD]
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ollec
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ti
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of
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7.
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and
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to
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Revenue
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d
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Asia
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and
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30
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e
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on
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implements
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which
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On
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4)
TC
Place
and
time
(Sec
of
194)
reimported
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cancellation
Payment
in
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tax
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the
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4
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%
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th
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Association
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Philippines
note
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Agreements
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Collector
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Court
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corporation
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ty
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th
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goods,
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schedule
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of
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the
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money
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stockholder.
determination
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adjudicated
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gross
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but
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branch
assumes
personality
Corporations.
donor’s
business
such
tax
credits
address
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agent.
person
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entity
tax
credit
only
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it
shows
information

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rates
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of
shall
basis
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pay
law
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P500
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sales
Operation:
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following
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gross
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Investment
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m
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RA
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7641
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income
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Example:
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153205,
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twenty
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established
Commissioner
choice/option;
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Ja
Year
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in
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2012
the
received
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y
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22,
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2007
issued
old
during
if
tax
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re
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laws
Employee
q
not
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Summary
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NOTE:
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actual
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benefits
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benefit
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property
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service
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Person
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of
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properties
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NOTE:
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ty
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Even
repair
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made
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said
in
foreign
events
country
have
already
of

bases
on
remaining
maturities
withheld
The
Thus,
Commissioner
The
by
earning
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withholding
is
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complete
Internal
agent
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o
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Commissioner
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Revenue
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P29,000
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Philippin
Price
Fringe
ii.
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Jud
Benefit
Imp
icial
lied
Tax
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omission)
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when
a
tax
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Taxes,
fees
Depends
and
the
charges
bidder
last
upon
or
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imposed
payment
181)
the
under
until
Philippines
method:
On
or
before
the
10
Assessor
a
schedule
for
TOPIC
paid
UNDER
THE
5.
Criminal
(Sec.
220,
221,
205Taxable
...................................................139
The
constitutional
guaranty
business
of
the
Gift
The
Commissioner
)Payment
GROSS
manufacturers
jurisdiction
INCOME
the
may
cost
and
require
to
is
the
described
a
donor
bond
or
not
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as
Forgiveness

of
indebtedness
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agiven
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Gross
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pro
du
A.
ction
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and
No.
Percentage
concept
39-95
da
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ted
Taxation
Trade
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Business
2303,
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Capital
TAX
Gains
RATE
Between
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ano
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personally
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property
Taxable
basketball
sufered
used
some
in
actual
15%
or
i.
TAX
TAXABLE
ON
Retirement
benefits
received
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or
executor
of
the
estate
reflecting
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a.
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Valorem
-(FBT)
is
a
duty
based
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the
1
Tax
Lien
(Sec.
where
2009]
there
is
a
1.
when
CIR
is
prohibited
from
subjected
to
the
final
capital
gains
tax,
is
C.
the
Donor’s
Philippines
Tax
to
the
point
transshipment
shall
form
part
the
GPB
Within
60
days
from
the
receipt
of
the
TOPIC
UNDER
THE
SYLLABUS:
Oficials
of
the
BIR
on
all
cases
falling
within
I.
PRINCIPLES
1.
Fundamental
Principles
COM
PUT
AT
ION
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T
AX
A
ND
(Sec.
222)
Employee
ip
Local
treasurer
shall
prepare
athe
duly
authenticated
E.
referring
to
the
percentage
(Inter
tax
on
banks’
increase
the
value
of
the
property
liens,
charges
or
as
encumbrances
deductions.
in
favor
of
any
2.
IfTAXPAYER
deposited
by
an
OCW
or
Exempt
Added
Tax
servic
bonus/assistance
appeal
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to
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CTA
and
deficiencies
of
such
in
exchange
the
contents
such
of
person,
.Court
Quarry
Resources.
The
me
produce
reinvestigation
ral
manufacture
and
caused
writes
some
to
aand
of
the
waiver
their
taxpayer
products,
before
and
Interest
of
not
more
than
2%
per
or
distinct
resources
transport
has
jurisdiction
of
passengers,
over
the
and
location
keepers
of
of
the
old
principal
residence
shall
during
be
thethe
appeal
interplay
may
be
made
of
to
these,
the
CTA
among
resulting
other
2004';
filed
constitutes
with
an
CTA
individual,
before
final
action
rule
120-day
on
a
disputed
holding
period
the
date
fixed
for
its
payment,
the
whole
derive
income
only
installation
in
from
case
the
or
the
Philippines
operation
liability
of
of
any
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E
the
)F.
other
chargeable
enforced
ST
used
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transaction.
source
E
Tlimited
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while
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against
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of
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person
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]lor
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Tax
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Appeals
sovereign
now
state
has
appellate
upon
Trailer
Transfer
chassis
of
imported
head
by
ofice
shipping
of
taxpayers
where
he
is
registered
BUT
if
a
apprehension
is
which
personal
property
is
sold.
occupation
For
the
is
frst
engaged
not
upon

Bond
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x)
to
cover
1
year
1005,
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TCC
jurisdiction
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Was
previously
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S
considered
ec.
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.3.
st
clearly
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break-down
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4.
Purpose
and/or
gross
or
sales
or
receipts
for
granted
the
next
tax
receipts
for
three
consecutive
years
did
The
SCOPE:
1.
they
abated,
E
Direct
COMMU
estate
state
are
–
Municipalities
tax
in
tax
NITY
refunded
on
custody
inheritanc
accrues
the
ownership
may
or
as
gifts,
levy
otherwise
of
to
the
th
of
taxes,
real
death
contr
property
fees
repaid
and
of
and
the
th
in
Territorial
2.date
4.
Special
the
Jurisdiction
like
whose
primary
of
function
is
to
governmental
Within
15
days
from
receipt
of
assessment
A
corporation
paying
the
tax
(3)
Application
228
collected
of
by
the
a
Principle
guardian
of
of
an
of
Taxation
Compensation
received
is
for
due
services
to
receive
performed
a
Identical
Pursuit
An
Goods.
individual
year
–of
whose
of
sole
income
lease,
has
an
1.
Unlawful
other
evidence
of
indebtedness
ust
ce
(Sec
187)
to
conceal
If
the
intention,
resident
withholding
otherwise
he/it
agent
is
shall
a
nonbe
Operating
Within
the
be
considered
as
resident
foreign
source
Earnings
It
Commissioner
is
the
reserved
right
to
for
that
receive
definite
the
tax
and
corporate
fixed
not
the
in
50%
of
the
gross
income
the
mporter
s
ent
tthan
ed
to
policy
A
of
mere
local
floating
autonomy.
intention
Such
indefinite
taxes,
fees,
as
merchandise
individuals
possible
earning
involuntary
to
government.
purely
dissolution
compensation
by
STEP
beneficiary
1
DECLARATION
is
other
OF
estate,
REAL
PROPERTY
executor
or

income
charges/liens,
if
he
resides
irrespective
in
the
Philippines;
of
the
possessor
or
(b)
"willful,"
or
"deliberate
and
not
Stock
Dividend
–
generally,
pure
Marketing
control
sales
tax
and
discharge
from
personal
liability,
c)
vii.
government
by
virtue
of
such
same
corporate
entity
On
any
amount
taxes
with
You
in
or
R&D
excess
can’t
deficiency
of
have
of
a
P100,000
character
assessment
your
cake
subject
and
has
10%
eat
to
to
10%
10%
10%
2.
What
CUSTOMS
is
the
said
composition
DUTIES:
sale
to
CGT
Tax
of
of
the
6%
upon
CTA
based
and
on
Conce
dividend
decreased
income
received
by
the
nonand
shall
not
be
subject
to
for
the
GPB
the
purpose
only
warrant
if
if:
the
of
passenger
shall
the
be
said
suficient
boards
tax,
make
a
plane
a
employee
does
not
recognize
income
from
the
VAT-registered
person.
this
purpose.
of
payment:
receipt
right
Ex.
Income
regardless
for
and
period
deductible
10th
the
tax,
is
of
percentage
any
supervening
cause
of
general
only
by
required
Treasury
under
and
Sec.
shall
113
and
be
available
for
export
sale
or
a
foreign
currency
The
applicable
laws
and
principles
deduction
REQUISITE
The
legacy
Philippines,
of
perf
during
and
dividends
sale.
by
became
than
evaluation
of
orma
their
professi
the
the
It
March
nce
must
representatives
donation
in
of
the
be
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manner
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and
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prepare
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ly
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house
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starting
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ation
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owners
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non-stock
the
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non-profit
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hospitals
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taxable
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it
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income
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only
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as
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on
books
&
other
for
end
of
transpired
but
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are
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favored
and
are
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iv.
Phil
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taxable
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s
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ify
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shall
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legal
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entertainment;
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payment
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this
type
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ec.
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R
C
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c
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the
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If
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he
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xpen
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ses
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ec.
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29
(
3
)
the
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t
.
V
I]
case
of
his
failure
to
withhold
the
tax
P60,000
Tax
B)
of
and
FMV
other
liability
Tax
and
other
different
liability
Philippine
Nationals
es;
provisions
of
Cod
an
othe
laws
properties

A
trust
No
protest
or
services.
is
considered
fnal
taxable
unless
amount
as
due
is
a
paid
separate
the
entity

free
exercise
exceeding
income
from
subject
to
approval
H.
Classification
Sec.
of
Finance
of
Duties
B.
D
TAX
ecember
ON
FRANCHISES
1
,
1995
]

Exported
within
6
months
(Section
104)
NUMBER
OF
SHARES
RATES
the
previous
owner
who
did
c
Tax

on
certain
in

day
of
the
month

Vessel
threatened
was
compelled
by
weather
or
casualty
to
go
to
...................5
...............................................54
Shares
of
the
time
he
submitted
the
trade
or
games
(in
corp.
lieu
derived
more
of
all
other
than
for
aexempt
50%
special
in
value
stockholder
transactions
RA
is
equivalent
7641
with
to
members
disposition
Revenues
dealers
of
of
Income
properties
–“CORPORATION”
the
portion
of
D
efin
ition
o
fLiability
“in
th
e
co
umarket
rto
se
o
fsame
tr
ad
e
value
of
Tax..................................................95
the
.Duties
1508,
Stock
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Traded
in
the
Stock
S
making
the

If
the
depreciable
capital
good
is
Intangib
The
law
on
prescription
being
a
5%
Domicile
of
the
owner
BASE
INCOME
n
th
Resident
Taxable
Within
and
without
Criminal
certifcate

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showing
On
name
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of
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Attaches
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regardless
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iTCC)
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5%
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ito
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ito
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ax
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the
The
measur
fundamental
e
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principles
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un
con
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(Applicable
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only
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on
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made
a
person
3.
recognition
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seaman
or
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SC
under
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ava
ab
e to
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and
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shortages
before
value
arrival
in
the
shall
be
issued
exclusively
alone/together
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others,
not
e Must
3
Without
A.
Definition
and
concept
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garages
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nal
ue
these
expiration
rules
Residenti
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of
period
apply
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to
collect
that
the
factory
or
principal
ofice
of
the
Transactions
Importation
jurisdiction
over
of
which
local
fuel,
taxation
are
goods
cases
and
supplies
decided
under
I.
GENERAL
PRINCIPLES
from
availment
period
and
capital
loss
carry-over
factors
and
properly
weighed,
that
brand,
expires,
assessment.
machinery
CTA
will
The
dismiss
or
object
other
for
prematurity.
is
apparatus
avoid
or
beneficial
month
use
and
on
possession
of
it
regardless
engaged
in
business
during
the
interim
persons
executor
or
or
property
administrator
within
is
its
not
jurisdiction,
registered,
to
location
=
the
ofice,
the
place
x
where
the
establishment
or
where
business
is
In
which
Except:
case,
the
the
appeal
gain
shall
be
by
petition
sale
object
(c
revenue,
LGUs
taxpayer
are
authorized
in
impose
or
an
taxpayer
for
decedent
charges
TAX
subject
companies
Tax,
not
and
for
handling
e,
containerized
legacies
e
other
e
the
following
BOC
market
instances:
the
Pay
Pay
product
the
the
tax
tax
of
under
under
their
protest
protest
members
sale
price
between
its
taxable,
exempt
immunities,
of
locally
manufactured,
not
not
a
valid
defense
P1,500,000.00.
Rod
rre
imay
gu
ez
Upon
v.
twelve
)taxpayer,
(12)
months,
other
than
respect
nonresident
of
such
tax;
or
gross
annual
b
taxable
Dec
aratory
compensation
ef
whenever
of
importation;
RE
QUIRE
NT
TO
KEE
P

be
properly
without
the
and
registered
with
the
2.
1
.3.
NATURE
Reciprocity
Ad
Valorem
infant
AND
mortis
tax.
which
The
causa,
value
is
is
to
based
be
on
the
2.
5.ERSON
Qualifedly
issued
by
any
corporation,
with
been
subjected
to
final
withholding
tax
refund
f5%
payment
sthose
rendered
functions;
SCRA
VAT
considered
said
as
having
of
passed-on
such
availed
foreign
VAT
himself
corp.
by
for
the
2.
Philippines
Query:
Is
corporation
Required
engaged
Only
in
for
trade
Place
The
this
actual
Title
Payment
and
receipt
of
-place
actually
place
5%
that
of
tax
due
residence
determines
on
thereon
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of
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had
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Novem
Where
ber
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21,
value
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be
determined
income

partial
e
xpansion
to
exemption
time,
to
projects
return
goods,
to
to
the
another
extent
or
programs
that
country
administrator
AND
the
designation
is
only
on
his
income
from
sources
within
the
TOPIC
Securities
UNDER
and
THE
Exchange
SYLLABUS:
Commission,
or
income
due
to
change
of
employer,
it
shall
Headquarters
of
promotion;
Training
and
accidental";
and
stock
dividends
are
tax-exempt
depreciation
and
depletion
Requisit
how
Commissioner
assessed
may
be
the
paid.
CTA
as
soon
as
possible,
merchandise
and
in
x
cost
-but
=
viii
final
judgment;
the
government
it
too.
Remember
that
when
a
resident
foreign
corporation
imposed
by
limitation
on
deduction
42%/33%
return
under
oath
in
duplicate.
The
return
benefit.
Appeal
by
certiorari
that
may
to
arise
after
the
payment)
denominated
in
port
sale
or
under
point
in
Section
the
Philippines
and
file
tax
returns
Sal
and
other
countr
papers
Garcia
natural
resources
such
as
oil
&
gas
pt
Fee
(R
F)
recipient
was
selected
without
Power
general
to
expressly
purposes
retirement
Power
provided
of
to
plan,
the
apply
Government,
he
Power
cannot
retroactively.
to
reason
with
If
the
governing
to
input
any
authority
level
tax
each
exceeds
on
to
one
are
the
peculiar,
or
the
several
output
not
stages
tax,
the
but
donee
issued
institutions
individual
not
basis
on
later
of
citizen
n
than
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ew
ly
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d
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ov
year
e
rtrade
e
d
following
o
alien.
rissued
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while
Partnerships
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poultry
more
settlement
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power
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allowance
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taxation
for
kind
the
corporation.
generally
estate
for
is
depreciation
inherent
used
in
as,
or
educational
(b)
In
the
institutions.
case
of
a
corporation,
it
Gross
Income
=
Salaries,
Wages,
Annuities,
15%
of
gross
income
administered
&
youth
by
15%
BIR
&
of
sports
and
15%
gross
BOC
development,
of
income
gross
where
income
their
succeeding
respective
months
shares
thereafter
and
the
cooverstatement
of
deductions
–gross
without
taxable
quarter
restriction
used,
although
as
the
its
lessor
disposition,
may
be
he
circulation.
of
both
spouses,
In
absence
computing
of
such
newspaper
separately
the
excludes
taxable
fduciary
employed
31
year
of
heir
amount
each
or
at
legatee
the
of
mortgage
close
to
of
the
on
the
real
lot
from
year
(c
acquisition
discovery
when
2009.
the
Plan/Pension
time
the
of
finding
of
it
the
is
the
actually
for
controlling
omission
deficiency
occupied
to
interest
tax
file
as
is
of
a
a
DEDUCTIBILITY
property
ydelinquent
as
][2]
to
Philippine
zero
except
may
treat
ed
-rate
those
d.]
rwhich
portion
are
nt
of
subject
to
government
comprised
payment
pendency
authorized
)(f)
Interest
for
5,
1995]
nes
expenses
refund
to
only
arrangement
of
of
an
may
arise
literary
labor/personal
receipt
Interest
works
the
income
subject
to
fnal
tax
knows
–
of
and
the
involved
will
not
in
when:
(1)
in
case
Shares,
obligations
or
bonds
by
same,

share
to
all
constructively
construed
employed
strictissimi
individuals
received
juris
whether
in
[by
the
the
net
citizens
most
tariff
rates
Republic
held
for
payor
lease
of
from
the
is
in
a
Philippines
the
branch
required
ordinary
to
to
or
course
any
file
foreign
political
with
of
parent
ns:
.
W
he
corporation.
returns
month
n
I(more
n
sa
ta
la
lm
e
n
tof
M
e
tTrust:
h
o
d
In
co
me
nonpayment
Fee
of
(P500.00)
Property
distrained
for
every
not
disposed
separate
within
accrued
The
or
the
amount
income
of
any
payment
charitable
is
accrued
ii.
Notwithstanding
or
A
allowances,
general
co-partnership
input
R.A.
1405
tax
is
attributable
(Bank
a
Secrecy
to
11.
the
c.
2.
7.
different
PRESCRIPTIVE
TAX
The
ii.
Quarterly
required
VAT
iii
b.
The
Upon
v.
tax
from
or
losses
ON
Long
computing
Deed
Order
taxpay
payment
consideration
in
improvement,
documents
VAT
VA
the
SALE
the
case
T
executed
term
the
Return
a
NIRC,
should
dd
intends
on
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inv
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ed
capital
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then
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en
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this
to
of
SERVICES
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tor
occur
rwhich
depreciation,
not
Form
taxable
the
contemplation
y
tal/p
withholding,
gain
of
takin
present
on
regulation
is
of
rejection
No.
aid
during
paid
hand,
g
v.
AND
Income
2550Q)
b
evidence
of
y
Short
for
the
and
of
in
is
the
th
is
e.

Concess
Transitional
(8
iv.
informati
1.
exceed
As
The
io
a
naires
input
4.
rule,
books
previous
the
u
nder
husband
of
tthe
he
supplied,
claims
the
of
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Branch
–
this
and
in
the
reason
e
deny
d
any
rprofession
,until
Fringe

benefit
if
trust
is
an
income
of
the
employee
display
6.
in
public
of
expos;
Property
exhibition
(Sec.
224-225)
or
(Sec.
Loading,


unloading
and
handling
charges
of
the
Subsidiary
(d
Bank
accounts
certain
classes
of
person,
circumstances
the
Medical
cost
incurred
within
the
one
year
Shall
Payments
Taxes
EXEMPT
be
erroneously
installment
used
to
FROM
exclusively
non-residents,
or
INCOME
illegally
whole/entire
or
TAX
shall
with
– gains
.distribution)
b.
b.
income
Distribution
Special
TI
or
from
or
regulatory
all
-of
imposed

i.
e)



Each
Maturity
gift
period
made
is
during
5
years
the
or
classes
of
properties
installment
The
grant
whatever
of
taxing
power
source,
to
local
government
including
19.
CLAIMS
FOR
REFUND/TAX
CREDIT
not
acquire
it
by
gift;
BUT,
if
No.
2.
15999
will
1,
a
N
ovem
corporation
ber
be
liable
b
Inherently
shall
be
Legislative
o
rimported
biod
uForfeiture
and
When
sin
ess”
enjoyment
(Ru
le
of
o
fto
religious
double
the
...................................143
amount
of
the
tax
and
with
such
1.
B.
Franchises
Nature
and
on
Characteristics
radio
and
broadcasting
of
Taxation
13.
Individual
outstanding
Taxpayers
first
documents,
stock
Exempt
is
from
since
owned
it
by
is

Not
exhibited
Exchange
business
for
percentage
the
profit
receipt
taxes)
courts
representing
from
adverse
the
cost
dec
sthe
of
on
of 120

Judicial
Expenses
following
are
expenses
the
March
26
,
sold/transferred
within
the
le
injury
remedial
because
measure
of
the
allegedly
illegal
3.
amount
of
tax,
fee
and
penalty
due
him.
1%
article
Regu

Worl
lar
Up
it
to
(Labor
25%
TAX
Code
of
all
shares
of
the
Philippines)
TAX
4%
RATE
A.
3.
PER
INCIDENCE
the
COUNTRY
proceeds

of
the
loan
if
said
loan
was
administrative
p
er
or
judicial
action.

Forgiveness
f.
Continuation
a.
5
yrs
of
F.
indebtedness
–
Compliance
from
of
commission
business
Requirements
in
or
of
Taxable
a
foreign
Final
tax
def
icienc
assessment
y
or
beginning
the
distraint
or
Citizen
17
Improperly
Accumulated
Earnings
Tax
3.
The
ii.
Capital
Commissioner
Income
Assets
may,
–
properties
even
without
of
a
ownership,
%
(mobilia
business
sequntur
or
activity;
(b
Franchise,
ii.
R.A.
Retirement
7279
which
benefits
Urban
must
be
Development
on
unde
in
th
a
Jai-alai
and
racetracks
30%
International

capital
gains
capital
cap.l
gains
To
General
pardon
A
freedom
from
are
allowed
R
EAL
P
ROPERTY
T
AX
shares
of
stock
than
who
is
an
no
t
adequate
and
full
consideration
in
collect
taxes
on
ordinary
by
the
provincial
governor,
assessment,
proceeds
constitute
the
taxpayer
return
MAY
of
file
capital
a
License
Fee
locality
performances
their
duties,
when
the
sum
Delinquency
of
hands
of
the
exercise
of
to
question
the
validity
of
election
laws
N
rendered
is
not
exempt)
of
the
goods
in
the
Philippines,
.
plant
by
and
the
al
RTC
warehouse
in
the
exercise
of
the
contractor
of
its
appellate
utilized
or
will
yield
a
proper
evaluation.
of
incentives
We
find
If
filed
repeated
with
will
not
CTA
apply.
after
requests
the
150-day
(120
for
+
TA
LICENSE
FEE
purchased
from
such
nonresident
of
whether
or
not
he
is
the
owner.
To
impose
the
3.
If
provide
in
a
bank
public
account
revenue
in
the
for
the
support
50%
of
the
period
shall
only
be
oficially
efected
in
registration
shall
be
made
with
the
RDO
for
review
shares
to
the
of
CTA
stock
En
Banc
in
a
domestic
a)
Closure/Cessation
of
business
operation;
of
Organizations
app
with
cab
e
a
purely
local

the
purchase
price
from
date
of
sale
b
and
Enter
zerong
nto
rated
a
comprom
components,
se
(Sec
and
interest
employment;
of
a
at
least
P975,000.
Exclusivity
Test
–shall
An
RE
cargo
CORDS
exempt
transaction,
on
the
one
hand,
duties,
taxes,
fees
and
other
charges
the
otherwise
government
acquisitio
accrual
levied
[municipalities
S
of
e
except
c.
by
the
1204]
provinces.
tax
is
distinct
[paid/incurred
S
ec.
142]
from
otherwis
erroneous
- Athose
prohibited
or
which
ega
by
are
events
imposed
and
collected
in
tax
base
Proportion
-as
the
tax
is
calculated
288
]thereof,
If
no
amount
is
shown
as
the
tax
by
GENERAL
PRINCIPLES
Taxes)
Philippin
Entry
of
imported
or
exported
article
by
CHARACTERISTIC
3.
F.
(Sec.
Theory
3514
pursuant
TCC,
and
to
as
Basis
Section
amended
the
of
57(A)
3-yr.
of
this
ending
Code;
Tax
exempt
interest
persons
such
as
those
or
Imported
Taxation
Goods?
citizen
arrives
in
Philippines
at
individual,
receipts
on
1984
]OR
is
not
suficient
to
constitute
him
a
non-resident
the
itemized
recipient
deductions.
of
the
income,
irrevocable
Philippines,
business
if
he
in
qualifes
that
country
as
non-resident
for
such
under
method
one,
the
dutiable
value
shall
requiring
been
paid
is
considerable
shown,
and
they
capital
Remed
1.
–NI
All
ies
the
of
seas
LGU
within
s
for
the
the
jurisdiction
Co
lle
cti
on
of
of
the
personnel
management;
VAT
be
for
the
is
a
its
tax
responsibility
reorganization,
on
consumption
the
render
levied
RDO
on
a
correct
having
the
holder
its
bonds
or
other
LTO

Cities
or
may
levy
a
es:
Tot
–in
except
sv*
if
a
corporation
cancels
or
Any
expenditure
for
any
within
one
(1)
year
after
the
has
already
acquired
a
vested
from
taxpayer
exported
protests
to
e
an
a
assessment,
he
is
a)
a
return
filed
yperiod
showing
v.
an
A
tax
the
that
country
bears
of
its
a
domicile.
direct
relation
This
serves
to
as
rule?
Ofshore
who
Banking
appear
before
the
BIR

wells,
&
mines
as
the
resources
are
sovereignty
as
an
that
he
was
separated
for
reasons
no
case
shall
Final
be
higher
Tax
of
than
10%
aprovided,
on
gross
o
If
the
ticket
is
indorsed
to
the
exception
of
the
amounts
set
apart
by
any
action
on
his
part
enforce
make
and
excess
necessarily
shall
be
common,
carried
over
to
each;
to
the
and
Public
Philippine
the
close
of
Council
the
of
taxable
property
for
year,
NGO
connected
otherwise,
Certification,
with
the
IAET,
Inc.
yielding
producing
foods
for
human
Note:
may
elect
sestablished:
standard
deduction
Compensation,
E
xecuti
ve
Sec.
Remuneration
,Units
[any
211
SCRA
and
family
residence
such
principal
health,
corporation
amount
and
is
social
considered
is
less
welfare,
by
than
as
P1,000,000
cultural
such
another
for
or
IV.
has
TARIFF
received
the
fringe
amount
AND
income
CUSTOMS
refunded
even
tax
under
though
by
the
Sec.
employer
one
33
may
of
in
the
province,
days
from
city
or
date
municipality,
of
distraint
–Director,
then
considered
&
Failure
of
musical
any
person
to
register
private
as
required
their
individual
income
tax
based
on
The
purpose
property
year.
of
donor’s
sold
tax
except
is
to
complement
when
such
ll
oIncome
w
e
return
d
result
(Sec.
of
Mathematical
from
the
error
in
the
transfer
involves
Sanggun
change
an
on
pure
from
y
direct
ega
services)
any
foreign
corporation
85%
of
the

Limi
be
CTA
redeemed
shall
capital
consist
the
by
gains
gain
of
presumed
as
a
delinquent
Presiding
subject
to
to
have
Justice
6%
taxpayer
been
CGT
properties
unrelated
income
1.
administrative
representative,
or
Declared
strict
other
distinct
of
situated
third
Paid
right
information
by
partnership.
for
(3rd)
or
Owner
in
in
other
law]
protest
acceptable
party,
that
against
Philippines
or
(coupons
than
S
may
ec.
Administrator
and
the
foreign
26)
be
the
amounts
taxpayer.
required
oficer
or
Commissioner,
partnership
aliens,
deriving
wherein
Revenue
income
from
Regional
compensation
USE
PERIODS
LIEN
.to
acceptable
assessment,
the
LEASE
term
income
goods
er
lesse
salvage
e
of
OF
to
of
recommendation
in
Tax
subdivision
Pe
tax
business
tr
on
oleu
exemption,
accounts
corporation
m
Act
ly
of
1949
exclusively
subject
]sale,
including
to
for
BPRT
public
Philippines
7.
Suspension
=
satisfactory
P1,500
can
be
of
Business
to
the
CIR
Operations
that
in
persons
709,
)2.
exempt
(garnishment)
sales
and
input
tax
attributable
to
input
competition
or
recorded
may
for
prizes;
not
as
be
devices
an
claimed.
expense
for
or
asset,
settlement
words
application
Delegated
“VAT-EXEMPT
of
registration.
the
estate;
by
SALE”,
AND
the
that
transactions
subject
acceptance
be
to
received
FBT
allowed
by
the
but
is
in
it
payable
is
accordance
it
shown
is
completed
that
with
Employer.
the
by
a
the
(total
pertain
received
employees’
amount
to
the
of
for
transfer
Expenses,
a
special
to:
sources
losses
&
other
deductions
calendar
year
contribution
cannot
be
collected
Law)
the
D
invalid
and
risks
death
units
or
only
is
also
respect
to
lease
or
use
of
property
D
e
a
d
levent
iJa
n
An
e
for
exchange
fco-ownership
icapital
lbenefits
i&
n
g
a
n
has
d
p
a
taken
yme
n
tP500,000,
place.
:such
S
hou
ld
b
e
General
2.
Professional
or
CIR
v.
tax
liability
is
NOT
(3
(b
v.
i.
viii.
Except
c.
communicated
[3
general
taxpayer;
reinvestigation.
Deductible

Repairs
Recognition
Cinematographic
OF
All
or
forms
and
Taxes
of
the
of
Involves
property
gain
BIR
Film
to
or
aOther
the
owner
question
for
loss
lease,
in
–60
l.
–
i.[1
(4
To
sales
(d)
the
General
xiii.
Computation
Income
cancellation
Compa
ix
is
Income
by
Training
irrevocable.
ny
which,
agricultural
Rule
,of
from
or
G.R.
the
of
change
in
interest
No.
any
the
This
cooperatives
184823,
discretion
source
in
is
therein
any
because
of
of
the
the
duly
•CERTIFICATE
16,
for
200
MCIT?
6]
If
.joint
properties
worship
carries
or
with
it
the
right
to
sureties
1.
as
serve
the
case
Commissioner
a
warrant
deems
of
garnishment
necessary
The
following
(6)
Items
must
not
be
d
such
basis
>
FMV
at
the
time
(iii
4.
companies
Payment
Franchise
Escape
The
substitution
of
from
grantees
whose
capital
annual
must
of
radio
gross
and
go
receipts
beyond
television
of
c.
3.
Local
Quarterly
T
ime
(b)
Mamb
A
(1)
o
Taxing
person
Installment
fextent
R.A.
ula
VAT
7641
o
who
Return
L[donee;
um
becomes
payment
ber
(BIR
C
o.,
Form
liable
[T
v.
6
2550Q)
Deferred
to
VAT
or
incurred
during
the
13
Exemption
1990
]or
of
gifts
from
donor’s
Sanggunian
enacts
..............5
an
ordinance
compensation
Tax54
mandatory
Persona
than
(1)
GLOBAL

Gen
er
SYSTEM
al
such
ru
le
individual
–hearing
power
SCHEDULAR
(except
of
taxation
in
case
of
112024,
Capital
Up
Shareholders
gains
a
nua
maximum
ry
from
or
sale,
amount
exchange
shar
of
in
the
or
profits
6%
FOtherwise,
inal
Trepair
ax
An
6%
efectiv
F
NOTE:
goods
iin
n
al
T
ely
ax
Parents,
zer
on
manufacture
o
-r
6%
ated
brothers,
F
iassessment
n
al
on
ax
and
the
on
6%
other
sisters
F
sold
ithe
n
alssue
Tthe
ax
y)

d
LIMITATION
OF

conduct
TAX
administered
of
the
government;
for
the
purpose

The
payee
is
not
required
to
file
an
Net
contracted
Capital
1.
Gains:
within
Ordinary/
three
Regular
(3)
years
prior
to
period
Rentals
of
5
years
Location
c
al
or
e
of
nd
the
ar
prior
qu
a
rthe
te
to
rneither
in
the
EXPENSES
should
be
TO
interpreted
BE
DEDUCTIBLE:
liberally
in
order
to
deceased
Once
A
There
registered
tax
BASE
person
is
law
should
as
a
VAT
not
in
the
be
person,
following
retroacti
Established
solely
for
purpose
of
.exchange

(Implemented
b.



a
written
taxpayer
other
discovery
of
4.
The
levy
schedule
of
or
a
service
a
................................98
proceeding
of
performed
FMV
in
is
court,
published
and
for
in
a

confiscation
+penalty
Philippines
)taxes
exercised
Housing
received
Act
of
ror
e
Country

pursuant
to
the
ordinance
whom
given
to
all
a
charge
or
realized
[(50,000/200,000
during
the
x
60,000)]
realized
realized
during
during
the
stones,
sand,
gravel,
earth,
(whether
or
1
not
Court
they
Act
on
–that
appea
5
of
CBAA
ssoldon
Interest
(of
domestic
Over
from
regular
25%
Deposits
corp.)
but
conduct
not
not
and
traded
over
or
33
in
⅓
pursuit
the
stock
2%
of
exchange
The
tax
is
shifted
personam)
to
the
buyer
of
the
goods,
port
ofoccurr
while
still
in
the
custody
or
control
of
the
money
or
money’s
worth,
then
the
amount
by
Expens
Nonresident
year
means:
stranger.)
less
MINIMUM
QUARTERLY
GROSS
Dutiable
Importation
because
of
their
WRITTEN
payment
of
PROTEST
internal
with
taxes
the
are
Local
involved
Treasurer
2.
16.
of
NonForeig
IF
total
gross
income
articles
lost
or
destroyed
after
Taxable
*sv
=
salvage
taxing
and
partner,
other
revenue-raising
apart
from
powers
the
expenses
of

30%
(2009
for
the
production
Collector
schedules
and
of
protest
storage
of
the
If
given
under
a)

Goods
released
the
subject
expense
for
the
person
reconsideration
by
taxpayer,
RPT
on
the
subsequent
owner
which
was
the
records
of
the
BIR
by
the
end
of
year.
government,
names
of
an
the
OCW
administration
and
of
exempt/
the
law,
any
Non-deductibility
of
losses
on
corporation
shall
be
treated
as
ng
after
the
payment
2
After
Source
Exercise
of
Emanate
from
operation
must
be
whose
exclusively
income
working
is
derived
for
the
only
by
R.A.
204)
9135)
involves
calculation
goods
to
date
or
of
redemption
services
the
VAT
on
which,
each
portion
by
their
addition
to
is
ordinary
determined
duties
and
usually
the
to
taxpayer
protect
on
the
basis
of
a
certain
percentage
of
the
b)
Dissolution
of
corporation/partnership;
obligation
ns
to
pay
the
same.
Upon
the
death
of
moral
or
legal
with
duty
or
close
b)
from
the
executor,
any
administrator
time
during
or
the
any
taxable
of
the
year
heirs
to
maximum
(b)
One
of
2%
(1)
per
horse,
month,
cow,
maximum
carabao,
of
36
es
transient.
registered
form
(including
one
Real
Phils.
P
ro
pert
y
Tax
form
part
of
cost
of
purchased
services,
An
individual
who
is
exempt
from
income
means
Logistic
of
services;
activities
show
continuity
enumerated
immediately
notify
the
Commissioner,
be
sale,
the
barter,
transaction
value
of
identical
goods
expenditure
as
approved
by
the
Board
of
community
Once
the
tax
election
(Sec.
to
avail
the
OSD
is
SSS
or
rentals
in
the
or
place
death
lease
where
of
space
the
principal
in
privately-owned
ofice
of
return
to
the
Commissioner,
verified
jurisdiction
of
the
new
employer
to
effect
obligation
containing
a
tax-free
(d
Extend
Customs
of
Importer’s
the
duties,
purpose
registration
of
ascertaining
fees
the
2.
Special
Where
All
additions
Regular
such
Classes
conditions
to
judicial
the
of
price
Real
courts
as
actually
to
warrants
are
paid
not
or
a
lawful
all
redeems
stock
issued
as
a
dividend
No.
I.
Tax
making
Articles
on
subject
of
such
to
seizure
application,
do
not
or
have
if
to
Sales
Tax
–
it
is
the
place
of
the
consummation
M.
volume
Kinds
of
of
sales
rights.
Taxes
Taxation
given
60
(JBL)
days
to
submit
supporting
The
beyond
Commissioner
his
control,
shall
therefore,
create
he
an
maximum
incentive
of
100%
by
as
reducing
valorem
their
tax

Subject
to
customs
supervision
fee
airline,
the
GPB
will
be
charged
to
F.
Tax
Remedies
under
to
the
local
government
for
the
amount
of
B.
Nature
trade,
and
Characteristics
business,
or
profession,
of
if
contribution
way
22
7,
1992]
of
allotment
implement
as
provided
take
for
for
under
succeeding
quarter
or
quarters.
Any
input
Ex.
(PCNC),
1.
What
if
Expenditure
any,
Over
is
the
should
the
Vessels
rule
donor
be
on
on
paid
housing
suspension
within
engaged
of
fifteen
engineer
in
(15)
business
within
days

as
Any
consumption;
long
stockholder
payment
as
any
of
and
or
exacted
its
group
breeding
beneficiaries
by
of
stockholders
the
stock
State
actually
and
or
the
Code;
incident
premiums
or
attribute
previously
income
thereof,
from
being
transactions
with

Holiday
pay,
overtime
pay,
property
night
shift
estate
SC
Emoluments
within
tax
15
by
days
(i.e.
honoraria
&
allowances)
or
there
recipient
charitable
is
no
specified
not
required
amount.
purposes
to
render
Violation
If
two
of
VAT
or
(Sec.
more
115)
adjacent
residential
222
Within
the
claim
and
five
he
is
(5)
not
entitled
to
the
money.
Should
(Secs.
(a)
ordinance
Installment
their
202-203,
respective
may
sale
be
of
total
personal
posted
taxable
in
at
income.
least
two
mortgage
exceeds
the
cost
or
other
computation
of
tax
appearing
on
the
2316)
maintenance
ownership
to
indirect
ownership
(2)
business
are
actually
of
coming
which
to
is
located
settle
in
in
the
Ex.
X
foreign
corp.
has
both
collected
compositions)
from
the
HO
for
services
rendered
in
the
Philippines.
The
projecting
G.
Organization
picture
and
Function
of
purposes
Revenue
District
Oficer,
Collection
Agent
in
An
exemption
from
the
common
burden
or
whichever
any
or
one
5-32%
is
realized
EARLIER.
that,
received
in
referred
the
with
BIR
as
currency
to
in
or
its
shall
Congress
become
taxable
and
issuer
shall
be
delivery,
establishment
income
either
tax
actual
or
required
place
or
constructively,
of
to
business
be
withheld
shall
of
is
the
be
Employer
part
right
or
can
all
or
of
deduct
the
its
income
privilege
FBT
is
from
derived
to
use
its
from
taxable
patent,
E:
PROPERTIES
)
properly
maintenance
Taxable
foreign
taxpayer
]violation,
gain
beneficiaries,
or
of
exchange
value)
fact
currency
at
allocated
during
of
whether
thereto
a
ratable
]system
part
)cannot
decedent
registered
expenses
RCIT
fiduciary,
tax
October
.
except
Accounting
types.
at
and
6,
if
in
2011]
the
records
husband
of
entries
relating
from
the
Parent
st
The
losses
should
occur
the
last
2.
To
establish
import
quota
or
to
ban
Deductible
interest
expense
which
property
upon
is
to
the
be
Prieto,
rights
included
in
in
the
computing
fully
Philippines
paid
net
fthe
ilLocal
e
ddays
disseminate
deductible
w
istof
h
in
religious
information.
when
extension
w/in
15
days
for
from
payment
of
protest
is
granted.
)INPUT
CODE
gains
broadcasting,
one
OF
tax
degree
1987
flin
payment
g
transport
any
grantor
A
person
trust
622]
v.
has
under
.dec
goods
absolutely
Sec.
and/or
given
passengers
up
purpose,
preceding
to
year
achieve
does
not
some
exceed
social
P10
or
.which
tax
(Sec.
101)
TAX
a)
that
2%
there
property
of
the
was
corporation’s
an
other
actual
than
collection
money
gross
shall
and
be
embodied
Commissioner
in
the
LGC:
of
is
the
authorized
gift,
the
basis
inquire
into
Deed
Premiums
under
paid
which
upon
he
has
retained
lCitizen
Penalties
imposed
without
Sur
1.
28
Tax
,Requirements
ch
Residence
iii.
25
1999]
E
Lien
ar
xemp
investors
vi
iii.
ge,
ay
the

is
All
taxes,
a.
ti
a
in
follo
Incidental
ons
legal
ter
taxes,
Immigrant
Government
principle
est
fees
n
claim
ot
g
D.
an
national,
th
a
or
d
Purpose
e
pp
or
clos
charges
o(minor)
lica
–law
th
charge
a
e
er
ean
–,P100,000
ble
resident
or
o
of
fbefore
poperations
e
en
local,
to
of
–and
ach
on
one
alties
five
its
property,
alien
paid
(5)
:by
politic
The
of
is
thi
or
– tob be
iii.
hand,
(9
Person
may

i.
[1
refers
“Income
The
not
subje
goods
from
to
or
properties
ta
whatever
unde
used
sources
oneTaxation
Authority
–
distributions
supporting
in
liquidation)
documents
have
is
lower
the

death
(manufacturers)
No
further
of
allowance
decedent
and
is
cost
of
if
sales
the
other
disposition
transactions
of
without
real
property
mentioning
located
on
the
gross
the
intended
Gross
Income
gross
only.
(without
the
the
gross
the
gross
selling

For
taxpayer
given
purposes
whether
[b]
shall
Global
be
zero-rating
instances:
Limitation
which
the
export
fringe
–repairs
Total
sales
ve
of
1.
Invo
Per
Amount
son
Within
ii.
icin
sSC
exercising
Livestock:
g
liab
rR
equ
must
le
ir
to
emen
(60)
be
p
2008
ay
cows,
reasonable.
days
ts
bulls
following
2009
and
the
calves,
close
2010
pigs,
of
settlement
whichever
of
the
estate
of
later
but
(Sec.
no
tincome
b
elaws.
ywho
o
nor
d
In
tsixty

Conditions:
(i)
at
least
60
years
property/interest
in
such
Assignment
Not
Duties.............................
over
be
of
P100,000
Income
of
the
Sangguniang
Doctrine
143
–n
Ex:
A
isfrom
newspaper
of

Good
faith
does
SYSTEM
not
require
that
17.
DETERMINATION
OF
THE
TAX
VA
A
(2)
the
F
iteres
lwhatever
ian
n
injury
services;
which
a
n
d
is
fairly
a
yme
the
traceable
n
treceipt
conduct
A
D
e
system
a
d
lshort
itaxable
to
n
the
:granted
of
which
25
challenged
trade
days
or
Inco
Local
Pay
3.
government
as
you
units
shall
have
a
A
to

person
the
delegated.
local
cannot
sale
refuse
of
goods,
to
pay
properties
tax
on
and
the
:ed
exhaustion
and
other
quarry
of
resources
protect
the
G.
thereafter
Tax
remedies
when
under
the
taxpayer
the
NIRC
taxable
claim,
yr:
refund
or
credit
a
tax,
taxable
where
yr:
yr:
on
granted
taxpayers
burden
to
%
by
2.
b
RR
Corporati
d
2-2001
ay
pr
escr
which
ib
for
ed
refund
by
prescribes
as
or
laid
the
rules
down
extension
A)
There
than
shall
ordinary
be
assessed
assets,
and
such
collected
as
an
Yield
commercial
or
any
other
or
Monetary
an
k.
properties
Issuance
of
Receipts
or
sales

s
on
to
charge
for
admissions)
%
This
principle
requires
that
revenues

Philippines.
199
Reasonable
Private
Benefit
(4)
Mani
Year-end
la,
[win
Adjustment
G.
R.
N
o.
L[forth
9637,
Sec.
2.79
.6
=
15,000
[(40,000/200,000
x
the
Gov’t.
fair
Availed
market
of
value
when
of
the
the
property

re-exported
upon
TAX
completion
EVASION
of
the
TAX
repair,
Alien
Taxation
not
RECEIPTS:
resident
imposition
e.
services
subject
to
percentage
tax

contesting
the
assessment
(otherwise
Articles
For
the
brought
frst
P100,000
into
the
Philippines
Income
derived
from
illegal
business
Taxable
Articles
although
from
unrelated
trade,
income
Over
Failure
iii.
value
Amount
33
tax
to
⅓%
received
exported
as
a
1%
from
of
Cr
Income
its
for
Inpu
tP
Citizenship
Gross

obvious
interest
in
the
validity
of
such
such
arrival,
dead
or
injured
Corporations............................................
If
during
the
year,
the
owner
of
a
business
Jeepneys

claimed
by
the
GPP
in
determining
an
Income
manufacturers’
products
shall
be
considered
as

Such
election
should
be
signified
in
Taxpayer
–Subject
w
th
n
15
days
1.
tax
due
on
any
return
required
to
Technical
advice,
assistance
or
services
advertisement
of
a
single
product
to
onwards)
Dividends
thereby
and
delaying
equity
a
Protest
the
–e
w
th
finality
n
60
0%
days
of
(a
Taxation
owner
nor
shall
the
be
beneficial
U
niform
user
in
each
of
the
local
property
spouse
(resident)
2
After
Payment
wash
sales
and
sales
50%
fnal
On
the
1
donation
of
nature,
On
any
are
amount
specifically
in
excess
police
listed
of
power
and
of
expressly
the
10%
10%
10%
Taxing
power
local
industries
from
assessments,
against
foreign
dues
competition:
and
fees
value
The
taxpayer
assessed
may
be
allowed
to
physically
the
incentive
sale
shall
of
be
shown
on
the
invoice
wi
th
in
decedent,
succession
of
the
takes
taxable
place
year
and
the
Rentals
and
royalties
from
property
upon
his
return,
or
if
no
return
is
made
by
other
beast
of
burden,
such
as
the
All
which
importers
may
be
are
treated
required
either
to
as
keep
an
“asset”
at
their
If
Research
he
lives
and
in
the
development
Philippines
and
tax
commercial
pursuant
to
the
dealings
provisions
of
this
the
juridical
entity
is
located.
[ror
S
ec.
160]
sold
for
export
to
the
Philippines
and
exported
2.
All
Directors
Regional
coasts,
ports,
or
Director,
equivalent
airports,
Revenue
body;
harbors,
District
bays,
public
markets
are
not
income
tax,
rather,
)the
Liability
vessel
and
Property
importation
payable
benefits
prohibited
shall
(Sec.
be
from
216)
existence,
location,
extent,
transfer
under
of
oath,
employee's
setting
registration.
the
terms
of
156)
be
imported
exchange
or
lease
of
goods
or
properties
and
any
false
fraudulent
practices,
invoice,
of
the
sale,
at
such
time
and
in
such
manner
as
assessment
The
BIR
made
Commissioner
and
to
that
extent,
may
the
tax
application
is
made
before
the
return
is
Collection
4.
b.
A
certificate
of
Revenues
of
redemption
by
the
shall
be
A.
Administrative
1.
Hospita
and
Judicial
Procedures
Business
cannot
claim
exemption
of
the
documents.
From
the
time
he
submits
the
Things
o
to
Confiscation
in
national
and
regional
accreditation
loss
arises
from
fires,
storms,
3.
period
to
G
appeal
ROUNDS
to
FOR
the
SUSPENS
CTA.
ON
The
OF
THE
30-day
RUNN
NG
of
collection?
its
or
when
municipal
there
is
a
set
ration
on
the
volume
8.
Enforcement
Administrative
Fine
from
raise
notice
laws
for
tax
attributable
substantial
to
zero-rated
future
services
sales
by
a
as
VATa
factory
shall
give
premises
a
notice
is
of
not
donation
subject
on
to
FBT
every
donation
essential
to
the
existence
of
independent
received
from
such
cos.
Provided,
same
tax
property
Over
combination
petitions
for
thereof
review
(no
of
part
of
it
later
appear
that
the
taxpayer
was

not
4.
Deposited
Seizure,
Search,
in
Customs
Arrest
zone
(Sec.
when
2205,
not
Philippines
Within
in
use
the
a.
An
act
is
done
in
Phil.
Waters
which
residents
in
foreign
basis
country
of
the
as
property
to
seller,
in
face
of
the
of
return;
a
or
Discrepancy
is
merger
of
the
subsidiary
into
preventing
Philippines,
lots
tax-free
are
depletion
of
the
LGC)
A)
Associate
Justice
employer
File
Where
city
written
or
is
municipality
protest
it
constituted
is
with
impracticable
local
where
as
treasurer
the
the
withholding
payor
for
(within
has
the
Branch
regional
15%
on
branch
profits
remittance
cannot
be
permitted
to
exist
upon
vague
Vanishing
imports
paid
upon
of
deductions
any
registration
and
every
year
Taxation
to
pay
the
VAT
thereon.
The
income.
donated
the
property
conduct
of
to
trade
the
donee.
or
business.
The
law
in
force
distributed
or
not
with
copyright,
to
the
design
business
or
model,
of
the
person
plan,
secret
liable
Prizes
part
accounted
In
>
of
case
expenses,
for
of
individuals,
in
accordance
interests,
the
losses
with
the
and
Expressly
waives
in
favor
of
the
day
for
the
payment
Company
of
the
estate
in
a
foreign
tax
(last
1.
Ju
risd
=
iction
P1,505
o
[P2,000
ver
sub
je
–
ct
(P1,500
&
x
owned
by
such
non-residents,
are
million
Through
a
law;
the
Tariff
and
Customs
[G.R.
No.
from
him,
shall
upon
be
the
subject
payment
to
capital
of
the
gains
taxes,
tax,
processing

respect
reimbursement
Section
or
It
reconditioning
is
equivalent
from
to
not
corpus
intangible
208
60(B)
a
a
requirement
port
for
of
and
in
this
advance
in
goods
personal
any
the
Code
Philippines
incidents
or
for
payment
shall,
services
property,
the
filing
according
thereto.
on
directly
its
thereof
behalf
to
In
economic
25%
an
May
law
informal
of
property
Gross
or
objectives
both.
place
conference.
Income.
the
The
taxpayer
the
good
may
time
x.
standing
of
be
his
either
death.
with
distributed
the
CDA
to
to
their
.to
interest
years
either
Re
the
gu
liable
taxab
lat
Bureau
from
real
.
or
on
or
le
to
incurred
or
y
for
qu
the
pay
Fee
deductible
ar
leaves
his
ter
s
of
during
.
life
or
the
from
the
for
y
taxable
any
any
period
year
al
which
in
s
)
s
]
derived”
business
ct
or
x
time
gifts;
such
FMV
for
the
purpose
of

receipt
based
of
the
on
government
the
ac
q
ui
si
of
t–the
ithe
o
n
tax
c
o
s
tto
of
be

If
Bank
taxpayer
deposits
acquired
Panlalawigan.
AND
of:
property
Proceeds
the
–various
file
president,
with
reinsurance
by
a
company
that
authority
whose
from
281)
gross
the
heir
annual
originally
receipt
instituted
for
the
preceding
who
Percentage
elects
to
of
be
completion
a
VAT-registered
person
registered
amount
benefits
of
credit
were
for
est
ate
VAT
each
tax
sheep,
of
the
goats
is
greater
in
Philippines,
other
classes.
classifed
Every
as
capital
tax
statute
assets,
makes
selling
price
entitled
selling
to
his
price
selling
price
or
price
or
INPUT/OUTPUT
Taxation...........................................6
;be
T
action;
and
Philippines)
differential
h
Sale
unpaid
The
(2)
The
share
Determination
power
or
VAT-registered
b.
fle
amount
exchange
quarterly
Exclusions
[h
in
subsection
to
pay
[a
Losses
the
grant
of
Gen
return
of
tax,
from
er
service,
of
will
al
civil
exemptions,
shall
Ru
sales
not
purpose
le:
penalties
as
reflect
be
the
or
well
exchanges
allowed
entire
the
tax
as
and
to
the
as
of
Actual
d.
Can
4.
Sco
basis
(6
services
(a
cellat
Manner
(b)
pe
On
transactions;
A
occupancy
entitle
ion
that
of
any
eced
by
o
Ta
fDodging
Net
amount
giving
the
a
xi
en
ng
tof
Capital
taxpayer
and
to
the
in
determine
excess
house
Loss
or
additional
his
house
and
•a.
extracted
o
from
public
lands
property
Between
2.
Special
2
Duties
corps.
More
than
50%
Any
excess
over
P500,000
cannot
business
Ex.
Domestic
the
or
taxpayer
the
corporation
exercise
be
an
of
paid
incorrigible
profession;
cash
imposes
following
Once
a
personal
the
the
purpose
imposes
is
achieved,
the
by
cases
ons
In
the
i.Report
application
thereof,
case
Two
output
or
of
more
sales
tax
when
heirs
of
and
P1,000.00
be
inherit
it
entitled
an
or
harsh
more
to
input
1
iii.
As
to
common
Interest
subject
at
profession
matter
and
no
part
of
c)
Procedure
general
circulation
for
the
province,
city
or
13.
b.
Po
commercial
The
a)
wer
Powe
Kin
Individual
o
fnewly
r[2]
Commission
to
primarily
invoices
C
rea
Taxpayers
te
er
So
liable
to
urces
su
Exempt
s
is
p
en
the
d
th
estate
e
bu
sin
itself,
ess
I.
Drawback
requests
for
.........................108
a
reinvestigation
which
is
2.
Amount
must
be
substantiated.
CTA
Benefit
Zero-rated
from
Deposit
and
efectively
zero-rated
which
others
sales
Country
Section
129.
Power
to
Create
Sources
must
of
sale
be
(within
30
days
after
sale).
Gross
Sales
P
P
Suspension
.Concerned
(2
of
pri
R
From
R
lbe
30,
of
2
-98]
the
1957]
sources
2
yr
.in
without
the

close
A


VAT-registered

Contemplates
of
INSTALLMENT

Provided,
each
Stock
taxable
and
for
the
securities
person
METHOD
a
power
flight
held
–to
by
the
which
a.
Shifting
of
tax
burden
The
the
face
of
10
amortizable
2
input
tax
thereon:
entire
oppressive,
for
Property
possession
the
fling
dividends
of
for
or
the
enjoyment
in
estate
which
such
tax
of,
case,
constitute
or
(1)
Requirement
for
IAET)

economic
activity,
including
transactions
or

at
the
time
of
the
execution
of
the
Contract
Royalties
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ay
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:deductible
If
housing
is
located
outside,
it
is
The
-that
right
to
exists
apart
from
Ro
bles
,other
[taxes,
117
Pawns
ho
p.
No.
L36081
,tax
Apri
loficer
considered
part
if
the
initial
payments.
Itfor
======================
withheld
and
the
amount
actually
economic
Province
-extended
NATURE
AMOUNT
/within
IMPOSIN

based
on
total
profits
applied/earmarked
remittance
business,
without
may
file
where
any
a
deduction
the
government
return
for
the
of
income.
tax
ofice
is
collection
taken
of
into
account
shall
be:
any
foreign
corporation,
if
such
shares,
of
Jan.
of
each
year
which
shall
be
paid
not
days
from
of
hearing
Forfeiture
===========
Cases
person
subject
to
any
internal
revenue
tax.
1.
En
buyer,
banc
for
the
purpose
of
utilizing
to
evade
the
tax:
10
years
from
the
date
trade
brand
or
other
like
property
or
right
with
the
business
conducted
exclusively
The
fundamental
theory
is
that
all
considered
separate
13912,
P1,000,000
shall
Philippines.
be
based
on
Instead
the
Philippines
contract
of
remitting
price.
Personal
and
household
effects
(including
Fringe
benefits
Has
are
no
income
only
for
corporate
oficers
G
ROUNDS
of
taxes
delinquency
FOR
S
USPENSION
to
OF
the
due
THE
date
R
shall
UNNING
be
sale
OF
together
Secretary
impose
over
of
an
the
Finance,
of
additional
corpus
upon
tax,
duty
of
recommendation
the
since
on
all
trust.
what
lakes,
rivers,
(natural/juridical)
streams,
o
rbelieve
whether
in
its
original
state
or
processed
and

Car
must
have
been
responsible
purchased
or
ordered
of
the
before
bank
the
15
days
collected
from
the
or
receipt
received
of
by
notice
any
of
remedy
within
being
amount
60
days
received
of
from
refund
date
by
taxes
the
of
transfer
employee
pa
dand
(Sec
aor64
register
within
thirty
(30)
days
from
the
end
beginning
inventory
goods,
materials
It
is
likewise
also
to
be
prevent
of
income
tax
an
installment
forms
of
mentioned
conditional
are
sales
deemed
exempted.
fair
market
market
value
market
value
or
value
for
redeeds
year
business.
of
whether
excessively
the
province
calendar
or
or
city
or
in
where
fscal
any
year.
the
property
manner
relationship)
–welfare
)To
Any
previous
I.separate
Drawback
net
gifts
made
during
properties
imposed
2.
reliefs
The
of
When
the
shall
fact
living
in
sales,
there
shall
under
that
not
Title
at
be
the
purchases,
is
a
apply
(2)
corporation
subject
fraud
hereof
of
to
the
or
regulatory
to
output
intent
12%
Tax
is
a
VAT
Code
tax
to
mere
fees
evade
and
shall
holding
which
input
charges
the
family
(b
rabbits
A
residence
taxpayer
who
shall
has
not
filed
be
an
application
considered
Similar
De
purchaser,
cember
ii.
Arrangements
discourage
may
trade
A
appeal
n
limitations:
donor
12
recognized
or
,XI
tax
makes
2008]
and
d
a
gift
upon
rs
of
an
s,
undivided
T
ebe

.net
of
by
other
[assessment
estate
Sec.
Death
a
VATdata
129,
Deductions
a
owned
LGC
net
]termination
implemented
by
same
individual,
if
the
estate
unknown
Losses
royalties;
reasons.
dividends;
In
this
case,
annuities;
both
prizes
A
and
B
default
The
within
income.
of
basis
the
the
Exportation
materially
of
as
taxation
an
Scop
add
is
of
found
to
goods
in
on
the
income
of
without
]
the
expressly
trade
of
the
producing
activities
month
following
registration.
executor
transactions
a
non-resident
general
and
administrator.
occur.
foreign
corporation
When
there
(NRFC)
are
collection
or
transfer
of
is
the
made
third
................6
to
fiscal
a
VAT-registered
year
preceding
rconsideration
egister
was
intermediaries
and/or
greater
drawn
granted
TIN.
by
than
the
indirect
the
tax
tax
being
exemption
collected.
under
The
(Sec
2308
2210)
when
the
taxpayer
cannot
be
located
.or
of
tax
morals.
not
necessary
as
properties
1.
amended
there
or
services
is
a
pending
a)
Each
A
report
Philippines
VAT
local
invoice
government
income
for
over
but
every
unit
the
sale,
transshipment
shall
several
barter
exercise
or
be
proof
used
[1
to
prevent
of
his
intention
to
avail
the
himself
2.
amount
of
tax
c.
b.
Sale
services
property
(j)
ii.
vii
or
Tax
Pension
6572,
Substantiati
NOTE:
If
Exchange
containing
irrespective
part
there
Rate:
faithf
rendered
D
trusts
ecember
is
essentially
Rev.
reason
of
a
(Past
performan
Service:
as
categorical
Requirements:
provided
ownership
to
Reg.
Service
the
persons
No.
under
Cost)
of
or
that
to
certai
12-77
such
or
16.
b
or
its
Excepti
Power
–
equivalent
i.
Taxation
to
motion
prescribe
is
picture
placed
of
Non-resident
penalties
flms
at
the
control
for
tax
of
the
transferred

Any
from
good,
service,
statutory
or
other
taxpayer
benefit
[a
Capital
Losses
–
deductions
can
be
claimed
as
input
credit
during
2.

exempt
Amounts
from
received
all
fees
and
in
charges
advance
of
any
are
whether
Interest
not
other
the
person
than
=
engaged
those
from
A
gift
(1)
iv.
was
i.
A
quarterly
Senior
Intangible
is
made,
incomplete
Citizen
payment
returns
exploration
is
because
appears
shall
&
reflect
to
of
be
=============================
)
income
concerned
limitation
or
property
from,
or
of
in
due
the
primarily
the
process
absence
held
would
thereof,
for
be
shall
sale
not
preceded
by
a
of
Contract
total
income
to
Sell
exceeded
Other
(i)
Powers
Distraint
business
of
patents,
covered
personal
trademarks,
by
law
granting
Each
days
or
local
less)
government
unit
has
The
Local
Treasurer
shall
decide
the
protest
(WTW)
a.
Computation
of
output
tax
Sold
VAT
is
an
indirect
0
tax
levied
0
on
goods
0
Cash

and/or
deemed
Property
export
Dividends
sales
until
the
produc
20

Suspension

Fixed

amount
Must
of
be
business
utilized
operations:
15th
of
In
how
created
or
organized.
Joint
stock
assessed
by
agent
As
to
scope
of
the
or
government
authority
for
to
impose
collection
of

Non-resident
aliens
engaged
in
An
expense
will
only
be
allowed
as
CREDITABLE

Any
VAT-registered
person
whose
sales
Judicial
musical
There
faith
Expenses
compositions
prior
is
are
imposed
exempt.
to
should
for
the
be
each
supported
payment
taxable
by
of
year,
a
the
18
SUBSTANTIATION
REQUIREMENTS
OF
enabling
Public
restrictions
a
Use
commodity
afected
the
taxes
month
to
NO
ADDITIONAL
PAYMENT
shall
be
required
less
than
retirement
on
location
w
th
incurred
in
n
Phil.
2
years
or
from
paid
date
by
him
of
that
Emphasizes
the
burden
Emphasizes
on
revenue
not)
of
the
(death,
BASE
party
sickness
to
or
transaction.
other
physical
Such
B.
(f)
i.
covenant
dealer
Depreciation
in
or
securities
pre-existing
–
generally,
obligation
the
.5
vessel
u
or
aircraft
into
the
Philippine
compensation
paid
to
its
employees.
Relationship
to
Constitution
the
co
mmer
cial
invo
ices
others
constituted

of
required,
palay
into
or
in
rice,
the
corn
Philippines
into
grits
20
and
in
importation
18
Exemption
This
would
of
goods
from
also
Tax
prevent
or
on
local
the
purchases
taxpayer
BIR
Ruling
Shares
No.
of
b.
On
Payments
by
Government
(final
(8
President’s
from
the
gross
veto
gifts
power
of
on
the
appropriation,
donor.
They
Taxes,
fees,
charges
and
other
Local
Stock
Exchange
past
tax
periods
prospective
Capital
Gains
iv.
years
which
from
the
Sale
return
of
was
Shares
made
Championships
in
any
division
is
at
stake
payment
Tax
is
of
unconstitutional
taxes
in
the
new
if
RDO
it
shall
operates
still
Condition
.
Forfeitures
for
DEDUCTIBILITY:
subject
to
capital
gains
tax
but
to
question

the

Amount
in
cash
or
in
kind
received
by
)the
Prizes
<
P10,000
Schedular
rate
Means
Schedular
Non-stock
Use
illegal
rate
corporation
means
Schedular
Use
or
rate
legal
association
means
Schedular
25%
F
i
n
al
trate
axzonal
Stock
NOTE:
limited
Any
only
individual
to
not
required
to
file
an
13.
Tax
credit
for
Citizenship
estate
taxes
GPP
paid
itself
in
not
a
dividends
was
derived
ofshore
banking
unites
in
the
Philippines,
local
Transfer

a.
All
Direct
persons
Duplicate
who
are
Taxation
engaged
(Strict
in
business
sense)
the
amounts
previously
assessed
(or
occupation;
(c)
His
necessary
clothing,
and
(real/personal),
profits
from
Less:

deductions
comes
to
the
Philippines
for
object,
than
extent,
dealers
amount,
in
securities
coverage,
and
where
Provincial
their
ofices
are
1,200
located,
of
the
Trophies,
which
are
prizes
the
same
(medals,
in
badges,
all
respects,
cups)
including
Applied
when
the
importation
in
or
where
it
is
a
return
for
services
Collector
for
weights
or
measures
or
upon
a
Finance,
upon
recommendation
of
the
Nonresident
interest
in
such
property
including

received
by
a
domestic
withholdi
prevented
from
regulations
dues,
to
except
be
wharfage
on
wharves
the
subject
same
as
to
those
absolutely
subject
prohibited
to
BIR
to
the
Ruling
new
RDO
No.
where
he
is
transferring.
Seller
property
is
the
one
statutorily
liable
for
the
1.
Abatement
purchaser
period
prescribed
(Sec.
shall
204-B)
be
invalidated.
for
the
assessment
subject
to
confiscation,
like
the
vessel,
plane,
privilege
purposes
that
determines

the
situs
of
the
contract
for
Country
date
the
taxpayer
is
notified
of
the
denial
of
of
forfeiture
of
the
seized
materials,
shall
since
not
these
levy
amounts
and
collect
to
percentage
reasonable
tax
fees
on
LAW
collected
by
the
6.
Criminal
actually
liens,
Action
paid
charges
or
Example:
Nobel
prize
award
payment
b.
A
pursuit
of
fine
of
such
or
vessel
began
claim
the
for
basis
of
the
doubtful
validity
which
has
jurisdiction
over
his
place
of
business
4.
where
the
special
benefits
derived
from
the
SC
RA
780]
24,
1989
]
these
companies
subject
to
Constitutions
and
without
being
expressly
also
excludes
notes
or
other
evidence
of
remitted
by
30%
withholding
agent
Estate
Properties
Types
component
taxation
of
Real
Liable
thereof
is
Expense
governed
for
(except
Real
by
the
the
PEZA-registered)
statute
in
Other
SCRA
1.
================
Determination
Types
of
Fees
of
Charged
probable
cause
and
of
C
us
to
ms,

100%
if
the
capital
asset
has
In
that
case,
the
CIR
was
contending
that
located
in
the
case
of
a
government
agency,
a.
obligations
Inhabitant
of
or
the
bonds
have
acquired
a

NOTE:
4.
Unlike
the
NIRC,
the
Local
Tax
a.
On
manufacturers,
assemblers,
repackers,
RATE
G
taxable
If
any
property
income
should
cannot
bear
be
its
definitely
share
of
THE
S
TATUTE
2.
Sitting
OF
lots
in
as
2
one
divisions,
residential
each
division
lot,
the
with
sale
of
the
discovery
of
the
falsity
or
fraud
creeks,
and
within
other
the
public
Philippines
which
cannot
legal
entities
later
imports
than
not
the
exceeding
last
day
464)
10%
ad
deposited
with
an
authorized
The
following
are
exempt
from
the
/
management.
the
right
straight
or
For
the
rank
to
privilege
X,
and
branch
file,
to
it
pays
use
is
called
amount
in
an
one
with
car)
interest
oficer
or
on
employee
purchase
of
price
DFA,
at
of
involved
No.
the
L24813
Commissioner,
in
the
,
Apri
criminal
l
forthwith
action
is
cause
not
a
Income
grantor
has
transferred
the
income
form,
is
located
to
non-members
and
the
delinquent
their
importation
taxpayer.
sworn
statement
containing
FMV
and
Standard
Other
Deduction
services
September
-P1,000,000
rendered
in
the
through
b)
that
the
there
branch
a
of
legal
a
basis
domestic
for
granting
corporation,
the
bank
shall
turn
over
to
from
fund
upon
compliance
and
supplies
equivalent
to
2
%
o
f
t
h
e
These
refer
to
matters
involving
smuggling.
It
basis
the
by
same
a
dealer;
calendar
Sec.
49(A)
year;
Royalties
payment
The
(from
omission
of
sources
taxes,
may
fees
within)
either
or
charges
be
accidental
–
ten
value
(10)
or
or
or
to
zonal
wrongfully
c
o
m
pro
value
m
i
se
collected
zonal
payment
of
value
tax
value
liability
whichever

description
of
the
property,
amount
of
delinquent
sought
O
l
iv
er
L
o
z
a
n
o
v
.
S
p
eak
e
r
TOPIC
reciprocal
E
covered
x
c
e
p
UNDER
t
io
evaluation
n
:
duties
by
Under
THE
the
of
Section
of
SYLLABUS:
above
the
assessment
9
of
R.A.
9282,
on
the
also
are
company
tax
levied
apply
for
under
to
or
violations
three
investment
the
(3)
police
months
of
the
power
company
provisions
of
of
the
the
applicable
shall
LGU.
Title
be
interrupted
organized
or
abandoned
either
in
Brazil.
one
is
in
This
a
such
shall
personal
cases
form
holding
as
part
As
an
entity,
it
is
not
subject
to
income
Regional/Area
Headquarters
Multinational
2
Cos.
Refund
=
realized
do
not
winnings;
income.
earn/derive
pensions;
A
Exempt
income
constructively
from
and
from
tax
a
the
partner's
received
in
the
address
given
by
him
in
.........................................................145
the
current
fiscal
year
as
follows…
(c)
On
collection
special
Poultry:
laws
of
fowls,
a
or
tax
international
b
cannot
ducks,
Payment
await
geese
and
agreements.
the
subsequent
results
refund
Philippines
It
person,
must
F.
Theory
be
the
immigrant
duly
but
name,
value
and
exempt
substantiated
property
Basis
business
of
for
from
of
the
in
which
Taxation
style,
tax
with
property
on
a
if
oficial
(JBL)
his
any,
foreign
nor
exempted
corporation,
within
having
the
class
a
change
of
taxable
in
transfer
performance
entities
arbitrage
.
the
thereof
6%
deductible
2
on
requires
person
2,
same
,
Section
Contributions
whose
2004]
ul
the
of
on
is
to
equivalent
all
sale
that
36
from
the
kind
back-to-back
ce
of
or
a
suficient
gross
Sec.
or
exchange
gifts
of
Finance
actually
loans,
of
n
paid
who
Foreign
.
person
on
registered
and
violations
who
to
Corporations
In
give
by
Rev.
entity
case
and
capital
testimony
Reg.
to
of
loss
a
13-2000:
nonresident
a
nonresident
buyer
alien
demand
for
reimbursement
e
]
allowed
only
to
2
or
more
its
power
to
create
its
own
sources
of
of
the
benefit
of
exemption
of
capital
187883,
partnership:
J
une
16
,
Plenary,
Other
income
]
(that
Broader
is
income
in
other
Merely
than
a
performing
OR
CIR
higher
or
quasi-banking
rate
by
prescribed
his
duly
functions,
by
authorized
rules
and
Subject
reserved
to
regular
erroneous.
development
powers,
(Sec.
drilling
Subject
229)
Subject
to
regular
to
regular
to
another
property
without
violating
the
law.
the
power
(a)
Any
to:
resident
of
the
be
or
posted
kind,
lease
whether
litigation
in
the
declared
provincial
local
or
out
national,
capitol
of
Retained
city
while
or
exchange
ii.
taxable
films
(transfer)
of
or
video
years
of
tapes
for
use
in
therein
derived
not
is
a
treated
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ighteen
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employer
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The
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right,
deduction
246
either
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applicable
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ines
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ation
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order
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ourt
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27
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rules
180
066,
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its
properties,
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n
or
services,
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including
al
lease
Gain

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sale
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Philippines.
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1,450,00
of
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tax
shall
2,100,00
be
return
may
be
required
to
fle
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information


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ub
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Final
political
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Property
4.
DESTINATION
and
operated
Basis
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law
for
securities
religious,
E.
Principles
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Sound
Tax
may
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2
When
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Minor
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gift.

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I.
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it
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Exempt
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ith
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axnot
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Country
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tax
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be
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years
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passed
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on
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to
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date
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of
the
amount
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engaged
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income
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audit
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B.
TPrincipal
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CANCEL
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AX
L
IABILITY
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3,600
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actors
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benefit.
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]Judicial
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xc
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105
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to
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venture
Nothing
in
Sec
222A
shall
According
1.
Basic
real
to
the
Local
Government
Code,
1.
===========================
2.
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Protest
nd
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registered
E
xcepti
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with
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the
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bank
supposedly
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to
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accounts
but
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as
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compensation
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mission
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personnel
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of
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two
for
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places
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municipality
Provided,
or
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and
there
fnal
is
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condition
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provides
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c.
equipment,
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spare
parts
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improvement
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property
–it)
file
w/in
business
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tted
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ax
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e
rDelinquency.
s
ub
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fthe
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qu
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st
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be
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NOT
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donees,
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who
payable
are
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in
into
his
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address
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the
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members
government
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against
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rtTo
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istudies
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rdirectly
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of
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returned
in
the
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income
from
upon
receipt
earning
its
shareholders
of
interest
such
appeal.
that
or
members
is
subject
Failure
of
home
due
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to
travel
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the
taxable
or
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yr.
or
preceding
taxes
work
abroad,
to
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Amount
on
Partners
Received
are
by
liable
Heirs
for
income
RA
4917
tax
on
affiliates,
subsidiaries
Permanent
or
for
or
employee
branches
the
use
–in
one
the
of
who
Asia
the
-Pacific
has
Region
complete
&
control/dominion
foreign
markets
over
and
B
and
the
suit/proceeding
G.
Doctrines
before
in
Taxation
the
CTA
RHQ/ROHQ,
and
state
and
OBU
its
months
General
inhabitants.
or
Petroleum
or
less;
In
and
Service
return
for
this
tax,
subject
However,
for
being
the
to
payment
seller
if
countersigned
percentage
the
cannot
tax
until
is
pass
based
tax
by
on
the
such
on
the
Chairman
past
as
VAT
is
money
fully
and
229
withholding
was
the
considered
voluntary
sold,
involuntary
bartered
action
Philippines
conditions
concur:
power
concerned,
charges
indebtedness
in
subject
under
any
to
the
provisions
herein,
1996
It
is
and
an
distributed
appeal
to
by
CTA
company
from
to
a
Flexible
Does
Tariff
not
Clause
include
fighting
cocks,
race
sales
...........................145
or
exchanges
of
capital
private
socialized
housing
shall
be
exempt
from
for
international
fee,
but
(i.e.
with
sales
as
the
or
revenue
BIR
of
the
future
period
pension,
3
months
stock
of
the
applicable
claims
in
for
their
input
statement
VAT
on
purchase
of
income
of
(Ex.
goods
Over
or
person.
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income
said
anything
property
the
both.
stating
of
amount
which
sum
1.
domestic
VAT.
Fundamental
and
of
that
benefits
the
shall
so
not
taxable
and
a
be
more
Principles
person
distributed
entitled
closelyregular
than
materially
thirty
held
and
in
V.
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xempt
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shares
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192,
L
GC
the
]household
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Code
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What
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employer
person
modification
other
to
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designate
than
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reversal
persons
of
derived
its
DOCTRINE
taxable
T
RANSCE
year,
NDE
TAL
for
considered
outside
and
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the
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corporation
on
liable
another
to
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cannot
Limi
Government
addition
taxes
claim
shall
P10,000
paid.
to
input
the
of
information
VAT,
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for
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period
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Tax
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death
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igh
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o
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er
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n
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At
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respect
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Gross
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162
r,
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to
information
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CRIMINAL
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Traded
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o
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)–
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the
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aliens
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required
or
to
remit
deduct
taxes
the
(Sec.
total
192)
flms,
properties
undeveloped,
substantiat
exposed
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al
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outside
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it
x.
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estate
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in
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kind,
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to
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)
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%
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may
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edu
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ction
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s
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ss
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order
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guidelines
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to
required
arrive
that
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for
at
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th
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ul
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or
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d
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h
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ft
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burden
iii
Tax)
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at
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least
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tax
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1987
a
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case
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payable
Examples
services
any
In
surcharge
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case
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made
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by
for
a
failure
VAT-registered
"wrong-venue
to
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Requ
An
ir
ed
NOTE:
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Su
personal
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ppor
Amounts
tin
to
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rule
men
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ts
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not
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required
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FOR
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properties,
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the
course
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He
Amount
dressing,
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merely
Received
which
a
are
by
tax
covered
collector,
by
the
NOT
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a
Computation
sales
(a
ii.
ix.
Delegation
or
Sale
commercial
of
0
Allowable
of
to
principal
local
invoices
0
governments
before
0
–
It
a
testament
subdivisions,
acquired
PRINCIPLE
necessary
for
housekeeping
and
used
N
o
.
2
765
Gas
7
3
]
and
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...............................................61
Section
32
Real
Section
property
36:
Tax
charitable,
received
scientific,
re
nvest
by
athletic
gat
transferor:
on
and
or
executes
cultural
a


But
does
not
include,
for
the
purpose
of
international

prohibited
iv.
Salarie
wages
othe
form
of
RE
A
TOPIC
VAT-registered
CIPROCIT
UNDER
Y
person
THE
SYLLABUS:
who
is
also
engaged
in
(9
Non
to
be
impairment
retained
by
of
the
jurisdiction
corporation
of
or
the
transient.
v.
from
sale
of
shares
of
stock
listed
W
protest)
INNING
S
16,
(4
1995
Prohibition
taxpayer's
]
ability
against
to
taxation
pay;
of
religious,
rate

Capital
21
gains
Taxation
on
sale
of
of
Estates
Real
and
5.
Taxes,
i.
Most
Personal,
fees,
critical
and
living
is
the
charges
giver’s
or
family
intention
and
other
or
B
:
(b
Where
to
considered
the
as
articles
capital
quarry
are
not
resources
or
no
longer
are
in

1.
Abatement
trade
–
or
reduction
or
nonThe
dissolving
or
reorganizing
school
maintained
&
administered
by
buyer,
transferee
or
lessee
of
the
goods,
importation,
dimensions
Year
or
all
constructions
the
records
as
to
render
of
their
another
in
Business
or
payment
of
taxes
payment
of
taxes
(RA
9294)
Where
the
(RA
9294)
of
registration.
The
old
RDO
shall
terminate
System
2)
(FAT)
F.
Theory
and
xx

Presence
The
Deficiency
of
executor
Yes,
there
or
is
administrator,
None,
because
upon
zone,
and
ii.
The
vessel
may
be

extinguished
benefit
only
plan
upon
(benefits
payment
under
of
tax
this
and
Interest
Income
received
by
an
7.5%
F
i
n
al
T
ax
exempt
7.5%
F
i
n
al
T
Exempt
Net
trading
gains
on
foreign
7%
Passengers
GOCCs
rendering
essential
public
services
That
Method
One
shall
not
be
used

by
importer
that
the
exposed
flms
are
same
================
principal
Taxes
Carried
operate
ofice,
over
a
in
INVITUM
branch,
and
applied
and
sales
are
the
ofice,
in
amount
no
way
or
making
the
1604),
showing
among
others
the
carry
out
regulation
samples
not
for
sale
compounders
that
First
of
liquors,
Express
distilled
submitted
spirits,
their
and
(a)
Basic
Personal
Exemption
Actual
statutory
seizure
of
provisions
the
articles.
granting
tax
Real
property
Property
tax
courts
(a)
Interest
from
supervening
enjoining
events
the
collection
such
as
of
when
local
not
privately
cy
of
the
spouses,
the
same
shall
be
divided
relative
Regularly
where
to
the
employed
importation
fling
the
on
a
claims
wage
is
absolutely
within
or
salary
the
construed
being
granted
to
authorize
by
the
the
CIR.
examination
===========
i.
The
taxpayer
has
30
days
from
the
(12)
Individuals
support
earning
purely
Missions
Interest
in
Tokyo,
income
AFP
military
from
foreign
currency
loans
abatement
subject
10%
to
cases
F
income
inational
nthe
al
on
T
ax
m
tax.
ss
ng
10%
N/A
F
ionly
n
al
T
ax
tsupreme
city
however,
payment
where
a
portion
that
of
the
the
there
distraint
shall
is
a
be
is
prima
made,
reserved
facie
specifying;
showing
for
2.
RA
No.
2.
3.
be
Wharfage
used
directly
duecounterpart
and
exclusively
of
license,
in
RE
The
1.
Imported
SIDE
Court
provincial,
N
Action
Goods
city
–(tax-free
appeal
Must
or
municipal
be
of
CBAA’s
Entered
treasurer
decision
in
the
may

Goodwill
the
60
right
days
or
upon
the
completion
privilege
to
or
use
occupation
motion
be
taxed
at
15%
in
Phils
(instead
of
on
account
of
any
life
insurance
of
payment
of
tax
to
oca
24%
per
the
Whether
res
the
or
act
imported
of
smuggling
articles
is
and
established
entails
a Afidavit
Where
the
government
elects
to
tax
atreasurer
b.
Situs
According
to
Partnership
good
condition
between
the
purchaser
FCDU
contracts
the
when
Sec.
the
warrant
under
Finance
existing
distraint
rule
on
laws.
or
the
levy
These
appeal
is
deducted
shall
be
allowed
if
&
to
or
into
trusts,
with
made.
the
donor
thereby
their
distributive
share
(computed
Committee
by
)many
government
or
its
agencies
or
any
quarterly
Contractor
within
2
years
&
Subcontractor)
from
power
date
of
payment
paid.
date
of
sale/exchange
tax)
for
each
actually
changers
COA
received
and
it.
pawnshops
The
income
is
taxable
in
the
(C)
Method
Three.
–for
Transaction
Value
of
contribution,
decision
of
the
CIR,
taxpayer
receives
the
therefore,
of
exchanged
the
exemption
taxpayer
despite
in
enjoyed
the
producing
change
by
in
foreign
articles:
leaves
assets
(does
not
apply
to
banks
.........................................7
its
shareholders
shall
be
subject
to
consistent
horses,
zoo
with
animals
the
basic
and
policy
other
of
animals
local
1.
Government
corporations
supplementary
formed
compensation
or
availed
of
paid
for
to
percent
rents
economically
taxes
(30%)
and
or
redemption
period
on
other
of
project-related
the
in
or
income
said
whatever
periods
or
donation/gifts
cancellation
thereof
in
income
way
which
is
until
they
directly
taxable
for
of
are
the
business
in
Philippines
shall
pay
a
tax
quarter
quorum?
properties,
statement
...............................
the
of
law
depreciation
requires
expense)
121
that
a
VAT
oath
regulations,
ITaxable
MPOR
as
TANCE
may
There
taxable
the
be
should
relevant
CIR
year,
or
be
to
his
such
an
the
duly
interest
loss
inquiry
authorized
claim
Used
the
in
additional
the
exemption.
manufacturing,
)or
in
the
from
Philippines
sources
within
are
the
Philippines
to
be
controlling
TIN
is
cancelled
motive
upon:
is
the
thought
of
death),
who
any
shall
contribution
of
possess
or
to
rules
enjoy
a
private
and
the
pension
property
regulations
plan
or
pay
airline,
the
corporate
only
income
aliquot
tax.
portion
of
remuneration
agreements
statements
within
receipts
to
or
45
which
consideration,
days
after
the
tax
Philippines
the
whether
occurrence
is
in
bonus
b)
A
VAT
or
profit-sharing
oficial
receipt
plan
for
of
an
employer
lease
of
not
properly
registered.
concern
to
within
Rel
iefs
Philippine
Debts
five
transaction
.(1
findings
][1
its
Corporati
ro
income
by
taxable
shall
s
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te
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191,
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]sales,
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ed
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RY
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and/or
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between
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revenue
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:
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following
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Importations
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services
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by
or
law
inquiry
amount
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into
paid
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
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such
foreign
country
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same
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designate
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personnel
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for
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Real
the
in
en
levies:
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tax
AFP
are:
military
personnel
charged
chartered
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be
use
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granted
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for
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at
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banks
under
said
EFCDS
the
of
time
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willful
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place
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(Sec
to
sale
evade
196)
and
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articles
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income
35%)
grantor’s
due
IF
Brazil
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Treaty
In
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under
UNDER
THE
SYLLABUS:
particular
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earlier)
a
sworn
statement
of
Section
determination
150
of
LGC
of
the
legality
of
their
picture
films,
film
tapes
and
disc
the
insured
who
is
a
non-resident,
if
actual
Interest
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within
duly
Special
there
income
served
the
Education
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said
earned
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period
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is
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that
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of
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Commissioner
make
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Redeem
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valid.
this
grantor
[
MMIC
paragraph
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v.
fduciary
shall
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be
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Headquarters
property
Automatic
of
Multinational
appeal
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to
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Companies
=
engaged
in
any
of
quarter
shall
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the
total
amount
autonomy.
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taxes,
fees,
and
charges
based
on
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value
or
fair
a.
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generally
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pets
taxable
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purpose
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Over
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year
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the
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IR
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its
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to
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onwards;
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145
2006representative
treated
may
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the
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the
Philippines
on
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more
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earned.
Nature
1.
and
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These
Source
amounts
of
of
Taxing
tax
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in
the
invoice
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presented
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oficial
without
regard
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state
or
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province
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annual
exclusively
To
cause
revenue
where
oficers
he/she
and
practices
employees
A
goods
general
or
properties,
partnership
and
is
also
for
subject
every
sale,
to
making
signatory
sales
efectively
in
the
subjects
course
the
of
supply
trade
or
of
income
promulgated
for
paid/credited
from
benefit
sources
accordance
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of
its
reasonable
such
within
employee.
with
year
Secs.
to
This
any
the
e)
The
Death
VAT
payable
of
an
individual;
(Output
Tax
less
Input
Tax)
sale
Philippines
which
If
in
makes
up
pursuance
to
e
final
n
t
to
i
r
e
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se
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plan
l
l
i
n
g
pr
i
c
e
investigation
Items
cost
other
of
in
than
the
ticket
those
specified
corresponding
above
in
to
of
purposes.
the
casualty,
robbery,
etc.
Failure

for
the
benefit
of
all
or
some
of
Compensation
for
services
use
performed
It
must
be
paid
or
deposit
with
R
EAL
radio
P
ROPERTY
broadcasting
T
AX
until
neglects
or
refuses
to
do
so
upon
demand
revenue
tax
for
which
he/it
is
obligated
L.
sessions
Tax
as
En
x
Banc
15,000
fro
=
oth
3,333.
form
o
provisions
herein,
consistent
with
the
basic
An
years
exempt
from
the
party,
the
BIR.
date
on
The
the
assessment
other
assessment
hand,
shall
is
by
a
person
be
in
pursuant
to
an
international
da
ys
corporation
ARBITRAGE
fro
]
period
taxpayer
m
exchange
life
fil
in
of
is
g
the
borrowing
ly
permanency,
restrictions
[
Sec.
be
s:
]
186,
exercised
)
corporation
property
by
the
LG
bodies
thereof
calculation
Veterans
benefits
payment
Determinants
[
Sec.
2
of
09]
that
whether
portion
of
a
the
matter
estate
is
which
of
his
P10,000
per
month
per
unit
shall
be
)
of
ice
the
of
o
r
a
ORs
inventories
tax
credit
certificate
of
goods
or
or
stocks
refund
of
of
)
input
fling
deriving
members
tax
Now,
income
the
BIR
respond
tax
due
on
should
classifcation
from
to
his
the
make
income
it
happening
of
some
the
event
per
od
or
w
contingency
th
n
wh
ch
to
or
assess
or
counted
from
payment
the
payment
of
the
last
for
managerial
or
a
supervisory
and
amortization
a
ratable
of
intangible
part
of
assets,
expenses,
3.
entrusted
Not
)
over
the
with
P100,000
time
the
obligation
to
transfer
X
,
1987
d.
(Art.
of
Sale
282
withou
o
or
f
[2
[3
the
[B],
sale
ascertained
exchange
o
LOWER
Rules
Direct
(sale
enterin
and
of
connection/relation
of
Regulations
service
to
real
int
be
property
shall
worthless
a
connecti
where
of
the
and
LG
vi
Must
Resident
be
(2)
brought
Net
aliens
share
in
of
are
the
the
surviving
name
qualifed
the
to
)invo
administrator
property
19
58]
but
the
co-owners
are
liable
1
the
had
sale
territorial
been
extended
is
limitations
paid
the
jurisdiction
is
proportion
shown;
but
of
of
the
he
installment
may
Revenue
pay
the
reaches
municipal
partners
the
may
still
claim
itemized
–
a)
Forfeiture
Income
of
of
refund
religious
in
favor
organizations
of
the
from
(a
Notice
specifying
the
time
and
place
of
an
loss
individual
is
not
is
Op
(Please
tion
such
conduct
registered
al
such
refer
VAT
income,
as
applied
of
to
he
special
manufacturer/
trade,
22.
may
such
to
Invoicing
rental
laws
business,
select,
as
producer
and
Requirements
when
of
or
implementing
a
practice
value
whose
the
said
not
of
government

the
Nothing
taxable
in
and
year
Section
the
into
taxpayer
5
the
shall
pension
be
against
construed
plan
each
to
)
)
amortize
citizen
has
if
falls
within
the
meaning
of
the
phrase
“for
classified
as
Minimum
Wage
Earners
machinery:
gross
sales
equivalent
to
10
No
authority
to
print
receipts
or
sales
Request
contract
for
growers
transfer
under
of
Section
registration
109(F)

withholding
a.
(a
any
VAT
Carry
on
foreign
sale
Forward
agent
of
corporation
goods
of
Excess
was
or
properties
assessed
85%
of
under
the
for

with
the
principle
that
the
power
residence
worth
by
natural
persons,
the
Include
the
shall
transitional
refer
to
and
the
presumptive
government
owned
or
controlled
10
country
in
which
the
products
or
services
are
Not
Attorney’s
over
P100,000
fees
veterans;
Delinquency
provided
Interest
that
–
no
In
case
individual
of
is
not
the
subject
same
to
VAT
shall
be
allowed
to
certain
Judicial
imported
5(
which
2)(
materials
b)
,
there
Art.
(Sec.
V
III]
is
legal
prohibition
who
3.
Legal

is
ordinary
No
nonbasis
judge
of
30%
shall
tax
(starting
refunds
authorize
2009;
the
35%
executor
statutory
actually
Same
as
w/in
the
15
days
from
basis
notice
and
exchange
from
educational
the
and
entities/Exemption
return
on
public
Less:
Allowable
iii.
that
Foreign
an
extended
Tax
stay
may
be
Mor
of
taxing
tgage
issued
the
same
permit
property
benefits
to
operate
twice
(i.e.
from
DECS,
or
Amount
Value
(Sec.
received
201
by
the
heirs
from
(2
Liability
for
commercial
value,
Philippines
maxi
personal
22
Withholding
Tax
SUPPORT
final
tax
is
Oct
is
merely
ober
29
attempted
50,000
,od
in
100,000
which
case
400,000
it
may
=============================
Case
law
.confiscatory;
in
Amounts
most
jurisdictions
paid
out
now
for
new
allows
buildings
both
On
domestic
less)
VAT
Invoice
issuance
by
the
Securities
.Income
RE
SIDE
Deductions
NT
in
favor
purposes;
of
the
government
of
the
business
and
computer
systems
and
all
6%

Income
With
(c

no
Derived
R.A.
any
longer
7653
Authorized
under
New
the
Central
th
Agent
computati
Bank
Bank
Act
(AAB)
(as
th
(c
Sale
of
services
–not
not
allowed
to
months
date
of
transfer.
Reven
actual
value
when
it
attorneys
fees
shall
be
considered
as
part
of
of
his
total
salary.
B.
Estate
distraint
or
levy
or
a
proceeding
in
goods
carried
into
or
out
actual
of,
or
taxes
passing
imposed
individual)
from
a
depositary
bank
under
Commissioner
ON
derivatives,
and
other
similar
PCSO
c.
Inve
nt
ory
meth
performed/exercised
fWorks
or
iproperty.
nc
Same
om
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e
basis
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since
there
assent,
express
or
implied,
of
the
person
subsequent
donation
during
========================
the
payor,
Alien
not
Excise
tax
has
not
commerce
of
whatever
kind
or
nature.
minimize
differential
treatment
and
business
is
hazardous
to
health
of
employee,
levying
officer.
CE
contents
of
packages
or
contrary
to
law
or
when
there
islocal
an
5
Exemption
classifcation
Gross
from
of
seized
IMP
O
R
T
E
the
N
T
R
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Y:
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said
is
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that
declaration
the
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c
to
a
nand
the
no
tcorp.)
(b)
Types
of
Gains
from
Dealings
in
1
Approve
Denie
have
abroad;
allowed
in
the
preliminary
production
injunction
finished
where
not
more
than
1
Income
Tax
a
special
return
the
funddenial
filed
Port
of
in
the
accordance
protest
Fund
or
from
with
the
the
c
R
ght
of
redempt
on
–
1
yr
from
legations,
to
RESIDENTS
informatio
distrained.
assessment
the
20%
payee
example),
of
The
the
on
of
the
time
tax
this
imposed
a
of
sale
condition
deficiency
in
shall
the
not
Phils.
does
is
be
from
less
not
For
barangay
importation.
banc;
estate
treasurer
tax
These
purposes,
actions
or
his
residence
deputy
are
in
rem.
to
refers
collect
to
** Multinational
accorded
additional
exemptions
company
real
=
a
foreign
frm/entity
trade
engaged
with
afiliates/subsidiaries/branch
in
(Sec.
234)
tolled
ofices
price
is
in
the
the
time
Asia
for
Pacific
the
Region
CIR
&
FMV
and
description
of
property
13.
Fringe
Benefits

Note
any
the
suspens
tax
on
such
on
of
premiums
the
2-year
is

for
purpose
of
introducing
new
product
least
30
public
consecutive
purpose,
working
or
days
during
implement
Each
partner
shall
report
his
the
principle
of
res
ipsa
loquitur.
It
is
enough
area,
it

impliedly
Interest
income
withholds
–
from
earned
the
local
on
the
tax
exemptions
granted
under

dumping
Distinction
1.
2.
Land
To
lies
the
in
extent
the
required
Except
for
by
taxes
any
treaty
D.
1.
a)
4.
shall
Owned
There
payments
be
rendered
are
by
added
restrictions
do
the
not
on
unfit
REPUBLIC
the
exceed
for
as
amount
use
to
25%
the
of
and
due.
the
disposition
refund
the
PHILS
selling
their
or
or
performance
of
services
other
than
(Sec.
2313,
TCC)
Seizure
or
confscation
of
personal
property

the
Imported
government
goods
afords
must
the
be
taxpayer
entered
and
in
his
the
period
to
appeal
to
the
CTA.
Rule
Where
Inter-corporate
1:
rces
the
For
dutiable
purposes
of
dividends
value
of
income
collection
cannot
(from
be
of
determined
a
the
domestic
taxes
E
x
e
m
p
t
from
tax
E
x
e
m
15%
p
t
from
F
i
n
al
tax
the
respect
following
including
to
services:
its
last
shareholders
compensation
or
to
any
losses
trust
from
Between
sale
or
fiduciary
exchange
of
of
professional
institution
tax
taxable
on
each
for
income
administration
to
the
extent
purposes
that
it
employed
2008;
in
the
32%
2000
his/her
to
profession
2005)
of
or
the
gross
market
value
at
time
of
2.
Taxpayer
imported
closure
into,
of
taxable
a
business
year
as
establishment
a
loss
from
the
for
a
treasurer,
or
Secretary
of
Finance,
Philippines
of
the
said
buyer’s
goods
privilege
to
Phil.
transferor.
Marine
food
products:
fish
and
II.
NATIONAL
as
permanent
unearned
INTERNAL
basis
revenue,
classifcation
that
as
the
is,
such
services
laws.................................
to
zero
percent
rate
7
barter
or
exchange
of
services.
a.
receipt
There
is
necessary
is
a
violation
to
substantiate
of
the
tariff
and
claims
indebtedness
Indebtedness
must
Philippines
244
legatee,
and
such
255
heir
or
as
or
any
beneficiary
dividend,
of
the
interest,
may
rulings
be
Contraband:
for
each
quarter
Articles
shall
of
be
prohibited
reduced
by
the
regardless
of
the
place
of
sale
or
A.
T
O
E
FFECT
T
AX
C
OLLECTION
:
(CITE
LAW)
deduction
is
purely
business
in
f)
Dissolution,
the
leg
flown
merger
from
or
the
amount
Philippines
consolidation
is
to
to
submit
the
declaration
within
45
employees:
to
OR
is
expected
to
periodically
file
The
5,000
findings
may
be
33
used
as
MCIT
like
a
without
incurred
the
in
Philippines
policy
of
local
autonomy.
[
S
ec.
12
9
]
10%
More
of
taxable
than
income
[donee
CIR
v.
CO
M
A
S
E
merger
R
C
O
,
G
or
.
R
.
N
o
.
125355,
1)
and
2)
co
ect;
and
or
entity
granted
VAT
exemption
under
the
Tax
II.
transcendental
Fees
a
public
and
hearing
P10,000
profession,
IV.
TARIFF
AND
CUSTOMS
CODE
OF
Benefits
under
SSS
Dur
a
t
io
n
:
lien
exists
from
the
time
but
rather
payee
fall
on
the
creditable
input
due
or
paid
administrative
and
writing,
2
Justices
or
and
for
sessions
of
a
the
Issuance
convention
fulfillment
by
the
of
or
debtor
some
condition,
of
a
notice
other
to
ofset
than
business
subject
at
the
to
VAT
time
if
of
the
death.
aggregate
annual
.
C
onst
it
ut
io
n]
;
5.
Requisites
having
not
(Stock
asset;
practically
of
applicable;
valid
should
Transaction
gift
no
be
the
or
capitalized.
activities
capital
Tax)
gain
except
and
interests,
[4
Income
losses
derived
and
from
other
illegal
deductions
Implementing
pr
also
otes
On
t
include:
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any
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charged
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amount
the
g
LGC)
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in
excess
o
of
debtor/creditor
on
that
C]
is,
.
Government
(b
deduct
place
acquiring
which,
control
whenever
for
the
shares
absent
of
for
labor/personal
(Sec.
2313,
TCC)
distributive
a.
The
District
the
use
collection
Commissioner
executor
of
Ofice
which
[U
nio
actually
or
in
where
n
trade
shall
judicial
Within
also
the
or
received
business
administrator
hear
the
taxpayer
the
during
is
of
is
income
employee
tax
in
their
separate
)
sale
and
distinguished
lot
government
to
C,
a
son
when
A
when
a
refund
m
A
reaches
er
check
legal
s
or
age.
f
clear
spouse
to
the
Registr
under
the
ation
VAT
during
can
as
granting
the
only
taxable
be
exempted
year
are
from
required
VAT
to
if
the
file
exceeding
deductions
Ten
thousand
from
said
pesos
share,
(P10,000.00);
however,
recognized
expense
other
have
already
become
due,
any
activity
conducted
for
profit
or
from
closely
related
to
his
(2
8)
c.
proceeds
Gen
i.
Where
(b
Submission
Authority
Final
relationship,
payment
Lease
Commissioner
er
al
to
of
deed
Ru
with
fle
sale
to
upon
or
le:
to
exceeds
the
Prescribe
of
of
in
the
the
(expressly
purchaser
this
return
documents
the
may
use
taxpayer’s
jurisdiction,
to
development,
25%
theory
Additional
prescribe
of
resolve
of
indicated
or
the
within
that
the
trade,
gross
mere
a
financing
right
the
in
60
or

ii.
(8
iii.
v.
When
------------------------------------------------[earning
Tax
intentional

allowed
Compensati
Credit
only
by
–
the
the
a
and
right
Constitution
for
Statutory
damag
of
an
substantial
Minimum
income
[
Sec.
if
it
products
)
Sec.
rules
of
Minimum
the
106,
are
and
actual
regulations,
Tax
tax
paid
the
to
the
tax
foreign
due
on
The
cover
–
donor’s
the
pension
tax
return
liability
shall
accruing
be
filed
within
o
business
of
which
is
located
in
the
any
cause
ultimate
corporations
beyond
purchasers
or
local
the
or
governments
control
consumers
of
the
said
(2
branch/facility,
Exercising
which
has
no
registered
tax
1701-1708)
(3
commercial
b)
incurred
an
invoices
income
for
shall
pr
tax
odu
be
cin
granted
g
wells
unless
&
corporations
the
Tax
Code
(GOCCs)
a
of
1997,
shall,
pertain
exchanges
before
to
toll
making
actually
Most
consumed
favored
nation
or
used.
clause
Exports
–
exempt,
Royalty
deficiency
On
or
judicial
any
withholding
amount
in
excess
tax
under
the
Code,
Covered:
to
create
E
Persons
xcepti
municipal
or
Interes
firms
corporations
engaged
dividends,
in
the
for
proceeds
acquisition
of
which
shall
cost
be
is
subject
fully
utilized
VAT
at
in
the
input
tax
Includes
input
taxes
which
can
be
%
o
Powe
r
person
t
200,000
o
Pres
owns
cri
be
its
assets
Pena
lti
or
es
no
for
individual
Tax
or
receipts
for
the
following
twelve
(12)

D
7.
istr
OTHER
Taxpayers
ibu
E
Excess
2006
tion
xcep
CONSIDERATION
o
f
tion
may
of
2008)
s:
MCIT
apply
ov
er
for
th
VAT
AFFECTING
e
nor
registration
mal
in
co
me
not
Credit
20.
a
INVOICING
Failure
to
NOTE:
issue
receipts
Tr
an
sfer
and
o
f
air
invoices
lin
e
decedent’s
employer
%
)
payment
the
dwelling
house,
including
o
failure
property,
to
stock/
recognize
ii.
input
tax
against
its
Court
fees;
necessary
for
its
accomplishment,
resident
Broadly
alien,
speaking,
with
a
tax
situs
refunds
in
the
Philippines
are
lega
Automatic
Retur
deductions
1966]
n
ii.
o
rendered

f
same
Par
Administrative
en
contract
t
and
zero-rated
to
in
(including
exemptions.
clud
e
expense
in
co
me
transactions
grossed-up
It
o
f
should
is
juridical
"citizen"
and
entity
as
its
branch
ofice
in
Selling
Price
or
FMV
property
other
E
x
m
p
t
f
ro
m
E
x
e
m
p
t
f
ro
m
CG
E
x
e
m
p
t
f
ro
m
CG
E
x
e
m
p
t
f
ro
m
CG
from
real
be
effected
only
while
the
goods
are
still
=========
TCC,

as
amended
or
for
permanent
by
RA
9135)
improvements
or
purchases
of
goods
or
e
Formula:
Proceeds
court,
vii
Exchange
earnin
and
business
of
for
Life
Commission
sixty
proces
covered
(60)
days
is
of
by
complet
the
the
Certificate
law
Ma
ni
l
(2)
productivity
Reasonable
Private
incentives
Benefit
&
)
included
amended
in
by
e
on
e
b
)
Property
deduct
any
tax
–
customs
located
commercial
within
the
data
territorial
including
jurisdiction
payment
of
ue
Tax..........................................................6
6.
If
a
taxpayer
had
lost
his
right
to
gross
Expanded
income
of
the
latter
valued
at
either
the
Gross

Selling
(10)
Grant
Price:
of
power
the
to
total
the
amount
local
of
Philippines
or
any
political
subdivision
Procedures
LIABL
through,
The
filing
the
of
territorial
tax
returns
and
due
as
the
of
local
determi
nat
io
n


Cons
ti
tu
ti
Conditions
taxed.
for
the
expanded
foreign
should
be
taxed
once;
exceeds
the
amount
shown
as
HIGHE
received
the
year
fnancial
transfers
instruments
for
less
than
the
adequate
and
4.
GENERAL
was
PROVISIONS
actually
ON
individual
Sale
of
shares
stocks
traded
RCIT
i.
WHO
(a
Fun
Dowries
Rate
M
AY
er
al
A
VA
or
IL
OF
gifts
T
AX
35%
made
on
30%
account
30%
On

wholesalers,
distributors,
or
dealers
in
foster
fairness
and
equality
of
treatment
housing
can
be
located
outside
the
factory
shortages
engaged
i.Taxpayer
Basis:
before
in
Revenue
arr
va
of
Memorandum
the
Circular
II.
PAYME
NT
OF
Property
d
d
5
not
actual
be
contrary
and
intentional
to
Law,
public
fraud
policy,
[p
S
ec.
Income
4)
been
regardless
paid
of
whether
or
not
he
Report
of
seizure
to
Comm.
Of
Customs
d
e
ma
n
d
w
h
at
tjurisdictions
yof
p
e
odutiable
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uor
por
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.=======================
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taxation
International
.primary
CIR
BOC
Systems
v.
showing
M
a
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y
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ay
Lin
e
sWorker
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the
.for
R
.currency
imported
N
o
.payment
14698
article
4
,n
(13)
Overseas
local
taxes
are
involved.
But
it
cannot
negate

50
passengers
Winnings
or
10%
Berthing
Every

Taxable
i.
Ordinary
at
10%
gain
the
on
(loss)
date
TAXABLE
v.
Capital
INCOME,
international
other
foreign
markets.
n:
and
the
Thus,
it
is
of
no
defense
that
the
of
than
necessary
twenty
lapse
(20)
to
of
days
a
criminal
after
notice.
prosecution
One
place
for
agencies
of
foreign
gov’t
said
income
any
calendar
year,
or
who
is
engaged
in
subject
to
currency
FBT
bank
imposed
by
the
foreign
country
permanent
taxes,
that
the
fees
cargo
To
is
unmanifested
accredited
and
that
domestic
there
government
the
delegated
power
to
tax
the
belonging
to
the
person
subject
to
tax
subject
price;
distributive
Sec.
share
as
part
of
his
gross
Suit
estate
assailing
amounting
tax
the
to
validity
to
finance
P50,000
the
tax;
for
[the
S
ec.
each
diplomatic
purpose:
rank
on
duty
abroad
BARANGAY
its
use
political
of
the
Articles
for
personal
or
family
use
of
person
engaged
in
the
binding
upon
the
Phil
govt.
government
shall
where
he/she
maintains
(Sec.
of
withheld
transaction
mentioned
in
the
preceding
customhouse
at
But
can
Section
privileges
must
be
accorded
in
a
special
pursuant
shareholders
paid
represents
the
and
of
provisions
compute
any
other
a
of
distribution
corporation,
Section
the
amount
101(A)
by
of
imported
income
by
person
received
registered
from
all
and
sources
identified
within
to
2.
3.
under
a.
Buildings
the
General
preceding
Administration
method,
the
&
planning
value
j.
(f)
within
MM
area
only
3.
sale/exchange
capital
assets
of
a
capital
T
asset
Requirements
Paid
a
for
for
trust
in
Making
acceptable
&
the
fiduciary
foreign
of
Sangguniang
sold
or
is
likely
Secretary
of
Trade
and
Industry
or

License
subject
should
fee
Contract
to
primary
be
tax
submitted.
Otherwise,
regulate
–SEF
one
who
a
c
crustaceans,
such
as
but
not
limited
to,
claimed
as
deduction.
This
applies
......................................................
145
services
payments
rendered
of
the
to
persons
passage
engaged
or
freight
in
customs
for
input
laws.
VAT
Imprescriptibility
involving
the
purchase
be
that
of
the
taxpayer
importations
Transfers
or
made
exportations.
1.
before
Tax
Lien
[(Sec.
the
S
ec.
246,
decedent’s
351
251)
4
,profit
juridical
person;
actually
return,
Only
If
VAT-registered
contributions
pay
taxes
due
are
persons
made
are
to
and
required
the
update
to
A
community
tax
certificate
may
also
be
or
circulars

3
When
P10,000
the
taxpayer
s
out
of the
M
a
rch
3
0
,to
2000]
VAT
is
a
tax
on
transactions,
121
Code,
attributable
a
special
law
such
or
sale.
an
international
Charges
fortuitously
said
income
on
the
type
Rentals
and
royalties
from
property
donation
assessment
(CIDA)
is
made
by
the
Commissioner
corporation.
which
cannot
definitely
be
allocated
Division
EXCEPT
holding
loss
shall
income
property,
are
be
to
subject
necessary
be
reported
and
to
for
collecting
in
final
the
full
amount
tax,
the
business
or
)the
stocks
pleasure,
or
of
Taxable
the
one
target
still
intends
corporation
to
return.
is
REVENUE
gross
CODE
receipts
G.
from
Tax
said
units
only
importance:
any
views
debt
and
or
obligation
and
acceptance
shall
required
without
be
year
said
allocated
in
to
certification
relation
or
register/which
apportioned
to
the
if
gross
the
to
credit
has
per
od
warrant
remains
unclaimed
or
uncashed
G
ar
m
e
n
tthereon,
Philippines
services)

Subject
to
a
final
tax
of
32%
(tax-free
limited
duration.
B
is
the
during
fiduciary
the
year
heir
may
be
and
claimed
C
is
as
demandable
of
additional
and
the
exemptions
fully
liquidated.
ONLY
if
In
the
this
should
inform
the
taxpayer
of
law
agreement
on
tax
matters
to
which
the
)Upon
Requirements
judicial
(e)
existence
increase
)i.
days
often
selling
privilege
min
action.
Provisions,
period
invoice,
imu
in
profession
price.
–value
m
of
No
the
to
is
amoun
such
management
use
amount
including
action
tsubject
or
and
shall
thereof
crops,
be
actually
should
and
28[2]
--------producer
pay
taxpayer
understatement
their
,duly
Ar
on
t.
of
income
to
the
tax
agricultural
of
returns,
es
except
products
they
cannot
claim
the
same
the
articles
100%
any
exported
of
time
their
are
of
property,
its
considered
real
export
or
personal,
sales.
Philippines,
resources
and
his
gains
country,
realized
per
country
from
limitation
the
and
original
share
30
bears
the
days
year
after
to
the
–Provincial
value
considered
of
the
as
net
ordinary
estate.
The
and
Section
payment
for
further
on
account
discussion)
corporation
of
its
purchase
property
of
goods
income
paid
Commissioner
by
a
that
he
the
can
appeal
authority
if
not
to
1987
processing
on:
of
t,
rents,
B
Ex.
a
cobligation
Real
k
w
a
ronce
estate
d
s2.
h
iadministrator
ft
iin
n
tax,
g
occupation
the
reverse
tax
of
2.
Declared
the
receipts
by
or
invoices
/requirements
to
City
be
/ax
printed
Municipal
are
types
processing
in
the
RDO
services
where
it
for
is
registered,
clients
from
shall
Vi
ola
ti
ons
a
nd
If
as
the
such,
property
iii.
it
is
being
is
not
held
redeemed,
liable
in
a
fnal
its
capacity
deed
iv.
purposes
local
selfgovernment
4
1.
acquiring/constructing
Types
value
On
[2
the
ix
exchange
of
NIRC
gross
of
grant
Expenses
[a
Tax
of
Net
Philippine
operation
Religious
receipts,
of
Rate
Operating
property
tax
control
under
—
exemptions
a
one-half
sales
new
lease
Loss
problems.
without
conduct
and
principal
of
or
one
taxable
percent
of
In
actual
the
tax
Lim
(2
2.
ita
ti
V
change
ons
I,
1987
attributed
represents
of
in
the
the
to
trade
transactions
payment
or
corporate
for
subject
loss
of
to
E
TAX
state
later
REFUNDS
ta
than
x
shall
be
REQUIREMENTS
)directly
co
mp
an
y
,on
not

Authority
(b
person
P60,000
law;
receives
benefit
on
its
earnings
(c
Royalty
income
Government
The
months,
returns/declarations
other
Government
than
those
must
that
Maybe
are
exempt
corporate
administrator
income
solely
to
tax:
deliver
for
stocks
a
distributive
with
in
land
a
generally
Ch
ildr
en
land
area
refer
not
securities
on
be
to
which
it
is
remunerati
situated,
where
for
thereafter;
Such
taxes,
fees,
and
charges
shall
accrue
2.
In
all
other
cases:
monetary
value
of
FB);
but
No
Failure
and
to
to
file
that
VAT
end
return
the
alien
as
required
makes
his
as
based
a
b.
consequence
carried
Accountant’s
on
payment,
Established
forward
of
for
death
interest
&
or
credited
maintained
of
the
against
decedent
deliver
by
abroa
a.
For
possession
purposes
transfer
of
or
enjoyment
the
threshold
of,
or
of
the
.Philippines
exactions
Insurance

g
cannot
apply
s
here.
This
e.
rule
is
a
based
referred
Plan
(RPBP)
to
as
granting
the
franchise
whichever
.willful
is
than
shares
e.g.
the
of
manufacturer
has
agreed
CG
to
tE
ax
tE
ax
t25%
ax
the
Revenue
District
Ofice
where
the
within
pay:
the
Custom’s
jurisdiction
or
in
betterments
made
to
increase
properties


distributio
dispute
If
made
the
transfer
the
in
8
is
revocable,
the
entire
d
principle
All
Loss
imported
Rationale/grounds
of
Dissolution
quasi-contracts
articles
are
or
for
Reorganization,
or
solutio
to
duty.
indebiti.
as
may
SPE
money
CIAL
or
RU
Christmas
4.
LES
tax
government
ON
HUS
due
bonus)
BA
ND
units
on
to
any
return
fair
"taxpayer"
market
standing
in
public
the
actions.
zonal
De
valuation,
B.
Foreign
Rentals
Currency
Deposit
Location
System
of
the
FMV
annual
=
R.A.
Remain
taxable
in
g
eco
.–&/or
e
X
return
of
capital;
thus
the
entire
gross
12.
c.
Consignment
Exclude
Gross
Mandar
Income
Non-resident
of
in
goods
H
ote
iflif
ls
actual
Aliens
v.
P
sale
Not
is
not
D
isch

ar
The
ge
[1
o
fits
income
The
allowance
of
unmarried
for
minors
depreciation

on]
DEDUCTIBILITY:
is
VATR
government
taxes
to
the
units
new
RDO
the
guise
shall
person
of
commence
charges
or
for
at
Imposed
on
property,
real
or
personal
The
ADDITIONS
No.
among
thereof
intangibles
19100
It
Capacity
all
is
or
2,
the
taxable
TO
Marc
input
shall
THE
of
the
h
when
not
taxes
TAX
the
form
the
that
to
income
part
th
can
sharehold
be
the
of
directly
the
gross
co(Ex
22.
WITHHOLDING
Conditions:
(i)
at
least
50
yrs
old;
deposit
system
CRED
)
exp
marriage
IT

S?
en
ses
before
its
in
the
local
stock
exchange
goods
n
the
Ph
pp
nes
art
c
es
or
full
No.
consideration
43-74
shall
not
(depending
be
subject
Lott
on
to
taxes
due
but
(1)
among
Enforced
Who
taxpayers.
(2)
is
Primarily
proportional
Liable
and
(3)
(10)
new
being
Income
RDO
subject
from
to
transf
any
FBT.
source
of
registrati
of
th
Actual
An
shipment
CTA
employee
have
of
jurisdiction
the
goods
receiv
over
from
addition
the
PE
(A)
RCE
Method
NTAGE
One.
TAX
–
Transaction
Value.
The
tax
by
the
Both
taxes
must
be
imposed:
trade
or
any

article
of
.
===============
Comity
The
value
of
the
decedent’s
interest
over
Only
the
estate
a
citizen
or
resident
alien
at
national
Income
ii.
and
from
the
the
sale,
Graduate
(4)
Benefits
received
from
a
foreign
RCIT
Estate
and
Trust
P
P
Winnin
P
Jwithout
that
u
l
y
2
will
8
,
2006]
enable
customs
authorities
to
Workers;
fee
except
Harbor
gain
on
(loss)
of
forfe
ture
person
(Sec
181)
Gross
the
procedural
Gift
rules
and
xx
under
a
Global
economic
(unitary)
policy,
or
Tax
in
the
System
restraint
–
the
f)
the
name
dividends
based
an
article
locally
purchased
or
Issuance
Final
Deed
to
purchaser
(upon
the

to
lien
in
sufficient
quantity
satisfy
the
liability
i.
On
the
same
property
or
i.
Name,
address
and
taxpayer's,
vessel

Shares,
business
sought
to
rights
or
be
occupation,
forfeited
in
any
or
had
who
busine
no
actual
owns
or


Property
attempt

Ordinary
of
to
foreign
defeat
gain
State
is
and
of
derived
evade
from
the
49(B)
TC

was
no
showing
that
payment
of
duties
same
field.
This
doctrine
principally
rests
on
exercise
or
Year
practice
of
his
be
exempt
from
the
principal
normal
office
in
case
the
individual
where
the
taxpayer
branch
is
established
regardless
of
(a)
NOTE:
Fringe
benefit
authorized
&
exempted
g.
Interest
Removal
income
of
Business
from
to
another
long
term
E
x
e
m
p
t
from
x
e
m
p
t
the
from
sixty-day
tax
x
period
e
m
p
t
from
prescribed
taxE
x
e
m
F
p
i
n
t
al
from
tarule
xtaxon
a
Meaning
–
The
grant
of
immunity
to
members
Recovery
and
of
attaches
refund
of
of
taxes
foreign
paid
[
S
ec.
deposits
&
yield
or
any
other
All
brokers
are
required
for
December
to
keep
which
at
their
Financehome,
or
charges.
the
place
In
case
to
which
a
bond
whenever
is
required
absent,
for
the
for
earnings
or
profits.
subdivisions.
goods
More
by
than
the
buyer
E
50
x
ce
pt
other
:
when
than
7,200
beneficial
restrictions
use
Panlalawigan
may
Protest
3.
4.
Machinery
and
held
for
not
more
than
12
mos.
shall
be
the
transaction
value
of
similar
goods
purpose
their
port
taxpayer
is
of
entry
otherwise
the
they
shall
be
the
period
to
appeal
*
subject
to
the
to
the
.remedies
(tax
on
business),
businesses
maintaining
Additional
Ad
Valorem
on
the
4.
another
if
same
person
is
a
Technical
support
&
maintenance
to
be
sold
in
international
b.
Suit
Secretary
Compensation
to
declare
cases
of:
of
invalidity
shipping
Agriculture,
of
or
tax
air
due
as
to
the
transport
case
Scope
5.
of
Taxing
losses
Powers:
resulting
The
barangays
securities
currency
2.
Distraint
and
Levy
(Sec.
254)
eels,
trout,
lobster,
shrimps,
prawns,
b.
As
a
consequence,
they
may
be
applied
to
the
Appe
............................................
leaves
the
7
such
print
their
record
TIN
followed
of
any
by
changes
the
word
"VAT"
in
the
in
excess
services.
of
Citing
the
amount
the
case
collected
of
CIR
from
v.
the
Manila
be
engaged
in
g)
[

198
Discovery
Are
imposed
Indebtedness
of
a
or
taxpayer
required
must
having
be
by
connected
law
multiple
or
by
TC
C
issued
]
to
any
country
or
trust
by
of
imposed
at
every
stage
of
the
distribution
agreement
to
3.
which
Local
Taxing
the
Authority
Philippines
is
a
income
located
regardless
therefrom
without
of
the
or
investing
number
the
Philippines
of
the
years
same;
The
profit
distribution
to
the
partners
is
promulgated
by
Commissioner
shall
until
paid,
with
interests,
penalties
and
jurisdiction
is
included
over
in
the
the
location
inventory
of
of
The
creditable
input
tax
allowed
to
be
rendition
addition
within
5
to
of
yrs.
a
compensation
decision
from
date
or
of
resolution
mailing
income
or
When
are
NOT
Advertisement
thereof
by
the
of
the
seller
Income
sale
as
of
payment
the
property
for
services
through
(not
including
the
gross
receipts
from
exchanges)
case,
compensation
takes
place
by
and
the
facts
on
which
the
less
v.
C
oll
]
–
form
part
of
gross
sales
duly
agreement
between
If
the
income
earned
is
from
fideicommissary.
The
transfer
from
A
to
B
is
Municipalities
recommendations
may
of
any
provided
(Panay
E
ectr
for
c
Co
individual
v
Co
ector;
or
May
family
use
sold
is
the
is
a
cooperative
signatory
itself.
or
a
If
party
the
expenses
already
claimed
by
extent
of
his
liability
shall
not,
however,
exceed
C.
P
OWER
/A
UTHORITY
TO
ASSESS
AND
COLLECT
ALL
and/or
services
taxed
at
12%
shall
deduct
ability
to
Philippines
pay
qualifed
Assessor
(Sec.
transaction
shall
immediately
become
the
necessary
date
the
expenses
gift
is
under
Sec.
34(A)(1).
.143
government
Income
realization,
tax
optional
]
.
cases,
any
base
reliefs:
agreements
Tax
]
(1/2
business
(taking
copyright,
back-toto
trade,
either
is
of
Carry-over
the
a
necessity;
taxpayer.
patent,
that
The
design
it
relevant
or
Res
)
idua
Co
Net
name
inquire
disdained.
l
Po
ns
deduct
the
satisfied
Taxable
ti
we
expected
of
tut
r
tax
into
the
io
from
n]
with
Estate
liability
bank
;
income
the
deposits
assessment.
by
tax
the
payable
other
taxpayer
than

which
VAT
on
growing
sale
of
of
services
animals
were
and
use
(1)
the
sardines,
character
royalties
mackerel,
of
the
includin
funds
and
milk
or
other
and
in
assets
the
of
as
sale
a
shall
withholding
be
issued
to
agent
the
purchaser.
and
not
its
)(b
carries
with
it
the
power
to
confer
the
residence
w/in
under
18
mos.
corp.
the
from
(both
NIRC
date
of
sale,
any
domestic
Non-stock/non-profit
VAT
plus
corporation
a
ratable
portion
to
mutual
on
a
any
non-resident
input
savings
or
political
or
political
exclusively
to
2.
When
i.
General
the
taxpayer
professional
requests
partnerships
for
be
under
10
days
A
filed
certification
Section
before
the
109
beginning
to
(A)
this
to
effect
granted
(U),
the
must
taxable
will
to
be
b)
final
tax
should
have
been
paid
There
iii.
on
When
the
delegation
relates
merely
the
3.
DISTRAINT
(2)
a.
–
normal
the
share

Ofshore
[3]
[3

“Actually
employer
same
Adv
income
OF
Charitable
Banking
an
any
may
PERSONAL
shall
ce
to
ascertained
paid/incurred
P
party
ay
be
men
granted
interested
t/
Lon
ga
of
in
to
the
cases
in
be
d
h
b
Conditions
At
(9
Tax
3.
Exclusions
the
Cemete
right
1.5M,
on
certain
time
for
to
the
the
aircraft
the
from
compa
husband
and
income
Gross
allowance
place
owne
Income
and
fixed
of
wife
an
FAMILY
in
operate
or
such
an
buy
the
fee;
home
temporarily
in
(3
Commissioner
prescribe
the
manner
tax
of
A
payment
The
income
exchanged
or
a
portion
tax
law
of
of
proceeds
his
country
on
the
The
taxpayer
Donative
Authorized
premise
real
intent
is
estate
Agent
required
that
is
the
a
Bank
creature
business
to
shall
register/where
(AAB)
of
be
of
the
within
subject
mind.
foreign
the
to
It
export
income
greater
sale
of
than
goods
30%
of
salarie
total
supply
wage
of
l.
The
stock
exemption
Exhibition
pertinent
in
a
of
certificate
of
payment
at
place
A
ND
WIFE
required
to
be
whichever
deduction
is
higher,
in
the
taxable
year
received
G.
Goods
under
Conditionally-free
the
from
employee
Replacement
value
cost
any
property
or
estate
(not
course
of
trade
or
be
defined
by
rules
and
regulations
n;
(b
[5]
shall
De
When
be
allowed
minimis
Credit
the
unless:
inheritance
for
Taxes
may
to
be
any
GLOBAL
a.
Invoicing
requirements
in
Engaged
made
within
in
Co
Trade
or
ner,
[percentage
CTA
xxx
Cas
e
liab
ilities
derived
][5
must
from
be

validity
of
C.
a
Donor’s
tax
assessment
Tax
in
view
gift

BU
17,
RE
distributing
attributed
if:
2
AU
Multiply
010]
Commissioner
ownership
donor
OF
of
Customs
by:
to
Final
fails
to
m
Tax
e
ers
.not
Husband
equivalent
OF
VAT

ii.
and
create
DEFERRED
Election
which
(ii)
wife
in
its
the
are
the
own
to
considered
deduct
PAYMENT
sources
purchaser
exploration
of
as
revenue
METHOD
pays
separate
&
or
is
–for
property/interest
ost
or
destroyed
after
such
6
As
to
8791)
graduation
Estimated
eco.
of
rate
(Three
systems
receipts
(Stock
Income
wharfage,
the
Transaction
time
derived
the
tolls
transfer
Tax)
by
for
a
bridges
is
efected
or
transaction
otherwise,
by
the
is
old
presumption
that
the
interest
will
registered.
A
whatever
er
on
eor
Philippines
following
to
who
cases
a
es
al
dutiable
March
value
No.
10
,mmissio
5046
,dealer
Marc
h.
M.
Kinds
of
Taxes
donor’s
tax.
The
rationale
is
that
o
under

collection
was
classifcation
of
pecuniary
In
Taxable/Business/Ordinary/General
proportion
contributions
to
its
(4)
value
from
persons
or
other
and
Proceeds
Covers
from
charitable
life
insurance
institutions,
form
churches,
part
of
It
serves
(3
If
b.
the
Necessity
the
Income
property
as

a
executor
means
partly
of
proof
or
within
This
administrator
for
function
claim
or
partly
or
is
alien
refund
makes
Protest
Affirmed
the

celebration
time
of
Protest
Denied
within
one
year
thereafter
by
business
Taxation
(180
is
the
rule
and
exemption,
the
exclusive
for
public
purpose
The
taxpayer’s
net
worth
is
determined
NOTE:
Electric
companies
are
now
subject
to
The
government
taxable
fringe
benefits
received
by

Liability
TAXABLE
compensation
If
rests
the
benefit
INCOME
exceeds
P30,000,
means
benefits
gs
only
the
in
exchange
or
other
d
The
======================
1.
term
Sec.
“course
112
of
business”
of
trade;
or
“doing
fee
Chairman,
Comm.
On
Audit.
who
wins
a.
Civi
l
taxpayer
on
his
return.
The
amount
17,500
30,000
120,000

determine
TAX
(4)
RATE
Non-impairment
the
ON
correct
CERTAIN
delinquent
duties.
of
obligations
An
importer
½
[
FINAL
Sec.
of
1%
is
Actual
funeral
expenses
or
in
amount
equal
to
commerce
of
whatever
kind
or
(14)
GAIs,
in
the
discharge
of
their

subject
the
actual
matter;
amount
profession
requiring
payment
of
this
practice
is
in
several
g

business
Loss
style
of
Residence
partnership
ss
certain
government
passive
sale
may
income
or
not
(which
are
subject
(c
total
real
allowable
property
with
an
aggregate
Less:
C
]
deductions
2:
RC,
NRC,
knowledge
thereon
had
that
been
his
property
made
for
was
it
used
be
illegally.
subject
income
identification
tax.
A
number
crime
is
complete
when

Persons
subject
to
file
whether
he
is
single,
head
of
the
family
tax
under
special
laws
location
ii
For
the
same
purpose;
.
TOPIC
particular
UNDER
herein
persons
within
THE
SYLLABUS:
which
to
appeal
with
embassies,
legations,
Premiums
consular
collected
oficers
or
received
on
principal
deposit
or
place
investment
of
in
the
form
of
tax
monetary
benefit
from
deposit
4
determine
but
shall
in
1.
The
term
“banks”
value
refer
of
GPP
to
itself
entities
not
has

been
granted
to
a
taxable
person
chairman;
business
purpose,
or
the
pleasure,
Property
provincial
one
Dividend
intends
city
to
or
–
property
return,
municipal
and
(100%
deduction)
Such
net
=
returning
from
regular
assignment,
15,000
shall
be
Passengers
considered
as
contraband
and
the
importer
tax
credit
or
operating
branch
or
sales
outlet
elsewhere
CTA
be
extended?
sold
for
export
to
the
Philippines
and
exported
at
irregularity
in
may
levy
the
the
Phils.
grantor
3.
to
Civil
each
Action
trust
–
formal
demand
not
4.
Other
al
may

improvements
will
be;
Income
be
and
at
the
received
not
mercy
otherwise
of
by
the
estates
BIR,
of
cost
to
carry
9]
Philippine
purpose
for
registration
their
oysters,
invoice
becoming
information.
mussels
or
oficial
and
worthless
receipts.
clams
and
which
Lands
–
3.
not
Double
Taxation
Appeal
with
the
LBAA
Mining
Income
Corporation,
where
an
invoice
LAWFUL
is
REVENUE
FROM
IMPORTED
with
ARTICLES
the
taxpayer’s
otherw
AND
se
cannot
trade,
be
ocated
(g
b.
(c
Business
Amount
planning
Received
&
coordination
by
as
Return
2.
6.
Apply
TINs;
for
tax
refund
k.
Data
render
decision
w/in
30
days
pursued
28
1958)
in
the
1.
Must
be
in
Accounted
for
in
accordance
with

Within
15
days
to
Yes
Philippines
on
account
of
a
person
sale
or
auction
or
corporation
within
Provided,
30
not
days
After
subject
after
pay
to
levy.
ment
the
The
that
trade
process
on
the
sale,
barter,
exchange
of
goods
signatory,
and
.................................
by
virtue
of
which
122
its
taxable

Excluded
principal
impositions
ofice
of
the
pursuant
“CORPORATION”
to
the
from
any
interest
in
such
property
costs
delivery
that
may
accrue
in
addition
thereto
employer/employees,
or
both
for
the
exempted
refunded
required
from
quorum
does
income
not
cannot
include
tax
be
on
constituted,
their
transitional
entire
operation
of
law
and
Liability
both
obligations
rests
are
units
assessment
leased
for
is
made;
more
otherwise,
than
P10,000)
the
rendered
treated
as
recorded
in
the
books,
and
impose:
government
ofice,
agency
or
subject
to
estate
tax.
the
transmission
or
and
withhold
a
final
VAT
of
5%
of
the
gross
of:
Provided,
That
the
information
suficient
for
four
(4)
months;
cooperative
is
not
the
producer
(e.g.,
GPP.
compensation
income
model,
plan,
secret
formula
or
process,
foreign
(substantial
income
under
tax
he
declaration
has
paid
to
his
of
Since
the
power
to
make
an
aforemention
due
and
payable,
governme
and
subject
agenci
to
ma
involved
in
the
cannot
supporting
continue
documents
without
mentioned
means
to
in
pay
the
its
law
Phil
and
the
made
foreign
as
provided
country
for
under
Sec.
6
(F)
of
the
It
must
be
directly
on
the
X
Tax
rate
(Sec.
84)
5-32%
20
Exempt
subdivisions
reconsideration
contracted.
subdivisions
Thus,
which
is
the
granted
activity
by
of
LGC)
power
to
tax
on
such
local
provided
historical
cost/adjusted
basis
Right
taxes
of
to
Conducted
Customs
which
admin
dependent
corporation
cannot
by
Officers
legal
children
which
be
directly
oficers
to
is
are
Effect
a
living
attributed
resident
of
with
of
to
a Denied tax
through
back
sale
[b
1%)
loan
Refers
business
is
or
used
other
or
to
profession
to
disposition,
take
advantage
of
the
is
not
of
business
profits
Protest
PROPERTY
Units
into
of
]ter
natural
worthless”
m
account
INCLUDING
lease
the
sales
–But
and
income
allowable
of
.5.
HOME
notice,
)foreign
ry
The
as
][2
the
posting
said
ny
shall
be
d
d
in
Protest
not
d
Affirmed
less
lease
of
Scientific
manufacturing
b.
,Among
the
g
ordinary
and
issued
exceed
by
one
the
million
Board
five
of
hundred
Investment
public
thousand
service
(BOI)
compliance
estate
unless
a
certification
from
the
unmarried
individual,
whether
or
VAT
jurisdiction
on
be
the
of
parties
to
paid
to
the
owner
of
amade
right
s,
for
the
s,
use
taxpayer
has
his
legal
residence
or
place
local
government
P15,000
units.
(NOTE:
As
quarter
business
and
)1995]
Appraiser’s
(1)
Rationale:
Interest
allows
on
it
Foreign
refers
personal
to
Loans
items
exemption
that
are
not
to
a
corporation
1.
CONCEPT
Where
means
NOTE:
Net
ii.
iv
x.
calamities,
Income
Joint
the
Net
Expenses
it

shall
deductions
is
OF
has
If
earnings
capital
venture
conducted
the
not
Tax/Taxable
the
for
advance
pertain
civil
gain,
or
professionals
right
or
over
consortium
through
profits
net
to
to
payment
disturbance,
gross
Income
compel
capital
those
of
its
formed
a
income
branch
made
(GI
is
an
for
a
–
c.
1.
g.
Sale
(3
Constitutional
Rep
exclusively
of
ly
raw
to
prel
materials
limitations
for
imi
the
nar
or
benefit
y
packaging
on
taxing
of
its
power
materials
distributive
)subserved
Taken:
tax
benefits
provide
for
the
3
heir
succeeding
for
the
payment
years
services.
general
income
husband
The
and
tax
rate
wife
the
is
shall
set
be
at
zero.
considered
When
domestic
x
=
2,666.
supplier’s
product
only
if
the
price
is
are
found
applicable
in
Arts.
to
2142
intangible
and
2154
drilling
of
the
and
business
filed,
prescribed
by
the
Secretary
CU
ST
OM
S
arr
L204,
and
(1)
va
distinct
dead
Notice
his
development
shall
or
failure
where
of
premiums,
n
death
be
ured
taxable
(1)
to
the
an
to
appeal
ma
increased
annuities,
in
sbe
the
the
hands
Commissioner’s
emoluments
the
life
In
case
of
subsidiaries
of
foreign
Business
The
.......................................................74
provisions
Sanggunian
of
is
Sec.
authorized
114
of
the
to
Tax
pr
escr
Code
ib
e
The
distinction
Rate
was
frst
laid
down
in
r.
beneficiary.
a
Sale,
c.
public
Indebtedness
importation,
The

was
printing
estate
actually
or
tax
publication
be
clearance
of
obligated

(5
i.
c)
Restitution
A
VAT-registered
to
pay
of
to
tax
seller
upon
person
satisfaction
consideration
of
of
60
days
24,
following
19
97]
the
date
such
x
goods
were
)Predominance
property
reasonab
received
from
a
living
parent
Selling
price
.================
Taxes,
of
RDO.
depository
taxation)
fees
bank
or
in
charges
under
such
property
the
on
protected
A
gricultural
by
1.
Holding
donor
company).
at
that
time
of
his
death
was
443


1/10
Partnership

The
GPB
5.
VAT
of
rule
is
the
passed
in
the
reasonable
NIRC
on
to
is
the
a
departure
resident
amount
is
transactions
gross
invested
by
subject
the
co-owners
to
VAT
may
in
business
be
)property
a
written
without
service
the
of
same
employer
for
at
for
Section
redistributing
parents
24
(d),
to
the
each
FMV
to
of
schedular
itself,
decedent,
their
if
higher
system
legitimate,
if
than
Royalties
waived
by
Place
the
of
use
or
location
involving
reasonable
tax
(5)
collection:
levied
method
by
of
law-making
apportionment
body
VAT
of
an
and
imported
and
Proportionate
The
not
parsonages
BSP
article
is
exempt
subject
-imposed
or
based
convents
from
to
on
an
a
all
appurtenant
fixed
ad
national,
valorem
h.
(1
employer
Net
E
Intent
xcep
Share
tio
is
to
donate
by
of
the
exemption
in
allowed.
Conju
foreign
country

Upon
is
a
precondition
dissolution,
of
an
export
assets
non-rank
taxpayer’s
failure
to
primarily
exception.
pertinent
excess
the
on
excess
of
items
Therefore,
the
of
whoever
claims
(A)
It
both
partakes
at
the
Real
of
the
Property
nature
of
Tax
an
exemption
Ex.
Expanded
pe
If
nal
employee
ties
Withholding
is
given
housing
allowance
in
the
Tariff
Tonnage
death
and
can
claim
tax
credit
for
any
in
estate
horse
government

10,
Consigned
shown
Art.
examination.
I25%
II]
goods
on
the
returned
return
P
by
the
shall
tax.
5%
a.
(11)
encumbered
of
On
i.
the
No
Payments
appropriation
places
included
to
Nonresidents
or
as
use
part
of
of
(creditable
the
public
gross
On
or
before
the
Issuance
by
the
Collector
of
warrant
of
the
value
of
property
given
is
included
in
**
disposition
Cannot
exceed
of
capital
maximum
assets
tax
Income
Tax

governmental
functions;
required
PASSIVE
to
file
INCOME
an
import
ON
entry.
It
TAX
must
be
On
purchases
(3
Itemized
Original
of
Deductions
jurisdiction
(BELT
in
tax
collection
by
resident
of
nonresident
citizens
–
by
alien
The
nature.
collection
of
local
taxes,
fees,
charges
Philippines
as
can
proven
by
business”
connotes
)rules
paid
to
winner
for
A)
Penalty:
of
the
amount
due,
in
NOTE:
Net
gift
if
the
initial
payment
exceeds
25%
of
tax
Delivery
shall
of
subje
gift,
actu
a
or
(TIN);
and
xx
.

iii.
RA,
NRAbe
taxed
by
another.
The
absence
or
lack
actual
knowledge
of
violator
)
has
court
knowingly
of
competent
and
willfully
jurisdiction
filed
aorand tax
(2
Applies
only
when
is
party
to
(b)
Contributions
of
employer
for
the
benefit
of
and
other
industry
reps
of
established
foreign
gov’t
in
exchange
of
ordinary
assets
Taxpayer
substitutes
Identification
&
from
Number
trust
(TIN)
funds
&
no
case
exceed
deductions,
account
as
of
well
any
reinsurance,
as
personal
if
the
and
savings,
quarterly
common
return
or
individual
of
the
trust
amount
fund,
of
his
[2
Computation
Under
Sec.
2530
of
(a)
of
the
TCC,
in
order
By
the
same
State
Government
taxable,
however,
or
taxing
or
corporations
or
to
persons
or
corporations
engaged
Charitable
in
capital
the
the
institutions,
loss
article
that
should
churches,
be
business,
(a)
in
Forgiveness
the
manner
of
prescribed
by

members:
depends
government
on
shall
facts
pay
and
circumstances,
premiums
thereon
in
the
in
shall
be
liable
an
issuing
for
smuggling
corporation
[
S
e
c.
distributed
1201]
actually
paid
shall
reassignment,
record
the
dies,
sale
resigns
in
the
or
retires
branch
or
sales
General
In
Ci
t
y
o
f
Ma
n
il
a
v.
ALL
OTHER
DUTIES

,
FEES
,
CHARGES
,
FINES
Test:
AND
if
gross
income
from
about
the
same
time
as
the
goods
being
(in
case
of
denial
b.
At
a
price
less
required
which
it
was

exempted
Note
that
under
payment
said
under
code
[
protest
S
ec
232]
s
assessment
1
and
collection;
following
taxes
and
charges,
which
shall
)or
)
Insured
of
are
capital
assets
losses
from
advertisement
writing
Between
shall
he/she
be
efected
fiduciary
by:
&
(a)
a
posting
a
which
may
I.
GENERAL
or
tax
credit
Any
distinguished
business
from
for
a
receipt,
which
the
the
SC
clarified
annual
Note
All
Meat,
purchases
that
business
the
fruit,
covered
registration
or
vegetables
exercise
by
of
invoices/receipts
one
of
and
tax
other
type
processing
out
the
regulation
&
communication
is
minimal
c.
and
Sourcing
incidental.
&
procurement
7.
h)
of
Payment
authorities;
raw
materials
of
estate
&
components
tax
by
the
heirs,
Commissioner
(DT)......................................
after
7
.
contract
of
employment
which
is
Taxis
exceeding
5%
of
the
assessed
value
of
Note:
Prior
to
R.A.
9504,
personal
community
doctrine
of
tax
upon
payment
of
P1.00.
5.
filing
wherein
the
return.
the
taxpayer
failed
to
2.
property,
Phils.
and
in
the
performance
of
services,
transactions
become
exempt
from
VAT.
Such
b)
Forfeiture
In
including
general,
of
Tax
rentals
the
Credit
term
or
royalties
"compensation"
–similar
a
for
credit
the
Rate:
an
of
d
an
annual
additional
tax
of
[from
2009]
,to
the
Court
stated
E
xthe
tP5.00
e
n
assessment
t:
upon
all
is
void.
property
and
rights
input
4.
granting
Residual
tax.
Taxing
of
Powers
discount
of
the
does
LGU
not
the
income
Presiding
earned
Justice
during
shall
the
designate
taxable
year
any
instrumentality
concerned
primarily
on
Port
of
entry
means
a
domestic
port


Importations
authorized
by
Sec
of
Finance
payment.
(f)
The
professional
libraries
of
doctors,
goodwill,
ed
trademark,
nt
trade
es
brand,
y
or
trader),
obtained
foreign
income;
then
country
>30%
only
banks
of
subject
those
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and
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limitation.
financial
to
[Sec.
its
If
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GPP
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CIR;
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th
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interest
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Bank
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jeopardize
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interest
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
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case;
may
The
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merger
than
the
governments.
granted
municipality
BIR
2
public
or
consolidation
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places
upon
Delegation
specific
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of
corporations
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to
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be
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new
Contracting
State
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which
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Philippines
taxable,
the
]eral
only
exception
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even
necessary
expenses
paid
which
pesos
(P1,500,000);
shall
be
good
or
for
one
companies
year
unless
or
such
right.
GARNISHMENT
business
[4
Worthlessness
in
the
Philippines.
is
not
determined
DEDUCTION
distinguished
revenue
oficer
from
the
from
shall
gross
internal
sell
estatethe
goods,
revenue
chattels,
taxes
Commissioner
that
the
estate
tax
has
implementation
not
qualifed
that
may
as
call
head
for
some
.Settlement
ASSESSMENT
corporation
all
to
Deductions
common
.properties
general
citizens
loss
of
prepaid
are
–defense
failure
the
merger/consolidation),
or
d
A
ass
to
)applied
exportes
members
no
tice
67
11,000
26,000
fee;
Clerk
(4
the
under
purpose
Sec.
108,
of
undertaking
citizens
of
the
Philippines
not
ofice,
with
any
following
documentary
reasonable
Youth
the
principal-agent
pensions
&
sports
procedural
to
his
relationship
and
for
refined
man
property;
separate
fest
to
sugar,
c
the
er
taxpayer.
ca
tax
cooking
errors;
base,
oil
such
and
rate
packed
obviously
installment
perceived
the
Revenue
payments,
except
District
by
including
the
Ofice
material
interest
where
and
the
be
fled
or
other
reduced
development
by
costs
incurred
in
included
decision
in
Taxable
to
CTA,
may
he
be
granted
a
===========================
fn
es
oof
rthe
o
th
er
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shall
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mp
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v.
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cost
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of
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the
practice
unless
a
2.
Common
A
limitations
tax
at
the
prescribed
rate
of
20%
in
Sec.
is
imposed
133
5.
FORFEITURE
ii.
iii.
i.
Benefits

Classification
When
The
Tax
credit
TO
a
Base
person
THE
for
—
of
are
GOVERNMENT
has
Expenses:
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taxes
exempt
failed
selling
provided
to
from
is
su
price
eBUR
by
f.
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Source
–
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If
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i.
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under
Health
The

rules
taxpayer
the
and
by:
unused
in
trust
Hospitalization
determining
disagrees
instrument,
input
with
tax
income
Insurance
it
the
is
of
PAN,
the
Doctrine
issued
.additional
books
by
and
of
Involuntary
)
outstanding
shall
issue:
Civil
Code:

(c
This
is
done
or
only
when
the
person
under
submission
or
financi
stateme
20.
Taxation
Understatement
i.final
From
be
D.
of
Value-Added
included
General
books,
of
in
Professional
the
taxable
Tax
works
return
sales
of
and
the
or
TAX
incurred
RATE
BASI
sale,
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the
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]of
The
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expenditures
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purposes
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the
payments
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for
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the
on
a
ctu
operations:
installment
al
tax.
citizen
FCDU
creating
recognized
and
system
a
resident
partnership.
for
from
input
foreign
of
tax
a
credit
tax
foreign
exemption
country
least
10
years
at
time
Final
(2
aquatic
Tax
products
when
sold
by
marginal
income
p
en
alties
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where
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d.
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Transmission
Return
percentage
NOTE:
5.
on
capital
You
from
can
of
gains
the
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realized
MCIT
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from
Carry
legatee
sale
or
of
recognized
natural,
or
adopted
children
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o
surviving
a.
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n
provincial,
G
s:
e
n
spouse
of
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ul
municipal
e:
Taxable
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at
city
a
the
taxes
of
gal
for
a Privilege

]sment
would
be
Both
the
new
and
the
old
RDO
shall
be
the
gross
selling
price,
is
the
base
for
iii.
government
intangibles
(such
as
sale
following
the
destination
estate,
principle
trustor,
being
if
only
when:
redeem)
application
withholding
Ex.
Philippines
Real
estate
agent
to
the
tax
Commissioner
for
Functio
thereto,
mosques
Internal
and
Revenue
non-profit
for
A
VAT
Invoice
for
sale
of
goods
or
consignee
within
xxx
Advan
withholding
money
(4
beginning
ce
Income
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All
pay
6.
for
other
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men
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and
ts
the
partnerships
as
made
end
cost
benefit
of
b
y
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le
the
no
ss
the
ee
matter
for
how
exemption
1
must
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be
able
–donor’s
payment
to
races
justify
under
his
protest
s
percentage
To
be
paid
on
original
increased
tax
or
before
copy
by
the
the
of
amounts
Certificate
previously
credit
limit
rate
of
duty
gross
income
specified
in
this
Code,
Tax

The

(b)
GROSS
following
Actual
INCOME
v.
persons
Constructive
are
constituted
as
selling
)the
estate
DID
cases
price,
undiminished
CRP)
involving
the
transaction
by
is
the
considered
amount
cash
of
and
file
employees
shall
be
subject
(15)
corporate
allowable
Marginal
will
be
records
taxable.
Income
statutory
amount
and
is
strictly
taxes
paid
to
a
accomplished
CITIZ
E
NS
or
AND
aliens
at
the
R
who
ES
moment
ID
reside
E
NT
the
permanently
last
cargo
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is
real
property
b
Rationale
addition
to
the
gross
If

detention.
tax
estate,
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whichever
From
date
is
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no
case
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the
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ct
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whether
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al
or
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-estate
every
winning
Oth
er
and

other
input
taxes
which
are
directly
An
alien
who
Public
has
acquired
Instrument
residence
(i.e.,
regularity
government
of
activity.
Any
sale,
barter,
the
exchange
employee
(otherwise
to
the
retirement,
assessment
insurance
becomes
&
P300.00.
ETB
including
gains
from
performance
STEP
such
use
4:
iii.
DETERMINE
is
a
ASSESSED
personal
tenth
(10
VALUE
to
)rate
the
day
owner
(Sec
of
fraudulent
return
with
intent
to
evade
and
gross
sales,
]
MCIT
Add:
prior
net
iii
business
address
of
the
person
or
entity
insured
exemptions,
of
a
personal
in
insurance,
the
case
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ii.
Nature
authority;
of
Within
income
the
same
individual
payments,
jurisdiction
gross
or
1.
Capital
======================
deposit
Interest
NOTE:
gains
under
Deductions
substitutes,
on
the
expanded
sale
and/or
or
personal
investment
7.5%
a
particular
class
from
a
tax
which


to
warrant
carried
forfeiture,
over
should
it
not
is
exceed
not
parsonages,
h)
withholding
convents
appurtenant
thereto,
regulations
to
be
issued
by
the
Commissioner
Customs
lending
of
Duties
funds
obtained
in
the
form
of
NOT
inaction
deemed
of
the
paid.
outlet
making
the
sale
or
transaction,
and
the
(extent
of
PENALTIES
ACCRUING
UNDER
TCC
IS
WITH
Sec.
as
a
dividend;
valued
and
taxable
unrelated
5,000
Profession
Domestic
Taxable
Within
and
Without
NRA-NETB
25
(Sec.
25
Exempt
RE
The
CIPROCIT
Y
also
contemplates
bequests,
e
Claim
Exemption
for
Inpu
t
T
ax
of
on
Government
200
Entities,
201
valued.
"Similar
goods"
shall
mean
goods
notice
in
the
main
entrance
of
the
municipal
5
R
EAL
P
ROPERTY
T
AX
Zero-Rated
or
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Suit
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T
O
B
S
]
administrator
or
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or
upon
full
(3)
Professional
8.
beneficiary
short
sales
of
of
property
a
trust
registration
that
the
VAT
fee
invoice
has
is
the
been
seller’s
paid
best
may
proof
be
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profession
automatically
register
the
other
l.
Business
renewed
development
from
time
to
time
agricultural
and
marine
food
products
exemptions
are
A
GIFT
–
Premium
if
efect
of
entire
transaction
Not
appeal
to
the
Must
point
out
the
particular
decision
or
the
notification
property
by
collector
of
his
require
the
production
of

formally
declared
and
listed
before
departure
and
Tax’s
primary
purpose,
or
at
least
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of
Limit
the
geographical
area
in
which
P1.00
Forfeiture
st
for
every
Cases
Final
Tax
that
in
e
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e
n
in
certificate
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h
e
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se
4.
n
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Escape
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i
t
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tt
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unutilized
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t
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le
after
5
party
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also
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on
the
to
happening
VAT,
but
may
of
the
======================
In
places
where
there
are
no
AABs
–
with
2.
8.
Nature
Taxpayer’s
c.
and
For
means
There
Sec
use
Public
.
267,
is
of
all
Works
a
or
remuneration
presumption
for
–
the
on
lands
privilege
of
specially
for
correctness
of
services
using
preemption
to
open
property
to
both
belonging
to
the
taxpayer
not
P
3,600
the
SMW,
c.
Holiday
With
jurisdiction
pay,
overtime
over
pay,
them
night
at
The
NEDA
thereafter
taxpayer
shall
Manila
and

Under
life
insurance,
endowment,
or
PRINCIPLES
D.
LG
In
case
the
taxpayer
is
engaged
in
zeroother
like
property
(Sec.
or
186
right
248])
Articles
3.
When
donated
the
taxpayer
to
or
for
cannot
account
be
Personal
and
deductions,
household
the
effects
partners
of
are
not
institutions
may
be
used
by
the
BIR
for
The
five
percent
(5%)
final
VAT
withholding
members
shall
be
exempted
from
VAT;
engineers,

Org not
for
profit
provisions
of
this
Code:
taxpayer
and
Government
a
feels
higher
and/or
would
rate
of
be
tax
necessary
on
interest
collect
5)
Presentation
such
of
Community
Tax
specifically
excluded
by
law
from
municipality
where
the
distraint
is
ready
for
delivery
after
producing
or
exempt
--------of
the
President
RDO
having
–tax
Certain
jurisdiction
aspects
over
of
the
the
place
principal
residence
built/acquired
has
In
case
efective
of
actions
tax
for
treaty
recovery
is
of
generally
taxes
or
without
sale
[c
or
other
disposition,
if
by
reason
which
do
not
accrue
exclusively
to
the
national
[FOR
227
SCRA
degree
incurred
of
discretionary
in
carrying
on
powers
any
trade
under
subsequently
re-issued
by
the
public
BOI.
utilities
and
family,
and
members
of
his
family
person
shareholder
during
the
period
exchanges
stock
In
places
where
there
are
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AABs,
the
)b.
penalties,
tangible
If
taxpayer
he
hire;
has
by
is
acts
ceased
actually
an
required
which
to
and/or
manifest
carry
to
register.
constructively
its
his
presence.
In
trade
places
or
or
effects,
residing
therein
but
deriving
It
is
construction
understood
development
that
projects
the
Cultural
branch
or
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becomes
in

Net
capital
gain
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======================
results
the
right
in
no
Income
either
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alone
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against
conjunction
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permitted
property
carriers
Exemptio
WANT
crops,
rpetroleum
eceip
by
OF
in
within
or
business
to
or
rental
accumulate
gross
air
adverse
ts
its
as
and
without
limits
for
economic
sea
to
any
beyond
contribute.
restriction
relative
taxable
conditions
the
to
as
year,
their
to
)Partnership
oriented
from
impossible,
he
Non-profit
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within
has
dissolved
enterprise
15
and
business
at
whose
export
chamber
sales
of
Automatic
appeal
to
Sec.
of
on
the
amount
of
interest
on
foreign
the
amount
of
operation)
tax.
2.
The
The
power
aggregation
of
the
President
rule
for
to
each
increase
taxpayer
or
===========
building
(2)
)obligations
May
the
Sec
seize
202
presence
fixed
any
or
of
vessel.
determinable
aleague,
P34
clear
Aircraft,
,of
000
case
annual,
cargo,
of
preparation
of
of
his
profession,
al
expenses
nts
paid
s
3.
0/
LGC
parent
Fundamental
literary
(GPP)
principles
musical
governing
the
fringe
Section
benefit
tax
shall,
in
general,
be
r(10)
esid
en
tial
ho
me
of
Conversion
of
Property
Indebtedness
must
be
that
of
the
Commissioner

which
any
The
newspaper,
plaintiff
at
the
time
or
in
magazine,
a
of
the
taxpayer's
his
death
Revenue
review,
suit
or
is
District
in
receipts
..............................................78
determination
It
by
must
of
be
gross
for
income
property
either
)
S
properties,
ordinances
excluding
retirement
the
VAT.
The
excise
tax,
if
b
)theory.
What
a.
donee
shares
Summary
Constitutes
Forward
[1
in
of
upon
required
Ordinary
only
remedy
the
an
by
if
Sec.
expense
of
113
distraint
of
(Invoice
–
sound
normal
of
in
(a
[1
The
They
sale
Who
actual
represent
can
exceed
premium
return
payments
capital
or
for
farmers
currency
or
fshermen;
transactions
Taxes
with
on
business
wealth

times
dividends
of
plenty
or
in
adhered
refuses
to
by
or
our
fails
VAT
to
system.
Declaration
within
Art.
2142.
Certain
lawful,
voluntary
and
tax
due
for
which
no
return
is
ns:
responsible
Commissioner
in
of
notifying
may,
the
taxpayer
WHO
Power
the
files:
employer
decedent
to
term
properties
make
the
executor,
and
assessments,
to
“processing”
his
cover
family
administrator
pension
at
prescribe
the
shall
time
or
liability
any
mean
of
computation
leas
sales;
e
of
grantor
considered
proper
old
of
rule
capital
ty:
sha
which
as
l
l
initial
be
gains
emphasized
e
n
t
payments
i
tax.
t
l
ed
to
In
where
essence,
are
the
amount
of
the
patents,
property,
trademarks,
income
or
other
=======================
cemeteries
assessed
and
as
all
a
lands,
deficiency,
buildings
Any
interest
income
derived

a.
A
in
GPP
created
no
case
is
one
or
shall
requ
organized.
formed
red
fines
be
by
less
two
than
or
several
P1,000
b)
Proced
Property
exemption
Intere
ure
Accounting
must
fo
rests
r
app
be
upon
ro
for
legally
val
that
distrained
a
nd
such
due
effectiv
will
goods
and
benefit
it
y
claim
distributed
right
thereto,
to
by
another
a
grant
nonprofit
31
withholding

Registration
day
Receipt
WITHIN
and
the
duly
validated
Annual
more
either
forward
or
determination
P30,000.00
of
other
than
the
SMW
to
a
final
fringe
Purpo
benefits
tax.
deduct
as
adjusted
basis
for
mortgage
taxable
year.
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Pa
ymen
While
the
which

Normal
60-day
t
o
appears
it
f
tax
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period
not
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ant
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ec
favored,
regular
are
ed
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en
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t
to
intervals
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th
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e
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sold
sfer
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However,
Advance

VAT)

religious
If,
payments
if
after
what
purposes
the
was
may
payment
donated
be
[
in
S
ec.
the
is
29
of
a
(
the
conjugal
2
)
,
Ar
estate
t
.
or
Earners;
executor
been
less
the
falls
due
at
who
disembarked
from
vessel.
Cash/Deferred
shall
such
be
the
lien
transaction
is
filed
by
the
value,
Commissioner
which
shall
in
be
the
the
In
for
mation
(c
and/or
con
no
relevant
tain
be
ed
in
documentary
th
e
VAT
interrupt
evidence.
Upd
ates
attributable
to
the
month
[Exempt
for
to
7
exceed
Comprom
final
and
executory
assessments
for

If
the
tax
earnings
required
to
be
paid
in
case
of
the
ticket
after
constructive
hospitalizations
construed
against
benefit
the
claimant.
plan
CIR
v
.
7
Income

ACTUAL
RECEIPT
profits
occurs
distribute
when
th
is
ii.
These
of
services
deed
and
business;
of
absolute
included
sale,
Ltd
.,
(i)
[
244
in
when
the
SC
Philippines
RA
the
donor’s
retains
tax
has
his
been
status
paid
Notification
to
owner
or
218)
gift
Aggregate
actual;
defeat
the
tax.
The
perpetration
of
the
C
OVE
RSE
AS
to
use
the
same,
treasurer
after
the
goods
exemptions
(d
or
R.A.
7916
are
PEZA
NOT
Law
(as
amended)
taxing
(6)
GSIS,
district;
SSS,
during
Medicare,
the
same
Pag-ibig
period;
contract
granting
persons
and
corporations
generally
within
mosques,
.
amount
non-profit
the
and
net
income
amount
or
religious
partners
for
of
the
tax
cemeteries,
year
will
withheld
be
of
Customs
qualifed
resides
and
individuals,
for
outside
a
period
or
the
the
of
Philippines,
three
total
allowable
(3)
years
if
E:
foreign
================
management
currency
of
lands
deposit
accounts
and
or
&
other
C
OMMISSIONER
OF
C
USTOMS
necessary
.
(Sec.
that
602)
the
vessel
or
aircraft

Any
person
shall
whenever
WHAT
NOTE:
AM
Both
OU
NT
parents
OF
T
AX
may
C
RED
make
IT
M
AY
Otherwise,
dowries
BE
and
subject
to
tax
thereon
receipts
shall
or
accrue
earnings
and
and
shall
pay
be
the
paid
tax
to
due
i)
xx
or

city
hall
and
a
conspicuous
of
place
DTI,
Sec.
in
the
of
the
266)
Need
to
File
a
Return

The
Acceptance
revenue
(5)
Veterans
collected
by
the
shall
Inure
solely
Final
to
CLAU
transfer
SE
devices,
to
the
extent
or
of
fair
market
value
.
D
epr
deposits.
Agencies,
eciab
le
Good
[
RA
and
s
(d
XCEPT
if
Franchise
tax-exemption
al
%
%
Corporation
1
Income
Co
9
ect
the
on:
Philippines
0
E
business
or
profession
of
the
which,
although
not
alike
in
all
respects,
have
trade/business/other
activity
>
50%
of
the
-taxpayer
Sales.
-upon
any
Capital
NO.
agent.
The
gains
expedient
from
of
sale/disposition
an
appeal
from
of
a
Finance
reports
elevated
w/in
5 buyer
9
Income
Construction
and
identified
under
oath
before
Collector
of
personal
property
of
a
who
is
settlement
of
the
tax
liabilities
of
the
Corporatio
Gross
Income
30
P
30
PCustoms
Exempt
d.
fnance
advisory
is
a
removed
of
reduction
sale
of
and
goods
of
continued
purchase
services
in
price
any
to
of
other
the
place
type
are
of

considered
taxes
(e.g.
in
registered
their
original
for
income
state
any
place
therein
for
the
ruling
of
the
Interest
Collector
expense
of
Customs
must
to
have
which
been
to
Indebtedness
is
incurred
by
a
Taxabl
its
normal
i.
Rate
Bad
the
real
documents
that
a
taxpayer
cannot
goods
within
may
30
be
days
resold;
of
or
receipt
the
Remedies
LGC
benefited
]organization
P20,000
for
by
Single,
P25,000
for
Head
of
future
event)
tIntangible
hone
e
ragent
et
Income
odifferent
.Corporate
iii.
The
decision
Special
term
.....................................
earned
“in
Types
[the
Sec.
from
course
of
the
of
practice
trade
8
or
of
P1,000.00
located
performed
of
in
income
the
address
by
regardless
an
given
employee
by
him
whether
for
his
c)
Claim
the
for
Revenue
refund
appeals
of
Collection
tax
to
credit
Officer
the
for
CTA,
or
Duly
and
annuity
good
faith
on
the
part
of
the
CIR,
================
C]
shift
differential
pay
and
hazard
pay
shall
A
NOTE:
tax
imposed
Although
the
pr
ivil
term
e
ge
t30
real
o
tthe
rAgent
a
n
smit
property
(a
Taxes
RC,
-CTA
On
NRC,
stores
RA,
NRAor
retailers
20%
with
foreign
The
rated
allowed
and
lease
and
coastwise
also
or
to
the
in
taxable
claim
use
trade
of,
including
the
or
or
exempt
the
OSD
right
from
sale,
to
intentional
and
substantial
necessary
returning
of
relief
Phil
residents
other
cities
II.
LGC)
........................................................
General
rate
shall
R
ule:
giv
en
represent
for
Settlement
th
e
the
b
en
efit
net
of
cases
o
VAT
fe
th
e
payable
by
of
Rice
and
administration
corn;
on
1
However,
made.
the
sale
or
importation
Automatic
appeal
to
Sec.
of
1.
Taxes
which
are
levied
under
the
support
his
protest
deducted
and
from
not
what
the
growing
is
considered
within
the
10
government
of
If
the
domicile
aggregate
but
of
the
shared
donor
of
at
to
gross
the
the
time
income
local

If
amount
If
the
is
seller,
too
high
having
for
regulation,
paid
the
it
would
tax,

a
taxing
set
process
that
suficient
are
not
standards
Commissioner.
Duly
notified
w/in
days
subject
reasonable
enforcement
to
15%
fees
final
and
of
withholding
a
charges
fine,
on
tax,
penalty
business
but
or
14.
of
INPUT
appraisal,
VAT
]being
AND
the
OUTPUT
cost
basis
of
property

free
Purpose
distribution
of
to
needy
b Assessment
Drawback
cases
business
where
the
goods
may
be
included
a of of
received
This
where
being
there
by
the
are
the
no
case,
seller.
Authorized
donative
Correspondingly,
intent
Bank
is
Estate
Tax
due
in
a
corp.
for
stock
returns
sale
shall
of
be
goods,
filed
supplies,
with
the
equipment
Revenue
such
substantial
which
use,
the
has
entire
decrease
not
amount
been
in
prices
previously
is
taxable
or
(5
Cost
petroleum,
of
preserving
coal,
and
geothermal
distributing
&
the
other
decrease
loans
contracted
the
on
after
August
1,
its
here.
educational
So
that
when
purposes
the
For
foreign
disregard
purchaser.
article,
animal
of
a
The
or
seller
such
transactions
reasonable
transport
ns)
country
Amounts
of
needs
passengers,
of
expended
the
business.
goods
in
or
restoring
cargoes
================
exceed
commerce,
with
70%
any
person,
of
or
total
board
annual
to
designate
of
trade
production
the
person
)Certificate
34(C)(3)
to
(7)
may
ordinarily
be
shall
apply
For
instance,
if
a
This
a
is
a
the
doctrine
operation
provided
and
for
repair
in
US
exercise
of
the
taxing
power
of
the
LGUs
limited
to
facilities
or
privileges
or
other
personal
property,
including
stocks
BIDDER
Purchase
of
value
property
in
money
local
treasurer
of
the
shares
for
want
of
ofFor
without
any
30%
1.
time
NATURE
corporation,
or
prior
more
AND
of
to
CHARACTERISTIC
his
as
the
correct
of
satisfaction
date
taxable
of
merger
sales
of
all
.317]
Assessment?
personal
]date
exercise
requirements
property
for
days
from
business
promulgation
or
after
]the
health
days
are
Claim?
not
to
and
file
hospital
a
written
insurance
reply
taken
to
by
a.
Did
not
impose
a
transfer
tax
or
death
down
payments
periodic
all
or
other
payments
received
any,
make
of
such
the
goods
or
times
properties
the
of
need,
shall
people
form
accompanying
or
tax
usual
returns.
sources
of
requirements
the
his
pasteurization,
legal
death,
25%
as
for
of
p
rare
a
c
selling
tamount
ic
e
hi
s/
price
h
er
but
they
may
local
commercial
banks
Oficer
enterprises
having
certified
to
by
the
Board
nonresident
of
final
tickets
Must
used
were
be
for
bought.
approved
unilateral
acts
give
rise
to
the
juridical
required,
or
A
deficiency
tax,
or
NOTE:
iii.
ii.
The
An
iv.
Deductible
The
assessment
supply
Liquidating
relation
taxpayer
of
to
Interest
scientific,
the
contains
shall
taxpayer’s
Expense:
submit
technical,
–end
not
business
return
proof
only
or
to
a
d.
(11)
persons
General
nor
Associations,
[7
[a
more
Citizen
for
,the
[and
91
P
F
hi
ed
l.
w
359]
th
beneficiary
n
,conditional
30
or
days
implied
(From
date
of
tax
c.
favor
stock
–
concerned
o
st
Regular
rd
not
of
ina
decreased

another
traded
Net
nces
stipulated
that
Income
capital
in
the
beneficiary,
by
the
Tax
transfer
the
local
loss
is
greater
amount
stock
is
of
in
not
registration
than
exchange
previously
MCIT.
applicable
to
the
years
prior
to
the
etc.)
giving
rise
to
Includes
unregistered
joint
the
body
of
the
people
and
not
upon
any
prescribed
domestic
time.
No
oath
corp.
by
the
organized
assessor
for
===============
backward
improvements
ACTUALLY,
DIRECTLY
and
Requisites:
[2
where
any
part
of
the
income
from
foreign
currency
loans

The
taxpayer’s
entire
amount,
application

including
amount
for
compromise
the
SMW
of
shall
any
======================
of
January.
o
administrative
f
sh
ar
Any
es,
during
person
the
frst
deny
any
community
form
of:
expressed
tax,
new
in
terms
“too
plain
to
be
Registration
basis
to
Fee
Return
a
r
e
r
qu
i
r
e
d
t
o
b
e
TOPIC
UNDER
THE
SYLLABUS:
agents:
month
or
quarter
following
the
the
sale
withheld
the
contributes
to
nevertheless
operate
retroactively
A
VAT
Oficial
Receipt
for
sale
Register
of
(Rule
invo
d)
ice
)
applies
t
to
payments
considered
by
government
ed
price
actually
paid
or
payable
for
the
goods
(16)
LGUs,
in
discharge
of
their
se
deduction
provided,
shall
total
be
limited
to
the
extent
Raise
revenue
Exercise
to
The
taking
Payment
f.
Essential
administrator,
requisites
for
the
taxes,
amount
fees,
the
charges
estate
and
tax
penalties
and
discharge
where
Taxation
bond
Assessment
Every
s
o
there
r
corporation
and
is
a
were
collection
deriving
d,
capital
the
gains
lawful
e
i.
.
A
ise
loan
are:
to
The
the
lessor
personal
from
exemption
the
lessee,
or
shall
be
(c)
332]
The
Benefits
deducting
.
increase
o
on
given
such
the
or
to
decrease
cost
the
rank
in
&
the
file
net
employees,
worth
is
Coun
CO
MMU
with
fxed
NICATIO
prices
NS
for
TAX
subscription
and
net
deductions
gifts
until
he
and/or
abandons
deed
of
personal
the
same
and
DEDU
b.
i.
Deeds
CT
Juridical
IONS
VAT
in
FOR
the
persons,
taxable
NONRE
province/city
whether
SIDE
sales
NT
of
or
the
not
goods
property
engage
abandoned
by
reason
lapse
of
the
of
60
and
)
following:
and
contributions
[b]
Losses
from
&
wash
sales
stock
or
crime
other
same
is
grounded
information
state
or
taxing
upon
that
district
may
knowledge
be
are
required
obliged
on
the
barangay
where
Incurred
the
real
(prior
property
taxed
year’s
is
depending
net
located.
income)
(b)
buildings
and
improvements
actually
directly
d.
from
shareholders
Retirement
registered
the
The
cancellation
of
from
would
importation
or
then
cessation
,
registration
be
copies
applicable,
liable
of
business,
of
for
the
will
income
above
be
b
CLAIM
gifts

Provisions
made
statement
ED
i.
?
Income
on
Indirectly
that
from
the
services
seller
rendered
is
a
VATpartly
iv.
regular
income
tax
deductions
th
e
within
h
ead
any
o
25
fice,
only,
tax
days
br
on
in
an
such
the
after
ch
o
case
fice,
premiums
the
of
stor
corporations,
age
is
of
p
lace
each
each
payee
and
such
other
system
buildings
investments
PEZA-registered
located
evidenced
in
enterprises
by
the
certification
are
given
4.
Purchase
of
property
by
local
ORIGIN
The
must
consideration
PRINCIPLE:
itself
carry
only
stated
the
national
contraband.
in
the
taxpayers
sales
The
allowed.
donee
benefits
1.
(5)
The
(3
Liability
following
Income
for
to
partly
the
extent
within
that
and
they
are
partly
e
c
Covered
1.
Excise/Privilege
Those
corporations
provided
for
tax
in
Sec.
(different
105
of
the
from
).NOTE:

Covers
a
Must
be
every
for
a
public
overseas
dispatch,
when
exported
from
the
Phil
underpricin
by
such
returning
Finance
a)
Failure
to
file
any
Return
and
Tax
pay
update
his
registration
information
with
the
The
employer;
FUNERAL
estate
tax
or
imposed
EXPENSES
by
the
are
Philippines
costs
which
shall
Partnershi
a
5
yrs
–
from
the
date
they
iv.
Instrumentalities
the
benefit
principal
denial
of
a
Agriculture/
like
characteristics
and
like
component
materials
Income
recipient
decedent
transfers
social
welfare,
cultural
nonand
total
gross
income
from
all
sources,
E
N
T
IRE
estate.
of
the
local
government
unit
levying
the
tax,
j)
.TOPIC
Interpretation
of:

The
payor
shall
claim
this
as
input
tax
property
Proced
acquired
in
prior
year)
8.
Classification
of
VAT-registered
UNDER
THE
person,
SYLLABUS:
whose
sales
are
n
which
exception
paid
%
or
is
incurred
taken
2,000,000
or
%
during
objection
2,500,000
the
made;
taxable
lapse
of
30
days
if the
noconstrued
decision
Resident
Foreign
Taxable
resident

without
while
alien,
the
with
payment
VAT
a
situs
receipt
of
in
additional
the
is
Philippines
the
tax
buyer’s
during
Requisit
tax
is
not

Ordinary
registered
for
loss
VAT)
is
Generally,
the
excess

even
Debts
if
hey
undergone
the
simple
in
the
return,
unless
he
informs
the
service
contractor
to
fnance
services
efiled
value
The
Winnings
from
4%
profession
Depreciation
2.
Taking
“Quasi-bank”
money
from
refers
one
to
pocket
a
non-bank
to
be
subject
to
the
REGULAR
corporate
the
Family
for
each
Married
erroneously
ii.
or
illegally
business”
agricultural
The
requires
the
regular
conduct
or
MCIT
Rate
2%
2%
Do
not
substantially
afect
the
value
of
Authorized
demand
City
or
Municipal
Treasurer
employer
thus,
the
under
burden
an
lies
employeron
the
employee
taxpayer.

that
the
sor
g
has
not
provide
public
been
works,
ther
projects
is
no
employerimprovements
)i.
fixed
business
Cond
still
it
io
be
ns
EXEMPT
their
for
G
share
ran
FROM
t,local
in
of
the
WITHHOLDING
net
income.
TAX.
overstatement
deductions
of
from
business,
Rules
of
prop
Judicial
e
r2:
taNote
y
at
the
.accordance
“airport
and
contracts,
of
the
entry”.
amount
received
creditable
either
input
tax
ETB
payment
of
ta
fine
xpay
or
er
.taxpayer
He
can
.........
122
time
(h
a)
CONDONATI
Periods
o
ffrom
seller.
(v)
dbuyer
eath
Penalty
of
ON
;the
assessment
the
OF
on
tax
RE
should
A
L
treasurer
and
not
collection
be
for
of
NIRC,
unless
3.
CS
G
ar
m
e
nt
sfrom
v.
C
Ipioneer
R
[P32,000
CTA
ca
s
e
no
.during
65
2
0,
or
settlement
of
the
estate
agricultural
Certain
Occasions:
food
products
(Sec.
in
their
163,
original
LGC)
be
Commissioner
tax;
feels
should
be
submitted,
governments
NRA-NETB
in
the
form
of
internal
25%
revenue
redemption
Wheat
take
forfeited
or
up
the
property
entire
is
60
days
or
IF
DECISION
Provincial
IS
IF
DECISION
Rule
In
case
there
is
flour,
no
branch
meat,
or
dairy
sales
VAT
DEFINED
purview
of
agricultural
contract
TOPIC
and
occupation
UNDER
except
THE
professional
taxes
submits
such
proof
of
intent
within
%
six
the
transfer.
legislative
In
in
places
character
where
may
there
be
vested
are
no
from
sale
Tax
exemption
can
only
be
rate
may
be
reduced
to
10%
for
increased
[d
and
the
resultant
basis
is
used
as
are la
rethe
presumed
(AAB),
the
present
returns/declarations
can
claim
when
the
one
input
gives
shall
tax
a
be
part
in
the
of
reasonable
allowance
for
salaries
CG
sale,
exchange
or
other
disposition
of
n
dBasis
sa.
6%
F
iNRC,
n
al
treusable
ax
on
gross
35%/30%
35%/30%
income
tax tax
Jurisdiction
unless
All
articles
imposed
of
RTC
when
over
on
imported
seizure
occupations
and
from
any
b)
The
sale
or
price
is
subject
to
some

ofset
in
the
agri-based
another
as
year
deduction
it
is
corp.
received.
products.
(both
from
corps.
gross
Less:
Tax
Credit
(if
any)
Sec.
[E]
1986.
Collection
Oficer
or
duly
Authorized
aliens
City

Except
those
Sale
that
of
are
to
the
BSP
for
shipment
or
corporation
energy
the
transacts
operations
rehabilitation
business
pursuant
of
in
to
an
by
charges
the
who
seller
shall
no
during
output
possess
the
tax,
or
year
enjoy
but
of
sale,
can
the
property
including
aor
and
from
Gross
bidder
sold
one
in
in
case
place
there
in
is
no
the
bidder
Philippines
for
the
real
to
Containers,
holders
and
similar
receptacles
Smuggl
professional,
aside
from
the
practice
rates
contest
of
or
import
consolidation,
the
duty
proposed
within
shall
the
assessment.
be
absorbed
In
case
of
property
suspension,
transportation
or
in
what
equipment
is
the
taxpayer
used
in
constitutional
and
prescribed
other
other
an
movable
individual
securities
under
or
statutory
property
Sec.
for
so
himself
130
distrained,
prohibition
when
of
or
the
for
LGC
his
at
same
by
family
public
the
is
tax
furnished
of
any
character
or
ofered
by
an
employer
p
rNRAo
fess
io
n
i2,400
n
a
n
y
pa
rshall
tclaim
o
fbona
stock
sold,
bartered,
exchanged
or
liabilities
with
respect
payment)
pay
to
the
employees
to
same
prov
nc
fixed
acertain
under
cincome
tax
ty
taken
either
only
be
realized
in
the
subsequent
Jurisprudence
(i.e.,
mitation
A,
Country
A,
15K
is
lower
c
-tax;
category
Procedure
judgment.
VAT-registered
from
for
the
distraint
plaintiff
persons)
in
and
determination
aven
citizen's
and
suit.
Computat
gain
or
profit.
or
receipt
.....................
78
the
industrial
computation
to
Dividend
and
the
of
of
orders,
from
][3
]income,
the
policy
societies
Investments
(i.e.
branches
abated,
as
credited,
of
foreign
or
return
non-pioneer
or
repaid.
for
a
1
RevenueWithin
the
is
required.
by
BIR
relation
idea
of
of
quasi-contract
the
to
the
burden
end
that
of
no
heirs,
tax
cer
canning
administration
tifi
ed
b
y
and
similar
any
th
e
surcharge
Baran
activities
and
purpose
gay
enforcement
or
Cap
or
which
interest
to
tain
the
of
through
(Sec.
the
thereon
for
has
already
been
with
effected.
the
desire
of
the
taxable
casual
year,
or
gains,
so
paid
profits,
to
place
income
the
trust
and
beginning
to
practice
a
month
in
which
shall
not
be
royalties
EXCLUSIVELY
USED
for
charitable,
than
P5,000
buyer
granted
for
residents
other
snew
TOPIC
UNDER
employment
THE
SYLLABUS:
in
trade
or
business
jurisdiction
reason
over
Interest
the
on
estate
taxes,
will
such
serve
as
as
those
the
e
the
and
mistaken
sole
purpose
Domestic
and
purpose
of
too
Corporation
the
categorical
Act
of
Mace
exercising
to
d
a
be
v.
their
i.
Forfeiture
================
b.
iii.
writin
[1
Non-Deductible
is
facie
divestiture
Taxes:
of
instances
property
of
–
from
See
Suit
(b
operating
c.
also
ventures
to
CI
recover
R
v
for
.x
Pas
and
tax
the
c
or
based
exclusive
Real
the
ty
on
,86
false
[refund
G.R
benefits
.IS
or
N
o.
4)
of
Sale
a
trust
of
Property
end
of
Distrained
the
governmental
functions;
claim
provided
of
refund
it
is
expressly
declared
or
is
INCOME
RC,
services
RA,
or
TEST
lease
OF
of
goods
SOURCE
10
or
OF
rPrima
revenues
igh
from
ts
deductible
taxable
the
year
from
to
cover
the
pension
property
any
the
of
The
its
obligations
family
and
said
political
equal
only
exemption
subdivisions,
the
of
to
the
husband
is
decedent
does
instrumentalities
signed
not
shall
extend
the
appear,
deed
to
be
taxed
that
adjusted
the
mortgage
by
adding
was
all
contracted
non-deductible
promote
of
from
b.
personal
liability,
the
Commissioner
as
publication
the
once
principal
ahome
week
amount
for
3
consecutive
of
taxes
and
weeks
fees,
in
A
The
LIE
d.
E
where
NS
power
(b)
in
ii.
trade
Relief
to
impose
must
from
be
MCIT
a
tax,
or
fee
incurred
or
is
charge
or
th
m.
Multiply
Gross
additional
money
receipts
by:
individual's
or
tax
money’s
exemptions,
from
gain
lending
if
activities
any,
authorized
by
whether
securities
granted
under
a
CBA
or
not
(2
Taxes
that
can
be
shifted
whether
a)
a
claim
for
refund
or
credit
has
been
amt.
property,
deductible
sale,
shall
not
exceed
to
pay.
actually
departs
treasurer
from
for
the
want
Philippines
of
bidder
(Sec.
a
effective
Definition
with
if
respect
from
the
physical
services
–tax

A
from
transfer
tax
the
on
of
Government
all
the
yearly
money
or
profits
any
ii.
Affecting
An
and
registered
option
they
exclusively
within
must
money
Taxation
person,
and
be
used
the
the
for
same
property,
religious,
on
classifcation
kind
or
charitable
Expenses
mentioned
incurred
records
in
covering
the
extrajudicial
transactions
that
residents
upon
their
departure
therefrom
or
during
TOPIC
o
rxcept:
p
lace
UNDER
o
ffor
THE
SYLLABUS:
NOTE:
Autolower
matic
Appe
a
lgold
–
if
the
collector
taxable
which
quarter
is
not
devoted
principally
to
the
(for
Once
property
There
registered
situated
shall
not
as
in
be
ato
the
VAT
transferred
person,
to
the
any
would
ii.
document,
The
be
Now
following
we
adopt
information
the
originating
shall
appear
rule
in


incurred
)RTY
Tax
without
by
the
.It
.(1
v.
TCC;
information

union
excise
dues
tax
as
of
may
individuals
be
required
by
are
deducted
imposed
from
by
the
the
foreign
gross
country
income
(i.e.
Philippines
in
such
message
.CIR
form
purpose........................14
prescribed
or
by
the
BSP
complementary
if
collateral
use
of
the
Gain
on
sale
of
iii.
NOTE:
the
tax
Limited
on
to
goods,
supplies,
account
III.
c.
LOCAL
Burden
Due
(ii
of
process
GOVERNMENT
marriage.
of
proof
[for
Sec.
for
Each
1,
claim
parent
CODE
of
OF
be
RDO
where
be
credited
are
actually
30
days
before
and
after
the
income
g)
pro
du
The
ction
beneficiary
.of
[lessening
RMC
Location
No.
is
other
39-95
of
property
than
da
ted
the
estate,
-(2)
TAXPAYER
TAX
6%
holidays
6
or
4
years
from
serves
(2)
of
Tax
as
tother.
paid
a
he
Ta
by
recipient
C
become
ode
Schedular
as
due
c
ite
system
d
istate
n
is
still
required
to
p
Compromises
are
generally
allowed
and
to
Gain
fee,

on
charge
sale
Philippines
regardless
of
Sec.
of
3.
WHEN
iv.
ASSESSMENT
2.
Only
domestic
AND
closely-held
which
enable
them
to
perform
same

tax
request
for
cancellation
of
warrant
of

ure
donor
CIR
of
any
change
in
his
address;
residence
by
natural
persons
may
xx
be
(Section
(6)
Fringe
104)
Benefits
benefit
under
tax
es:
of
year
business
zero-rated
or
efectively
zero-rated
may,
The
Must
cancellation
state
the
grounds
of
business
relied
upon
6.
Transfers
which
may
be
Corporation
or
advantage
of
Income
the
the
best
term
evidence
which
of
the
the
payment
payment
of
was
goods
made
or
registration
the
process
financial
of
of
tax
preparation
types/fees
or
by
preservation
a
business
double,
1.
take
the
schedule
of
FMV
rate
of
30%
importation
E
or
xpens
petroleum
corp.
Interest
on
pursuit
of
a
commercial
or
an
economic
activity,
e.
Marketing
d
funded
[1]
Petroleum
by
e
control
the
LGU
&
sales
employee
collected
institution
tax,
authorized
free
or
charge
by
BSP
to
engage
D
raw
b
ack
relationship,
If
the
unless
GPP
avails
specifically
of
excluded
OSD
in

municipality
or
city
under
Otherwise,
the
finding
of
the
CIR
will
be
transportation
of
goods
exemptions
(>30%
of
the
actual
a
Tax


iii
If
the
prizes
are
derived
from
sources
term
or
at
the
maturity
of
the
terms
Same
basis
as
an

expressly
MWEs
defined
who
in
receives/earns
the
LGC,
early
additional
decisions
of
establishments
with
gross
sales
of
letter
made
by
the
Chief
of
the
as
)exercise
local
PR
OP
a
direct
taxes,
E
due
failure
TAXE
or
fees
to
paid
issue
S
cannot
be
directly
5%
and
F
i
n
al
t
a
x
5%
F
i
n
al
t
ax
on
5%
F
i
n
al
t
ax
on
5%
N
/
A
F
i
n
al
Constitution
provides
that
franchise
is
MCIT
P
P
relationship
between
him
and
his
I.
GENERAL
5.
Specific
PRINCIPLES
Taxing
Power
of
Local
Pre-termination
2.
of
profession
of
such
or
certificate
from
property
before
which
Court
are
applicable.
Since
in
engaged
in
A
allowed.
CAPITAL
not.
TRANSACTION
The
–
if
the
Taxable
4
outlet
J
a
nu
in
a
r
the
y
200

city
Depreciation
7
]
products,
of
all
directl
NOT
NOT
The
remaining
seven
percent
(7%)
upon
filing
of

Income
w/c,
in
the
reserved
for
provinces.
[
S
ec
14
7
]
tax
on
otherwise
(b
the
Additional
property
the
taxpayer
of
Exemptions
the
decedent
would
always
for
although
be
wit
at
3.
otherwise
provided
In
this
by
LGC
case,
the
cassava
exported
(Sec
1701-1708)

r
ght
of
growing,
which
is
exempt
from
VAT
AAB,
the
return
will
be
filed
directly
with
1
same
Appe
one’s
with
(6)
the
period
months
patrimony
Revenue
that
from
the
Collection
to
the
seller
registration
another
recognized
Oficer
without
or
of
duly
to
him.
availed

once
May
every
be
10
imposed
years
If
even
no
by
4.
royalty
payments
or
under
the
mostforfeiture
a
nd
non-useful
the
country
/
o
locally
r
new
bu
proceedings
i
into
l
tax
d
]
i
n
g
manufactured,
base
the
s
which
for
are
purposes
not
used
processed
or
of
computing
the
business
or
of
a

condition
selling
price
or
or
FMV
or
excess
mortgage
or
other
assumed
compensation
by
the
buyer
personal
over
the
The
grant
shall
be
through
an
or
Resident
110
[B]
citizen
property
advertised
are
or
parties
if
the
highest
to
bid
is
2.
Municipal
Treasurer
of
the
Revenue
District
Cars
for
hire
ing
mun
c
pa
treasurer
Philippines
independently
veterans
To
of
social
its
welfare
branch,
refund
of
tax
credit
certificate
for
the
VAT

another
place
in
the
Philippines
(subject
to
A.
by
the
t
surviving
h
e
Ph
il
s.
or
w/
new
o
u
t
be
corporation.
in
g
required
Income
to
Tax
do?
abovementioned
are
allowed
as
limits
deduction.
fixed
in
the
Code
public
respondent
agency
or
instrumentality
of
of
his
profession,
also
Assessment
derives
final
making
professional
calls,
dues
Input
b.
tax
In
his
respect
means
employees
of
the
the
VAT
that
intangible
paid
are
of
by
relatively
personal
a
VATauction,
Those
The
subject
ordinance
year,
considered
to
forfeiture
the
the
levying
highest
taxpayer
export
or
liable
such
bidder
is
sales
allowed
for
residual
for
any
under
cash,
to
time
taxes
defer
the
as
or
otherwise
disposed
which
shall
the
trust,
for
any
part
of
income
to
be
profession
after
the
month
than
the
try
B,
11K
(actual)
withholding
was
oI.
SYLLABUS:
Tax
Due
b.
fees
for
the
sealing
and
licensing
individual
banks
making
authorized
owners
good
of
by
the
property.
the
exhaustion
thereof
public
purpose
or
to
another
org.
period
of
If
no
6
amount
and
4
is
years,
shown
respectively
as
tax
by
raising
)common
Philippines
.functions
one
In
shall
the
The
Sec.
be
unjustly
237
the
enriched
plaintiff
of
or
benefited
is
at
on
the
due
date
appearing
in
in
the
return
for
the
year
in
which
capital
gains
received
by
a tax on
Herver
vs.
Helvering)
and
was
adopted
by
in
Macara
aor
sound
ig
,IMPACT
[for
financial
197
basis
–interment
deductible
authority
without
show
accumulation
commercial
tax
]day
his
liabilities
stockholders
surrounding
intention
to
knowledge
of
but
of
distribute
profits
circumstance.
leaving
also
or
a
information
the
in
demand
Philippines
the
form
the
for
fraudulent
1
28315
They
[b
their
,to
or
une
are
out
subject
of
its
to
not
another
being
kind
used
for
the
A
taxable
2.
pension,
profession
quarter
gratuity,
OF
TAX
which
stock
no
bonus
part
religious
and
educational
purposes
physical
or
Transfer
of
than
head
ofshore
ofice
banking
of
units
taxpayers
or
source
(2)
Intercorporate
Dividends
withholding
paid
for
deficiency
or
delinquency,
.1991
ETB
misinterpreted.”
Member
of
GPP
%
g
a
newspaper
situated;
considered
income
subject
unless
general
he
circulation
w
ai
v
e
sand
in
in
the
w
province,
rwithhold
tprivate
iis
nthose
g
(17)
Tax
exempt
taxable
persons
such
as
clearly
previously
the
recorded
legislative
as
taxable
intent.
For
nor
shall
the
imprisonment
be
less
than
stay
or
abroad
agencies,
SCRA
including
and
subtracting
INCOME
GOCCs,
as
therefrom
well
as
nonto
1)
generate
iv.
c.
The
Any
Report
Sug
[4

[a]
particular
liability
exemption

ar
supply
asse
The
on
If
To
paid
M
Philippine
the
il
NGOs
net
li
accruing
distribution
ng
of
facts
distraint
advance
or
any
v.
operating
relief
and
income
CA
during
assistance
,and
(Commencement
circumstances
during
[become
granted
payment
G.R.
tax
upon
loss
the
N
(but
o.
to
taxable
that
is
of
a
FBT
eof
abe
is
atheir
of
4.
donation,
credit
29,1999]
Iss
worth
due
and
uance
to
the
multithere
,Jof
mistake,
which
of
persons
fof
is
orm
only
263)
reached
carelessness
al
interested
one
le
tter
donor
the
of
or
deman
same
for
shall
donor’s
have
d
business
)ecember
public
property
rate
(d)
NOTE
-h.
soon
Sale
(1):
exclusive
De
as
of
If
possible,
minimis
property
filing
o
Amount
and
exemption
charges
in
deductible
any
event
under
and
in
within
penalties,
Sec.
2012
one
is
filed
with
is,
in
the
discretion
of
the
grantor/any
-imported
within
“Real
the
estate
revenue
dealer”
wher
includes
th
taxpayer
any
WHEN
1)
i.
Examination
under
to
The
file:
R.A.
purpose
within
1405
of
returns
and
of
2
the
months
other
and
clause
general
determination
after
in
a
the
tax
or
special
treaty
settlement
sale
of
or
exchange
the
of
shares
of
stock
renders
not
decision
4.
Residual
adverse
to
Taxing
that
the
government,
allowed
Powers
by
the
of
the
income
LGU
tax
law
Posting
of
notices
of
the
sale
of
distrained
iii
A
or
security
educational
It
is
an
deposit
immunity
purposes.
to
insure
or
the
privilege;
faithful
it
is
[Nonresident
citizens:
articles
Exempt]
and
all
other
dues,
fees,
25%
of
net
income
contract/agreement
to
arising
consideration
from
of
property,
its
political
or
professions,
its
equivalent
subdivisions,
trades,
to
aor
or
character
A
mere
of
tax
intention
to
change
his
e.
Bequests,
situated
taxable
MCIT
or
[former,
may
S
devises,
ec.
year
be
219]
legacies
suspended
or
by
the
Sec

Interests
Residence
Debtor
Philippines)
taxpayer
owner
shall
in
be
the
][8
meaning
VAT
temporary
absence
due
VAT
recognized
by
TOPIC
publication
UNDER
THE
of
paid
SYLLABUS:
advertisements
the
distribution
Selling
to
first
inventories
Price
of
were
or
the
FMV
of
following
not
taxable
whichever
made
month
goods
to
them,
the
existing
they
D)
(a
followed
Interest

partly
actual
by
when
tax;
his
without;
shall
exploration
TIN;
the
form
transfer
part
&
development
of
of
such
Real
sum
equipment
property
of
where
all
and
items
the
fuel
of
original
taxable
insurance
income,
has
profit
GENERAL
)Reasonable
Art.
)Income
Commissioner.
III]
PRINCIPLES
th
In
case
of
a
person
whose
VAT
date
of
the
b
D
Progressive
executor
1
,Deductions
1995]
or
graduated
-regulations
tax
rate
than
titems
Cessna
plane
for
smuggling
operations
ii.
of
date
of
entitled
exposed
Co
to
mm
to
the
the
iss
exemption
ioner
tax,
o
without
(Sec
fstock
above.
270)
distinguishing
This
has
the
of
Title
VI
the
conversation
transmitted
from
the
enforceable
fle
an
income
tax
IS
MADE
(1
the
Domestic
buyer
Philippin
but
are
Corporation
included
–gross
in
created
the
price
or
supplementary
Those
granted
devise
government
cannot
perform
agencies,
Employ
fair
market
value
(FMV)
as
determined
b.
It
should
be
uniform
and
equitable
The
burden
of
proof
is
on
the
taxpayer
shares
of
the
stock
date
where
prescribed;
sold
or
Labor)
he
is
registered
and
under
to
any
be
of
the
commercially
following
with
incurred
–
corporations
the
amounts
in
connection
of
are
any
liable
with
estate
for
the
IAET.
tax
or
Alien
4.
Individual
When
SSS
the
warrant
operatio
of
distraint
if
or
levy
activities
EXEMPT
Inter
(7)
Gains
nal
provided
Re
from
ven
that:
the
ue
v.
sale
PAL
of
,cred
bonds,
Inc.
,ithe
G.R
.in


15%
of
income

Interest
must
have
been
b)
Every
person
who
is
required
to
constituted
V.
JUDICIAL
a

A
person's
as
REMEDIES
donation
business
has
employer.
distraint
or
other
imposition
unless
otherwise
for
relief;
within
two
(2)
years
after
the
close
of
forecast/quinella
subject
services
to
received
the
rules
from
the
seller.
As
Other
Payee
for
the
is
expenses
not
market
:distrained
freezing,
and
losses
drying,
over
salting,
the

A
final
withholding
tax
is
imposed
on
registration
be
granted
on
the
Invo
icin
g
ror
equ
ir
emen
ts
sale
of
which
preferred
which
in
A
VAT-registered
person
purchases
previously
(or
collected
trade
quasi-banking
2.
Assessed
value
=
FMV
X
Ifii.
unfavorable,
es
appeal
tomay
CTA
w/in
.
regardless
Laws
of
whether
or
not
the
entity
is
profiti.
wer
full
utilize
promotion
f.
Training
&
(35%
Applies
jurisdiction
2006-2008)
only
of
to
the
entities
Revenue
exercising
District
The
c.
intangibles
Vanishing
by
or
the
upon
Code.
shall
surrender
not
form
of
part
(Property
the
of
contract
the
.
individual
clients.
computing
its
net
(1)
General
the
e
n
t
i
r
e
Non-resident
the
e
n
t
i
r
e
Gross
the
e
n
t
i
r
e
i
n
c
o
me
the
e
n
t
i
r
come
40,000
50,000
the
======================
Supreme
properties
y
receipts
Taxes
of
the
Government
FAVORABLE
the
Rules
of
FAVORABLE
Court,
Rule
42
or
charges
and
execute
warrant
distraint
or
forgiveness
tax
)
is
Taxpayers
of
a
stockholder
is
h
without
–
the
investigation
was
A
transaction
efectively
will
accounts
be
characterized
for
the
standard
as
having
input
1.
Imported
material
was
actually
used
in
the
al
the
10
mercy
of
the
BIR
which
may
require
3
Sett
ement
of
any

se
zure
by
municipalities
1.
of
A
1991;
WRITTEN
claim
for
refund
or
credit
consideration.
Second,
donative
intent
is
Delegation
to
administrative
agencies
–e2inyears
the
corp.
5

under
preserved
&
are
treated
Section
related
as
to
109(F)
capital
production
of
assets
the
of
Tax
or
zonal
NOTE:
value,
The
MCIT
whichever
is
not
applicable
in
2008
document
transferring
the
real
property,
Revenue
Collection
Oficer
or
duly
full
utilization
taxpayer
of
has
proceeds
a
choice
of
sale,
of
not
or
municipality
the
insufficient
allowable
where
to
depreciation
pay
the
RPT
sale
and
expense,
is
made,
other
costs.
the
the
net
By
Sanggunian
–
RPT
may
be
condoned
services
actually
rendered.
The
redempt
on
w
th
n
1
year
from
the
2
Refund
or
tax
t
–
w
th
n
his
own
VAT
return,
subject
to
the
In
E
A.
xcepti
the
Definition
case
o
Within
of
husband
and
30
merger/consolidation),
days
concept
and
from
wife,
receipt
of
the
tax
of
or
su
b
jec
t
ed
to
a
n
y
o
t
h
er
businesses.
Philippines
shall
be
subject
to
duty
upon
Individua
consideration
for
which
a
value
cannot
be
Office
where
the
taxpayer
required
to
3.
shall
include
the
modification
in
the
form
of
principal-agent
Final
Income
relationship
Tax
(On
passive
is
set
income
aside.
and
The
the
government;
and
of
January
must,
however,
previously
charged
by
supplier.
Efectively
registered
person
in
i.
Interest
Income
received
by
an
property
of
citizens
of
the
Philippines
not
reporting
be
enacted
income
without
for
any
prior
accounting
public
made.
revenue
from
other
lines
of
business
compensation

Non-resident
professional
societies
and
with
Omnibus
1.
imposed
When
the
under
approval
an
individual
tariff
and
of
the
customs
subject
Commissioner,
laws,
to
the
rules
small
value
and
are
ofered
or
furnished
assumed
and
paid
by
the
seller
or
for/diverted
of
weights
With
chaufer
to,
purposes
P
other
3,000
than
for
the
lower
to
amount;
be
used
get
in
same
the
er
purpose
country
as
The
RTC
do
not
have
jurisdiction
and
over
on
P
Less:
afected
by
the
for
w/c
an
allowance
is
or
has
been
A.
from
An
BSP
act
the
to
of
transact
any
date
person
of
business
registration;
who
reside
discretion
permanently
of
the
abroad
or
to
return
city
or
municipality
]of
temporarily
where
during
the
property
the
year.
is
located.
the
expense
taxes
of
accrued
another.
or
on
which
taxes
income
is
derived
from
engaging
in
any
BIR
The
in
taxpayer
Purpose
several
will
is
of
some
its
be
rulings.
required
public
benefit
to
either
interest,
deposit
foreign
corporation
from
all
payment
within
the
prescriptive
period.
internal
tax.
(through
.............................................
the
78
profitsharing
plan
maintained
by
local
commercial
banks,
Beneficiary
of
an
estate
engaged
in
business
taxes
during
are
considered
interim
30
enumerated
days
from
receipt
of
decision
under
Section
Appeal
tax
system
30
with
of
the
CBAA
(Issuance
of
Receipts
Commercial

personal
and
household
effects
including
wearing
compensation,
beyond
Pertains
the
in
consequence
only
reasonable
to
real
of
a
needs
default
of
a
returns
taxable
771].
members
receipts.
of
distraint
ancillary
type
122451
][2
or
tsince
can
business
security
case.
kind
,and
be
Oct
deducted
corporate
ober
shall
be
from
gross
income

an
conclusion
d
ignorance.
ass
ess
ment
as
year
in
exchange
3.
Taxation
If
not
expressly
is
the
power
mentioned
by
by
which
law,
itof
instance:
the
universal
practice
of
206
chemical
of
A
LGC,
one
final
month
the
process
tax
at
nor
the
alter
more
rate
the
than
of
exterior
15%
six
months
is
texture
imposed
Supplies
of
year.
vessel
Allowed
or
aircraft
as
a
deduction
under
tax
corporations,
disposition
purposes,
NRA-NETB
satisfied
individuals,
of
them
proceeds
by
prejudice
order
estates
of
to
the
and
25
court,
right
trusts,
they
of
it
will
automatically
Donor’s
to
person
Final
elevated
tax
not
Tax
on
to
having
the
(i.e.
Interest
afamily
substantial
income
adverse
from
district
person
engaged
properties
in
e
not
less
epassenger
is
decedent's
of
laws.
tax
partnerships.
Such
to
due
death,
grant
-nonP6,000
traded
thru
welfare
a
local
stock
exchange
for
public
shall:

For
use
(Sec.
or
(1)
consumption
186
year
LGC)
of
the
after
of
passengers
country
the
to
making
Within
on
a
board
citizen
of
of
such
the
.10.
claimed
is
P1,000,000
or
more.
freedom
from
a
financial
charge
or
burden
e.
revenue
transfers
servic
–
ii.
v.
12,
is
Computation
perform
dissolution;
Necessary

to
exercised
No
part
b
of
by
generally,
of
NI
subcontract
the
the
inures
expense
amount
Sa
the
to
n
g
the
g
gain
un
of
and/o
ian
–be
GROSS
not
The
purpose
Machinery
VAT
(c
ice/fi
E
total
ST
[9
ON
i.
residence
AT
Requisites:
nal
IMPORTATION
cooperatives
value
E
and
OF
T
Equipment
of
HE
the
does
DE
CEDENT
duly
OF
not
actually,
home
change
must
directly,
hid
be
benefits
IV.
TARIFF
AND
CUSTOMS
than
i.on
3
public
and
conspicuous
place,
including
the
(19)
to
travel
subje
Taxable
or
to
sell,
studies
ta
etc.)
or
unde
together
work
oneestate
ofices,
must
Percentage
Finance
the
instrumentalities
or
be
as
necessary
aof
when
tax
tax
corporation’s
on
costs
a
person’s
toward
or
losses
agencies,
income,
are
It
(a
is
After
subject
a
same
rwithout
etur
n
ar
to
h
e
as
efec
constitutional
b
een
tively
filed
conn
the
ect
and
ed
business
)by
the
expenditures
tax.
performance
of
ii.
charges,
liable
the
Sellers
to
books
output
fines
of
service:
of
tax
any
and
Gross
corporation,
be
entitled
receipts
sociedad
to
input
2.
Such
Invoice
[4
Income
fine
to
form
or
or
from
VAT
other
part
Official
sale
penalty
of
of
GPB,
Receipt:
personal
shall
property
be
.to
increases
as
property
is
cancellation
In
would
case
e.
as
NOT
of
Indebtedness
goodwill,
such
incur
installment
was
retirement
approved.
no
contentment,
tax
must
payments,
or
in
in
cessation.
connection
respect
or
the
to
of
th
hi
c
Revocable

gain)
to
arrive
at
the
net
taxable
income
between
transactions
“consumed”
locally
or
registration
is
cancelled
and
who
b.
Persons
suficient
Required
for
to
it
Register
to
be
deemed
to
have
b)
b
10
yrs
–registered
n
case
of
fraud
or w th
is
effect
of
splitting
the
value
return
of
the
and/or
gift
pay
into
half
)and
Philippines
organized
social
i.
file
welfare,
a
return
in
by
cultural
within
telephone,
thirty
and
charitable
telegraph,
(30)
days
Dividends
Quezo
(k)
(a
VAT
May
and/or
be
percentage
held/accumulated
paymen
c)
From
domestic
on
tax;
health
for
future
City
pertaining
or
administrator
to
or
attributable
the
designation
to
the
transport
is
total
of
NIRC)
claiming
On
or
before
the
amount
sale,
refund
January
the
to
that
31
be
taxpayer
of
paid
he
the
is
with
following
has
entitled
the
to
year
er
to
accomplish
the
Commissioner
these
(zonal
functions
value)
or
FMV
as
NOT
beginning
commerci
on
the
of
th
mont
followin
simila
circumstanc
Suc
princip
ns
their
are
No.
debentures
180
066
,revenue
or
in
a
domestic
Assessment
final
is
duly
c.
business]
when
the
subject
matter
thereof
is
not
Employed
b.
interchangeable.
Cancellation
actually
by
es
Filing
paid
a
The
return
VAT
quality
with
of
an
the
Internal
goods,
their
GOCC
with

s.
Expenses,
Sale,
importation,
Losses,
Indebtedness
or
lease
of
and
or
iv.

A
statement
the
seller
is
a
VATexempt
..............14
K.
Requisites
of
a
valid
tax
m.
Gain
Continuation
sale
of
of
Place
business
of
Sale
of
imposed
burial
by
of
stipulated
the
in
writing
and
the
trifecta
tax
from
bets
the
compensation
an

Change
CONSTRUCTIVE
of
ownership
RECEIPT
of
the
business
occurs
Rules
Jul
y
7,
the
a.
Commissions
taxable
quarter
earned
and
when
as
such
fee
the
(exce
sales
3.
I.
GENERAL
within
the
jurisdiction
of
the
taxing
for
VAT
7.
SUBSTANTIVE
ZERO-RATED
OF
PROCEDURAL
O
Sections
explained
203
other
and
by
than
222
the
of
those
SC,
the
even
NIRC
with
provide
whom
though
the
for
VAT
a
Must
required
broiling,
be
to
limited
fle
roasting,
to
smoking
the
subject
or
stripping,
matter
business
income
of
the
taxpayer
specifically
assessed
without
xx
might
injure
an
levy
cannot
be
utilized
for
the
Proceeds
e
y
d
(7)
Benefits
received
imports
following
capital
instances:
reality
goods
is
dividend
(which
are
depreciable
gross
Previously
Amusement
Assessment
estate
Tax.
Taxed)
if:
level
The
Not
more
than
30%
holding
of
Sangguniang
Panlalawigan
3.
iv.
x
oriented.
(e
9.
Gross
Determine
sovereign
Ofice
where
who
functions
the
is
taxpayer
(acta
the
jure
recipient
is
required
imperii).
or
to
functions
and
to
borrow
funds
from
more
Net
A.
Jurisdiction
Capital
rule:
gains
on
sales
the
or
Court
of
Regular
(Sec.
7,
RA
1125)

A
b.
VAT-registered
Indirect
Duplicate
person
Taxation
(Broad
Included
only
when
the
taxpayer
is
B.
Real
acquiring/constructing
Property
Taxation
(depending
a
new
principal
on
1.

======================
The
date
decedent
of
sa
e
at
that
time
of
his
death
was
a
i12%
n
cthe
o
me The
i12%
nis
c
o
me
Unit
TO
THE
TO
THE
Income
================

been
entered
into
by
a
person
in
the
course
of
allows
e
x
t
e
n
si
on
s
to
fle
production
income,
the
partners
comprising
it
Foreign
equivalent
to
dividend
distribution
must
be
Depreciati
filed
Estate
and
Prizes
of
10%
Owner
of
negated
VAT

Profession
for
when
sales
petroleum
is
the
of
primarily
goods
person
shall
or
any
donating
services
work
has
to
since
it
has
%
Dependents
payment
of
f

ne
Distinguish
from
non-profit
non-stock
Court
production
in
Mindanao
of
Bus
such
Co.
v.
documents
City
Assessor
which
preceding
higher
calendar
from
year
the
of
date
P50,000.00
the
taxpayer
or
s
ent
t ed
Taxes,
fees,
etc.
which
are
imposed
based
wholly
thereon.
or
started
and
concluded
by
the
Code
of
1997,
as
amended.

said
amount
is
included
in
the
gross
he
shall
be
entitled
to
a
refund
of
such
year
(i.e.
the
grossed4
years
to
less
than
5
years)
difference
outside
between
the
MM
original
cost
basis
2.
imposed
ns
Royalty
:
shall
from
decision
be
books,
of
the
literary
works,
10
test
of
deductibility
in
the
case
of
food,
sugar,
salt
and
other
3
years
to
less
than
4
years
determined
with
respect
12%
to
the
goods
N
12%
/
A
being
utilizing
sale
(i)
I.
The
each
shall
Local
importation,
be
Treasurer
who:
even
though
previously
duty.
a.
Debt
register/where
condoned
the
or
remitted
taxpayer
[
Sec.
has
50
his
legal
5.
individual
A
security
holder
of
a
corp.
Purpose
residing
of
in
distinction:
that
foreign
country;
or
zero-rated
hearing
purposes
conducted
transactions,
but
for
the
such
however,
purpose
sale
and
is
refer
to
be
to
There
shall
also
be
allowed
an
comm.
tax
(d)
Life
capital
gains)
which
are
otherwise
subject
to
VAT,
the
subscriptions
to
professional
citizen
seizure
and
exemptions
regulations.
course

transferor
of
his
trade
through
or
business
remittance
on
exclusive
benefit
of
his
employees
(any
shall:
amounts.
For
limitation
B,
27.7K
is
Allow
c)
the
and
E
amount
xcise
reside
taxes
in
the
on
Philippines
articles
enumerated
as
the
case
under
may
[c
Taxation
with
FCDU).
made
and
measures.
[
S
ec
148]
(within
30
days
from
The
allowance
must
be
There
is
no
form
for
an
assessment.
withholding

They
are
income,
gain
or
profit
that
is
Art.
apply
2154.
only
were
If
to
something
paid,
one
and
dependent
is
not
received
the
upon
other
when
whether
(ex.
there
expenditure
of
public
funds,
while
in
the
which
the
law-making
body
considers
Without
chaufer
1,800
an
employer
for
the
benefit
of
business
period
shall
and
including
only
indicative
local
be
oficially
branches
of
purpose
efected
of
to
in
B.
T
O
C
ANCEL
T
AX
L
performs
IABILITY
:
and
Invoices);
indebtedness
as
provided
for
(provided
in
RR
8-98)
that
the
tax
c.
sovereign
Prima
Fishery
facie
rentals,
raises
evidence
revenue
fees
of
a
false
and
to
or
defray
fraudulent
charges,
the
Commissioner.
If
affirmed
The
general
by
the
theory
latter,
is
that
the
taxpayer’s
estate
tax
))The
on
the
amount
Gibbs
v.
cash
and/or
property
or
trust
increasing
taxes
on
income
already
aggregate
deposit,
must
Taxable
at
dividends,
gift
least
Less:
as
be
an
within
share
entity
its
from
purview
 be
partnership)
ordinary
by
office
proceedings)
subsidiary
of
of
the
business
It
carried
fiduciary,
must
deposit
to
be
shall
which
may
uncollectible
over
furnished
apply
be
restricts
either
to
as
all
even
the
deduction
a
lessor
means
form
Ungab.
or
inner
substance
of
a
product
in
such
Sec.
34(A)(1)
as
“expenses
the
wife
shall
question
have
Philippines
(2)
a
right
the
decreased
not
validity
to
the
residing
restitution
of
the
therein,
donation
of
or
es
2000]
]Banking
gain
ed
realized
appropriate
or
loss
or
y
and
ors
rin
(Sec.
GOODS
ass
85)
ess
Appellate
[claiming
]to
Sec.
ment
107]
n
ot
jurisdiction
over
appeals
through
use
person
exemptions
Philippines
must
file
Persons
status.
ct
or
only
An
if
since
alien
the
application
it
who
x
should
has
re
not
acquired
is
time
exceed
made
a
required
in
to
the
register.
business
of
buying,
or
(3)Territorial
within
waiver
the
to
lack
a
the
shall
like
other
period
authorize
any
other
Contracting
after
the
qualifying
party
Commissioner
with
State
as
a
such
a
more
tax
to
included
as
part
of
the
gross
estate
of
of
the
LGU
inherent
)application,
and
Commissioner
exclusively
in
limitations.
standing
th
used
e
or
by
with
local
the
Water
CDA
districts
ii.16,
Individual,
with
respect
to
payments
Income
with
the
VAT
Invoice
emoluments,
x
VAT
rate
Commissioner
including
profits
GOCCs
and
shall
the
life.
not
be
Income
credited
imposed
at
the
due
to:
e
a.
contractors
Remedy

corr
GAIN
ectly
in
of
processing,
enforcement
=
rand
excess
efl
ec
tfor
the
of
converting,
the
of
declarations
amount
or
10.
In
NOT
Under
Taxation
–
the
A
[1]
Omnibus
case
notice
of
Amount
of
Resident
of
stocks
Investment
assessment
deductible
and
Citizens,
other
is
should
Nonsecurities,
a
formal
not
clearance
E:
eficiency
shall
be
w/
e
sby
.(e)
Transfer

surplus
for
or
VAT
transactions;
excess
shall
be
and
dutiable
settlement
of
abroad.
If
Exports
the
grant
taxable,
of
fringe
imports
benefits
exempt.
to
Situs:
undistributed
be
earnings
and
profits
of
ii.
Other
subject
and
penalties
to
the
graduated
accruing
income
under
the
tax
rates,
tariff
Includes
(b
his
representative
condu
the
value
ct
o
fon
its
may
at
tr
the
authorize
ad
time
o
rof
bu
sin
ess
his
becomes
telewriter
Excise
institutions,
after
tax
tax
base
liable
each
exchange,
on
or
excisable
to
bracket
percentage
wireless
articles
increases
tax,
and
the
either
tax
LGUs
n
Premium
have
net
distribution
the
of
power
ts
to
ntent
levy
NI
to
difference
shall
taxes,
and/or
fees
carried
or
.act,
anonima,
Withholding
produced
passenger/cargo
tax
must
b
certain
obligations
of
the
lessee
to
the
for
the
both
same
spouses
CIR
so
corporation
v.
each
T
o
k
y
spouse
o
–plastic,
can
claim
released

E:
of
first
goods
conduct
i.
day
prolonged
only
and
or
passengers
with
operation
labor
to
shal
from
e
of
th
h
fil
a
propert
port
only
g
in
the
th
n.
rwith
es.
h
al
acquired
or
has
entered
into
athe
al
served
and
no
property
is
located;
fiscal
CODE

goals
OF
GPP
of
1987
the
is
not
a
taxable
entity
for
2.
registration
The
employer
another
shall
be
corp.
responsible
corp
ar
for
iv.
prohibited
NOTE:
shown
Imposed
hospitalization
Pursuant
in
from
the
upon
being
to
income
performance
insurance
Section
compromised
of
249
values
of
the
and
an
of
Tax
Taxes
cargo
the
vessels
(ELIT)
Philippines
or
under
its
laws
and
is

apparel,
registered
articles
indication
in
which
payments
that
such
were
amount
made.
includes
the
Ofshore
corporation
Units
pionee
and
nonother
certificates
of
indebtedness
deceased
person
personal
iii.
(when
when
a
the
c.
(i)
2009]
agreements
Research
residence
Interest
with
must
foreign
must
and
countries;
be
be

brokerage
s
pt
======================
Amount
of
Imposition
employee
is
liable
for
the
payment
of
authority
...14
SALES
GOODS
R
A
tax
of
lien
Items
return
benefit
is
is
other
of
any
to
than
those
claim
specified
of
losse
authority
i.
Retur
Shi
pp
Payments
n
in
of
o
g
fgood
p
a
L
er
td.
foreign
son
to
,the
[schedule
sice
244
non-residents,
with
country,
subject
with
respect
to
f.
c.
Prior
b)
Supplying
A
were
change
made,
in
apply
the
nature
the
of
issuance
the
business
of
a Any
acquir
sub
stan
tially
province
may
levy
an
of
the
gross
receipts
operas,
concerts,
may
prescribe
the
time,
invoices
and
receipts
are
normally
issued
person
whose
VAT
has
an
shrink
income
derived
tax
wrappings
from
the
in
sale
or
exchange
vacuum
singl
proprietors
employee
incorporat
or
th
(2)
(a
The
amount
PAYME
of
NT
S
BY
shall
be
a
(Fin
from
GSIS
purpose
of
testing
the
legality
of
an
provided
herein;
and,
industry
PROPERTIES,
AND
EFFECTIVELY
x
)statute
Alien
Individual
v.
assessment)
deficiency,
but
Income
goods
of
a
v.
single
for
income
tax
purposes)
No
arbitrariness
in
Examples
Should
not
of
be
DEDUCTIBLE
harsh,
funeral
Tax
=
Assessed
value
X
Tax
beneficiary
of
======================
Interest
on
unpaid
salaries
and
shall
issue:
sense)
–through
It
means
register/which
residence
has
jurisdiction
over
citizen
and

than
Closely-held
19
lenders
corporations
are
the
those:
issuance,
======
(4)
Regional
or
Area
and
However,
it
can
tax
classifcation
itself
if
there
is
a property
PRINCIPLES
subject
to
G.
Net
a
Definition
or
forfe
ture
(Sec
215)
exchange
================
or
disposition
of
Corp.
Tax
AGGRIEVED
GOVERNME
trade
or
business
can
NO
if
it
is
longer
(1)
claim
further
=============================
c)
A
VAT
invoice
thereto
for
every
(Sec
sale,
253)
barter
or
Nature

and
Purpose
or
redempt
educational
on
–ON
income
BUT
th
s25%
for
sha
petitions
not
be
for
review
winning
to
be
filed
other
No
(LGU)........................................................
intentions,
person
or
motives
property
or
purposes
is
subject
which
to
of
government
article
endeavor
to
be
requiring
exported.
or
any
specialized
of
its
political
Trust
corporation
owners
under
the
of
TCC;
Taxes,
fees,
etc.
the
3
Reduction
of
customs
Cagayan
de
Oro;
Board
of
Assessment
less
with
for
the
cities
Local
and
same
Treasurer
P30,000.00
division.
for
the
or
recovery
less,
in
of
on
b
Natu
Tax
Appeals
However,
if
the
toll
processing/toll
tax
upon
verification
of
his
compliance
field

not
yet
reached
the
“fourth
agricultural,
be
allowed
marine,
under
and
fresh
straightwater
and
partially
new
in
basis
a
given
due
LGU
to
when:
appraisal
is
taxable
valued;
&
Administrati
provided:
%
of
R
R
02
40]
compensation
payments
is
whether
2.
Commissioner
or
Secretary
of
In
such
a
case
the
corresponding
ad
TOPIC
exported
UNDER
additional
period,
from
THE
by
the
SYLLABUS:
immediately
Phils.
except
submitting
as
The
principle
considered
of
preemption
as
the
equivalent
based
residence
upon
Insurance
the
or
total
place
property
owned
business
by
them
the
recorded
learning,
in
the
art,
principal
or
science
ofice
engaged
and
the
in
as
a
sale
of
goods
(except
or
supply
a
nonresident
of
services
individual)
to
persons
3.
1.
similar
a
Fails
There
up
to
monetary
is
issue
general
or
execute
goods
value
failure
of
the
services
crops;
fringe
warrant
benefit
of
(b
A
c
TAXABLE
Taxation
INCOME
of
Business
–
in
exchange
Income/Income
Taxable

same
shall
be
combined
for
purposes
importation
of
goods
or
local
purchase
of
goods
receipt
of
adverse
journals,
the
Except
rent
for
taxes
paid
for
1.
The
importation
is
absolutely
prohibited
or
acknowledges
any
document
before
less
than
3
years
of
the
stock
transaction
tax
by
20%
amount
20%
distributed
20%
to
employees
N
20%
shall
/
A
be

May
Resident
exercise
alien
such
powers
only
in
Premiums
on
life
insurance
policy
Appeal
by
aggrieved
Automatic
review
by
forfeiture
Fringe
Interest
Benefits
income
proceedings
from
Tax
(amount
conducted
of
by
benefits
the
BOC
to
Exemption
tax
system)
claimed
or
file
a
accounts
surety
bond
of
for
the
not
taxpayer
more
than
are
Condonation
or
reduction
of
real
latter,
proceeds
he
is
but
of
the
the
mere
sale
in
instrument
excess
of
of
the
the
If
the
avoid
dutiable
income
value
tax
still
upon
cannot
shareholders
be
determined
decision
shall
be
reviewed
automatically
by
suficient
[b]
to
Income
ofset
tax
the
imposed
monetary
loss
including
the
It
can
be
necessary
expressly
some
expenses
or
of
government.
all
of
his
foreign
banks
that
may
be
dividends
received
from
a
domestic
This
the
doctrine
records
is
states
of
a
the
deductible
that
BIR
if
by
property
the
tax,
end
except
of
(as
the
a
in
result
year.
the
extinguishes
and
money
Capital
and
Gains
other
Tax.
assets
in
excess
of
chief
executive,
in
the
territory
of
the
LGU
the
amount
CIR,
provided
in
the
NIRC,

clear
legislative
COUNTERVAIL
intent.
Claims
for
earned.
manner
return
as
as
to
prepare
it
for
special
use
to
without
direct
and
her
residence
consent
by:
pursuant
is
taxable
to
as
the
a
pertinent
resident

Fraudulently
import
any
article
contrary
to
before
the
return
is
filed,
then
within
one
(1)
of
business
enabling
the
from
as
future.
similarly
to
gross
its
Sales
by
non-agricultural,
non-electric
and
the
net
decedent;
and
from
GOCCs
the
and
engaged
in
the
supply
and
.Hence,
forfeitures
manufacturing
(a)
by
made
the
realized
loss
helpful
distraining
sustained
or
over
in
by
oficer
the
development
stockholder,
–port
submitted
of
resident
with
the
E:
Code:
assessor
officer
letter
Citizens
of
and
iii2001]
suit
may
be
maintained
exceed
P2,400
for
the
per
entire
family
selling
or
P200
developing,
selling,
executor
inquire
treatment
or
into
that
against
output
taxes
arising
from
royalties
employee
death
of
in
all
is
th
required
e
by
the
nature
or
Power
and
made
customs
inherent
n
laws.
in
every
sovereign
State
to
charges
on
any
)loan
forward
to
succeeding
between
evade
payment
yrs.
until
from
fully
the
“Cooperative
communication
employees.
companies
All
equipment
other
or
services
associations”
th
discretion
compensation;
of
court.
Indeed,
corporation.
Non-resident
(1
d.
Taxpayers
Investment
Section
Co.,
required
It
[Service
with
21
citizens
228
is
of
to
SC
a
substantial
of
be
RA
tax
made
who
the
in
Tax
are
the
in
earnings
a
Code
nature
clearly
from
of
5.
HOWEVER,
It
i.
must
[2]
be
Who
Philippine
in
used
cannot
for
case
public
port
of
CIR
purposes
F.O.B.
v.
CA
,of,
value
–the
It w th n 1
respect
trade/business
dispute
in
lsuch
e
eexempt
yRegional
one
e
(20)
Facility/ies
where
no
sales
shall
Ad
valorem
accrue
from
taxes
the
that
date
oil
of
companies
cancellation
(a)
lessor,
Release
or
of
distrained
property
upon
considere
transacti
exemption.
to
However,
the
both
spouses
must
file
Articles
and
salvage
after
2
years
from
filing
VAT
income
is
imposed
tax
on
goods
brought
into
Philippines
directly
(both
to
a
foreign
s.
without
Code,
i.
Examination
the
Ph
in
e
of
within
any
and
5.
When
the
taxpayer
is
out
of
the
person
entering
such
compromise
is
duly
yinures
corporate
Ex.
Income
tax,
estate
tax,
donor’s
tax
government
3.
(in
whole
or
City
in
part)
Assessors,
within
whichever
and
sold
is
b.
Determination
liable
the
no
partnership,
part
withholding
for
of
income
the
of
input
net
business,
derived
and
income
tax
remittance
from
of
or
which
sources
industry
of
the
the
enjoyment
of
a
privilege
or
1.
registration.
consolidated
The
NOTE:
ii.
procedure
For
return/declaration
applicable
trust
administered
to
local
for
his
gov’t
in
aofVessels

property
other

must
have
Development
been
characterized
wrecked
or
by
abandoned
in
Phil
amusement
tax
to
be
dramas,
manner,
terms
An
amount
of
premium
on
health
Attorney’s
Particular
Only
and
ii.
aircraft,
the
references
fees
proportion
to
including
partie
be
in
deductible
of
engine,
the
to
total
should
equipment
c.
Transfers
Donor’s
In
(b
the
case
No.
person
made
263gifts
by
followed
92
da
made
ted
decedent
by
a
non-resident
by
trust
or
superior
above
in
i.
judgment
and
ii.
private
shall
sand
be
d
SCRA
isab
to
Those
ility
3
lease
32]
given
.ilipp
to
international
institutions
================
Interests
TIN
with
e,
a
id
en
tical
itself,
i.e.
from
sale
of
taxable
goods
and
(1)
Situs
such
legally
of
tax
Taxation
to
due
the
BIR.
Such
liability
stays
registration
buying
commissions);
been
If
the
payor
is
the
Government
of
e
tax

money
Past
credit
hip
certificate
consideration
Cost
es
–from
amount
or
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or
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e
its
of
Po
wer
GOVE
)Provincial
o
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f[10
Commission
R
NME
ii.
NT
Methods
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er
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of
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staxpayer;
p
en
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th
e
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sin
al
ess
d.
That
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with
the
limitations
required
on
the
assessment
to
be
filed,
and
collection
unless
personal
(except
luxury
items)
toilet
the
supplier/seller
alone,
the
VAT
invoices
ZERO
return
packing,
CTA
for
RATED
decides
the
w/in
tetra-pack,
and
other
similar
No
b
limit
Nature
(same
Limited
as
Features
to
of
Philippine
No
limit
iii.
Does
of
ordinary
not
apply
assets;
to
domestic
deductible
from
expenses:
C.
Purpose
vi.

for
2.
indebtedness
law
of
and
foreign
taxes
country
which
the
of
which
value
the
of
oppressive,
assessment,
or
which
had
become
M
and
ato

ry
VA
T
sto
ck/
secur
iti
Each
cancelled
local
government
due
to
unit
retirement
shall,
as
far
from
as
or
Employed
by
assessment
and
ii.
lessen
i.
proprietor
b.
if
any
the
input
of
rigors
a
tax
single
of
cannot
proprietorship
the
be
directly
doubl
sells
d
Classification
4.
adjustme
Withholding
If
the
taxpayer
DOCTRINE:
of
VAT)
Income
is
unable
No
as
to
VAT
make
shall
his
be

aggregate
bonuses
acquisition
Interest
====
cost
calculated
of
all
capital
for
as
a
(d)
Headquarters
Sale
or
Exchang
Propert
c)
Administration
.8
PE
endorsement
COU
NT
RY
is
LIM
or
not
IT
assignment
AT
Ithe
ON
Administration
–es
net
with
estate
recourse
is
within
or
indirect
which
duplicate
must
3
Redempt
taxation.
be
on
It
extends
rea
property
to
all
it
is
immaterial
whether
15%
of
the
gross
primary
income
a owed
nadornment
any
statutory
case
within
where
18
authority
mos.
from
to
date
do
of
so
sale.
and
no
exchange
of
decedent,
if
If
during
Income
year,
the
owner
of
a
business
resident
(g)
Miscellaneous
deduction
of
a
foreign
from
country
Items
their
which
share
at
in
the
the
The
mourning
apparel
the
surviving
regularly
conducted;
and
(2)
undertaken
in
All
o
At
least
50%
in
value
race
of
do
taxation
not
contradict
unless
donative
within
the
intent.
terms
The
=========
from
whatever
source,
other
(5
capital
Prohibition
assets
against
taxation
(30%)
of
nonwith
Court
of
Appeals,
the

assessment
first
be
duties/compromise:
imposition
of
which
contravenes
existing

re
winning
taxpayers
horses
who
are
taxable
within
and
subdivisions,
instrumentalities
or
agencies
Sir
asks,
what
if
the
CIR
VANISHING
DEDUCTIONS
are
deductions

Appeals
v.
Meralco;
Manila
123
Electric
Co.
for
v.
case
institutions
of
municipalities,
which
are
rate
exempt
=
not
from
exceeding
tax
on
line
or
declining-balance
(DB)
products,
furnished,
whether
in
their
original
state
All
dressing/toll
items
of
gross
manufacturing
income,
service
deductions,
is
with
the
requirements
for
such
any
taxable
tax,
year”
Doctrines
Refund
or
in
credit
shall
not
exceed
100%
of
Part
the
proceeds
of
any
subsequent
a
Must
be
Subject
for
a
public
to
approval
purpose
of
Sec.
of
=========================
compositions
valorem
-income
Interest
or
specific
equivalents
of
the
duty
TOPIC
UNDER
THE
SYLLABUS:
Income
Depletion
of
oil
&
gas
wells
&
means
the
of
documents,
efectively
starting
and
the
total
gross
receipts
or
earnings
derived
STEP
otherwise
5:
PAYMENT
Special
specifically
levy
AND
shall
COLLECTION
provided
not
exceed
for
OF
60%
in
TAX
the
of
Exemption
from
taxes
is
decision
personal
of
LBAA)
in
Philippines.
Definitio
.transactions
on
or
except
as
)CROSS-BORDER
.musical
from
Practice
Finance
of
to
the
or
entities
whose
exemption
under
special
or
services,
distraint
or
including
levy
after
lease
the
or
expiration
use
of
property,
of
the
exemption
of
P25,000
for
each
a
service
performed
of
determining
whether
the
threshold

ofice
rooms,
the
expenses
of
from
a
withheld
3.
Royalty
Proceeds
other
than
above
life
insurance
policies
20
a
notary
public;
1.
Managerial
Before
If
There
a
creditor
is
and
substantial
merely
Supervisory
decrease
desires
Employee
to
in
benefit
paid
aarticles,
4.
6.
tax
by
the
President
when
public
owner
or
importer
Comm.
2.
delinquent
and
The
surrender
to
1125,
interfere
as
of
the
amen
with
property
ded
these
b
y
to
Sec.
proceedings.
the
person
9
the
Secretary
of R
Finance.
through
the
Rule
3
3:
The
following
sales
allocation
for
sales
30provide
days
Non-resident
foreign
province
may
not
levy
excise
taxes
on
from
taxation
does
not
include
exemption
corporation
subject
to
reciprocity.
Cash
and/or
Property
Dividends
from
10%
Finalrecitals,
Tax
10%
F
iCarriers
n
al
oficials/employees,
T
ax
10%
F
itax
n
al
T
ax
20%
25%
wherein
F
ifor
n
al tTinterest
aax
x
double
IV.
TARIFF
the
AND
CUSTOMS
of
its
destruction,
authorized
in
whole
by
or
the
in
BSP
part,
to
theft
or
his
tax
As
held
by
the
case
Ne
w
of
York
income
Sup
reme
tax).
Cour
However,
tbut
in
2.
authority
of
any
It
is
to
funds
or
property
with
authority
to
grant
[G.R.
fishery
No.
privileges
within
law,
or
taxpayer
may
be
allowed
to
physically
for
the
remainder
of
his
stay
in
written
anywhere
as
long
as
it
is
signed
provisions
of
the
Civil
Code
of
the
Philippines
The
rules
and
regulations
promulgated
within
10
days
from
receipt
of
the
Imposed
year
after
upon
the
return
Equivalent
ING
is
filed,
but
Secretary
not
after
of
specific
interest
per
in
month
the
questions
d
whichever
scovery
being
of
fraud
is
raised.
LOWER
or
ntent
to
A
TAX
determined
distribution
ON
INTERNATIONAL
by
of
water
Commissioner
and/or
generation
pursuant
and
whether
taxpayer’s
individual
business
or
corporate,
and
are
is
non-credit

money
received
impose
.
a
necessary
to
the
trade,
price
and
Non-VAT
ORs
Allowable
deduction
must
be
in
an
amount
-penalty
goods
Action
for
the
an
enterprise
basis/adjusted
to
contest
whose
basis
export
(selling
sales
Resident
making
1.
(c
Agreement
demand
Aliens
the
sale
in
where
shall
writing
execute
a
to
the
declaration
a
extension
bill
of
sale
of
the
situated.
application
income
use,
such
for
or
the
amount
enjoyment
next
shall
3
consecutive
of
be
any
such
income
of
the
taxable
year
requires
tax
)
Prevention
profits
with
that
1336]
return,
whether
the
of
and
or
suppression
not
of
smuggling
CTA,
claim?
determined
]
&
Fort
une
from
suficient
The
judgment,
Sanggunian
documentary
resolutions
Barangay
evidence
the
or
may
withheld
to
orders
support
prescribe
of
the
a
payment
Creditable
prior
withholding
tax
at
source
the
corporation
for
the
improper
exchanging
real
properties
as
principal
has
Philippines,
his
is
been
no
bank
held
less
favorable
that
tax
has
than
been
that
utilized
which
is
Persons
pay
to
retiring
BIR
from
business
subject
to
Sale
of
levied
property.
10%
on
the
amount
paid
for
services
base
property,
or
subject
s.
real
NOT:
or
personal,
tangible
or
are
TAXPAYER
such
benefits
as
given
TAX
BASI
e
authorized
ii.
Assessment
to
do
so.
of
the
correct
amount
of
connection
with
his
trade
or
separate
Common
returns
because
–
the
husband
and
wife
protest
credit
docking
or
stopping
at
any
other
ports
in
transactions
occur.
(4
corresponding
ordinances
Philippines.
Under
principal
After
Philippines
foreign
iii.
[2
the
force
Such
the
in
Not
place
tax
country,
company
majeure
minimum
SEVERANCE
listed
has
and
submitted
not
shall
TEST
be
its
th
prima
letterstoc
c
Tobac
Determination
a)
substantial
[a
co
[
Alien
G.
R.
N
individual
of
o.
under
tax
119
761,
(except
declaration
A
ug
us
t
29,
collected
from
the
admission
fees.
painting
and
conditions
for
the
on
grantor
than
shares
correct
organized
of
amount
or
of
established
tax
required
in
to
the
be
(2
RC,
engaging
Exclusions
without
NRC,
RA,
in
v.
d)
NRAan
Deductions
From
occupation,
foreign
v.
profession
20
to
iv.
iii
the
Limitation
benefit
of
any
individual:
TO
WHOM
ii.
(2)
Rate:
purposes
Compliance
4%
filed:
of
since
the
gross
Requirements:
it
is
only
value
acting
in
money
as
a
"passessential
NIRC:
to
s
th
otherwise,
Taxes
imposition
alien,
)
the
Sep
of
tem
interest
ber
16,
on
1992]
delinquency
is
and
spare
parts
thereof
for
domestic
or
entitled
to
exemption
by
agreement
or
in
Paid
permanency
or
incurred
in
by
that
a
taxpayer
it
must
be
during
the
vi
services
to
Tax
exempt
Credit
v.
and
or
hospitalization
paid
by
an
enumeration
excess
of
the
under
RR
No.
05-11,
op
er
ation
s
the
Depreciation
TIN
upon
removal
of
petroleum
its
income
even
if
the
employee
subsequently
c)
3.
.fBoard
Income
creditable
equivalent
Tax
Law)
merger/consolidat
input
is
placed
tax
at
due
the
control
or
paid
of
3.
Tax
T
ime

NOTE:
o
exploration
f
corporations
Non-resident
In
(Ex.
co
expenditures
me
aliens
wi
th
in
not
if
more
=
donor
such
person.
was
part
or
use
of
property
or
property
receipts,
taken
collectively,
are

Not
exceed
r
egistr
P10,000
vii.
ation
c
Regressive
cessation
the
of
cost
tax
of
rate
decreases
imposed,
as

confiscatory
particular
packaging
methods
Cofins
or
urns
containing
human
remains,
(a)
Meaning
–
place
of
taxation;
power
Can
cellat
requirements
ion
Cost
o
f
VAT
of
containers;
due
o
f
an
If
(b
y
the
p
If
conclusive
er
the
advance
so
n
Interest
sale
wh
o
is
and
fails
payment
exempt
binding
to
payment
is
from
for
on
the
VAT,
the
arrangement
faithful
taxpayer,
the
term
of
internal
attributed
international
his
entire
otherwise
to
e
.
imposed
to
Source
own
to
return,
mportat
on
SALES
Losses
s
abso
OF
ute
GOODS
y
proh
OR
b
ted
collection
Petroleum
s
es
y
(2
(1

Foreign
Direct
Tax
–
tax
burden
–
organized
us
borne
and
by
the
d.
nt;
v.
Ph
Nature
ilipp
Travel
in
es
expenses
of
owned
yr
erroneously
from
in
by
date
pursuit
such
of
sa
none
paid
trade,
(Sec
261)
a
foreign
cost
keeping
on
account
of
quite
goods
as
easy
(exclusive
as
of
VAT)
simple
in
a
being
calendar
month
B 
UD
C
AL
:
acceptance
of
deposit
substitutes.

TOPIC
Attaches
(e
c.
UNDER
R.A.
not
9178
THE
only
Barangay
SYLLABUS:
from
the
Micro
time
Business
the
(1
spouse
verified;
–
Gross
(8)
Gains
and
income
Ge
n
from
e
r
al
ru
and
redemption
l
e
:
NOT
taxable
deductible
of
income
shares
purpose
Except
of
said
a
The
corporation
as
net
cost
otherwise
income.
of
indicates
whether
provided,
that
it
for
labor
the

Any
i.
express
person
Requisites
provision
who,
for
in
the
deductibility
against
estate,
course
such
trustor,
of
of
act.
trade
if
or
dies,
c)
Tax.
the
directly/indirectly:
business
is
continued,
The
Government
including
or
any
of
horses
its
political
)Prospectivity
time
Court
plain
stock,
of
was
his
import
nondeath
not
of
convinced
a
taxing
that
statute.
since
cases


in
w/c
pursuit
(c)
of
a
Situs
decreased
commercial
of
Property
by
or
earned
the
economic
Taxes
as
such
activity
are
countr
NOT
goods
outstanding
capital
or
stock;
or
Any
person
required
to
make,
render
or
file
a
Imposition

g.
Situs
of
Income
Taxation
(See
page
9
Conditions
ii.
Historical
of
the
Net
cost/adjusted
Worth
basis
of
sold
(1)
income
derived
by
foreign
same
should
be
applicable
derived
T
AX
including
GOCCs,
in
lieu
of
the
actual
input
or
not;
method
himself
starts
the
allowed
personal
Assessment
Appeals,
seem
(2)
employees
1%
Exceptio
on
gross
not
sales
exceeding
or
receipts.
10
days
Service
Fees
revenues
and
assets
Actually,
Directly
finance
[the
Secs
.evade
Equality
performed
and
independently
uniformity
in
from
local
growing
taxation
d)
exemption.
respect
to
the
imports
from
the
d
properties
Taxation
duties
paid
which
of
on
Other
the
were
imported
already
material
subjected
to
.articles
resale,
mines

disposal
Capital
or
gain
use
of
is
the
the
goods
excess
by
of
granted
the
180-day
or
paid
period
by
the
of
employer
the
BIR
to
act
nature
and
6.
Common
Limitations
on
the
Taxing
1.
Itwith
CURRENT
should
be
and
uniform
fair
market
and
equitable
value
is
the
basis
fee,
or
charge
erroneously
or
illegally
actual
cost
of
such
projects
and
from
acase
VAT-registered
person.
It
shall
also
Definition
goods
Prizes
and
and
awards
made
primarily
in

livelihood
or
profit
of
an
individual
or
laws
or
international
agreements
to
which
time
prescribed,
or
In
“dependent”
taxpayer
has
no
legal
residence
or
assessment
otherwise
b.
debtor
and
Profession
the
price
of
agricultural
or
agriTakes
the
requires
oath
or
of
by
ofice
the
Sanggunian
upon
concerned
3.
by
Employer;
fuel,
employee
light,
water,
is
taxed
telephone,
but
burden
etc.;

to
the
heirs/beneficiaries
for
December
upon
which
the

.
The
CTA
shall
exercise
exclusive
appellate
%
Domestic
Taxable
Within
and
Without
R.
A.
9282]
[3
Determination
of
Tax
Due
recorded
ofering
in
to
redeem
would
be
contrary
to
law,
Collector
of
Customs
has
exclusive
An
(j)
EXCISE
TAX
on
the
receipt
rights
of
of
transmitting
depositary
bank
under
the
already
successive
I.
GENERAL
application
PRINCIPLES
of
the
two
4.
Peop
1
Interest
tax,
le
2)
ex
the
on
Juridical
rel
any
interest
current
of
Personalities
due
bank
thereon
and
20
the
th
the
principal
Since
ofice
Sec.
of
11
wit
of
RA
factorie
1125,
projec
as
a
domestic
corp.
or
from
a
joint
stock
which
to
contributions
promote
the
are
general
made
welfare
by
such
and
transact
business
with
municipal
waters,
as
well
as
issue
licenses
seizure,
or

fines,
an
exercise
penalties,
of
and
the
surcharges
power
on
of
obligation
for
currency
loans
by
the
BIR.
Any
notice
sent
to
Lpayment
transfer
its
business
to
the
intended
RDO,
Cas
e
v.
Preference
on
the
Owner
of
Imported
warrant
to
the
Revenue
District
Oficer
the
foreign
CIR
country
(except
when
the
.
CARRIERS
during
year.
expiration
of
the
period
prescribed
for
the
foreign
to
the
Finance
transmission
of
electric
power
a
intended
taxable
income
to
minimize
or
a
deductible
losses
or
to
Assist
in
so
taxable
doing,
or
years
immediately
where
the
for
the
loss
initial
was
and
incurred.
The
same
shall
take
efect
only
during
equivalent
to
the
current
fair
market
value
of
CODE
OF
1987
RTC
in
tax
collection
and
the
cases
tax
due
originally
property,
or
right
as
is
mentioned
in
and
other
frauds
upon
the
customs.
and
holding
himself
out
as
a
full
or

charge
or
burden
upon
persons,
properties,
9.
Determination
on
certain
income
of
payments;

proprietors,
forfeiture
exceed
Gen
er
al
lessees,
70%
ru
of
le:
chattel
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or
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to
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period
deficiency
he
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duly
payment
taxes
registered
situated.
is
of
tax.
with
In
case
and
of
in
accumulation
of
its
earnings,
and
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public
deposits.
granted
purpose
to
if

the
welfare
fair
market
of
the
value
nation
of
or
Forfeiture
3%
of
their
quarterly
gross
receipts
).bones
taxpayer
respect
THEORY,
reply
(Sec.
percentage
rendered
the
]
223)
must
stating
amount
corporation
to
traded
income
first
tax
in
shall
be
in
derived
is
unrelated
file
informed
his
facie
from
return
business
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sources
e
and
he
k
or
pay
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and
art
1
fine
996)
exhibitions,
invoices,
taxable
of
,
]
the
not
resident
CIR
sales,
bills
of
aliens
lading,
inward
letters
such
tax/penalty/sum
has
been
paid
business
to
sale
tax.
Reciprocity
(CREBA
v.
ERC
rule:
and
Meralco,
G.R.
No.
174697,
8
stock
in
a
The
)
whether
ETB
Tax
law
Credit
for
allows
use
in
business
ff:
persons
or
%
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to
The
do
legitimate
business
Commissioner.
their
through"
purchases
entity
where
its
income
is
tax;
RATE
Regional/Area
international
Philippines
transport
Exempt
any
share,
operations
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bond
Philippines;
corporation:
are
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members
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with
instruments
ma
related
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y
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deduction
If
or
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head
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ofice
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to
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th
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ec.
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187,
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fil
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ach
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egister
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sale"
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citizen
204
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value
resident
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are
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egister
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e
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...................................................
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eign
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cy
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ated
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y
E:
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tax
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death
o
At
least
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Inherent
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If
merely
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At
accommodation
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It
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statement
or
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other
investments
document
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minor
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children
by
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dealer
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in
deceased
RATE
S(c
[1
In
(1)
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Taxes
Between
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amounts
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Sale
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Shares
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Deduction:
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for
items)
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review
the
(GRIP
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profit
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institutions
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[therefore
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ec.
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and
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(b
Gifts
properties;
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to
and
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National
Government
======================
during
n:
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or
more
pecuniary
impositions.
i.
Inadequate
BIR
Commissioner
records
as
as
prerequisite
expressly
-gross
The
means
VAT
Cooking
directly
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oil
attributable
and
or
ratably
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and
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Charges
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value
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received
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used
Alien
rendered
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in
the
an
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principal
As
to
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competing
country
burden
or
the
incidence
most
determination
May
shift
by
from
DB
of
to
SL
1.
(but
Donee
not
is
limited
Stranger
to
poultry,
much
livestock,
earlier.
or
other
agricultural
By
authority
of
valid
law
Right
to
notice
and
of

additional
non-rank
exemptions
and
file
are
employees
reported
in
except
one
b.
buyer
will
709,
accrue
2316
TCC]
directly
or
indirectly
to
X
Iemployer)
Powers
of
II.
The
NATIONAL
sale
shall
be
INTERNAL
scheduled
in
not
less
than
20
days
the
taxpayer
elects
and
is or the

include
the
transitional
input
tax
determined
in
a
Charitable
&
other
improvements,
including
the
costs
of
collected.
covers
only
taxes
for
which
the
taxpayer2.
Who
is
found
guilty
of
abusing
the
2.
Nature
in
cases
of
general
failure
of
crops,
or
group
TAX
of
individuals.
TAX
RATE
3.
the
The
Philippines
20%
final
is
withholding
a
signatory
tax
efectively
on
a
provided;
Taxes
That
either
the
person
or
property
taxed
is
place
is
on
based
of
products;
business
or
in
the
Philippines,
the
jurisdiction
to
shall
be
filed/paid
on
Please
refer
to
the
discussion
under
Gross
]Corpora
and
Payable
or
death
of
the
insured
property
at
the
squestions
Transportation
election
or
without
any
consideration
Corporation
recognition
Income
of
the
Philippines
4.

NOT
Income,
The
tax
in
shall
the
broad
be
withheld
sense,
by
means
the
over
all
touching
on
(Sec.
158)
businesses
amended
by
Sec.
h
s,
tS
expenses
of
the
sale
shall
be
remitted
to
2.
Constitutional

protection
of
the
whole
citizenry.
deposit,
Protest
Machinery
.immediately
contractors
c.
tax
against
laws
yield
–Income
or
embraces
and
a
other
newly
persons
monetary
enacted
machines,
engaged
ordinance
equipment,
in
the
%
–post
5.
for
the
operation
of
fishing
vessels
of
three
co.,
insurance
or
mutual
fund
companies
taxed
by
the
employer
NIRC.
2008
The
current
2009
for
Tax
2010
Code
the
requisition
or
preceding
condemnation
or
the
threat
or
W
HEN
:uis
January
account
1
of
every
of
year
taxes
are
not
3.
oll
ins
:If
Articles
(b)
Agricultural
for
Recovery
Customs
implements,
of
amounts
previously
however,
Revenue
the
Regional
filing
Officer.
of
its
returns
Appeal
todeliver
SC
w/in
15
days
No
appeal
assessment
final
taxpayer
signifies
his
desire
to
avail
Note:
Prior
to
R.A.
9504,
additional
[2]
Final
The
Tax
gross
Rate
family
–within
7.5%
income
does
shall
be
retroactive
in
the
enjoying
assessment
subsidy
of
bounty,
the
tax
shall
notify

Requ
ireme
nts
for
Note
C
us
that
to
ms
the
allowable
capital
I.
operators
Stages
of
theaters,
of
Taxation
(LAPR)
fraud
or
failure
to
pay,
the
loss,
increase
as
the
profits.
case
may
These
be.
are
Script
the
day
Real
decided
property
by
them
owned
on
by
the
income.
duly
their
respective
registered
succeeding
payments
Supervision
and
control
over
the
gross
Gift
collection
of
subparagraph
d
b
y
R.A.
7
716;
(b)
hereof
F
ort
Bon
or
ifac
any
io
such
Final
withholding
tax
on
certain
income
Receive,
conceal,
buy,
sell,
facilitate
or
shows,
the
next
If
the
grant
of
fringe
benefit
is
for
the
or
rights
to
raise
revenues
for
the
use
and
deterrent
to
the
avoidance
of
tax
upon
4
Special
July
the
2010;
the
greater
“most
portion
favored”
of
among
its
population
other
has
liable
the
for
in
tax
stock
deficiency
due
or
within
securities
taxes
20
days
through
of
unrelated
after
the
closing
sending
of
credit,
landing
certificates,
and
other
domestic
under
protest
In
the
case
of
nonresident
citizen,
only
that
taxes.
-position
Purchase
ultimately
by
taxed
the
government
to
the
at
sale
partners
In
of
case
the
total
of
the
annual
seizure
production
of
personal
property
to
The
assess
issued
Commissioner
to
between
the
to
buyer,
a
the
taxpayer
shall
CIR
and
provide
and
a
who
copy
the
taxpayer
the
fails
thereof
tax
VAT
shall
be
paid
by
the
importer
prior
PRESCRIPTIVE
g
required
the
that
Paid
money
P
correct
it
ERIOD
basis/adjusted
exchange
allowed
by
to
deposit,
collected
would
OF
the
A
SSESSMENT
person
(Capital
not
from
basis
comply
among
Gains
AND
paying
e
P
themselves
with
for
d
e
.(f)
Rule
receipts
Joint
Income
deriving
P
ventures
RESCRIPTIVE
from
or
income
sale
income
are
of
P
ERIOD
personal
from
not
–Sec.
OF
within
A
taxable
failure
SSESSMENT
property
&
as
to
recognized
when
there
is
a
separation
of
not
right
allowed
by
way
provided
of
gift
inter
that
vivos
the
amount
or
mortis
of
Headquarters
Rev
30
days,
enu
e
The
the
T
ax
country
the
in
other
which
the
nonresident
F.
Importation
transfers
in
shall
Violation
be
used
of
by
analogous
personal
more
NRA-NETB
trusts
or
household
effects,
excluding
25
than
of
awfower
or
when
of
)
primary
there
s
an
agricultural
actua
and
products
which

.
Covers
CIR
of
International
the
RDO
by
air
submitting
carriers
and
aAND
distribution
from
[1
of
Existing
VAT
the
but
estate.
indebtedness
voluntarily
C
I
R
v.
CA
due
[
328
registered
to
the
C
R
A
considered
transactions
“de
minimis”
during
the
benefits.
taxable
year
F
ail
grantor
ur
e
t
o
f
i
le
a
r
et
ur
n
shall
not
a.
Req
v.
a
e.
taxab
individual:

ites
le
notes;
Amounts
tax
The
fo
sh
r
val
all
3
taxable
id
no
currently
t
year
b
e
to
sub
the
ject
period
expended
ed
extent
to
th
shall
e
fai
for
)amende
and
)
exceeding
deficiency
5
9
from
LGC]
:
sources
income
date
39
.
of
South
his
death
Quezon
to
any
City,
change
or
through
with
the
refinery
jurisdiction
of
the
taxing
state.
Deduction:
included
taxed
printed
or
purpose
business
under
prominently
of
ascertaining
cannot
provisions
on
claim
the
the
invoice
existence,
any
of
the
or
transitional
without
restrictions
input
tax,
to
by
the
extent
payor.
that
For

(donation)
Common
carriers
are
generally
not
subject
erroneously
pension
or
illegally
liability
pertaining
before
deducting
to
old
G
(2)
IFT
s
the
Estate
member
Commissioner
delay
himself
separate
in
tax
in
ter
does
and
est
item
from
The
authorizing
word
“VATthe
er
amount
or
quantity
goods
sold
and
Every
person
who
is
required
to
register
Contractor
and
issuance
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should
be
increases
Powe
r
t
o
Adj
us
t
L
ocal
Ta
x
Ra
te
mon
th
o
r
banking
units
authorized
by
[
25
forth
yr.
SCRA
in
house
taxpayers
in
Section
connection
assessment
82
in
7];
which,
306
(now
Phi
whenever
of
with
l
Gu
his
204
arant
absent,
trade,
C
y
and
e.
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Appea
Gross
Income
–
w
Tax
th
n
(for
30
days
purposes
from
of
certain
METHOD
obligations
–
of
the
lessee,
it
is
not
ex
emp
tion
because
Makas
iar,
and
one
[
177
has
raw
to
cane
transaction
sugar
and
or
molasses,
activity
death:
cessation
............14
e.
status,
may
That
within
it
does
2
years
not
8.
TRANSACTIONS
DEEMED
SALE
ashes.
Personal
recipient
Failure
and
If
upon
to
household
property
pay
whom
the
foreign
the
Deficiency
effects
is
tax
is
country,
imposed.
of
tax
to
The
a.
collect
conjugal/community
following
Income
net
economic
profession
Taxes
the
business
close
benefit
of
or
the
which
from
exclusive
taxpayer's
the
does
transfer
property),
taxable
not
that
(in
ter
demonstrate
n
al
the
expor
ts)
of
claimed
addition
subject
to
outright
other
withholding
but
should
VAT.
be
The
subject
VAT
shall
to
the
transaction,
taxpayer
against
unreasonable
destined
for
a
candidate,
there
was
no
donative
intent.
materials;
affiliates
served
including
on
(BMBE)
BUT
durin
a
reimbursement-on-cost
from
Act
engine
th
the
of
2002
year
time
tax
previo
was
basis
due
to
and
th
sh
all
no
within
app
fund
ly
y
the
to
s
h
is
Philippines
sales
authorized
o
f
good
s
o
r
serv
t
ices
transfer
in
contemplation
of
death,
(2)
residence
built/acquired
NO
ADDITIONAL
PAYMENT
shall
be
required
from
notice
bought
sells,
(Rule
43,
ROC)
Loss
barters
and
stock/securities
used
must
or
on
be
the
of
exchanges
the
occasion
&
taxpayer
of
goods
the
Philippines
in
loans,
stocks,
bonds
or
decedent
]
agencies,
in
favor
including
of
another
government
person,
owned
then
(2
Equity
Returns
Dissolution
]
is
and
not
Payments
a
of
ground
a
partnership
for
of
Taxes
tax
and
Withheld
creation
v.
)
co
Partners

st
income
salva
earliest,
are
but
ge
considered
on
that
stockholders;
or

business.
tax
remit
of
any
(include
“Incidental”
the
only
means
brothers
something
and
sisters,
else
e
)

any
Branch
entity
voting
power
of
all
classes
of
stock
be
supplied
with
or
assigned
a
Taxpayer
construed
strictly
against
Limitations,
Territorial)
The
taxpayer’s
authorized
Constitution
by
the
does
not
prohibit
the
of
Withholding

Property

Sale
to
ValuePreviously
a
non-resident
of
goods,
(1
Resident

Carrier
Citizen
must
the
CTA.
–
be
citizen
an
alien
of
the
resident
d.
De
i.
cember
The
value,
21,
apportioned
as
te
selling
(c
)
individual
price
representative
whose
or
On
or
before
the
apportioned
Location
Fringe
to
such
sales.
the
Donor
L.
Tax
credited,
as
distinguished
return
from
other
delegates
it
Depreciati
to
his
deputy,
do
after
notice
to
the
owner
or
possessor
of
the
connection
with
the
regulations
or
the
use
of
purposes
(Sec
30
(H),
NIRC;
RMC
76income
V]
The
legal
tax
return
implication
and
of
a
this
single
is
when
tax
the
A
VAT
oficial
receipt
for
every
lease
of
and
marine
food
products,
the
activity
.
to
taxable
articles
or
kinds
of
property
of
(1
From
sources
method
Useful
within
life:
the
10
yrs.
or
the
seller,
unless
an
appropriate
Alien
(e.g.,
Individual
estate
when:
LGUs
and
(1)
donor’s
the
and
fringe
common
tax).
benefit
revenue
The
is
purpose
is
a.
The
When

Direct
payment
over
the
–
the
the
law
of
tax
determined
itself
the
is
tax
imposed
expressly
by
the
cost
on
employee
from
the
provides
requirement
for
contributions
Research
&
qualifed
to
report
the
gain
by
hearing
Must
be
for
a
public
If
actual
input
VAT
attributable
to
sale
to

U
NIFORMITY
government
in
oficials
classifcation
and
in
each
local
acquiring
land
and
such
other
real
c.
bank’s
2.
The
passive
claim
must
be
filed
within
2
years
grantee
is
directly
liable.
In
any
case,
it
Gross
income
Covera
derived
from
conduct
BASE

(c
When

There
to
fle
is
calamity.
within
subjects
the
such
transactions
to
zero-rate.
Capital
Gains
Tax
(Real
property
and
Net
es
tat
e,
for
eign
x
Phil.
Estate
Tax
=
max
exercise
thereof

Where
there
is
fraud
[
S
ec.
230
7
,
TC
C
]
E:
all
wealth
operator,
jurisdiction
4
Seizure,
of
Search,
the
taxing
Arrest
authority
[
Secs
.
2205,
review
by
appeal:
cancels
the
debt,
the
amount
of
the
Interest
REVENUE
from
If
CODE
such
Deposits
amounts
E.
and
are
held
by
the
owner
seizure
of
real
and
property
forfeiture
or
person
of
having
dutiable
time
of
death
and
on
the
privilege
that
a
person
any
mechanical
transportation
question
Limitations
manager
appointment
religious,
or
person
charitable,
to
in
any
charge
position
of
scientific,
the
in
horse
the
5.
benefits
(Sec
246)
from
deposit
substitute,
already
imposes
a
tax
on
ALL
quarry
resources,
ofices,
&
regional
1.
Decisions
plants,
9
RA
operating
and
9282
of
CIR
empowers
headquarters
the
tax
of
court
to
Resident
oficials/employees,
Taxable
or
both,
for
(4
written
Income
equipment
off
and
from
It
is
raised
to
serve
as
a
means
to
provide
imminence
thereof)
is
compulsorily
or
exemption
of
the
tax
credit
for
taxes
of
foreign
(b)
by
the
Revenue
Regional
Director
a
(c
(RC,
RA)
d
cinemas,
Taxation
payment
concert
of
of
taxes
halls,
Passive
in
the
new
RDO
shall
still
Procedure
on
Customs
Sangguniang
Panlalawigan

In
matter
of
mere
public
right,
the
people
HO
methods,
a.
the
basic
dutiable
real
prop
value
tax
shall
in
4
be
equal
determined
Corporations,
no
matter
how
created
or
For
feiture
The
not
exceed
Purposes
RCIT

or
loss
be
deducted
in
following
cases:
executor
or
administrator
of
the
amount
of
thus
Cooperatives
allowing
jurisdiction.
under
subsidy
R.A.
6938
or
De
vt.
Cor
p.
v.
CI
R,
musical
=

knowledge
or
information
as
is
d)
3.
This
transport
principle
in
such
the
article
but
provides
later
knowing
that
its
a
illegal
tax
bill
support
entrance
of
and
government
to
enable
it
to
convenience
corporation
part
payments;
of
the
gross
estate
which
is
situated
in
G.R.
.======================
Assessment
N
os
.claim
158885
in
any
a
nd
suit
0680,
must
April
be
2,
in
countries.
COLLECTION
of
a
PAN.
the
He
must
be
informed
of
the
facts
commercial
C
OLLECTION
documents,
of
export
ntent
ona
fraud
(Sec
2307)
presentation
calendar
which
year
of
the
is
of
proof
exchangeable
a
period
of
DST
not
payment,
value.
upon
information
report
distraint
sales,
obtained
receipts
from
or
income
banks
in
and
an
under
income
of
included
forfeiture,
in
the
owner
return
desiring
of
citing
furnished
before
the
Senate
respond
release
the
the
expiration
the
of
to
corporation,
such
Philippines
a
preof
goods
the
assessment
vs.
3
from
company
year
Ermita,
customs
period.
notice
G.R.
services
of
passengers
rendered
and
to
cargo
the
by
th
without
the
institutions
for
administration
purposes
causa,
legacy
or
inheritance,
unless
a
(a)
foreign
certified
Requisites:
corporation
true
Two
copy
or
of
more
is
his
domiciled,
OSCA
trusts
ID.
shall
information
over
or
returns
amount
option
realized
from
money
(cost
sources
for
>
the
th
vehicles,
III.
Payment
aircraft
of
and
animals,
purchased
are
used
as
inputs
to
their
production
ass
ess
ment
of
books,
limi
continue
its
tation
to
run
ribe
ix.
E
x
car
e
under
p
io
n
:realizing
Suspension
TA
VAT
is
system
allowed
SPECIAL
applies
when
the
for
======================
50%
of
the
gross

on
or
before
the
fifteenth
(15th)
day
property
will
May
be
be
listed
applied
as
taxable.
to
the
payment
of
taxable
exercise
b.
Philippine
to
forfeiture
of
a
Embassy
power
by
or
the
Consulate
decedent
alone
in
the
or
shipping
receipt;
carriers
doing
business
in
the
]selling
taxpayer
the
examination
of
property
received
with
the
BIR
such
example:
input
tax
has
not
been
applied
(returns
Sec.
191
LGC)
qu
ter
Co
is
.,
IThe
nc.
v.
4)
[something
(2
P1.5
Returns
Terminate
Export
252
applying
Amount
without
Investment
U
million,
contrary
S
market
While
o
whic
of
n
MCIT)
d
the
Capital
edu
taxable
illegal
residential
to
mus
Philippines
ction
in
value
law
Gain:
bonds
income
o
be
[tax
fsaid
Sec.
vali
Tax
th
house
will
and
yea
an
form
whe
and
other
legall
part
lot
b.
Iss
[11
business
uin
[b
Exempt
g
a
warra
or
Sale”
profession
prov
nt
o
nc
fand
written
a
c
as
ty
or
or
ordinary
mun
printed
cec.
pa
&
1
Levy
their
–tbusiness
Refers
price
to
the
(proof
enactment
of
transaction),
of
a
law
and
by
Interest
must
not
be
incurred
to
license,
or
based
on
the
NIRC,
personal
as
or
the
BSP,
from
foreign
consider
SC
RA
(d)
27
all
]estimated
Rental
income
pt
of
charitable
(IN
229)
EFFECT
of
the
SUBJECT
National
of
TO
each
12%
Internal
of
VAT)
the
trust
Revenue
is
received
The
amount
or
transferred
by
penalties
which
the
imposed
tax
imposed
without
a
by
accrues
whichever
subject
the
(f)
not
members

to
payment
exceed
to
of
of
his
the
family
tax,
during
regardless
and
the
for
of
ordinary
salt
and
copra
shall
be
Regional
(1
Progressive
from
the
date
10%
Tax
of
–for
tax
cancellation,
rate
On
increases
taxable
apply
as
Installment
be
based
Basis
on
the
contract
Traveling
expenses
include
deceased
TAX
Petitioners’
(c
ON
13th
except
AGE
month
contribution
NTS
vehicles
pay
OF
and
F
ORE
of
other
IG
money
N
benefits
Comm
iss
ioner
,15,000
[should
13
g
ecase,
s17
us
e
o
rwatercraft,
prop
ed
amortization
er
ties
method
represent
over
recognizing
a
charges
period
of
arising
the
5
years
earnings
Within
the
investigation.
(3
Meaning
of
Unreasonable
impact
and
incidence
investigation
of
Appeal
to
CTA
to
the
includes:
BMBE
commissioner’s
shall
exempt
satisfaction
from
income
that
his
administrative
and
penal
sanctions
provided
4.

Gross
other
within
domestic
the
income
securities)
shall
mean
gross
burial;
properties
or
engages
in
the
sale
iii.
only,
)imposed
a.
demandable
Claims
without
at
Allow
Source
a
gain
a
similar
corporation
st
th
e
profit,
exemptions
for
by
purposes
a
from
person
transfer
of
in
(i
year.
Payment,
vprograms,
iii.Commissioner
alu
[2
e
therefore,
Actually
in
general;
sustained
duly
time
notified
during
of
the
within
taxable
30
revocable
spouse,
transfers
and
ancestors,
(3)
proceeds
&
of
lineal
life
Gross
gift
refers
to
all
real
personal,
for
remainder
of
the
year.
entitled
or
controlled
to
vote
corporations
is
owned
directly
(GOCCs)

balance
Guidelines
of
loan
of
the
the
considered
date
tax
liability
of
corporation
as
receivable
as
Economic,
primary;
of
the
a
technical,
input
new
spartners.
o
m
partnership
et
tax
h
ior
n
vocational,
shall
g
n
ece
be
which
ss
pro-rated
ar
y,
takes
a
pp
to
e
over
rfiled
tperson
the
ai
nsaid
n
g
consumption
outside
of
the
territorial
border
of
Taxed
Identification
except
property
and
establishment
spare
those
and
Number
the
parts
publication
of
of
(TIN)
the
which
and
pension
posting
he
trust);
the
shall
wh
ich
)employees
is
Philippines
irr

evo
corporation;
Gen
cab
er
le
residing
al
fo
Ru
rproperty,
le:
p
er
The
iod
address
o
fthat
shown
in
201
appropriate,
0
]OF
of
the
government
and
liberally
in
favor
the
made
ordinary
course
of
Added
forms
of
on
Stock
Not
Traded
in
the
Stock
Hence,
the
later
30-day
original
period
for
filing
a
c

Excepti
(a
Reside
forei
corporat
–therewith

created
by
any
of
its
agencies
which
is
not
correct
amount
of
tax,
such
tax
shall
character
Benefits
you
appeal
it
to
the
CIR
or
taxpayer
on
all
income
appeals
received
to
or
the
earned
CTA
books
NIRC
goods
of
subject
by
account
or
the
properties,
to
guardian
certain
do
not
and
conditions
clearly
or
for
other
every
reflect
person
[in
S
sale,
his
)rece
Philippines
taxpaye
barangayowned
properties
or
service
same
ii.
income
Where
class
shall
the
arising
facts
be
taxed
from
subsequently
at
operatio
the
same
of
th
(a
stated
(6
GR
Under
does
(ii
residence
OSS
in
not
aof
the
Icreator
Tax
nc
ome
is
Treaty
sales
not
fr
om
within
document
S
our
the
ces
Philippines
shall
be
Employed
by
Regional
for
a
liberal
sale
or
construction,
exchange
of
capital
is,
asset.
case

exactions
d)
...................................................
PERSONAL
(b
Development
Pension
INCOM
e
Revocati
by
only
the
nature
the
ratable
or
necessary
portion
to
adjustment
can
be
made
in
accordance
with
government
to
minimize

is
shorter
less
the
efect
life
as
of
may
double
be
permitted
taxation
government
unit
be
observed
ii.
Collector
of
Customs
with
respect
to
installments,
the
tenth
(10
due
)previously
from
of
each
............................
128
purpose
Issuance
person

of
of
trade
who
the
certifcate
also
or
of
sale
to
the
purchaser.
)G
Exempts
property
from
in
taxes
connection
all
revenues
and
amt.
of
cannot
credit
be
transferred
or
assigned
by
the
certification
on
non-availability
of
locally
Rate:
stocks
not
traded
in
stock
market)
income
forms
part
of
taxable
gross
Again,
as
applied
to
the
tax
base,
such
rate
2.
POWER
registered,
shall
COMMISSIONER
be
efected
TO
MAKE
by

All
income
.No.
2210
,location,
2211
TCC
]in
c.
Constitutionality
ge
of
DT
–price.
The
SC
held
Those
income
Net
estate,
educational,
Yield
or
any
other
Monetary
Only
VAT-registered
persons
are
required
debt
is
a
gift
from
the
creditor
For
the
quarterly
income
tax
return:
d.
3.
Imposed
That
it
within
complies
territorial
with
requirements
of
is
given
in
insurer
controlling
whic
under
produce
to
an
awhen
agreement
certain
th
incom
extent
to
pay
(i.e
the
which
flows
into
the
taxpayer
other
than
)activiti
goods.
races
before
i.
Recipient
was
selected
without
any
government
service;
Business
circuses,
boxing
issue
stadia,
injunctions,
it
would
appear
may
impose
surcharges,
fund
&
similar
arrangement
f.
Tax
on
GOCCs,
agencies
and
multinational
companies;
regardless
of
the
origin,
purpose
hence,
of
distributing
the
Province
to
such
may
on
contrivances,
constitutionality
of
passengers
instruments,
or
freight
legality
by
hire
of
appliances
tax
and
ordinance
common
or
)
Foreign
public
improvements
Income
designed
for
the
involuntarily
.trust
Income
countries)
converted
into
property
similar
Protest
Cases
are
the
real
W
installments
(Mar
organized,
2.
Inaction
whether
of
CIR
jurisdiction
harvest
facilities,
fertilizers,
othe
th
MCIT
under
Percentage

method
Tax
four
or,
the
dutiable
2.
sh
By
all
the

be
amounted
President
au
Recovery
to
mati
of
to
cally
of
the
only
bad
d
Philippines
ism
P8,000
debts
isse
d
each
fro
-day
m
th
erate
literary
and
2012
(i.e.
P6,000)
is
only
to
them
the
Machinery
to
tax.
sell
at
&
subventio
equipment
for
pollution
Acquittal
in
Criminal
Charge
Not
Res
a.
Provisions
include
not
Directly
only
decisions
Affecting
or
rulings
Taxation
but
TAX
TAX
RATE
P
P
P
must
only
be
5.
Prize
mentioned
exceeding
in
P10,000
subparagraph
(c)
hereof
20
ii.rain
2009;

30%
B
IR
of
W
all
ebsi
sales
te
]
recorded
in
the
principal
Interest
income
from
long
term
purchased
in
yrs.
under
straight-line
4
Appea
–
w
th
n
Philippines
15
days
to
shall
be
included
in
his
discharge
its
appropriate
functions.
It
means
each
party
to
the
treaty
C.
1.
Distraint
Power/Authority
(Sec.
254,
to
assess
LGC)
tax:
with
notice
L
OCAL
T
AX
1.
The
wrongful
making
Public
by
the
Instrument
owner,
and
no
the
reply
law
was
upon
then
which
heard
the
from
assessment
the
CIR.
The
is
products
amount
exceeding
exported
30%
directly
of
that
declared
by
a
Report
of
sale
to
the
BIR
trust
shall
not
be
included
in
computing
clearance
Every
exceeding
court
person
of
within
vessels
12
liable
months
2
and
may,
aircraft
as
at
may
his
engaged
option,
be
file
in
to
contest
the
validity
of
the
forfeiture
association
“Section
financial
within
222
Phils.,
which
the
institutions
(b)
prescribed
if
of
there
issued
the
NIRC
is
reciprocity)
the
pursuant
period
provides
stocks
of
or
time,
that
to
other
or
169777,
Documentary
April
20,
2006,
488
SCRA
1,
39-40;
h
rendering
the
services
certification
from
the
Commissioner
that
(b)
Must
file
a
Sworn
Statement
on
allow
a
credit
against
the
tax
due
from
in
foreign
Business
countries
Taxes:
by
residents
of
the
Philippines
15%
of
gross
income
following
cancellation
conditions
of
his
concur:
VAT
registration
after
assessor
income
to
of
LBAA
such
(Sec
foreign
226)
outside
of
the
property
fourth
or
(4th)
a
month
following
================
If
the
sale
is
subject
to
zero
percent
(0%)
in
country
conjunction
where
with
donor
any
is
other
domiciled
person,
at
the
189]
)
period
3514
long-term
,
TCC
and
of
furniture,
42%/
notwithstanding
h
]
the
33%.
in
t
and
d
Rate
e
that
r
professional
d
n
y
the
dist
]
]
t
and
lev
y
X
ASSESSMENT
Impose
Persons,
Only
on
land
necessary
expenses
which
are
not
against
Deposit
output
in
tax:
banks
Provided,
which
are
however,
made
any
taxpayer;
dec
s
on
on
the
protest
or
from
made.
although
income
Philippines
if
the
owner

liability
has
knowledge
assumed
of
its
or
the
best
other
contributions
means
dwellings
to
prove
with
the
gross
payments
selling
of
from
whatever
the
sources
same
this
Chapter
exceeds
surveillanc
the
amount
market
shown
value
as
concomitant
(g
.......................................
aggregate
prominently
use
capital
by
if
and
the
sale
81
net
taxpayer
is
VAT-exempt
surplus
of
ratably
funds
Congress,
VAT
shall
register
each
type
of
internal
Quarterly
the
tax
returns
base
currency
increases;
and
transactions
payment
direct
of
with
taxes
are
Code
is
not
available
to
(within
revive
30
the
days
right
from
authority,
refund
the
value
of
internal
revenue
taxable
finance
year.
i.
Requisites
for
NOTE:
I
The
NSU
)
Not
[2
RANCE
over
order

Gross
AMOUNT
Interest
demandable,
Php100,000
C
receipts
of
OMPANIE
paid
distraint
REALIZED
of
by
S
international
a
may
=
corporation
money
be
air
th
SCRA
ii.
b)
Inaction
NOTE:
7
75]
by
.
The
spouse
claiming
the

any
material
consideration
evinces
animus
considered
as
agricultural
product
in

Compliance
taxation
issuance
requirements
of
tax
credit
certificate
for
NOTE
Taxes
(2):
are
If
erroneously
property
is
paid
declared
when
a
taxpayer
the
first
The
law
requires
sales
(–)
that
sales
the
taxpayer
shall
be
amended

extent,
derived
Amount
or
from
or
quality
compensation
long-term
of
any
construction
deposit
paid
for
of
the
g.
WHEN
is
Transitional
useful
exchange
donee.
lower,
to
file:
life
but
of
within
of
not
input
the
services
exceeding
capital
six
tax
(6)
goods,
shall
credits
months
P1,000,000.
be
whichever
from
allowed
liable
the
to
is
Operating
).E
contemplates
sta
property
te
taxes
shall
or
cases
death
exchange
be
sold
taxes
where
to
the
of
highest
every
income
the
character
period
bidder.
The
c.
]
Philippines
tangible
or
transportation
All
creditable
descendants)
input
taxes
during
the
month
LGUs
of
are
GPP
indirectly
authorized
by
to
or
adjust
for
not
the
more
tax
rates
than
as
20
)
payment
days
from
sale
(a
insurance
(from
Comm
GR
the
OSS
iss
allowed
ioner
time
shall
Inc
when
apply
ome
In
to
terna
the
fr
assessment
om
transfers,
l
R
s
evenu
our
ces
was
trusts,
e,

3
y
ear
Importer:
s.
the
refers
ITR
to
any
person
who
brings

Tax
Credit:
paid
subject
to
fnal
gross
sales
Expenses
from
for
in
that
shall,
the
person
for
before
the
and
deceased’s
making
part
of
gross
wake,
payment
estate
on
d)
13
month
pay
&
other
benefits
(i.e.
the
fling
of
can
ascertain
t15
scientific,
o
,
o
r
d
philosophical,
e
p
e
nd
i
n
g
upo
historical,
n
a
no
t
h
e
and
r
,
w
h
i
c
h
is
It
iii.
(c
is
Efect:
Taxable
the
[1
Individuals
year
strongest
Insurance
such
year
part
of
must
of
all
entitled
of
the
the
have
income
inherent
actually
to
5.
Specific
[
indicated
S
ec.
vessels
nt
58
(
Taxing
A)
in
o
f
gn
such
t
h
Power
e
N
I
return
R
ion
C
of
]
Local
statement
foreign
or
Petition

their
for
Review
distributive
with
share
the
CTA
is
taxed
may
be
as
All
However,
articles
taxpayer.
time
imported
the
prescribed
persons
into
for
Philippines
interested
its
payment
shall
in
in
be
collected
from
the
employer
together
conducted
for
profit,
or
to
any
political
Exchange
Tax
(WVAT)
a.
HO-BRANCH
Who
is
PARENTb.
In
because
respect
of
of
the
the
intangible
expiration
personal
of
the
income
Pay
E
XCEPT
deducted
as
or
is
you
he
conclusively
where
has
no
privity
books,
presumed
of
relationship
or
if
as
he
has
mentioned
gathered
the
by
Section
the
149
(automobiles)
n
and
e
)
)
w
therein
)
ith
if
in
it’s
the
is
not,
taxable
then
it
on
will
all
be
income
subject
to
within
the
following
territorial
goods
jurisdiction
and
of
services:
the
taxing
and
who
is
not
a
citizen
thereof
but
or
Area
Headquarters
facilities
of
doubt,
The
such
it
following
as
shall
palay,
be
are
resolved
copra,
the
Expens
or
rules
in
tobacco
favor
on
Transfers
corporation
for
Public
engaged
............14
in
trade
or
life
.Judicata
on
Filing
pertaining
of
notice
to
the
of
death
month
(see
ii.
deemed
Other
to
services
be
inclusive
rendered
of
VAT
in
the
(2)
Taxes
on
Personal
Property
Interests
derived
from
sources
customs
LIABILITY
charged
duties
FOR
r
the
provisions
hereof;
or
within
a
trade,
short
business
period
of
or
time
profession
since
the
of
same
What
is
the
Procedure?
(Sec.
g.
medical,
ii.
componen
dental,
hospital
parts
and
veterinary
similar
ACTUAL
Phi
relieve
lip
USE
pi
the
of
the
employer
property
from
should
the
liability
be

[c
Wagering
Losses
allowed
only
installment
payment
shall
be
paid
30%
i.
The
His
owner
gross
of
the
sales
property
or
receipts
has
1
year
for
the
from
past
PROPERTY
E
assets
[2
of
nonstock,
non-profit
5%
On
domestic
VAT
OR
than
NOTE:
7%
of
not
gross
For
apply
retirement
payment,
to
lands
the
cessation
exempt
difference
from
of
must
basic
ASSESSMENTS

Optional
immediately
Corporate
the
person
to
whom
it
is
given
without
the
produced
or
manufactured
competitive
Manufacturing
Business
that
there
is
no
does
business
not
yield
or
the
any
exercise
tax
chargeable
of
a
profession
against
Net
Tax
exemption
Refers
7.
th
Collection
only
survivi
is
generally
to
passive
spous
of
Business
income.
in
th
Conjug
If
bears
the
burden
thereof
world
receipts
for
the
Benefit
from
Deposit
print
their

allowed
as
deduction
in
the
not
exceeding
P750
per
payments
semester
or
P125
es
h
d
e
e
.
[

CIR
v.

Ame
r
i
can
Ex
p
re
ss
,
G
.R
.
N
o
.
1526
0
9,
disposition
expen
se
o
r
of
his
property
to
take
effect
upon
and
other
places
of
as
a
mere
interest
return
and
of
capital.
penalties.
It
The
includes
debtor
and
need
not
be
included
in
the
First
Quarter
–d
On
before
April
15
of
action
on
interest,
the
interest
payments
shall
Receives
any
license,
certificate
or
Any
than
good,
an
service
importer
or
may
other
benefit
appeal
instrumentalities
due
paying
process
the
dividends
or
prizes
compensation
No
petitions
income,
for
certiorari,
net
income
prohibition
or
jurisdiction

within
carriers
30
days
by
air,
from
land
efectivity
or
water,
thereof
except
as
to
II.sssecurities.
no
longer
impose
G
ROUNDS
any
FOR
SUSPENS
additional
ON
OF
amounts
THE
RUNN
NG
apparatus
Share
of
[c]
which
an
Estate
individual
may
&
or
donor’s
may
in
not
the
taxes
be
attached,
oficials
&
employees
the
earnings
Corporation
enjoyment
of
the
citizenry
within
the
State’s
to
the
property
so
converted,
or
into
money,
(a
Income
Expenses
of
any
kind,
to
the
extent
3.
Decisions
of
RTC
on
local
tax
pesticides
and
farm
inputs;
oratorical
(whicheve
sparties…It
when
erv

ice
public
aft
er
In
the
case
of
manufacturing,

the
extent
of
the
capital
gain
domestic
value
4.
still
or
resident
cannot
is
at
least
be
foreign,
determined
the
engaged
right,
under
ifof
in
not
or
that

31,
in
Jun
Seizure
30,
Sep
or
30,
Dec
31)
in
action
as
well
lower
prices
TAX
to
RATE
n
BASI
=======================
Comm
oner
iv.
after
Interest
not
fcat
subject
on
by
to
special
9.
Civil
Remedies
by
the
LGU
for
(k
187,
du
LGC)
e
no
tice
Such
an
appeal
h
ear
in
g
shall
without
the
prejudice
effect
Exemptions
The
executor
previously
or
granted,
administrator,
(not
falling
upon
ofice
shall
BASE
be
1.
Collector
deposit
acting
17,500
or
within
40,000
his
jurisdiction
120,000
The
supply
method
of
services
by
a
non-resident
(1)
Prohibition
against
imprisonment
of
one
country
and
1.
Assessment:
applicable
of
and
operative
after
%
Non-resident
importer,
exporter
6.
Commissioner
company
has
complied
with
the
requisites
per
return
126232,
N
ove
mber
made.
The
law
imposes
a
substantive,
not
registered
export
producer,
or
Power
by
which
an
Independent
20
State,
pledges
that
any
a
separate
return
for
each
branch
or
place
Royalties,
foreign
provided
except
commerce.
by
on
the
books,
ordinance.
convention
or
agreement
upon
request
of
6.
Other
may,
A
winnings,
at
“dependent”
any
except
time
Phil
before
sale
20
or
and
period
4.
Francisco
whose
or
to
assess
before
Upon
reply
v.
receipt
and
Nagmamalasakit
to
January
the
collect
PAN
of
31
the
was
taxes
of
copy
found
every
may
na
to
year
mga
only
the
be
stamp
tax;
Excise
.
W
th
n
30
days
from
taxes
fixed
in
this
Title
and
due
Constructive
taxes
the
nonresident
(i.e.
distraint
foreign
to
protect
corporation
the

which
were
necessary,
appropriate
and
normally
yrs.
from
date
payment
of
the
apse
of
180
days
nact
on
VAT,
the
term
"zero-rated
sale"
shall
Output
the
tax
lapse
instruments
corporation
means
of
3
years
the
paid
and
after
VAT
its
equipment,
his
due
taxes
registration
on
under
the
corp.
for
the
3yr.
earned
as
such
alter,
chargeable
amend,
revoke,
to
capital
or
terminate,
account;
or
allowed
where
receipt
of
adverse
use
in
smuggling
and
was
a
consenting
d
on
That
properties,
in
the
case
etc.
of
zero-rated
sales
the
tax
by
available
security
the
executor,
to
deposit
seller
administrator
to
of
service
insure
that
)
distributed
rightfully
should
among
be
the
in
members
the
government's
price
exceeding
P2.5
million,
where
9.
CHANGES
IN
OR
CESSATION
OF
carriers
Commissioner
lifted
to
securities;
]
be
by
doing
received
warrant
on
preferred
scrip
and
shall
was
+
and
declare
fair
as
much
5%
the
tax
as
period
e
of
a.
commissioner
It
shall
additional
be
payable
for
every
separate
income
e
of
the
taxpayer,
of
the
revenue
tax
for
which
he/it
is
obligated
1.
donandi.
On
local
There
any
treasurer
is
amount
The
nonresidents,
an
appeal
fact
shall
in
that
make
to
other
their
a
CTA,
report
ofshore
purpose
and
of
the
for
A
separate
return
will
be
filed
for
each
gift
time,
Sec.
to
contest
222
the
validity
of
an
assessment
informed
stamps
in
when
they
are
returned
in
good
the
The
use
word
or
“Zero-Rated
Sale”
written
decedent's
under
their
ore/other
person.
the
original
mineral
state
&
pd/incurred
before
imposing
withheld
Connected
a
tax.
with
the
For
or
quarter
annual
Overseas
[2
increase
Contract
in
value
Worker,
of
an
the
asset
trad
time
is
prescribed
COMMO
lower.
[3
other
contracts.
Substantiation
applicable
This
laws
Requirements
KIND
method
requires
–
TAX
The
B.
)
c.
The
[G
.R.
with
In
Philippines
respect
181
ou
t
858
t
,
is
he
of
divided
the
intangible
into
various
personal
ports
TOPIC
goods
UNDER
individuals.
into
THE
Domestic
SYLLABUS:
corporations
not
assessment
Between
extends
indefinitely
an
individual
because
and
this
a
pays
iv.Tax
under
exemption
petroleum
can
only
be
availed
i.
Im
p
a
c
t
o
f
T
axa
t
ion
–
point
on
which
–
There
may
be
no
actual
delinquency.
Headquarters
for
stock/unit
of
participation
security
TRANSPORT
deposit
that
is
applied
to
[2]
returns,
For
corporation:
discounts
and
not
allowances
more
(–)
intangible,
Any
tax
that
or
deficiency
is
given
by
tax
the
so
donor
assessed
to
the
shall
etc.,
whether
made
before
or
after
the
powers
)
included
corporations
]
personal
of
been
the
in
taken;
and
dividends,
account
of
thus
its
subject
purchase
to
final
of
income
goods
Every
GPP
shall
file
in
duplicate,
a
return
of
including
food
and
adjusted
drinks;
whether
it
2
te
cultural
r
m
+
Assessment
e
d
books
t
any
h
as
e
deduction
and
amount
pr
i
nc
The
publications
i
p
al.
of
only
act
input
Hence,
if:
of
taxes
an
carriedisolated
subdivision
Liable?
of
the
said
Government
document
fled
with
the
BIR
for
his
proper

expenses
and
meals
and
lodging
Government
Novem
(c)
Phi
Exemption
lip
the
ber
deducted
pi
Unit
notice
24,
(LGU)
of
Allowed
from
assessment;
the
to
tax
Estates
or
of
th
8.
Determination
fle
exists,
principal
the
of
gross
estate

held
Net
estate
to
Capital
originally
be
of
180-day
the
the
Gains:
property
deceased
imposed
period,
of:
or
owner
the
the
one
taxpayer
shall
on
submit
whom
m
u
to
st
books,
he
Exclusion:
refuses
to
produce
not
included
them;
in
the
So
n
y
P
h
i
l
i
p
p
i
n
es
v
.
CI
R
,
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[
CTA
E
B
C
a
s
e
the
N
o
.
90
If
there
is
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legal
impediment
to
recognize
The
authority
Comply
use
or
of
with
local
undistributed
government
age
limit
earnings
unit
requirement,
and
and
not
business
therein
is
taxable
only
and
150
Regional
receipts
Taxes
(nonproductivity
business
essential
being
within
burdens,
the
goods)
following
they
are
twelve
not
to
(12)
be
Tax
derived
Code
30%
and
(35%
from
implementing
sources
within
regulations,
and
without
(3

Returns
Exempt
10%
against
preceding
of
of
Receivers,
total
the
premiums
years
Estate
Trustees
shall
or
collected
be
demands
by
NOT
Accordingly,
d

No.
VAT
exemption
15386
Not
taxability
if
6,
compensated
Fe
a
bruar
mortgaged
of
capital
y
for
gains:
by
property
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is N
.Claims
F.
Compliance
Philippines
by
nonGross
SUBSIDIARY
property
dryers.
A
GPP,
as
an
entity,
shall
not
be
Branch
9,
R.A.
is
9282)
Subsidiary
is
classifed
services,
Bureau
enterprise.
ts,
except
such
of
amount
and
not
Revenue
been
items
are
nes
o
by
the
o
M.
Kinds
of
Taxes
The
buyer
and
the
seller
are
related
to
]dong
to
the
12
months,
gross
selling
price
is
based
on
requiremen
property
Taxes
]under
will
deducted
be
again
subjected
and
withheld
to
tax
in
by
If
the
the
advance
basis
payment
classifcation
constitutes
a
pre-paid
business,
transactions
the
tax
subject
to
VAT
date
for
sale
penalties
to
redeem.
and/or
additions
to
within
the

thirty
(30)
days
from
the
receipt
10
of co presentations,
limited
to
cases
where
the
legitimate
c.
Period
within
i.
Tangible
which
–Internal
refund
Location
or
of
TCC
the
of
input
with
the
care
educational
real
property
institutions
tax
and
used
the
ACTUALLY,
remainder
purchase
of
Share
revocable.
8.
foreign
incorporated
e
ng
in
eto
the
ein
imported
al
(d
consent
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of
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State.
substitutes
for
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material
(no
[4

amusement
Effec
CUSTOMS
Example:
proceeds
cost=15,000;
DUTIES
from
the
SV=5,000;
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Failure
Trust
to
Taxes........................
Funds
refund
and
excess
withholding
128
tax
Zero-Rated
per
Ex.
month
Income
vs.
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tax,
community
Transaction
tax,
estate
co
AND
Gain
st
the
concerned
on
PRESCRIBE
person
sale
of
old
to
RDO.
whom
ADDITIONAL
Philippines
the
property
regardless
is
of
JA
un
e
29,
constitutional
2
005]
As
prohibition
a
general
against
rule,
the
double
VAT

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the
Rent
Income
forms
of
covered
income
by
EWT
specifically
government
trade,
income
2
Produced
b.
Features
sale
(1
or
here
Engaged
importation
of
and
the
sold
in
Philippine
trade
of
fertilizers,
or
Income
business
Tax
seeds,
–does
an
Stranger
is
a
person
who
Income
partly
furnished
or
granted
in
cash
or
in
kind
TIN
followed
by
the
word
"VAT"
in
their
business,
current
without
trade
taxable
first
year
paying
the
duties,
exempti
be
included
in
the
gross

provided

The
in
tax
the
imposed
Code;
under
Sec.
33
of
the
Judicial
b.
Diplomatic
mandamus
filed
with
the
RTC
will
lie
his
part
distributable
net
income
after
of
tax
the
of
a
)
permit
from
OF
THE
any
PER
ODS
OF
PRESCR
PT
ON
W
TH

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principal
of
the
fund
thus
permanently
[d]
or
temporarily,
Taxes
assessed
the
real
against
property.
local
4.
which
is
forthwith
in
good
faith
expended
in
r
E
ON
required
is
OTHE
R
by
N
ON
any
BANK
treaty
FIN
ANCE
obligation
Poultry
feeds
and
other
e.
That
it
does
not
infringe
any
constitutional
ector

of
h
s
ii.
dec
Requisites
s
on
(Sec
for
merchandising,
or
mining
business,

cases
special
levy
governed
by
ordinance
method,
duty,
of
every
method
citizen
five,
to
except
interfere
that,
and
at
see
the
rules
interest
4.
so
requires
)doing
not
to
have
criminal
of
the
J.
within
detriment
TAX
the
ON
above
SALE
of
,
BE
RTER
,
OR
EX
CH
ANGE
business
GLOBA
shall
L
cause
Forfeiture
Proceedings
the
of
Collection
the
CIR.
[
R
CBC
of
v
C
I
R]
S
of
Internal
Revenue
[1
30%
Same
a.
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tax
yrs
rate
–
from
upon
the
day
they
4.
suspending
Purpose
prosecution
in
disputing
the
or
efectivity
under
an
the
of
Revised
assessment,
the
ordinance
Penal
Code
which
and
27
,
1998
]
b.
Transfers
taxable
person
by
made
or
the
city
in
trust
or
municipality
for
another
where
Foreign
non-payment
substantial
passive
investment
overstatement
in
the
Within
form
of
the
of
deductions
savings,
or
consignee
of
rece
any
pt
of
declaration
dec
s
on
of
LBAA
or
becoming
a
law.
merely
delinquency
a
means:
formal,
posted
requirement.
and
published.
To
proceed
In
case
the
CIR
fails
to
act
on
the
7
Enforcement
of
tariff
and
customs
%
laws,
the
net
selling
price
of
export
products
through
its
lawmaking
body,
raises
and
o
that
his
annual
taxable
income
of
business
or
a
consolidated
return
for
all
destruction
the
Comm
of
the
ss
property,
oner
to
the
bring
CTA
an
action
bill
be
the
extended
of
foreign
sale,
the
upon
tax
corporation,
authority
a
written
company
when
agreement
such
Charity
A.
TAX
ON
PERSONS
EXEMPT
%
Manggagawang
Pilipino,
Inc.,
G.R.
No.
160261,
Less:
=========================
Excess
of
tax/penalty
regardless
of
any
14.
De
Minimis
Benefits
(Last
amended
by
other
literary
thereon
[2]
works
Mining
have
and
been
operations
paid
is
shown.
decision
of
CBAA)
tax
written
taxes
concession
deemed
or
printed
to
given
prominently
have
to
been
any
paid
on
other
the
in
sale,
lease
or
A
legitimate,
illegitimate
or
legally
used
for
their
5.
comfort
and
convenience
during
their
NOTE:
o
useful
MCIT,
optional
or
life
that
of
registration
which
the
individual
is
short,
as
may
availed
a
VAT
be
as
deduction
during
period
ending
the
taxable
with
the
year

party,
They
it
may
are
also
oficers
be
forfeited.
or
directors
of
one
proceedings
within
5
days
from
the
sale.
any
such
power
is
relinquished
any
of
the
heirs
upon
his
return;
but
or
distinct
possible,
indirect
taxes
should
be
a
taxpayer
under
without
expenses
terminated
restrictions;
106(A)(2)(a)(1),
which
employee
and
constitute
send
Issuance
(2)
notice
bribe,
and
by
(B)
to
faithful
performance
of
certain
instrument
donating
was
(whether
to
aid
in
the
the
election
instrument
of
is
STATUS
OF
A
VAT
its
income
to
Importation
OR
expected
of
to
machineries
periodically
file
a become
banking
units,
local
(donation)
once
the
made
same
on
had
the
been
different
irretrievably
dates
condition
business
Commissioner
market
dividends.
by
in
the
or
his
value
purchaser,
Philippines
representative
of
the
property
and,
and
in
his
exemptions
for
dependents
shall
be
or
printed
spent
not
taxable
][3
abroad
is
e,
of
LGC
]]drawback
states
tax
credit
that
the
property
shall
be
of
excess
entry
property
-other
of
owned
by
citizens
of
the
N
falling
under
OF
aforesaid
definition
LIABILI
2.
In
opinion
of
the
court,
the
enjoyment
a
thing
or
right
transitory
except,
recognition
The
and
beneficiary
the
other
Commissioner,
of
provisions
income
each
these
in
of
the
on
the
of
Multinational
than
5
%
of
be
paid
upon
writing
deprives
of
the
the
taxpayer
law
and
of
facts
the
assurance
on
which
the
that
it Noteexcept
operations
taxpayer’s
corporation
more
than
50%
in
herein
not
oftener
than
once
every
5
years,
and
If
the
aggregate
acquisition
cost
of
all
capital
.Phil
Why
over
Regardless
from
administration
Public
and
tax
on
their
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part
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of
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income
5
2.
2)
(3
On
2010]
Taxable
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nes
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Service
Tax
grant
Trusts:
Rules:
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month
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in
Procedur
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law
excess
which
publi
wit
e
of
and
8.
REMEDIES
i.
the
net
Dis
vii.
Philippines,
pu
estate
every
ted
Dealings
OF
10
TAXPAYER
whether
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Real
or
TO
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ACTION
Property
in
BY
and/or
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12%
the
Failure
all
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e
ge
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that
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documents
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Taxpayer
ING
Siso
is
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n
prohibited
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return
An
cheta
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[made
130
profits
SCRA
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Taxes
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donee
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by
way
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of
fact,
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is
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aware
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necessarily
identification
taxable
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for
comparison
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income
purposes.
with
deducti
other
units
th
Need
for
evidence
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source
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-10,00
That
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)transaction
the
debts
every
BIR,
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within
fire,
30
days
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from
the
of
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death,
afrom
list
E:
transferred
.death;
11,
Return
computing
20
[2
additional
05
as
The
a
gift,
the
exemptions:
amount
taxable
income
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of
premium
the
Operating
C
TA
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a
s
e
N
o
.Section
Condition
Publication
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notices;
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the
time
than
of
acquisition
those
that
counted
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exempt

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or
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o
Sale
duly
of
authorized
Stocks
representative
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domestic
presumed
beyond
what
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statute
A
2006-2008)
subject
corporation
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income
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avessel:
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of
indemnity
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profits
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materially
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y
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P100,000
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the
facts
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or
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manufactured
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the
Barangay
When
residents
the
Clearance.
exemption
aof
is
in
No
favor
city
of
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or
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the
Philippines
and
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liable
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In
the
case
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tramp
vessels,
pecuniary
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withholding
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nature
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market
value
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property,
taxes
IV.
TARIFF
AND
CUSTOMS
may
be
recognized
input
tax
It
is
authority
territorial
tax
[1
for
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failure
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in
operation
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granted
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shall
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and
power
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those

rendered
.................................................15
by
professionals
The
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family
Paid
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those
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are
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registration
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property
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gains
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DIRECTLY
AND
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his
person
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GE
NE
RAL
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LE
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No.
11545
5,
O
ct
ober
vi
Cost
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materials
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base
Arrangements
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Exportation
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%
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-required
-taxpayer
consigned
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CIR
v.
Ceb
u
To
yo
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orp
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No
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REQUIREMENTS
FOR
TAX
system
uses
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principle
as
a
i.
Property
Deductions
8.
engages
from
Taxpayer’s
in
Gross
Income
is
Remedies
D

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istr
Law
(2
seedlings
If
Appeal
ibu
Tax
described
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tion
th
exemptions
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within
o
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and
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as
gif
30
gains
Citizen
are
days
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strictly
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construed
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
Registration
of

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ifNon-revenue/special
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allowed
to
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g
Transfers
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Insufficient
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R
R
2-98]
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Restraint
services
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are
15
without
Where
the
principal
and
his
The
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by
congressional
an
employer
power
to
to
an
individual
on

invoice
or
oficial
taxation
receipts.
in
the
Becomes
shares
Second
Quarter
–Commissioner
where
On
or
before
Transfer
August
15
of
of
(c
Gifts
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favor
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non-profit
INCOME
Interest
Income
TEST
OF
SOURCE
OF
services
importation

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Import
entry
or
other
transferring
pop,
rock,
or
partnership
Taxes
on
(except
premiums
GPP);
paid
Share
by
of
way
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of
Recipient
not
within,
to
partly
render
Insured
must
die
to
avail
total
b.
1)
Indirect
sister
–amusement
imposed
(whether
on
the
by
whole
or
these
are
in
reality
10%
attempt
to

or
profession).
to
not
more
than
Registration
necessarily
benefits
carries
of
with
a
kind
it
tending
consequent
.On
INTE
DIARIE
S
It
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the
physical
facilities
for
production,
accumulated;
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in
therefore
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Concep
it
is
ci
on
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[deductions
a
G.
valid
R.
N
o.
defense
L-2
3912,
against
the
acquisition
other
property,
or
in
binding
upon
the
Government
of
2.
Requisites
The
animal
law
for
of
feeds;
the
foreign
School
country
supplies;
be
transferred
of
which
the
to
public
“gross
income”
means
the
total
sales,
OF
SHA
RE
S
O
F
request
that

of
a
the
public
importer,
ofence
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be
order
properly
of
application
pursued
LIM
This
IT
remedy
AT
ION
deductibility
is
normally
availed
of
when
the
tax

5.
20
local
products
Interest
paid
in
advance
It
[1
]
can
Must
also
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invoked
be
by
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the
AND
enumeration)
=======================
are
withdrawn.
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of

Object
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and
accrual
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other
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yrs
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from
fling
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return
due
person
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case
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protest
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STOCK
Prizes
LIS
TE
D
&
AND
TRADE
D
NIRC
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be
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imported
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goods
their
to
be
taxable
entered
income
at
the
–
claim
common
of
or
individual
in
an
trust
amount
fund,
in
the
Philippines
are
also
liable
to
pay
an
annual
the
principal
ofice
is
located;
and
appella
corporati
disputed
Philippines
Revenues
not
exceed
the
poverty
level.
Personal
property
may
be
distrained
to
heedlessly
(l)
with
tax
collection
without
first
(d
sold
by
a
registered
export
producer
FROM
accumulates
.
VAT
revenue
from
its
inhabitants
to
2.
branches
or
places
of
business
with
the
affidavit,
or
the
NOTE
(1):
his
Interest
employee
for
late
in
payment
connection
with
requesting
of
poll
tax
foreign
[
S
ec.
20,
tax
Ar
t
.
authority
I
II]
has
against
rules

and
supervening
the
person
seizing
cause
the
that
property
may
arise
November
association
between
10,
the
2003,
shall
CIR
and
make
415
the
SCRA
the
taxpayer
44,
corresponding
139,
executed
citing
Sweepstakes
Reaso
adopted
&
Lotto
2
Action
to
question
the
MCIT
=============
over
invoice
RCIT
or
receipt;
Can
treaty
the
Philippines
still
country
be
made
will
equivalent
also
to
be
pay
to
extended
the
fines
regular
and
to
stay
abroad,
accompanying
them
on
their
return
or
As
a
general
rule,
taxing
authorities
must
be
6.
another’s
7.
Collection
of
musical

composition
If
a
bank
has
knowledge
of
the
death
of
close
of
the
taxable
amount
so
shown
on
the
return
shall
first
exchange
taxpayer
3%
of

gross
taxable
depreciation
of
a
quarterly
goods
sales
on
or
all
or
properties
properties
receipts
or
Prizes
the
and
taxpayer
other
Winnings
of
such
more
decision
20
with
a
If
a
motor
vehicle
is
hired
to
carry
smuggled
and
Section
108
(B)(1)
and
(2),
the
obligations
debtor
of
a
of
notice
the
to
lessee,
ofset
such
any
equipment,
including
spare
parts
thereof,
7.
Dividend
nominated
from
as
a
a
domestic
deed
of
absolute
sale,
deed
................................................................
establishment
return,
pay
taxes
or
place
due
thereon,
where
the
and
business
update
commercial
banks,
including
CARRIE
CARRI
TY
discretion,
(except
items
redeem
excluded
change
from
unused
gross
income
stamps
are,
therefore,
publicly-held
prominently
if
sale
is
VATcompanies
assessment
collection
is
made;
by
the
otherwise,
government
the
assessment
agencies

(other
sea
than
withholding
was
the
one
to
trust
is
the
same.
Interest
deposits
paid
by
assessed
for
back
.impose
will
distraint.
not
)income
incentives
Period
no
100%
material
]without
public
longer
because
being
value
of
for
be
of
tax
such
subjected
outstanding
exemption
and
improvement
increase
es
to
purposes.
has
stock
further
hthe
is
COMMISSIONER
ass
ess
situated
ment
shall
in
be
the
allowed
only
if
entry
other
thru
port
of
entry
will
be
implies
a
meritorious
goods
in
cases,
a
calendar
month
does
exceed
Php100,000
year
of
recovery
to
the
extent
of
were
submitted
along
with
notice
and
demand
the
Commissioner
before
ng
e
in
course
case
]incurred
deduct
of
his
and
trade
withhold
or
business.
a
fnal
VAT
Includes
of
5%
although
belonging
to
the
same
political
s:
disposing
of
[From
A
C
the
CPA
property
v
.cost
or
and
incurred
must
Headquarters
being
withholding
made
incidentally
of
agents
in
shall
the
be
course
covered
of
trade
by
or
an
existing
exemption
in
his
favor
at
the
preceding
P20,000
Cost
taxpayer.
business
of
month/quarter
of
goods
the
or
practice
tax
sold
law
of
shall
by
mean
the
all
there
is
evidence
deductible
of
possible
from
gross
source/
income
sources
does
GE
NE
months,
a.
of
RA
the
The
Lof
[3

inventories
same
he
But
Must
LE
For
:than
may
The
amounts
shall
min
not
accounting
bring
es
of
be
goods
o
granted
be
expended
th
an
er
sustained
action
th
or
period
an
only
stocks
for
o
il
to
books,
of
&
new
th
of
in
gc
a
as
ne
a
NOTE:
i.
Non-resident
Gen
er
al
Ru
alien
le
On
NOT
engaged
in
i.
the
Tax
date
Telecommunication
calendar
years
year
or
fiscal
expenses
year
as
incurred
a
basis
in
for
2007]
implementat
formally
which
assessed.
does
not
exceed
P30,000
Resident
Foreign
Incurred
in
trade,
business
In
under
case
expressly
which
Section
a
the
registered
and
ruling
109
clearly
is
(A)
taxpayer
based;
declares.
to
(U),
or
dies,
will
not
By
may
Land
order
Persons
suspension
Domestic
or
closure
3%
of
a
corporation
of
which
as
a
result
municipality
powers
may
over
issue
itself
its
citizen
any
or
license
outside
its
or
agencies
its
permit
On
any
amount
in
excess
but
h.
Creditable
imposing
corporation
upon
Withholding
shared
the
–who
equally
donee
VAT
by
the
on
the
payments
obligation
enforced
PROVINCE
e
against
us
ce
tused
Registr
ation
payment.
during
.CODE
regulatory
department
-international
Philippines
Operati
through
Headquart
the
administrative
of
multinatio
Domestic
Corporation
es
tax
shipping
can
income
only
tax.
agents
and/or
21.
FILING
i.
Interests
OF
deduction
RETURN
(other
than
AND
derived
from
VA
LUAT
properties
in
IO
the
year
of
remission
the
of
duties
[not
S
ec.
709,
E
ii.
the
zonal
gross
or
market
income.
value
Refers
shall
to
be
deemed
income
reasonable
needs
of
the
business
would
authorized
to
procure
policies
of
(1
customs
(5)
In
General
a.
Meaning
within
duties
any
the
person
of
“in
time
the
prescribed
discretion
is
qualifed
of
by
the
law
and
or
shall
30
be
,RU
1995]
covered
by
a
return
and
paid
to,
such
should
payment
.government
NOT
is
taxable
to
the
lessor
in
document
transferring
real
property
shall
current
market
price
of
the
goods
or
Royalties
returned
be
made
educational
increasing
purposes
value
or

In
cases
wherein
receivers,
trustees
in
c
basis

The
It
for
shall
o
Sec.
power
the
in

109
determining
E
jurisdictional
xcep
be
to
tion
duty
alter,
:receipts
If
of
whether
reach
the
amend
the
taxpayer
of
taxpayer
the
income
or
tax.
revoke
is
not
is
to
must
be
made
within
1
year
after
10.
E
state
)Tests
decision
Composition
Philippines
e
or
of
tsold
n)
es
0stor
o
dies;
moulds
and
similar
items
gains
derived
from
the
sale
or
other
.ns:
II.
Consideration
NATIONAL
es
INTERNAL
REVENUE
CODE
In
general,
the
materials
than
January
25
of
the
succeeding
year,
years
(3
Comprehensive
In
...................................
the
case
of
System
CIR
v.
Bri
129
–LAW
adopts
tis
a)
h
Periods
the
against

the
taxpayer
because
such
16.
Estate
exempted
years
tax
return
old
injurious
(see
F.
Compliance
e)
Services
Failure
representative
to
issue
rendered
or
in
and
the
invoices
Philippines,
employee
(except
rank
and
file
)e
149073
educational
,gross
Febr
uar
and/or
y
employees
employers
Examples:
taxable.
a
Direct
tax
–Commissioner
tax
burden
us
borne
by
the
11.
Valuation
of
gifts
made
similar
Estate
concerts
and

(1)
General
Rules
Upon
fingerlings,
conjugal/community/property,
OF
payment,
comes
1987
fish,
and
prawn,
the
stays
administrator
livestock
in
the
each
and
Philippines
spouse
poultry
shall
the
holder
of
the
bill
of
lading
duly
endorsed
[d
Abandonment
Losses
stock
in
a
sold
who
half-blood),
shifts
profession
the
throug
fires
R
e
insurance
or
retrocession;
goods
All
purchases
covered
equivalent
by
invoices/receipts
document
The
current
Commissioner
shall
grant
a
P1,500
(c
part
NOT
of
public
right
to
the
Ifno
tax
was

Does
not
apply
the
to
ofline
Before
the
Requirements
power
–
to
increase
the
value
of
the
property
exemption.
If
iii.
Customs
INCOME
subject
to
the
review
the
Commissioner’s
actuations.
validity
March
of
15
,Pays
1968]
Intercorporate
Dividends
Exempt
Interests
Residence
of
Debtor
DEDUCTIBILITY:
NOTE:
decedent
the

substantial
without
plan
that
no
part
of
the
income
the

installations
and
appurtenant
service
establishment
of
a
fund,
no
gain
authority;
Philippines,
is
exempt
from
income
tax.
and
a.
Power
to
obtain
information,
lien
is
lost
less
cost
of
goods
sold,
plus
any
income
c.
International
(based
in
Produced
here
and
Income
within

of
methods
and
new
punished,
RDO
four
once
and
and
transf
five
that
shall
a
of
public
registrati
be
grievance
reversed:
of
th
government.
]esta
necessary
Pro
(both
vin
ce
Phil
article
similarly
situated
b
Schedular
Tax
System
–those
different
%
types
of
5.

Present
acted
decedent
upon
within
acquired
180-days
the
property
from
by
the
vi
T
THROU
axe
winnings
GH
THE
LOCA
L
Customs
............................................................
===============
deposit
substitutes,
investment
customhouse.
onwards
The
in
Collector
a
similar
business,
shall
assess,
te



of
[2
Abr
on
Interest
a
gross
v.
He
periodically
rna
receipts
nd
o,
[G
derived
amortized
.R.
No.
by
Lother
TAX
Page
155
156
157
158
159
160
161
162
163
164
of
and
applicable
payment
of
laws.
tax.
[replacement
S
ec.
177,
LG
C]
)To
on

EX
CH
ANGE
OR
THROU
GH
INI
TIAL
8.
assessment
within
the
180-day
establishing
a
valid
assessment
is
evidently
jurisdiction
after
payment
over
RPT
tax
cases
decided
another
export
producer,
or
to
an
export
.5.
pay
legality
the
of
seizure
necessary
expenses
of
authorized
the
treated
use
as
of
agent
a
property
final
bank,
income
or
rights
revenue
tax
belonging
on
district
the
entry
before
provided
in
its
the
information
books,
expiration
transfer
to
of
the
demonstrate
the
stocks
three-year
or
the
Kilosbayan
If
penalties
the
v.
sale
Guingona,
for
involves
G.R.
goods,
No.
113375,
properties
May
or
5.
Time
and
transfer
of
RR
No.
Although
5-2011)
powerless
(a)
Monetized
to
grant
unused
RPT
c.
Renunciation
by
the
surviving
spouse
of
Business

Taxes
7.
chil
income
tax
on
corporations
and
the
15%
–
two
percent
(2%)
each
month
on
arriving
within
wrongful
aTax
reasonable
making
time
or
which,
delivery
barring
by
the
same
Rate:
applied
increased
P500.00
prospectively,
an
by
d
an
the
annual
amounts
except
additional
by
previously
tax,
express
services
d.
On
regulations
retailers
by
any
relating
person
to
registered
the
tariff
or
and
required
customs
to
a
person,
who
maintained
a
bank
deposit
n
et
te
ou
tsid
e
year
X
Phil.
prior
Estate
to
the
tax
=
request
for
immediate
payment
of
the
tax,
What
Are
Considered
as
Idle
Lands:
Iftal
property
businesses;
redeemed,
a
certifcate
of
redemption
than
%
a)
Local
goods
to
be
government’s
but
used
it
has
by
them
no
lien
are
Certificate
subject
for
delinquent
to
of
VAT
Public
acceptable
debt
or
foreign
obligation
currency
and
exchange
corporation,
or
amount
from
joint
shall
stock
not
be
taxable
subject
to
the
tax
is
conducted
one
line

of
70%
conditional
of
o
all
sales
sale,
recorded
or
otherwise)
in
the
principal
is
executed
Tax
Due
....
82
and
franchise
operatio
grantee
othe
of
tha
radio
petroleu
and/or
such
record
of
any
changes
in
the
Any
person
branches
who
is
of
exempt
foreign
from
banks
VAT
TOPIC
UNDER
THE
SYLLABUS:
6.
that
Cla
im
have
fo
r
been
Tax
Refun
rendered
d
o
r
unfit
C
red
for
it
10%
use
[20%
and
and
shall
set
forth
the
following:
exempt.


Annual
Fixed
Tax
For
Every
Amount
not
exceeding
d
may
improvement
jeopardize
interest
that
benefits
of
the
the
taxpayer
establishes
investigation
All
yet
that
been
authorized
for
is
realized.
taxes
required
after
banks
The
is
the
of
increase
for
the
expiration
the
BSP
worker’s
in
to
value
of
a
protest.
owned
If
by
not,
such
the
individual
CTA
may
(except
dismiss
in
P1
million,
the
input
tax
may
be
claimed
subdivision.
Exempt:
In
fine,
uniformity
required
carriers
doing
business
in
the
Philippines
are
non-exempt
or
his
representative.
persons
or
entities
who
acquire
taxpayer
to
recover
respect
paid-up
investments
]
is
a
furniture,
transaction
to:
wells
capital,
,
if
not
deductible
otherwise
intended
e
gros
t
Appeal
D
edu
of
of
Philippines
the
cti
Protest
o
gross
n
MARKIN
to
payment.
the
CTA
(Judicial
The
five
Relief)
percent
policy
are
taxes
for
preserve
not
mare
the
same
than
10
years
prior
to
business.
return
business
Therefore,
and
paid
expenses
to,
the
except
sale
directly
of
in
motor
cases
incurred
vehicle
where
to
filing
fixed
trade
its
annual
sum
or
business
or
income
property
tax
amounting
return.
to
grants
of
income
a
reasonable
to
account
extension
for
the
not
increases
exceeding
in
business
(claim
at
for
the
VAT
time
refund
of
death.
or
tax
credit
Corporation
v.
If
no
not
full
exceed
utilization
P2,400
of
per
proceeds
family
of
charitable
to
non[2
for
because
any
business
gen.
rule
activity
is
that
unless
they
are
exceed
iii.
I
n

Where
c
i
d
one
e
If
n
c
the
e
the
million
o
benefit
f
taxpayer
T
axa
five
t
exceeds
ion
acted
hundred
–
point
P30,000,
in
bad
thousand
on
faith.
only
to
shall
pay
informing
such
the
adjustment
mortgage
relatives
exceed
of
liability,
the
deceased;
10%
then
of
the
Percenta
the
rates
net
administrator
of
or
such
executor
exchange
shall
such
register
person,
the
subject
to
period
agencies
vi
(a)
of
ng
Goods,
twelve
Tax
an
loss
(12)
Base
incurred
ers
profession
chattels
–
fro
net
in
a
capital
any
Domest
instrumen
of
othe
gains
the
nal
Corporati
person
1st
an
10
C.
j.
iii.
Adm
(c)
The
in

Taxation
is
amount
Involves
trat
ive
of
of
dec
Compensation
interest
the
is
io
n
sale
o
expense
n
a
Income
or
paid
other
of
or
a
PAYMENT
sources
N
Tax
statutes
offering
rewards
The
partners
in
a
GPP
shall
be
Purpose
Support
prescribed
for
its
payment:
Contribution
to
the
deceased
in
apportioned
his
lifetime
in
could
equal
have
parts
been
husbanding
development
received
agents,
or
stage
earned
of
the
and
mine
but
in
or
is
their
not
M
AD
E
BY
The
A
NONRE
items
SIDE
of
N
gross
T
income
and
of
(b
TAX
ABLE
Inco
me
fro
m
S
ources

Process
o
insurance
or
act
as
of
he
imposing
a
charge
by
)
grantor”
a.
That
elects
the
taxes,
to
pay
fees
or
charges
shall
not
The
For
fact
delivery
that
the
to
advertising
a
resident
expense
in
the
Philippines
is
month
exclusive
when
of
received,
VAT.
Thus,
irrespective
the
zonal/market
of
the
not
generally
make
the
accumulated
or
absolute
Ordinary
community
and
or
necessary
of
the
conjugal
improved
a.
except
Authority
companies
condition.
in
cases
of
(RHQ
the
where
commissioner
and
ROHQ)
the
Commissioner
to
be
exercised
within
the
territorial
(3)
bankruptcy
be
Revocable
efected
Trusts
by
the
Register
of
Deeds
.
earned
shall
inform
(b)
be
the
for
required
RDO
tax
to
Interest
burden
income
fnally
earned
rests
or
settles
Gross
Goods

and
Gift
services
are
taxed
only
in
the
country
reimbursed
in
by
the
Sony
production
International
of
imported
does
not
goods;
Taxation
disposition
is
of
also
capital
used
assets.
for
regulatory
Income
3
)
citizenship
Dividends
Overs
eas
from
Airways
domestic
and
foreign
Monthly
VAT
Declaration
(BIR
Form
No.
Port
importation
of
Entry:
of
A
material
domestic
and
port
claim
open
for
to
refund
both
8.
TRANSACTIONS
DEEMED
SALE
(IN
requirements)
...................
17
BE
LET
such
to
any
as
private
person.
Exemption
use
covers
income,
of
real
estate,
employees)
such
as,
but
not
limited
to
period
of
inaction
of
CIR,
COC,
Secretary
in
property
Trusts
provisions
are
highly
disfavored
and
may
o.
deliver
Export
will
who
file
the
Situs
sales
are
connecti
of
taxable
by
persons
wit
only
who
on
trad
are
his
income
not
busine
VATfrom
(1)(A)
supplies
to
(U)
the
Tax
Code,
have
shall
make
]
for
an
aggregate

period
Professional
of
more
f)
Failure
lost
to
file
VAT
return
h
as
,
required
m,
TCC/refund
Corp
,
[
G.R
for
.
No.
L-6
5773-74
,
A
pri
l
e.
charitable,
Tax
)
refund
vis-à-vis
religious,
cultural
or
E:
Tankers:
10
years
old
feeds,

other
guardian
than
including
carriers
VAT
assuming
ingredients,
Invoice/VAT
the
responsibility
whether
Oficial
Receipt
locally
ofTaxes,
by
the
consignee
fees
or
charges
therein
named
for
not
date
the
right
to
domestic
TYPE
OF
TAX
RAT
income
tax
NOTE
assessed
16,
HO
is
2005]
classified
approval
as
of
a
showing
Parent
Company
actual
is
If
iii
he
the
survives,
hospital
or
there/s
clinic
only
operates
partial
a
The
provisions
general
and
special
laws,
P
Pof
Neither
replevin
fled
with
the
RTC
will
issue.
ii.
burden
spouse,
shipwreck,
of
ancestor
the
tax
and
or
to
another
lineal
other
descendant
casualties
revoke
the
funds
[3
property
Estate:
property,
and
obligations
d)
(d)
Situs
of
Excise
Tax
any
tax
Online
or
fee;
carriers:
those
with
summon,
The
taxable
amount
those
examine
year
includible
which
and
are
in
mobile,
the
gross
self-powered
estate
a
tax
measure
15,000
In
case
Peps
-goods
5,000
of
iinformation
Co
abandoned
la
v.
T
an
auan
petroleum
,other
[only
69

–
o

or
loss

organizations
shall
be
recognized.
If
any
the
part
of
the
9
CHANGES
IN
OR
O
STAT
O
A
VA
To
was
input
be
a
(2)
tax
citizen
attributable
deductions
and
derived
resident
to
for
VAT-exempt
at
a
the
govt/its
non-resident
time
politic
of
sales
f.
Exempt
corporations
the
er
on
eis
2)
from
investments
and
from
incidental
or
E.
Requirements
future
services
for
as
aP
condition
of
Disposition
of
the
proceeds
of
the
sale
by
.facilities,
Provided,
incomes
however,
are
That
if
the
Commissioner
of
1.
ADMINISTRATIVE
NOT
per

The
You
employer
can
“avail
will
not
of
the
be
relieved
benefits
his
inheritance
.Produced
byEXCEPTIONS
the
s
release
of
the
Mani
submission
la,
........
G.R.
133
of
N
the
o.
L-4817
documents,
,had
May
the
taxpayer
here
Philippines
and
enjoying
privileges,
Dividends
income
of
a)
From
domestic
employee,
7.5
abroad
management
and
sold
accounts
Income
partly
&
a.

non-bank
4933
6
Au
gus
tbasis
31
,rights
must
be
complied
with)
trade,
Appeal
to
SC
To
be
deductible
as
a
business
under
this
subsection,
liquidate,
)Alien
and
upon
collect
re-importation
industry,
the
or
duties
activity
article
thereon,
shall
PU
BLIC
]Period
O
FFE
RIN
G
Interest
incurred
to
acquire

iii.
Compensation
for
services
in
whatever
by
LBAA)
198
[2
Cost
or
of
the
property
With
respect
to
taxpayer's
suits,
Terr
v.
violative
the
of
the
Commissioner
cardinal
principle
may,
even
in
trader
that
subsequently
exports
the
properties
oficer,
collection
agent
or
duly
authorized
(
exemption,
IP
LGU
in
his/her
to,
share
or
the
in
installation
or
operation
of
relevance
period
of
from
the
under
R.A.
securities
period...
The
sold
waiver
in
the
name
must
be
of
the
signed
buyer,
by
and
services
some
of
which
are
subject
to
which
shall
not
persons
of
any
invoice,
letter
or
paper
6.
assessed
(or
collected
without
assessment)
TOPIC
UNDER
THE
SYLLABUS:
register
under
unpaid
section
amt.
until
236
the
of
delinquent
the
Tax
amt
Code.
is
unforeseen
max
and
amt.
fortuitous
of
events,
in
no
case
shall
2.
d)
Procedure
provision
when
permits
After
it
for
has
for
of
the
the
judicial
come
driving
law.
to
the
thereof,
knowledge
except
of
the
1.
On
noncommercial
will
be
breeding
issued.
of
fighting
(Sec.
administration.
237,
for
nonaccount
d
alone,
or
jointly
with
another,
it
declaration
of
taxes,
fees
or
e
On
contractors
and
other
independent
3
Abandonment
(Sec.
REVIEWER
165
P10,000
ofice
shall
be
of
Convenience
business
does
(CPC),
not
It
become
is
not
a
exempt
common
by
(c)
Receipt
ns
of
Tax
r
Refund
n
or
Tax
m
credit
proceeds
thereof
been
duly
10.
VAT
ON
IMPORTATION
OF
GOODS
acceptance
thereof
by
the
Payable
company,
1.

on
Agricultural
Criminal
or
insurance
after
proceedings
lands
November
or
–
mutual
More
are
than
1,
fund
actions
2005
1
hectare
in
shall
if
be
Taxable
They
are
legally
–
The
tax
recognized
period
of
partners
all
local
in
television
broadcasting
whose
gross
Individual
Delivery
Truck
or
Van
of
a
registration
information.
and
who
that
is
not
may
a
VAT-registered
be
authorized
by

(Sec
refund
253,
their
LGC)
value
upon
proof
of
destruction.
P500.00.
satisfaction
of
the
Commissioner
operations
at
the
normal
rate
if
Government

and/or
the
taxpayer,
and
the
case
because
it
was
filed
still
Date
of
transaction,
quantity,
unit
a.
The
taxpayer
depositors,
may
if
file
it
is
a
shown
written
that
claim
the
for
Interest
reasonable
employment
i.e.,
Income
the
period
gain,
case
from
contract
of
could
of
distributions
Longtime.
only
to
pass
be
As
in
taxed
through
was
liquidation)
when
held
and
in
a
Any
return,
statement
or
declaration
for
the
not
reasonable
income.
needs
of
the
business.
=
2,00
tax-free
(5%)
fixed
imported
final
sum
VAT
to
be
goods
withholding
paid
at
from
a
stated
rate
exempt
time
shall
certificate)
(other
adjustments
–
date
of
initial
ii.
assessment.
individual
employed
The
taxes
by
shall
be
the
Commissioner
otherwise
permits,
an
product
the
merchandise
to
bring
exempt
from
tax.
proceeds
in
the
realized
entered
locality
at
and
into
the
the
between
sale.
ordinance
[S
ec.
related
shall
gift
net
is
worth
measured
P200
or
expenditures;
per
by
deducting
month
from
during
the
the
fair

months.
.otherwise
efects,
realized
d
yrs.
of
al
during
and
m
ic
ts
rin
on
al
d
REFUND
dis
Minimum
incurred
The
ted
corporation
disposition
ass
ess
ment
of
shall
real
not
change
3.
estate
pesos
(P1,500,000);
of
the
decedent
or
apart
new
TIN.
Imposed
(3)
Capital
upon
gains
from
shares
Commissioner
of
ge
stock
Tax
alone/together
with
others,
not
residents
5%
ad
ALIEN
deductions
V.erroneously
JUDICIAL
)(1
RIPE
w
NE
ith
in
the
REMEDIES
Cost
of
taxable
burial
as
plot,
income
tombstones,
because
of
governmental
be
unjust,
of
cost
of
public
CGT
1.
the
full
or
of
the
amount
accounting
absence,
method
the
employed
captains
by
the
thereof
lessor
are
g.
sale
(a
(7)
That
Annuities,
within
a
power
equipment
taxpayer
the
Philippines)
or
Proceeds
fuel
of
R
etiring
aF
generated
permanent
from
from
Life
through
Grounds:
Efects:
[a
liable
The
for
total
amount
of
the
income
value,
net
of
the
output
VAT,
should
still
reduced
undistributed
down.
to
over
earnings
10
subject
to
the
tax.
where
4.
SUMMARY
they
other
are
REMEDY
natural
consumed.
ON
REAL
PROPERTY
render
Foreign
Payment
the
articles
same
–afected
previously
Act
of
exported
compliance
by

.Jor
v.
materials
Contributions
permits,
consumed
an
deductible
authorized
in
in
full
agent
the
b
MANDATORY
jurisdiction
purposes;
Exemptions
cannot
Phi
lip
filing
pi
it
nes
of
granted
be
of
a
used
estate
taxing
determined
to
under
tax
authority
attain
non-revenue
merely
[in
51
Am
by
may
have
been
legally
EFFECT
a.
SUBJECT
the
tax
TO
on
installment
but
Paid
from
for
deposit
in
acceptable
NOT
foreign
currency
Requisites:
the
power
to
re-vest
the
partnership,
or
compromise
and
property
Powe
rpu
tNRA-NETB)
o
Gra
nt
L
oca
lto
E
xemp
tio
ns
a.
-the
Monthly
or
ii.
credit
Where
Dividends
following:
VAT
must
the
Declarations
A.
(other
be
instrument
Income
made
than
within
Taxation
(BIR
of
those
sale
6
Form
months
derived
No.
2550M)
and
foreign
or
and
coastwise
assignees
trade
are
including
operating
“airport
purposes
considered
registered
where
Income
he
file
on
Tax
to
is
a
registered
return,
at
h
the
date
certification
e
by
of
ss
the
filing
from
the
donor’s
Regional
tax,
or
area
and
customs
duties
sources
within
the
Philippines
if
he

corporations
–was
almost
providing
than
be
said
180
assistance
days
be
dur
odious
ireturns
in
n
g
a
establishing
n
to
y
cfails
the
al
e
nd
law
ar
principle,
residence
principle
and

Real

[3
The
taxable
income
all
the
trusts
30,
987]
,consigned
the
tax
credit
exceeded
P1.5
million;
or
shall
making
not
give
rise
to
return
any
input
and
tax.
incurring
of
Finance,
distributive
separate
returns
share
taxpayer
corresponding
in
the
inheritance
refund
to
his/
or
her
exists
produced
In
privity
the
or
discretion
of
relationship
imported,
of
the
between
used
grantor,
in
the
with
.of
High-speed
passenger
crafts:
5
p.
including
(1
Under
From
the
sources
REALIZATION
within
PRINCIPLE,
the
creditable
[e]
Final
input
taxes,
taxes
being
120
the
nature
days
under
OR
the
from
payment
of
VAT
on
the
excess
social
welfare
is
deductible
as
expense
when
======================
the
pharmacy
][4
employer
or
liable
drug
to
store,
a
penalty
the
equal
sale
to
of
of
aaction
person
Tax
on
Transfer
consignee
Court
of
held
Real
if
that
there
Not
to
order
is
more
no
by
specific
the
50%
Sale,
transfer
the
Ex.
Relative
or
Secretary
VAT,
by
specific
It
17,500
shall
consanguinity
of
be
Finance,
tax,
the
30,000
duty
percentage
in
in
of
cases
the
the
110,000
tax,
E
landing
rights
S
excess
resident
Receives
any
money
classifed
from
any
.executor/administrator/any
CESSATION
US
F
T
b.
shall
Estate
Rationale:
income
not
good
be
alien,
Doctrine
by
engineeri
of
Primary
Jurisdiction.
developme
al
thos
granting
operations,
accumulated
contrar
or
selfThird
propelled,
Quarter
–shall
and
On
those
or
before
not
permanently
November
money
same.
is
not
so
application
expended,
of
such
the
gain
shall
be
(1)
Estate
Tax
–is
Domicile
of
the
allowed
take
testimony
of
persons
(Sec.
5)
REQUIREMENTS
E:
his
death:
year
once”
liability
(once
for
outside
operations
or
sources.
In
be subject
receiving
the
prize/award
utility
b.
NOTE:
proceeds
Cons
2
employer
adversely
6,
1954
truc
to
ti
]1
the
is
ve
delinquency
met
ho
may
ds
of
and
appeal
iwithin
nc
expenses
ome
the
of
CTA
sale
3.
REGISTERED
Customs

exemptions
Exemption
deems
subdivisions
that
he
(from
be
will
subject
experience
to
real
b
Progressive
tax
–franchises,
tax
rate
increases
as
heir
must
include
in
The
IAET
(2
Not
investments
shall
engaged
not
apply
in
trade
to
evidenced
the
or
following
business
–to
(within
15
days
business
or
professional
expenses
Persons
%
here
within,
partly
NOTE:
subjected
Any
to
income
different
of
nonresidents,
sets
of
graduated
whether
or

5
or
donation
within
yrs
prior
to
his
death
35%
(2006Rem
e
d
iallow
e
san
o
f5
LGUs
for
ttime
h
e
Co
lthan
lA
eR
c
tand
ion
property
used
fees,
in
trade
or
business
expense:
which
exemption
shall
 previously
be
withheld
and
paid
i.
or
detain
finance
There
is
the
no
said
double
corporation
intermediaries,
goods
taxation
if
the
–of
in
party
the
liable
doing
The
same
tax
treatment
shall
also
apply
RE
SIDE
NT
1]
]ocks
CIT
exchanged
IZE
N/
NON
-RE
in
SID
ENT
dan
held
that:
resident
gains
from
other
capital
assets
are
Capital
form
paid,
including,
but
not
limited
to

2.
Importation
Nature
O)
of
Real
What
taxes
are
deductible?
1.
Civil
[exist
Sec.
Prop
er
ty
T
ax
same;
iv.
treasurer
any
Decisions
brand,
of
the
of
city
DOF
machinery,
or
on
municipality
customs
or
where
cases
other
Income
(a
The
expense
exempt
must
be
ordinary
is
used
and
vacation
issue,
taxpayer
owns
10021.
all

[2
touching
Business
if
a
leave
family
required
himself
credits
estate
to
on
profits
or
do
of
or
the
so,
his
several
private
the
of
duly
importation
corresponding
burial
(b)
a
authorized
foreign
th
or
n.
Removal
as
a
deficiency
of
Receiv
Business
and
to
another
decreased
by
the
MM
and
can
exempt
some
of
the
which
5%
are
ad
valorem
VAT
zero-rated
tax
on
the
conjugal
partnership
or
absolute
Assessment
action
Personal
tricycles;
property:
FMV
at
the
of
C
and
Supervision
and
control
over
the
handling
If(Sec.

not
redeemed,
a
final
deed
of
sale
shall
be
6.
paid.
exceed
60
days
Aggregate
payment.
after
the
acquisition
owner’s
return,
cost
subject
refers
to
the
date
of
submission
dividends
of
(or
documents,
for
such
aby
exceed
P10,000.00
in
accordance
with
.(m
1801
shall
TCC)
not
any
withdrawal
from
Credit
Ex
post
facto
is
not
applicable
for
tax
being
conducted
with
some
other
business

Manufacturers
more
personam
than
½
while
Producers,
taxes,

3.
carrier.
fees
and
It
is
thus
subject
to
forfeiture
and
Taxpayers
contractors
accounted
seller
Chiefly
for
as
dependent
in
payment
accordance
upon
for
and
services
living
charges
company,
The
properties
&
regional
and
rights
operating
are
transferred
to
the
(2)
Exception:
1.
File
a
petition
for
review
with
taxable
receipts
by
the
for
city
the
or
preceding
municipality
year
where
did
business;
107)
There
exists
an
employerExpres
.I.
person.
-refund
expected
the
BSP
to
transact
business
Net
estate,
No
credit
or
refund
of
taxes
or
penalties
within
or
the
180-day
period,
and
thus,
Note
that
the
registration
of
one
tax
type
Taxpayer
either
to
deposit
the
amount
cost
and
description
of
the
goods
or
GENERAL
PRINCIPLES
0
Term
Republic
be
disposition
Deposit
The
registered
of
o
the
controlling
tax
or
of
Phils.
investment
on
the
with
such
vs.
property
the
intention
interest
Ablaza:
POEA
occurred
was
“…The
[is
B
withheld.
of
IR
law
which
u
li
n
on
g
E
xcep
tion
staxes
to
Between
th
e
ru
le
o
2
ffor
corporations
more
than
for
the
use
of
property.
purchase
Those
returns)
who
gross
annual
sales
–
Exemp
filed
represent
in
any
the
net
VAT
payable
of
the
market
computed
value
Regional
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for
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District
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192
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o
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of
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return
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or
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you’ve
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IZE
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In
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real
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other
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securities.
of
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property
corporation,
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price
the
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or
receipt
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Tax
Refund
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–
provided
in
no
case
shall
the
total
Trading
In
for
mation
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tain
issued
ed
in
th
to
ethe
the
VAT
RMC
No.
29-2010
publishes
R.A.
10021
the
following
schedule:
of
however
to
the
(2)
value
idle
Equal
following
lands.
corresponding
protection
provisions:
[to
Sec.
the
1,
plot
where
he
is
community
for
which
such
tax
has
been
paid.
Wholesalers
Taxes,
of,
fees,
Dealers,
or
or
other
charges
on
cockpits;
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of
Registration
said
deposit
Requirements
account,
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unless
the
Income
Derived
under
the
A.
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Local
Stock
purposes.
However
when
it
comes
to
civil
Taxpayer
may
part
be
imprisoned
of
for
nonsuccessors
lack
of
personal
the
CTA
knowledge
of
the
owner
or
th
rules
and
regulations
of
the
Bangko
At
option
of
taxpayer,
the

sly
rendered;
with
the
taxpayer
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headquarters
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multinational
1.
a.
Court
not
Protest
exceed
–
within
P10,000,000.00
60
days
from
shall
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2.
the
factory,
project
ofice,
plant,
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when
refunded
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Citizens
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world
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employee
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er
al
relationship
Ru
le:
all
between
corporations,
them;
f.
shall
On
seizure
which
banks
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or
allowed
and
remain
forfeiture
other
unless
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fnancial
proceedings
the
taxpayer
or
are
actions
files
charges
shall
be
the
ca
l
e
nd
ar
y
ear,
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register
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other
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egu
lar
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ity
claimed
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to
file
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surety
bond
for
not
The
taxpayer
rule
of
is
strict
that
which
construction
is
manifested
as
................................................................
properties
or
the
nature
of
service
Interest
paid
by
a
corporate
provided
in
the
prescription
was
for
of
years
such
being
and
life
or
is
more)
remedial
10
nature
yrs
or
as
measure
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to
constitute
should
a
(a
Resident
Final
Tax
Rate:
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of
the
50%
in
value
of
outstanding
stock
b).
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Remedies,
Tax
in
(input
tax
attributable
to
exempt
sales)
credit
with
the
provincial
or
city
The
presentation
Headquarters
of
the
of
CTC
Multinational
shall
not
be
t
seller.
The
remaining
seven
percent
worth
That
there
is
a
fixed
starting
point
Officer,
Collection
Agent,
or
duly
authorized
properly
marked
That
said
family
had
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gross
use.
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Compensation
for
Injuries
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Sickness
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business
where
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gro
ss
sales
o
r
[4
Determination
prior
approval
of
from
Excess
the
Commissioner
of
MCIT
in
charitable
and
educational
institutions.
barter,
exchange
or
disposition
of
authorized
ofice
shall
not
be
withdrawn;
through
the
Local
Stock
in
connection
located
in
with
the
Philippines
taxpayer’s
Customs
trade,
by
a
executor
or
administrator
of
the
estate
L.
Tax
as
distinguished
from
recognizes
as
income
determining
factor
remedies
terms
Actually
as
and
may
conditions
be
legally
ascertained
therefore.
available
to
to
him.
Compensation
income
of
MWEs
shall
be
.province
the
taken
transactions
January
sending
]
The
for
of
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related
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to
corporation
to
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and
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y
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REFUND
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policy.
exported
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articles
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the
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date
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our
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property
law
itself
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the
provides
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imposed
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TAX
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2
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ho
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listed
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nc.,
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R
.
this
No.
of
oficer,
Title,
stoc
6.
PROTESTING
b.
where
In
case
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he
of
Administrator
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inaction
intending
to
commissioner
shall
transfer.
sufice.
2005,
within

Taxes,
the
Philippines)
when
only
refunded
to
or
impose
in
the
Philippines
by
time
and
locality
Advertisement
of
the
time
and
place
of
sale,
SCRA
against
may
impose
the
a
tax
multinatio
of
real
ii.
illegally
depending
property
Refers
Gross
paid
to
Income
frst
upon
administrator
2
months
(within
the
classifcation
of
the
taxpayer’s
to
pay
the
of
the
REFUND/TAX
CREDIT
14
Taxation
FMV
as
consolidat
determined
of
Domestic
by
the
Commissioner
OR
DEDUCTIBILITY:
Refers
to
frst
stocks
2
months
in
of
a
taxpayer’s
determining
exempt
b.
and
from
mines
tariff
engaged
in
believe
that
entitled
his
to
there
is
Dicti
on
a
1%
of
the
to
any
part
of
the
corpus
the
trust
is
LGUs,
specialty
may
through
feeds
for
ordinances
race
horses,
duly
fighting
within
the
1.
Income
Tax
Systems
and
the
“Income
object
for
of
tax.
the
benefit
of
the
account
e
se
ct
e
questioned
transaction.
Neither
was
there
an
and
BOC
OR.
operation
during
the
taxable
However,
sales
of
drugs
to
inpatients

generally
recognized
when
both
of
the
6.
companies
and
which
headquarters
do
By
Sea
a
project
Interests
Whether
and
designing
derived
Domestic
materials,
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Domesti
sources
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“reasonable
)
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Schedular
Personal
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the
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balance
System
of
to
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For
transactions
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deemed
sales,
the
output
tax
15.
SOURCES
OF
OF
VAT-exempt
•
SERVICE
government
)
transaction
organization,
on
the
following
trust
points:

STEP
2:
LISTING
embezzlement
OF
REAL
PROPERTY
IN
value
what
of
the
consideration
constitutes
received.
"doing"
or
beneficiary.
Validity
share
Understatement
of
in
The
the
Tax
estate
conjugal/community
tax
of
taxable
clearance
sales
issued
property.
or
by
the
underwriters
of
the
abandoned
articles
2.
Each
those
partner
1/1/79
that
allowed
shall
accrues
Foreign
report
as
thereto;
adverse
deduction
his
decision
taxed
only
in
4
directly,
(3)
A
personal
i.
Branch
and
Requisites
exclusively
Profit
obligation
Remittance
for
Deductibility
used
of
to
the
meet
deceased
of
Past
exemptions
.
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
requirement
of
giving
prior
the
money
sketches
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expended.

should
date
be
of
treated
submission
as
part
of
of
complete
cost
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goods
======================
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deficiency
tax,
in
CREDIT
should
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not
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made
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for
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depreciation,

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primarily
failure
Ofline
held
of
carriers:
for
the
sale
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those
to
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agents
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death
imposition
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and
using
method
five,
the
Commissioner
of
Must
be
paid
or
incurred
during
the
NOTE:
(1
Pa
ymen
1.
The
Before
t
cancellation
o
f
T
ax
:
the
Time
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be
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and
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Branch
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Alien
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RPBP);
taxes
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but
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show
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be
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avail
7
of
===========
the
(BIG-PEN-T)
TCC
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rates
exemption
UNDER
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his
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death
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of
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be
or
filed,
corporations,
the
value
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the
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transactions
estate
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with
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stay
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the
Philippines
is
180
und
er
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ecial
)
Tax
month
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refund
Who
takes
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The
required
government
issues
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)
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Importation
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of
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the
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othe
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ates
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Receipt
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By
A
party
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income
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and
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file
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outside
similar
items
the
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holding
period.
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From
The
reportable
foreign
capital
otherwise
credited,
repaid
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shall
respect
be
included
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such
tax;
as
part
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
Informer’s
laws
o
r
in
tern
ation
al
agr
eemen
ts
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ich
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e
Sale
On
transitional
Philippines
of
Real
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input
Inventory
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gain
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loss
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(LGC
Sec
3
action
Any
As
to
residue
tax
rates
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or
and
determination
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business
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person
decision
versus
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invo
ice
Philippines,
to
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value
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interest,
and
sick
commissions,
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waiver
taxes
du
must
e
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t
be
signed
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of
its

maintenance
Taxes
withheld
or
on
certain
income
instituti
clearly
organized
indicate
under
the
break-down
the
laws
of
of
buried
Art.
is
I
II
]
Retailers
in,
Certain
(b
It
must
be
paid
or
incurred
within
the
1.
That
the
personal
and
household
effects
shall
RR
11-08)
entitled
“An
Act
to
Allow
the
Exchange
of

person
shall
whenever
th
e
ti
me
o
f
d
ea
th
which
were
unpaid
The
Exchange
tax
on
a
business
must
be
paid
by
the
Philippine
interest
products
actually
E
xported,
On
v.
places
of
Recreation
which
charge
Expanded
Real
For
the
Property:
annual
income
FMV
tax
return:
as
e
Purchased
agreed
[3
without
upon
for
one
or
Income
more
assets
within

penalties
like
fines
and
forfeiture
(except
interest
payment
may
of
other
be
kinds
of
taxes
where

LGUs
A
statement
(within
that
and
the
seller
outside
is
a
MM)
VATmay
the
dissolution
Not
of
married,
the
marriage
not
in
favor
gainfully
of

action
receipt
of
All
persons
subject
to
legislation
shall
7.
mails
Sentral
arriving
ng
in
Pilipinas
Phils.
For
(BSP):
the
purpose
Provided,
of
company
or
share
in
the
agencies,
or
at
the
time
of
death.
[
Ar
t
.
777
o
f
t
h
e
C
iv
i
l
Sec.
4(3)
Art.
XIV
of
the
1987
irrevocable;
Real
Property

within
Tax
is
30
a
such
days
direct
period
after
tax
on
the
as
the
ownership
a.
Commissioner
7
subject
The
question
to
12%
or
is,
the
how
FMV
does
in
the
the
latest
taxpayer

½
of
1%
of
the
Gross
Selling
Price
property
in
writing
located
implied
with
in
the
Commissioner
a
claim
Any
at
business
the
time
for
of
which
accumulation.
the
annual
A
(n
type
of
taxes
(e.g.
registered
for
income
Code.
more
than
the
double
the
amount
with
...........
)
Any
Citizen
82
person
directly
citizen
or
indirectly
Philippines
owns,
unimproved
in
rem.
against
the
by
government
the
is
not
general
instrumentalities
owned
or
controlled
by

interpreted
realization
in
taxpayer
a
of
way
such
conducive
who
gain,
is
that
liable
to
is,
bringing
on
a
severance
a
about
required
in
g.
On
For
i.
peddlers
every
owned
P5,000.00
engaged
by
same
worth
in
individual,
the
of
sale
real
if
of
either
any
Treatment:

if
expected
life
is
>
10
yrs.,
(input
tax
on
capital
goods
purchased
as
to
or
the
opening
place
For
RC,
net
NRC,
worth
RA,
(date
beginning
with
receipts
does
not
exceed
P1.5
(7%)
effectively
accounts
for
residing
therein
is
taxable
on
all
Treasurer
r
eceip
t
d
o
of
no
t
the
city
or
municipality
where
]
over
RCIT
treasurer
within
2
Companies
Places
Where
Searches
and
Seizures
Rule
4:
Where
the
plantation
located
at
a
place
o
For
taxpayers
engaged
in
the
sale
of
accordance
income
with
of
not
the
provisions
of
Section
but
within
THREE
YEARS
from
date
of
filing,
An
aspect
Exchange
of
the
"case-or-controversy"
If
there
is
an
express
mention
or
if
the
shall
exc
eed
register
P100,
000
the
during
estate
any
with
12-month
the
RDO
The
final
other
business,
allowable
non-dealer
items,
or
amount
exercise
in
among
shall
real
of
estate.
be
profession
which
lower
shall
of
are

of
Received
each
of
the
through
partners.
Accident/Health
The
ordinance
levying
such
taxes,
fees
worthless
and
uncollectible
as
2009
MCIT
P
trade
or
abroad
R
efund
The
solely
grant
–
for
Recovery
exhibition
shall
be
of
any
for
a
tax
definite
alleged
to
city
or
municipality
used
in
where
undertaking
the
withholding
priority
exempt
Goods
authorized
in
Customs
to
Custody
transact
Beyond
business
Reach
in
the
prescribed;
or
c.
of
The
a
December
)
172045
PAN
Is
(2)
Commissioner
Intending
shall
to
-4
in
the
ts:
31
6,
taxpayer
the
Expense
be
Resident
business
which
June
to
left
leave
shall
is
to
Foreign
allowed
that
have
the
inform
is
Philippines
deductible
charge
if
the:
him
of
or
k
any
in
exception,
ASSESSMENT
]
under
subject
which
to
CGT
the
supply
of
service
same
imported
material,
apportionment
shall
d
on
the
sale,
donation,
pursuant
to
R.A.
tax
imposed
within
60
days
created
to,

biomass,
such
Annuity
by
receivers,
any
–
installment
of
its
trustees
agencies
payments
or
which
assignees
for
is
not
transfers
Philippines;
though
exempt
from
tax,
where
within
180
days
from
submission
of
iii.Compensation
for
labor
or
personal
.
Corporations
351
the
which
FMV
shall
shown
contain:
in
schedule
of
values
fixed
ry]
other
but
property
In
quarters
the
Philippines)
forms
case
(family
of
of
transfer
exactions
home),
of
and
registration
the
property
of
approved,
grant
tax
absolutely
no
quarters
(a)
Resident
Alien
–
an
individual
ed.
c.
16,
seller
xi
To
[5
Entertainment,
[a
Remove
who
the
is
his
required
taxpayer
property
amusement
to
pay
was
the
said
&
not
178087,
a)
taxpay
Ma
y
5,
refund
file
and
in
writin
wit
th
a.
Taxpayer/withholding
exceed
P1
the
agents
total
installment
of
nonexchange
VAT.
There
vestedof
was
no
sale,
cocks,
aquarium
fishes,
zoo
animals
and
Philippin
not
earn
....................................
17
grantor”:
Taxpayer
credited,
corporation
is
an
individual
be
possessing
at
least
and
deductible
customs
duties,
by
a
non-resident
plus
custom
c
alien
Trip
duties,
–
or
shall
be
based
]
period.
Unused
supplies
and
INPUT
TAX
i.
hospitals
Basic
Exemption
are
considered
–
P50,000
part
of
philanthropic
gross
sales
organization
or
receipts
for
or
the
research
next
+/
Properties
It
is
nonan
enforced
within
transporti
Not
resident,
Subject
the
charge
shall
and
to
be
Forfeiture
subject
to
in
the
Definitio
distributive
share,
.property
existing
Service
a
(BPRT)
notice

THE
ASSESSMENT
ROLLS
(Secs.
205,
207,
Basis
burden
Necessity
is
shifted
Benefits
or
passed
obtained
on
Evidenced
by
a
completed
sold
saved
from
gross
a
income
wreck
in
at
the
sea,
year
along
of
the
coast
the
This
Commissioner
TAXPAYER
following
receipts
rule
same
will
by
way
also
as
apply
the
TIME
an
individual
in
Revenue
TO
the
CLAIM
case
provided
District
of
coneeds
of
the
particular
industry,
business
or
(a
Authority
month,
from
except
of
income
the
for
derived
Electronic
Commissioner
from
Filing
of
the

business”
certain
authorization
are
the
incomes
by
and
Commissioner,
capital
or
captains
held
for
to
file
documents
in
support
of
the
application
"engaging
in"
or
================
taxable
landing
year
rights
but
may
)effective
Payment
the
depletion,
month,
from
with
except
the
selling
for
expenses
Electronic
or
Filing
losses,
and
whatsoever
b.
residence
Except:
ii.

Requisites
Requisites:
from
appeal
is
the
for
by
payment
amortization
filing
a
of
petition
customs
of
for
undertaken
elsewhere
than
in
taxed
on
[6
as
taxable
–
much
as
possible,
indirect
taxes
case
any
payment
has
been
made
on
the
on
taxable
income
exemption
tax
categories.
has
been
under
It
paid
does
another
by
not
the
ground
include
employee.
such
as
subject
to
final
taxes
at
preferential
The
following
services
performed
in
the
depository
banks
under
the
expanded
to
fle
Tax
Credit
Certificate
contract
and
or
property
granted
and
by
the
property
Constitution.
is
place
when
there
taxes
income
of
every
and
the
basis
could
be
gross
(2)
Donor’s
Tax
–
Domicile
of
the
NE
(3)
RA
Immediate
L
Recognition
RU
LE
:
at
needs
of
th
e
time
the
business;
th
e
r
etur
n
th
Measures

and
ee
rescue
)
s
d
r
bank
al
–GE
an
income
the
rights

Income
situated
200
in
the
days
or
positions
where
none
as
those
has
been
of
the
made
alien
employees

taxable
e)
ALL
articles
gift
of
imported
the
donor
into
Estate
the
tax
on
the
Ph
ilipp
in
es
is
Properties
shown
in
a
detailed
list
11.
Deductions
from
gain
would
exchange
sam
be:
contra
of
r.
property
area;
is
solely
notice
in

corporation:
I
n
c
o
me
h.
Educational
Key:
services
Income
rendered
should
by
accrue
private
to
c.
tax
TCC
intermediaries;
applies
only
after
importation
has
action
in
courts
to
restrain
the
unlawful
use

written
protest
Products.
The
The
province
supply
may
of
technical
advise,
stockholders’
Annuities
city
government
as
long
received
as
the
orders
when
were
is
credited,
booked
and
or
.8
Tax
of
amount
(a
If
no
Use
amount
of/the
right/privilege
is(sec.
shown
as
the
to
use
tax
in
by
the
discounts
from
lending
activities,
income
TOPIC
UNDER
THE
SYLLABUS:
safety
achievement
in
the
form
of
a
sign
(b
registered
ator
improvement
y
efect
ively
sub
,original
jects
applicable,
su
ch
sales
as
sale
[2]
treaty
of
price
the
Declining
country
between
balance
from
its
sources
taxable,
within
exempt
the
to
pay
the
The
253)
Commissioner
....................................................
may,
by
rules
ii.
a
Specific
–derived
tax
imposed
and
based
on
a
d.
News
services
(which
messages
deal
Tangible
personal
property
within
and
II.
NATIONAL
INTERNAL
b.
sale
Consequences
person
reward
producer
admission
]within
of
conducting
real
fees;
properties
of
to
issuing
an
the
and
export
same.
erroneous
held
trader
primarily
shall
VAT
only
deductible;
Foreign
except
Currency
as
otherwise
Deposit
provided;
System
neither
be
in
registered
person,
taxable
and
sold

interest),
update
his
registration
tax
laws
information
may
be
with
applied
the
be
time
treated
of
2.
On
or
further,
before
April
That
15
where
of
the
the
next
taxpayer
is
acquired
and
not
output
schedule
.the
(c
VAT
collection
of
of
lawful
duty
on
dutiable
allowed
or
[a
Gross
as:
A
corporation
exchanges
distributive
assessment
net
income
after
195,
tax
LGC).
of
Pa
ymen
tafter
employed,
not
Constitution
provides
corporation
that
has
all
been
assets
)constructively
A
VAT-registered
person
whose
gross
of
lands
and
buildings
expiration
or
of
other
the
improvements
speculative
know
if
the
and
documents
indefinite
purpose
are
in
fact,
will
ly
person
(non
40
date
d
10
for
registration
credit
or
refund
fee
has
within
been
two
paid
(2)
years
may
be
controls
holds
five
percent
(5%)
or
tax
the
is
not
govt.
registered
for
VAT)
Generally,
11.
VAT
ON
SALE
OF
SERVICES
AND
USE
property
(1
merchandise
change
in
the
of
or
business
activity
from
VAT
applicable
where
the
language
of
the
mortgage
upon
real
property
of
of
a.
owner
the
is
within
during
no
gain
of
tdepreciate
the
30
the
from
days
property
month/quarter
the
after
or
receipt
person
capital
subject
of
having
decision
invested
to
a
Proof
taxable
Tax
year
or
prior
to
it
when
However,
one
is
a
a
gen
personal
er
al
rit
holding
enun
ci
ation
company
by
origin
of
the
income
payments
million
are
are
exempted
from
VAT.
NOTE
Customs
(2):
Advance
compromise
and
prompt
does
not
business]

Income
from
Leasehold
In
case
of
pre-termination:
if
held

connection
On
Billboards,
standard
2.
with
Awai
the
signboards,
input
registration
th
VAT
final
for
neon
of
decision
sales
a
voter.
signs,
of
goods
and
th

May
Be
Conducted
Annu
other
the
al
than
Registr
withholding
life,
or
ation
for
agent
a
guaranteed
has
his
legal
fixed
residence
period
However,
the
Register
of
Deeds
shall
not
transfer
NRA-ETB
years
from
the
date
the
taxpayer
is
Accrual
of
Tax
–or
All
local
taxes,
fees,
and
requirement
is
the
services,
gross
income
shall
mean
i)
B
administra
action—
period
shall
be
the
the
country
same
may
be
modified,
changed
or
(2
Uniformity
and
equality
of
taxation
A
taxpayer
Held
final
for
tax
5
falls
years
on
within
the
or
NET
the
CAPITAL
Exempt
purview
of
GAINS
the
(D)
Method
Four.
–grantor
Computed
Value.
––
iii.Alien
allowed
Individual
as
a
deduction
employed
from
by
where
he
registered
BUT
if
the
Insurance
or
more
than
P250,000
for
the
b.
the
end
of
the
taxable
year,
and
40,000
of
Attachment
have
considered
been
activities
principally
in
or
for
education,
illegally
subsistence
assessed
health,
or
barter,
or
on
any
other
6657
(CARL)
or
charges
from
date
of
the
agent
be
made.
Cooperatives
Workmen’s
has
his
legal
shall
residence
be
exempt
or
from
Act
principal
the
a

Philippines
where
the
Commissioner
has
assessment
real
estate
made
obtained
Corporation
year
is
incurred,
but
by
the
part
in
Government
the
of
same
the
"due
of
shall
be
from
zero-rated
income
tax
when
and
consequently
the
following
Fernan
dez
,erroneously
[is
99
Ph
il.
934];
period
of
not
services
performed
without
by
the
assessors,
whichever
is
HIGHER
shall
make
returns
of
net
income
as
documents
Less:
2009
RCIT
30,00
solar,
account
wind,
hydropower,
geothermal
and
The
amount
of
income
basis
derived
to
fle
from
a
(c
2009]
.Decisions
therefrom
][1
]recreation
either
exchange.
exempt
or
with
the
from
owner
or
the
person
20
10]
er
s
h
ehis
consideration
or
of No.of
individuals
earning
purely
compensation
Doctrine
conducted
million
of
sale
of
lot
or
taxpayer
relations
the
gross
prevailing
the
properties
of
the
whose
residence
is
within
].
a.
Tax
payable
not
from
the
barter
(a)
or
exchange
In
the
51%
of
goods
of
the
or
total
either
voting
alone
power
or
in
other
foreign
(cases
-Special
)of
animals
Deductions
corporation
generally
(attributable
only
in
considered
respect
to
12%
of
VAT
as
oil
The
tax
provided
shall
be
computed
-vii
es
2.
receipt
Features
to
the
of
the
extent
Philippine
of
income
Income
tax
exemptions,
the
a.
institution
Absence
Protes
Exercised

Commissioner
tfinancial
If
incentives
of
the
or
of
ass
either
organization;
sale
ess
me
is
or
alone
made
claim
nt
reliefs
or
for
by
provided,
in
under
credit
conjunction
a
dealer
or
such
not
in
resident
foreign
excise
tax,
DISCRIMINAT
and
ifon
any,
other
charges
=======================
a
The
amount
supplies
of
tax
not
used
penalties
for
business
actually
or
derive
income
to
from
the
the
twelve
(12)
months,
other
than
those
on
the
market
Philippin
ng
person
value
of
goods
deemed
sold
as
of
Taxation
is
merely
a
way
of
apportioning
the
21
Taxation
of
Estates
iii.
Payment
)VAT
30%
Internal
or
more
his
correct
taxable
sales
included
as
part
gross
income
LGC)
contribution.
transaction
Generally
pecuniary
in
Oficer
actually
having
jurisdiction
or
constructively
over
the
received
estate
will
it
is
irrevocable
and
earns
income;
what
activity
Taxpayer
ii.
and
Additional
which
a
by
partnership
Exemption
their
very
–Philippines
nature
P25,000
and
conditions
are
met:
time
BPRT
dwellings
of
Cost
his
shall
death
to
be
be
except
imposed
subject
unpaid
on
10%
any
obligations
VAT
profit
a.
zero-rated
The
sale
alteration,
is
a
taxable
amendment
transaction
or
for
Payment
persons
engaged
in
both
zero-rated
sales
review
certain
to
R&D
En
Banc
in
case
of
decisions
income
within
the
should
Must
be
be
minimized.
paid
INPUT
or
incurred
T
TAX
ol
e
nt
in
iof
n
carrying
o
v
for
"transacting"
items
may
not
appeal
business.
ordinarily
to
the
Each
CTA
used
within
case
To
duties
importer
[persons
S
e
c
nevertheless
.his
Upon
be
payment
selling
of
VAT
withdraw
Philippines
an
and
amount
necessary
for
lease
the
return
in
the
and
ordinary
pay
the
course
tax,
of
the
trade
Bureau
or
a.
Purchase
rates
while
or
impartation
all
exceeding
Philippines
by
a
system
shall
be
exempt
from
income
tax.
is
actually
a
i.
Sale
covering
or
within
disposition
the
and
amount
without
of
the
excises
that
excises
that
comprehend
athletic
achievement.
Contemplates
the

is
filed
income
first
and
by
day
donor
prosecutor’s
of
the
at
following
the
ofice:
time
of
month
the
the
CIR
transfer
the
has
full
ein
within
Philippines
and
who
is
not
a.
basis
of
a
character
Donor’s
Tax
is
a
tax
on
the
privilege
4]
NOT
h)
iv.
Extension
of
time
to
file
Philippines
Revocations
whether
are
constitutional
even
though


estate
equipment
mentioned
and
above.
communication
and
e
ct
to
be
submitted
of
to
the
The

local
i.
An
100%
treasurer
individual
if
the
shall
asset
whose
purchase
was
gross
held
the
for
income
property
one
year
does
on
executor,
levy
educational
an
annual
administrator
government;
fxed
tax
for
or
if
the
heirs
but
before
d.
===========================
begun
but
prior
estate
or
the
donor’s
tax
must
have
[7
segregated
of
public
in
funds
to
his
injury
cannot
be
TOPIC
and
UNDER
obligations
THE
SYLLABUS:
w
provided
ia
tand
h
in
ifg
more
by
than
law
to
Philippines
subject
informati
to
duty
previous
or
not
supplied,
entere
throug
a
credits
tangible
paid
(c)
personal
Medical
cash
allowance
to
to
zer
)executor,
o
-r
Liability
ate.
of
any
person
for
any
internal
method:
abandonment
shall
be
paid
for
in
administrator
the
of
company’s
DTI
(on
or
any
branch
non-agricultural
of
the
ofice
heirs
in
on
from
his
dividends
foregoing
from
liability
leasing,
the
same
with
corporation
and
the
all
Collector
other
.
.
Amnesty
physical
unit
Royalties
Philippines
Insurance
zerorated
are
not
components,
subject
to
Philippine
and
the
12.
Exclusions

exclusively
(indispensable
Where
assistance
an
from
or
employee
or
fails
or
refuses
Oct
(3)
(2
ober
30
,
Class
of
for
invoice
sale
or
to
VAT
regulations,
.........135
prescribe
the
time
for
filing
In
where
a
person
conducts
or
Taxes,
fees,
or
charges,
on
Countryside
without
the
(3)
Refunds
belonging
or
to
credits
residents
of
the
Philippines
RDO
where
death
Taxpaye
entire
claim,
including
expenses,
shall
Refer
year,
to
exemptions
granted
under
Interment
and/or
cremation
fees
and

)
]
property
of
time,
whichever
is

Capital
Loss
is
the
excess
of
followed
by
TIN;
Income
derived
by
commercial
quantities
to
nor
intended
for
barter,
c
Semi-Schedular
articles
succeeding
engaged
thus
year.
in
imported
zero-rated
or
Semi-Global
and
or
efectively
prevention
zeroTax
a
partnership
not
sufice.
(except
The
a
general
mere
recognition
al.
of
a
the
alike,
Febr
payments
uar
under
y
1940]
actually
like
circumstances
made
during
and
and
revenues
of
a
nonstock,
non===========================
thereon
payable
regardless
in
existence)
of
whether
was
failure
complete?
to
file
What
an
if
import
the
BIR
entry
asks
within
him
more
of
the
outstanding
payments
voting
stock

as
expense
(outright
deduction)
the
values
)
payment
taxable
of
the
status
of
provincial
the
tax
or
or
penalty:
city
assessor,
Provided,
Value
in
Money
of
the
shares
of
I.
GENERAL
removed
and
PRINCIPLES
continued
in
any
other
place
registration
of
tax
types/fees
by
a
business
n
or
ecessary
lapse
more
of
.
than
21
years
Exemption:
tax
an
amortization)
statute
heir,
is
plain
and
there
is
no
doubt
Purchased

financial
within
condition
and
can
be
established
with
payment
REVENUE
in
Philippines
the
property.
CODE
which
owned
the
The
said
by
same
it
corporation
conclusion
during
the
is
obtains
the
OR
are
LEASE
taxable.
or
a
foreign
holding
company

outdoor
ads.
t
e
of
e
b.
article
Concept
of
income
of
from
whatever
BIR
Ruling
No.
Income
without

Fee
(R
F)
for
title
to
b.
including
Payment
and
the
subsequent
surviving
refund
spouse,
or
tax
of
charges
accrue
or
services
on
to
government
or
any
of
its
or
principal
place
of
business,
or
where
the
4.
from
sources
within
and
without
the
y
tive
through
place
–
advance
where
the
payment
factory
is
discount
located,
not
above
Improvements
–
entitled
to
such
reduction
or
adjustment.
)
[
Sec.
28
Commissio
(
1)
,
or
the
h.
the
computed
gross
receipts
(–)
sales
returns,
amended;
realized

during
provided
the
taxable
that
year
no
notice
from
the
for
ii.
capital
(subject
Not
Idle
intended
to
equal
or
at
least
5%
and
global
more
Ofshore
limitation
amounts.
executor
Fee
of
(P500.00)
or
administrator
for
every
is
not
registered,
or
requisite
of
"ripeness."
livelihood
and
distraint
of
personal
property
mode
of
collected,
transferring
youth
or
of
any
penalty
claimed
to
taxable
execution
year;
of
deed
or

Art
any
time
Actually
prior
to
charged
sale,
the
of
delinquent
in
B.
1.
Enclosures
3%
Compensation
gross
,
s
Co
mmiss
io
ner
v.
Fi
li
pi
nas
authorized
an
extension
of
time
of
business,
or
where
the
withholding
the
fair
market
value,
Philippines

Pure
Stock
Dividend
4
from
years
the
to
withholding
less
than
5
tax
5%
on
process
the
Philippines
requirement
in
payment
in
the
or
issuance
satisfaction
of
a
requirements
are
met:
(1)
the
service
is
Foreign
container
used
in
packing
steam,
)
Does
from
ocean
not
whom
cover
energy,
the
premiums
property
and
other
was
paid
emerging
taken
on
or
a.
No
zonal
value:
use
the
claim
FMV
with
in
the
the
discussion
If
property
exceeding
for
such
is
not
1
disposed
corporation,
calendar
of
year.
within
in
120
the
days
same
from
0
compensation
for
personal
shall
be
enacted
without
any
Cia
de
Seg
ur
os
,
[
107
each
country,
the
tax
paid
or
became
husband
income
due
and
to
wife.
change
It
may
of
also
employer,
be
constituted
it
shall
To
expenses
Hide
income
or
of
conceal
all
directly
and
classes
tax
who
his
connected
in
of
is
stocks
not
a
year
to
entitled
citizen
the
of
and
gas
wells
or
mines
located
in
the
cost
of
conjunction
government
with
among
any
person
those
not
who
having
in
date
of
.
(3)
Vehicle
of
any
terms
by
t
ax
and
payer
refund
conditions,
securities
for:
as
they
may
deem
Rentals
and
royalties
from
properties
Goods
in
the
the
year
customs
custody
pending
.
due
Tax
Law..
17
Excess
with
on
such
of
any
MCIT
consolidated
person
over
not
income.
P
having
a
for
profit,
or
to
any
political
subdivision
(postage,
value
of
the
commission,
estate
exceeds
and
similar
charges,
GI
within)
Taxable
Income
.At
and
Trusts

The
jurisdiction
of
the
to
review
by

or
es
c.
d.
E
ffect
[4
of
Capital
fai
lure
to
expense
–
Obstru
tha
th
Prima
2.
Constructive
Facie
Notice
Per
iod
Not
Evidence
to
of
claimed
the
assessment
–
as
a
must
deduction
be
for
Exemptions
are
ORY
not
presumed,
but
when
but
does

not
result
in
an
output
tax
while
an
buyer.
Imposed
the
serve
time
is
as
upon
of
taxed
the
authority
is
not
to
the
distribute
property
President
that
purpose
are
for
The
designed
every
employer
qualifed
for,
or
dependent
necessary
must
to
have
its
CBAA
or
RTC
in
the
exercise
of
its
a.
Application
2)
Philippines
(a)
or
receipt
the
tickets
Taxes
earning
erroneously
in
is
complete
the
Phil
or
or
illegally

sale
virtually
of
incurred
incident
to
his
death
such
as
unpaid
System
Revenue
(EFPS)
revocation
taxpayers
to
inquire
takes
into
effect
bank
only
deposit
on
of
goods
and
nonzero
rated
sales,
the
aggregate
the
net
prior
to
the
release
of
not
thousand
pesos
Twenty
without
of
Customs
on
or
is
hereby
which
authorized
are
directly
to
+
System
Accounting
(EFPS)
(cr
ed
itab
taxpayers
period
l
e
VA
is
T
other
withh
el
than
d
o
n
a
expenditures
computing
30
must
days
from
be
the
receipt
judged
cost
of
of
goods
in
said
the
denial
sold.
light
of
determined
to
be
may
be
]
production
may
be
of
imported
ed
goods,
where
reimbursement
business
of
citizen
thereof
is
taxable
only
the
Philippines
6.
PRESCRIPTIVE
Transmission
other
income
PERIOD
property
are
FOR
added
to
a
trustee
together
shall
to
V
AT-RE
GIS
TE
RE
D
person
shall
be
subject
to
0%
cancellation
Act
discretion
was
as
approved.
supervisory,
to
compromise
except
transmitting
one’s
i)
For
sale;
E:
return
c.
•
(i
Income
tax;
old
actual
Internatio
truck
or
any
vehicle
BIR.
the
corporate
do
not
have
to
perform
a
delivery
of
(1)
Regular
Corporate
Income
return
before
the
discovery
of
the
falsity
]
behalf
of
the
5
Deb
Reasonably
anticipated
needs
(Ex.
not
exceed
his
50%
total
of
the
personal
gross
income
and


Filin
g
D
ead
lin
e
for
Deadline
depends
on

If
the
materials
or
supplies
are
been
shall
Only
on
paid
be
the
income
ly
earned
as
including
d
an
employee
h

of
Such
articles
are
legitimate
not
available
children,
locally
and
in
therefore,
reasonable
navigational
revenue
tax
safety
or
in
correcting
such
liability
filed
with
(Please
within
or
less.
15
see
days
discussion
after
the
under
liquidated
Tax
amount
(4)
2.
Methods
of
accounting
EX
2.
CE
The
In
PTIO
case
party
A
the
subdivision
required
decision
to
of
or
the
withhold
a
Division
condominium
is
the
is
payor,
GROSS
favor
Articles
institutions

to
and
of
estate
file
supplies
a
the
duly
person.
imported
accredited
The
by
by
and
person
the
DepED,
may
1995]
Individual
)
before
Tax
–
importation
imposed
Employees
is
by
terminated
the
State
and
the
city.
A
different
interpretation
would
1
Customs
upon
products)
his
return,
and
or
Department
if
no
return
of
is
Agriculture
made
by
Listing
items
of
all
treated
Real
Property
as
gross
whether
income
taxable
Rules
3.
on
[4
Prescription
essential).
any
copyright,
patent,
design
or
calculation
income
companies;
tax,
of
the
unless
VAT
on
such
each
profits
portion
of
(e)
cancellation
Situs
of
Business
change
Tax
in
–
any
Place
where
NON
returning
EDUCATIO
AND/O
CHARITA
the
return
and
manner
of
payment,
and
of
Dividend
measurement,
as
by
head,
DEDU
CT
with
IONS
7.
the
Taxpayer’s
FOR
collection
E
ST
AT
Remedies
E
of
OF
news
A
CIT
for
IZE
N
OR

Franchise
grantees
of
radio
and
television

4.
Philippines
special
laws
or
(a
Alien
Publicly-held
employ
corporations;
by
or
are
services
rendered
in
connection
with
customers
oficial
operates
receipt
losses
2
or
or
held
from
for
lease
in
the
ordinary
and
Barangay
returned
to
the
owner
of
the
property
sold.
and
charges;
and
.every
d
System
Exclude:
(c
the
–
income
the
is
retained
by
the
public
annual
monetary
value
not
exceeding
he
is
registered
under
any
of
the
following
future
problem
or
the
discussion
of
Not
every
action
filed
by
a
taxpayer
can
qualify
depository
rated
sale
bank
and
under
also
in
taxable
or
exempt
sale
or
hire
and

instrumental
that
the
total
to
dutiable
value
of
smuggling
through
the
medium
of
such
mails
a
Meaning
conditions
When
shares
the
–of
It
both
total
both
is
the
seller
amount
in
general
privileges
and
withheld
buyer;
or
intentional
conferred
exceeds
professional
9.
Composition
partnership),
of
the
joint
On
I.
GENERAL
“deemed
co
st
-unmarried
ac
sale”
cu
PRINCIPLES
m.
Required
invoices
profit
solely
educational
derived
stocks
institution
from
in
aappeal
sources
corp.
(both
used
property
The
total
is
used
amount
or
not,
to
although
be
paid
with
the
value
the
may
===========
to
submit
additional
documents
to
whichever
is
stocks
sold,
bartered,
exchanged
or
f)
without
A
person's
the
payment
business
of
has
additional
become
tax
exempt
during
Taxes
NOT
definiteness);
to
VAT-exempt
30
status
sold
without
of
age
source
(d
as
derived
to
the
legislative
intent.
In
such

Prizes,
awards
in
sports
competition
Depreciati
(2
Corporate
Returns

as
to
losses.
The
annual
decline
in
during
the
taxable
year
preceding
commerce
his/her
credit
60
days
–days
share
of
Secretary
in
of
Justice’s
inaction
b
125-98
When
income
is
c
ii.
Tax
Manner
Rules
of
claiming
and
input
tax
to
partners
of
more
of
than
preceding
year
4Donor’s
years
me
from
to
less
whatever
than
5
years
sources
derived
political
subdivisions,
instrumentalities
Inc
exceeding
20%
(Sec.
OF
152)
the
(2
withholding
properties
approval
agent
without
of
a
istreasurer
the
a
request
corporation,
Certificate
for
where
of
of
ner
disputed
Provincial
or
city
should
decide

sale
of
shares
expenditure
of
stock
in
a
to
domestic
H.
Scope
LGC]
and
Limitation
of
Taxation
first
Every
day
person
of
January
when
by
or
of
the
for
each
lessee
whom
year,
erected
real
unless
property
or
built
is
Lands:
discounts
and
allowances
(–)
cost
ownership
separate
or
title
of
real
distinct
audit
or
investigation
from
the
of
date
such
of
the
return,
has
in
mentioned
(2)
and
by
levy
value
which
is
the
sum
of:
V
I]
assessments
and
importer
have
may
been
collected
without
authority,
12
or
Corporatio
registration
shall
be
made
whichever
with
the
is
higher
RDO

The
books
&
sports
following
of
development,
are
accounts
non-taxable
of
human
the
depreciatio
In
the
within
United
which
States,
to
courts
pay
are
a
tax
centrally
or
a

date
of
distraint,
the
property
shall
be
considered
C.
establishment
not
in
the
Tax
course
or
place
of
trade
of
business
or
shall
be
(b
Nonresident
Citizen
–
citizen
of
the
iv.Rentals
Agricultur
lands
royalties
planted
from
to
property
1.
2.
receives
dwelling
years
any
house
license,
(there
certificate
must
CIR
or
be
or
permit
deficiency
taxes,
(d
receipts
injuries/sickness
penalties
at
tax
the
tax
assessment,"
dwelling
(GRT)
or
costs
+
or
place
arising
the
absence
of
under
business
this
of
performed

compensation
Uniform:
in
the
Philippines;
all
articles
if
they
or
(2)
work:
properties
the
service
of
falls
the
Ph
il.
1055
]
.
some
measure
are
privileged
to
enjoy
its
latest
tax
declaration.
reinsurance

manner
and
form
as
required
from
c.
incurred
to
which
is
claimed
as
NOTE:
Depreciation
is
deductible
by
14.
Exemption
of
certain
acquisitions
a
substantial
adverse
interest
in
be
the
responsibility
the
RDO
having
The
grant
shall
by
ordinance
passed
entitled
by
an
head
of
a
family
on
his
or
payments
thereof
of
is
taxable
only
on
income
3
years
to
less
than
4
12%
properties
from
the
service.
payment

kind
3.
Criteria
in
Imposing
Philippine
Tax

property
devt.,
such
or
mgt.
net
CTA
is
of
receipt
to
the
appeal
extent
of
P200,000
RCIT
substantial
adverse
interest
10,000
in
prior
If
these
to
the
are
release
subject
of
to
the
same
goods
rate
from
of
pro
tes
located
]
t
expenditure
in
ct
t
e
released,
Exports:
app
eal:
mailed
or
if
the
real
property
is
an
ordinary
quantity,
quality
and
The
price
proportion
said
tax
shall
be
b.
Name
goods/car
of
the
taxpayer
exempted
transaction
is
not
subject
to
x
Rate
received
goods
coming
accounts
and
related
the
information
decisions
of
the
CIR
on
disputed
constitutes
Dividends
the
from
trust
goods
domestic
(this
from
was
and
customs
already
foreign
p
aymen
(P20,000)
children
ts
to
no
certification.
not
n
to
exceed
4
hold
estate
the
tax
vessel
and
prevent
its
funeral
expenses
and
unpaid
medical
complete;
the
expiration
of
a
stated
period
Tax
viii
NOTE:
input
on
Within
iii.

Business
ii.
Amounts
[3
taxes
Non-deductible
[b
and
Subject
Zero
60
Dealer
of
days
with
Printing
Excluded
rating
shall
in
to
from
securities
someone
Final
shall
be
Interest
from
of
Not
allocated
apply
Tax
protest,
(Ordinary
Gross
exceeding
of
(if
strictly
Income:
ag
all
ratably
fro
50%
an
to
a
of
Newly
i.
F
Protested
i
l
i
n
sales
a.
g
started
d
within
e
a
d
l
assessment
i
to
n
e
30
for
bonded
days
E
F
P
S
:
from
Deadline
manufacturing
receipt
of
tax.
reimbursable,
which
is
subject
fscal
established
year
subject
a
attributable
to,
the
development,
RECOVERY
peculiar
utility,
OF
TAX
it
environmental
is
not
exempt
circumstances.

look
at
income
derived
from
sources
within
Applies
communications
to
such
income
goods
of
and
estates
services
and
or
of
are
any
supplied
kind
the
occurrence
of
the
transaction.
In
the
(b
Gifts
in
favor
of
an
non-profit
or
Sou
rces
for
of
the
taxable
quarter
In
the
case
of
sellers
of
services,
10
their
)
Parent
Company
is
used
not
by
r
If
be
manufacturers,
esid
no
subject
en
action
t
to
on
VAT
the
if
claim
the
for
property
refund
is
has
to
be
Tax
exemptions

shall
be
conferred
through
the
those
involving
fraud
After
the
(treated
as
deferred
expenses):
nal
Trip
–
property
or
property
rights
to
another
or
misplaced.
b.
Tax
arrive
avoidance
In
the
at
the
above
called
ruling,
Tax
LGU
if:
(a)
there
is
no
bidder
for
the
real
property
coordinating
for
thei
affiliate

The
forfeiture
of
the
vehicle,
vessel
or
7
Sec.
vi.
229.
Income
No
suit
tax
or
treatment
of
shall
capital
industry
ii.
Status-at-the-end-of-the-year-rule
Who
classifcation
may
avail
of
of
the
this
–shall
but
ii)
ESIDE
FPS:
the
The
Commissioner
used
directly
may,
in
meritorious
VAT
and/or
percentage
tax;

fraud.
In
case
of:
[proceeding
FiF
a
]needs
the
distributive
share
in
the
inheritance
to
additional
share
principal
exemptions
of
the
partner
for
dependents
shall
be
.TOPIC
tCompensation
i.
Within
ten
(10)
days
after
the
end
NS:
regardless
(the
adverse:
Tax
payment
[1
(RCIT)
registered
paid/incurred
The
under
use
protest
of
by
regular
rule
applies)
in
CHED
Tax
said
and
compliance
entities
TESDA
and
is
those
subject
rendered
to
the
by
donation
to
him
shall
not
be
considered
for
of
scheduled
airlines
operating
or
exempt
dependents
of
employees
of
(d)
Rice
subsidy
of
REQUISITE
It
must
]income
be
the
same
property
received
tickets
The
industry
model,
taxes
classifcation
deducted
plan,
secret
and
of
formula
withheld
the
taxpayer
or
by
process,
but
a.
processing,
manufacturing,
or
repacking
defeat
customs
the
tax
(on
executor,
taxpayer
types.
the
house
agricultural
tax
at
administrator,
ordinance
a
port
products)
of
inbusiness
or
question
any
involving
heir,
or
PROFIT
NAL
R
BLE
RE
NT
Returns)
broadcasting,
Duty/Tariff
Commissio
attributable
sale
shall
be
shown
to
on
aincludes
the
permanent
invoice
withdraw
equipment,
(a)
Cash
the
said
method
steel
v.
Accrual
plates
and
other
1.
If
the
provided
local
under
the
TCC
(e.g.
Distinguish
Application
of
between
Registration
a
branch
or
Certificate
and
a
In
case
(3
By
of
“attributable”
installment
payments,
is
meant
the
that
Supplying
a
minimum
...............................135
amount
of
gross
receipts,
)(d
Based
s
on
ed
the
remaining
regional
maturities
of
athe
TA
DEB
1.
When
The
the
exemption
tax
law
itself
is
is
silent
on
course
of
trade
or
business
of
the
seller
Income
How
to
prove
the
“reasonable
of
the
CORPORATION
number,
from
abroad
is
weight,
one
and
which
is
incorporated
citizens
as
.stock
[A
Revenue
)the
technical
Reg
ula
ti
ons
management
2
-2003
P10,000
received
The
expenses
chargeable
upon
each
seizure
possible
and
alternative
solutions
is
not
to
challenge
Intangible
Taxable
personal
partnerships;
property
within
and
Acquisitions
It
and
must
transfers
be
paid
expressly
or
declared
incurred
in
c
overlooking
Comprehensive
headquart
sales
or
system
an
exchanges
–taxpayer
adopts
of
operati
other
gross
treaties
which
are
extended
not
only
to
the
d
ep
.other
Supervision
and
control
all
import
and

TA
CUSTOMS
the
FCDU
system
from
which .
transactions
shall
not
exceed
parties
P10,000
to
(1)
sale
International
of
goods
of
Carrier
properties
or
services,
All

expenses
incurred
for
Business
or
joint
venture
Enterprises
or
consortium
and
cooperatives
duly
Importation
and
the
liabilities
annual
Begins:
imposed.
tax
when
GPP
due
Si
the
s
o
for
n
,on
Jr.
v
compensation
income,
or
DEDUCTIBLE:

directly,
actually
and
exclusively
for
vary
Administrati
indication
in
accordance
that
such
with
w/in
amount
such
the
factor.
Philippines
the
substantiate
his
claim?
iii.
One
of
them
directly
or
indirectly
D
TAX
ON
BANKS
AND
NON
-the
Ex.
otherwise
Tax
on
distilled
disposed
spirits,
of
through
the
)estate
term
for
which
the
payment
was
made
Proper
the
adjustments
to
conform
with
on
income
)j.
Superiority
of
Contracts
case,
the
words
employed
are
to
be
g)
A
change
in
the
nature
of
the
business
.c
taxable
If
a
person
who
is
not
a
VAT-registered
value
of
property
is
not
normally
allowable
Regulations
P1
million

The
the
income
date
of
recipient
sale/exchange
is
still
required
is
a
net
capital
loss
carryover
on
Requirement
from
for
the
fling
discharge
of
There
On
any
business,
which
the
Sanggunian
The
phrase
estimated
“shall
not
have
availed
of
6
3use
)o
years
cancellation
less
than
and
4
years
Estate
taxes
[b
2
years
from
payment
of
tax
E.
Principles
or
agencies
of
Sound
including
Tax
GOCCs,
in
lieu
of.
declared
PROPERTIES.............................................
who
hereditary
estate
left
by
the
sanctioned
by
(1
Gen
198
Existence
estimated
er
al
ru
of
le
useful
on
ly
life
–non-resident
The
of
a
construction
capital
good
is
UNDER
THE
SYLLABUS:
E
(e
xcep
The
tion
amount
s:
of
tax
shall
be
a
Authority
based
fproperty
all
the
of
services
on
to
claim
annual
the
not
valuation
tax
expressly
(Sec
251,
used
exempted
LGC)
for
the
within
otherwise
provided
permanent
such
in
the
final
improvements
Code.
any
sum
alleged
to
have
been
excessively,
Purchased
the
meantime,
within
and
been
actually
Income
served
within
upon
sold
to
the
LGU
concerned
for
the
amount
of
n)
i.
Proprieta
education
institutio
12.
(o
Machinery
b.
Tax
within
credit
which
30
for
are
days
donor’s
of
general
from
taxes
receipt
when
%
use
concerned
upon
real
property
settlements,
science
&
culture
&
in
deficiency
tax
or
any
part
thereof,
paid
upon
))sent
Philippines

benefits
and
must
bear
its
burdens.
[in
71
AM
===========================
–
charter
of
political
subdivision/GOCC
Kinds
(a
GSI
settle
(1)
cost
obligations
or
the
value
with
of
materials
Bureau
and
of
E
.within
COMMON
REVE
NU
E
-RAISI
NG
POWER
S
al
located
without
permanent
the
Philippines
or
or
from
from
any
business
search
warrant
issued
by
commence
a
judge)
athe

In
the
private
sector
and
being
paid
1.
which
Basic
Code
renders
or
in
compromise
nugatory
any
or
adjustment
assessment
of
made
any
under
any
of
the
categories
provided
in
Section
tax
refunds:
a
Distraint
of
personal
property
non-resident
and
transmissions
Those
organization
amount
earning
of
less
damages
than
P100,000
received
which
on

disposition
of
such
part
of
the
60%
perennial
to
the
city
crops
or
with
municipality
at
least
50
where
trees
the
to
credit
under
said
such

In
cases
where
owners
or
property
refund
her
jurisdiction
own
property.
of
the
new
employer
to
effect
the
case
of
married
individuals,
the
CIR
v.
Don
In
derived
from
sources
within

or
incidental
years
to
proper
operations
prior
(4)
to
the
Household
personnel
(such
as
tax,
the
tax
asset,
the
resulting
gain
or
loss
will
Wearing
apparel,
articles
of
personal
customs
duties
are
beyond
the
reach
of
regardless
of
the
gross
value,
the
estate
output
tax.
=
Law.........18

assessed
and
collected
from
each
c.
go
arriving
Short
less
a
reasonable
than
description
3
years
time,
of
before
the
property
20%
or
after
to
assessments.
Is
performing
&
operation
operating
When
any
a
&
conduct
act
of
trade,
held
by
financial
institutions
custody
2
.merely
the
Imprescripti
filing
received
sale
][5
]Expense:
suitable
Income)
improves
of
or
adds
relevant
to
the
e
m
you
d
warehouses
departure
to
decision
the
taxpayer
until
of
proof
within
of
payment
the
3
year
of
from
countries
same
class
Philippines
the
Philippines
or
any
interest
in
such
corporations
applied
after
proper
Rates
of
tax
on
the
net
and
expenses
which
are
classified
under
a Necessary
business,
after
the
exercise
of
the
power.
)To
educational
and/or
Reve
nues
management,
operation
and
or
wholesalers,
A
protest
is
a
vital
document
which
The
term
implies
a
continuity
case
of
sale
where
the
gross
selling
price
is
De
of
cember
pp.
supporting
NOTE:
422
s)
directly
8,
-4,
property
held
Tax
documents
as
in
Benefit
or
cite
trust
or
indirectly
d
equipment.
isuit,
(separate
n
should
Rule
[1%
BIR
by
-paid
R
have
Recovery
uli
taxable
the
Not
ng
been
buyer
N
o.
issuance
ror
equ
ir
ed
of
purpos
a
th
at
Penalties
th
e
no
tice
imposed
b
e
rparagraph,
eceiv
without
ed
bthe
ypurel
th
e
i.his

Amount
For
NRAETB
received
and
by
RFC,
insured
taxes
paid
as
%
taxed
on
gross
ZeroCOMASERCO
–maintained
also
Taxpayer
been
held
taken
rendered
income
has
in
by
trust
no
is
the
Minimization;
accounting
computed
for
CIR
the
after
trustor
by
the
period
tax
deducting
120
and/or
day
ERRONEOULSY
complaint
pension
OR
ILLEGALLY
is
retirement
filed
with
plan
the
to
b
Allowable
deductions

center
One
who
comes
rpurpose
to
s,
the
aircraft
shall
not
.producers,
loss
in
applicable
(a
If
deduction?
aa
For
conversion
into
or
intended
to
form
(j)
subject
to
a)
Willful
neglect
to
F
ile
the
return
cases,
grant
a
reasonable
extension
of
others
without
saving
device
of
each
that
is
legally
Withholding
]
connection
tax
on
under
government
congressional
subsidiaries,
educational
franchise
or
branches
institutions
in
the
Hearing
within
residence
15
days
from
receipt
of
the
gross
income
and
after
deducting
i.
The
death
of
the
taxpayer
during
preferential
NOTE:
15%
rate;
income
earned
(b)
Allowing
as
[1
donation
or
Individu
a
indirectly
Foreign
made
taxpaye
to
Tax
in
stranger.
Authority
the
earnin
production
Donation
to

Taxation
withholding
applicable
is
described
as
a
destructive
goods
However,
for
a
citizen
of
the
Philippines
and
any
constitute
heir
goodwill,
or
a
taxpayer's
trademark,
trade
two
brand
requisites
or
other
a.
File

MR
with
same
Division
within
15
from
previous
decedent
donor
22
To
the
Shares
If
conditionally-free
the
purchaser
This
Withholding
valuation
of
principle
used
requires
Upon
is
based
consummation
that
on
volume
revenues
or
encourage
tax
evasion
by
simply
arranging
clearance
of
whether
expense
shall
and
licensed
or
can
be
not
be
he
by
the
is
VATHLURB
then
the
amount
by
which
the
tax
exceeds
ner
TIN
)
within
the
jurisdiction
of
metal
is
registered
plates
or
including
required
to
marine-grade
register
receipt.
establishment
of
the
foreign
IV.
method
TARIFF
this
AND
purpose,
CUSTOMS
all
withdrawal
CODE
OF
slips
such
foreign
corp.
for
business”:
sales
of
Update
and
taxable
of
base
Exemption
when
it
and
is
found
of
a
i.
non-stock
Persons
Required
to
Register
a
nd
Sec.
8
6]
:
whose
gross
annual
receipt
for
the
preceding
prescription,
the
tax
is
imprescriptible
regiona
If
branch,
subject
to
BPRT
b
Taxation
on
as
account
exempt:
suficient.
administration
o
anytime
Definiteness
without
of
any
of
any
plan/s
substantial
scientific,
coupled
.
4.
the
government
coming
citizenship
ers
to
resettle
upon
d
the
in
the
same
Philippines
occupation,
ng
carrying
on
a
trade
or
business.
–
X
T
Gains
derived
from
dealings
in
Source
Law;
legal
Based
on
contract
2.
grantee
but
also
to
its
supplier
merger/consolidation),
or
Can
ENTRY
registered
cellat
(1

in
ion
Customs
Sale
CASH
to
o
f
determine
under
of
METHOD
Real
law
R.A.
Property
whether
6810
–
recognition
and
its
R.A.
of
6938

conveying
In
the
case
vessel
of
sales
or
of
P1,000.00
or
more
professional
income,
capital
gain
passive
foreign
currency
BA
NK
FINANCIA
L
the
legality
fermented
employee,
capital
of
official
liquors,
assets
the
acts
done
excess
by
shall
the
be
taxable
as
a
corporation
by
Trust:
the
General
State
arrangement
of
professional
its
authority
created
to
impose
by
export
cargoes,


headquarters
private
What’s
educational
controlling
X
of
multinational
is
purposes
the
DUTY
amount
shall
If
he
doesn’t
submit
any
Coverag
controls
the
other;
Kind
of
tax
(b
YEAR
local
stock
exchange
TAX
other
RATE
than
subject
Doing
to
business
the
rules
in
the
Philippines
and
regulations
shall
pay
tax
laws
discovery
More
That
comprehensive
of
the
circumstances
are
such
d.
The
Merger

Determination
Commissioner
Does
of
the
not
usufruct
of
is
include
authorized:
the
output
in
seminars,
the
tax
owner
and
in-service
of
VAT
the
which
does
not
discriminate
in
favor
of
person
issues
an
Expens
INTE
given
RME
their
DIARIE
ordinary
S
PER
meaning.
FO
RM
Tax
ING
net
ferment
capital
cigars
10.
Items
itself,
to
i.e.
be
from
included
sale
of
in
taxable
the
goods
and
life
concerned
Between
may
deem
grantor
proper
&
fduciary
to
tax.
of
For

]

goods
or
privilege
under
a
retirement
benefit
plan
of
the
Contracts
may
On
payments
sale
of
real
made
properties
to
Monthly
may
either
Remittance
be
on
an

)
placed
4]
income
5
years
by
or
the
.(a
assessment
Set-off
made
Contracts
thereon
by
the
Committee
on
returns
1.
.....
83
decedent
is
no
tb
subject
to
donor’s
tax,
separate
item
the
payment
class
of
real
property
tax
-CODE
P2.00;
and
i.
registration
Declaration
to
prompt
local
payment
of
due
quarterly
to
reversion
-sales
discount
corporate
to
not
Less
than
ry
3
years
al
ns
leased
property,
which
will
sold
shall
within
claim
the
exemption
shall
file
with
foreign
)d.
including
Issuance
country
but
of
Receipts
or
or
Income
tax
on
income
received
20
NON-RE
ofice
SIDE
national
NT
charged
sports
with
associations
implementing
whether
and
taxable
protest
income
assessment
under
the
is
denied
laws
[the
S
ec.
.non-transferable
(ICE)
)(c)
S
Cost
of
services
shall
mean
all
direct
O
F
LGUS
(trustee
Secs
decision
.taxable
to
the
CTA
within
30
Does
(3
the
CTA
economic
have
jurisdiction
development
over
according
of
Register
within
(CAR)
(Preferential
60
issued
days
Tax
by
from
the
of
receipt
10%);
RDO
evidencing
of
the
claim.
of
For
NON-DEDUCTIBLE
a
MATURITY
income
funeral
RATE
to
exist,
gain
or
any
interest
in
such
property
including
suit
in
court
Customs
Government,
fabrication
in
which
its
or
case
other
agencies
the
processing
and
aforementioned
an
with
vessels
who
whether
are
or
taxable
asame
aircrafts
case
only
involves
on
and
his
income
persons
uncertain
principles
System
(FAT)
registration
to
file
an
and
every
year
thereafter
on
or

.amount
(1
E
xpr
ess
(or
–within
when
certain
===========
claim
therefore,
Pawns
and
ho
said
p,
the
Commissioner
BIR
can’t
102(b)
153-155)
of
the
[of
Tax
Code;
and
(3)
it
is
paid
for
in
factory
Services
a
hectare
corpus/income
amende
is
rendered
d
in
y
the
R.A
.Philippines
by
nonpublic
authority;
200
Taxes
2.
is
Payment
neither
Under
covered
Protest
by
percentage
is
NOT
tax
aliens
additional
engaged
in
trade/business
or
[Examples
Time
Sec.
84
of
and
Payment
8
7
of
–affirmative)
texemption
he
to
ALL
NIRC]
be
local
determined
taxes,
fees,
under
IV.
TARIFF
AND
CUSTOMS
OF
(non-deductible
taxes)
transfer
of
employee's
Levy
of
real
registration.
property,
account
of
because
Any
tax
due
on
income
as
The
CIR’s
reliance
on
the
case
of
CIR
v.
2.
3.
be
considered
as
ordinary
income.
maid,
driver
&
For
purposes
of
availing
of
a
family
home
adornment,
toilet
articles,
portable
tools

attachment.
exemption
As
long
shall
as
be
the
claimed
importation
by
only
has
b.
The
consists
input
of
registered
tax
Pedro
on
purchases
or
registrable
of
property
a
VATshall
be
computed
based
on
the
on
taxable
the
combined
income
tax
is
presented
or
a
suficient
bond
business/
loss;
Interest
Publication.
from
The
Deposits
province
and
of
the
gross
annual
the
tax
shall
capital
not
gains:
verification
against
any
.must
bility
return
of
that
discriminate
dealers
property
or
retailers
4.
Types
including
in
of
the
Philippine
rentals
Income
or
royalties
Tax
for
different
power
taxpayer

or
discretion
Domestic
category
fuel
does
generated
not
Corporation)
of
protest
deductions,
through
an
assessment,
renewable
export-oriented
denying
the
protest
or
2010]
206
submitted,
bad
-90
debts
da
immediately
ted
taxp
ay
the
er
Compensation
SMW
for
services
performed
commercial
dealings
and
5%
entities),
free
including:
of
charge
or
at
a
reduced
cost
unreasonably
lower
than
the
fair
market
rated
value,
Philippines
a
es
authority
charitable,
provide
religious,
for
cultural
the
payment
or
social
of
=
Input
Tax
)
is
taxed
person:
a
formal
at
the
tax
income
rate
certificate.
the
beneficiary.
part
period
of
from
a
However,
the
finished
date
of
is
product
submission
the
for
property
sale,
of
prosecutor’s
ofice
but
before
(k
5)
Oct
Prescribe
2.
ober
[1]
The
30
Real
Interest
,
gain
Property
on
paid
this
Values
in
type
advance
of
transaction
through
th
su
with
ii.
in
b.
[c
th
e
pr
escr
ib
ed
p
er
iod
.
But
the
Taxpayer
does
not
keep
books.
permissible
The
advertisement
shall
be
made
within
20
RC,
NRC,
Asia-Pacific
RA
10%
be
efected
time
i.
Fails
for
if
to
filing
it
file
is
established
returns
a
required
of
income,
that
return
the
or
subject
owner
any
sum
court
or
incurred
of
for
Limitation
allowable
the
recovery
on
deductions,
Capital
of
Loss
any
the
national
taxable
1.
only
examine
Internal
compensation;
for
]
fling
Income
al
of
the
Revenue
rs
monthly
VAT
g
y
which
within
the
the
product,
related
cost
be
like
month
met,
property
except
or
right
for
taxes
withheld
for
creditable
ii.
w/
By
his
withholding
a
trade/business
citizen
or
tax
resident
at
10%/15%.
alien
the
taxable
year
shall
not
afect
the
from
other
sources
(i.e.
rent)
shall
be
P1,500
.
Stock
quantity
or
must
made
Tax
1
sack
of
be
between
of
50
kg
rice
amounting
organizations
(e)
services
rendered
to
its
affiliates.
Thus,
the
of
the
domestic
any
alien
individual
engaged
in
business
agent
only
for
shall
fling
be
the
held
monthly
as
a
VAT
special
return
fund
in
(4
other
persons
doing
business
outside
the
income
accrues
to
the
owners,
registered.
of
the
sale
the
for
ii.
shall
the
amounts
delivery
contain
A
dependent
at
previously
the
outskirts
assessed
of
the
city.
(or
Undertaken
compensation
by
the
income
gov’t
during
or
private
the
for
days
VAT
from
Estate
of
previous
decedent
or
donor
LGU.
aluminum
plates,
used
for
shipping
transport
identified
as
the
expense
that
Employer's
and
Employee's
Information
importatio
taxable
year
exceeded
the
3-yr.
P10
period
million,
ending
shall
2.
When
[2
The
no
return
pension
is
required,
plan
tax
is
is
an
a.
Compensation
[2
In
case
Income
of
abandoned
producing
released
Penaltie
only
with
respect
to
the
limitations
Note:
Dividends
or
from
conditions
foreign
corporation
upon
which
payment
or
1978,
as
amended
Internation
3%
The
expense
must
be
substantially
H
The
AMU
corporation
industrial
directly
SE
ME
NT
against
or
should
commercial
prove
the
that
undertaking,
there
of
is
entity
Does
i.
calling
Listed
which
paying
not
include
goods
shares:
or
no
activity
are
bona
dividends,
subsequently
average
fide
sales
of
governed
the
for
exported
an
highest
by
Registr
means
ation
-income
)statutes
If
subsidiary
and
 for
amounts
received
by
where
property
the
sale
A
shareholder
exchanges
income
obligation
not
subject
to
final
tax,
and
other
such
goods
are
exempt
from
customs
E
XCEPT
ION:
when
the
Commissioner
finds
that
2.
3.
agreement
under
o
principle,
companies
stated
residence
in
the
in
principle
and
the
transactions
with
local
penalties

partnerships;
on
persons
Nonotherwise
taxable
guilty
of
government.
(1)
Itemized
A
Deductions
Sale
of
Personal
18.
SUBSTANTIATION
credited
or
refunded
REQUIREMENTS
to
the
employee
)irrespective
Utilized
exempt
for
from
socialized
taxation.
housing

payable
training,
title
and
highly
aircraft
paid
enters
the
jurisdiction
of
the
e
Income
repatriation
sale
by
a
by
dealer
Income
in
securities
repatriation
by

QUA
Either
a
An
tax
SI
cancellation
-fJanuary
immediate
BANKIN
of
2
G
need
of
business
for
the
registration
that
violations
the
method
over
of
the
does
gains
not
reflect
from
such
his
income
sales
gross
estate
Real
Property
Taxation
Extent:
covers
Expenses,
Losses,
Indebtedness,
and
Taxes

Appraisal.
businesses
landed
Any
person
or
The
stored
required
subject
tax
delinquency
in
to
piers,
to
make,
the
airports,
shall
render
excise,
be
cancelled
terminal
or
valuefile
a Suchexceed
APPLICABLE
are
to
receive
a
2009
Both
than
onwards
of
customs
them
are
duty
directly
30
or
indirectly
1)
To
Examine
services
to
any
exempt
relevant
Book,
paper,
Machineries,
equipments,
tools
for
installment
invoice
or
receipt
showing
his
Tax
Protest
b
ein
g]residents
qu
estion
ed
invo
lve
d
isbur
semen
tsales
othe
fsource
pub
lic
be
impaired
same
nonloss
or
provided
another
ER”
that
found
the
Return
amount
in
Sec.
of
Value
of
32(B)(6)(a)
loss
Added
does
FU
NCTIO
any
trust

articles
are
not
available
locally
in
reasonable
means
inclusion
tax
ntary
or
involuntary
held
in
Januar
exempt
y
18
status
,National
approval
of
a
b.
For
u
every
n
lno
e
ss
P5,000.00
specifically
of
gross
and
receipts
categorically
derived
commercial
invoices
h)
may
be
more:
A
LIE
N
enforcing
Any
become
importer
or
property
interested
of
party
the
of
the
provincial,
(f)
If
vi.
Example:
the
city
Contemplates
sale
or
is
cost
municipal
exempt
=
a
15,000;
particular
from
assessor
VAT,
SV
=
5,000;
within
term
criminal
)naked
exceeding
cases?
10%
after
death
days
after
receipt
of
a
copy
of

expenses:
profit
is
Place
o
treasurer
195,
rentals/royalties
LG
C
]on
(Sec.
196,
LGC).
the
use
It
is
of
to
or
for
be
to
Priority
Plan
determined
not
Instrumentalities,
limited
to
ofice
equipment,
typewriters,
d
contingent
There
future
is
yet
events
to
be
a
clear-cut
that
may
criteria
not
(b

SSS
articles
before
employed;
may
be
delivered
31
by
every
upon
person
payment
subject
of
the
to
vol
)Allotment
persons,
or
articles
conveyed
therein
registration
Government
demand
due
educational
to
for
a
desire
institutions
to
revert
SPT
ii.
76
51]
Real
property
input
tax
within
spread
the
Philippines
evenly
over
a
2]
This
resident
doctrine
foreign
states
persons
that
taxes
shall
are
be
considered
not

pays
any
tax
or
fee;

Necessary
under
from
sources
may,
c.
(b)
if
upon
In
any
action
the
person
giving
is
taken
not
of
not
having
by
less
the
a
than
substantial
treasurer
twenty
Nature
Personal
Assignable
charges
shall

Expenses
5
incurred
years
or
after
less
5%
interment,
b.
Taxpayer
sells
it
abroad
Income
partly
within,
1.
Inherent
Limitations
The
rules
term
and
“taxes”
regulations
refers
prescribed
to
national
by
located;
and
income
tax
return
to
report
the
supervening
procedure
non-resident
Lands
one
others
actually
of
the
used
for
grazing
i.
Philippine
income
(but
FBT
can
It
i.
shall
be
the
Central
duty
the
old
RDO
to
may
impose
a
tax
the
receipts
for
the
and
instruments,
such
theatrical
costumes
3.
total
gross
sales
or
receipts
the
said
2
not
been
terminated,
the
imported
goods
registered
person
with
zero-rated
may
delivery
of
distilled
spirits,
sum
that
may
be
due
to
2.
Non-Agricultural
Lands
–is
More
than
1,000
sq.
Yield
or
any
profession
other
the
Monetary
loss
was
not
incurred
in
a
a.
First
P200,000.00
value
of
the
and
appeals
the
assessment
itself
to
the
1987
1.
Fiscal
Philippine
Ad
equ
acy
-the
the
sources
of
tax
the
use
of
or
....................
for
the
privilege
18
of
using
Not
over
P100,000
premium
received
either
during
within
the
Philippines
(1)
Income
accumulated
in
trust:
WHO
TAX
Contracted
welfare
sources
A
RE
ON
arrangements,
E
NT
of
DOMESTIC
corporation,
IT
in
LED
good
T
O
CLAIM
CARRIERS
faith
and
institution
and
contemplates,
for
AND
accredited
adequate
manufacturers;
for
use
in
connection
with
including
together
packaging
with
materials;
a
or
30
days
from
the
lapse
of
180
day
1990]
otherwise,
previously
shall
deductible.
the
be
allowed
It
as
deductible
deduction
shall
over
e
in
m
sending
]not
of
the
transferred
application
is
one
for
with
sale,
complete
lease
or
use
in
information
is
filed
with
the
days
after
10
For
Any
NRA-NETB
sum
alleged
–op
to
have
been
(5)
Income
definite
from
purposes
Dealings
which
in
its

apportionment
must
be
more
or
report
at
the
(IRA)
KIND
S
OF
income
is
subjected
to
one
set
of
Creditable
withholding
tax
at
source
thereof
declaration
to
the
or
for
his
provisions
of
part
agent
resistance
of
in
the
of
charge
cost
Section
of
the
of
of
the
taxpayer.
the
56
product
of
means
this
It
internal
The
Commissioner
revenue
tax
is
authorized
hereafter
to:
alleged
to
iii.
return.
Ideally,
[c
the
[a]
extent
working
Ge
ne
that
e
ror
al
capital
ru
they
leffect
e
:tax
should
Allowed
are
equal
only
fro
notice
must
iii.
Proceeds
clearly
be
of
proven.
which
is
utilized
Bas
ilan
in

Unless
otherwise
provided
by
tax
law
SC
held
Use
that
of/the
right
to
use
in
the
goods
or
amount
Outright
of
personal
method
and
–of
additional
taxable
Region
in
the
same
other
manner
foreign
markets.
as
a
Resident
and
those
made
between
an

Citizens
-and
computed
under
Sec.
WHERE
)evasion
or
to
time
Tax
practice
o
Returns
prescribed
of
of
profession
taxpayers
or
in
within
the
the
interferes
with
the
personal
and
property
year.
December

NOTE:
namely,
Adjustments
that:
to
NRA-ETB
period
means
prescribed;
20%
a
or

the
earned
imported
not
treated
before
goods,
as
the
they
expense
landed
are
cost
received.
shall
collected
]discount
reasonable
without
assessment)
as
d
a in use against
Concepts
register
]Equity:
within
thirty
(30)
days
from
the
end
c.
trust
operations;
Tax
for
evasion
the
Provided,
–dependent
connotes
that
the
fraud
exemption
through
property
All
declarations
the
corresponding
shall
be
kept
tax
and
has
been
filed
under
paid.
with
the
close
(BIR
a
statement
Form
extent
No.
to
2305)
of
the
the
together
gains
that
from
with
all
such
the
of
NOTE:
n)
The
The
[2
VAT
gross
is
well,
selling
passed
unamortized
price
on
is
to
“unreasonably
the
cost
resident
&
.B.
iii)
TAXE
organizations
S
whose
adequate
lowest
and
Real
generated
estate
the
tax
and
income
tax
imprescriptible
notice
thereof
al
Percenta
income
P
a
yme
proved
n
t
are
D
e
a
added
d
l
by
i
n
evidence
for
together
E
F
PS:
to
or
25
arrive
days
records
from
at
the

payment
on
trustees
who
received
no
compensation,
and

of
and
necessary
duties
joint
or
under
violation
ventures;
stock
and
the
appropriate
of
in
Tariff
and
a
a
revenue
corp.
and
for
Customs
for
or
the
the
tax
wear
law.
stock
(2
expense
on
inflow
or
or
transfer
is
made
to
a
VAT-registered
............................................................

OF
Withholding
INPUT
tax
is
a
method
of
collecting
b
Fiscal
Year
–
accounting
period
of
custod
twelve
(ii
ii.
Installment
Items
where
under
the
Sec.
services
34
of
are
the
NIRC
paid
as
for
in
commercial
banks
(i.e.
Pensio
later
than
January
25
of
to
the
extent
of
such
amount.
Philippines
which
title
with
the
to
intention
property
to
is
unload
passed
to
the
and/or
NOTE:
accumulation
e.
TIN.
Pursuant
of
to
the
RR
No.
12-07,
MCIT
Su
sp
en
sio
Philippines.
n
ticket
o
f
bu
sin
ess
not
the
eration
actual
s
purchase
:
In
1/2%
on
its
Gross
Philippine
Billings
or
exchanges;
deductible
only
from
(ELIT):
Property
added
or
percentage
tax,
the
tax
rate
with
the
accuracy
NIRC
and
certainty
and
proper
computation
1.
review
The
documents
classes
of
VAT
and
payable
filed
other
at
the
or
similar
excess
Customs
services
tax

administration,
Branch
to
HO
is
appraisal,
P
h
il
assessment,
G
I
x
Dividend
levy
=
return,
A
person
statement
whose
transactions
other
document
are
exempt
shall
reasonable
construction
with
a
view
a
fund
s
up
on
%
production,
N
record
S
(3)
plants
other
to
award
data
convert
in
mineral
sports
d
Semi-schedular
(b
Residential
lot
valued
or
semi-global
at
1.5M
and
tax
below,
Transmission
or
delivery
of
inheritance
or
Identification
Number
(TIN),
followed
by
the
of
M
an
not

the
d
ato
controlled
exceed
ry
Tax
VA
T
Code
the
by
income
a
means
third
before
person;
that
exemptions
the
retiring
at
unless
(c
1978]
(a)
Tax
Withheld
(BIR
Form
basis
or
deferred-payment
basis.
Examples:
Cash
and/or
property
dividends

by
it
done
from
nonin
its
favor
business
of
identified
in
the
Philippines
heir/s
to
b.
Ad
578]
Valorem
tax
a
fixed

th
e
th
eor
y
th
dissatisfied
at
th
e
expend
itur
e
o
f
pub
f
lic
the
fund
value
s
(1)
2006-2008
"VATInclusions
est.
competition,
life
exempt
=
5
sale"
not
a
shall
35
be
written
or
ITEM
S
OF
G
ROSS
Object
d.
Importation
Persons,
prop,
profession
etc
instrumen
Goods
imported
an
flin
g
such
decision.
However,
these
30
days
from
date
of
declaration
of
real
the
privilege
impaired
of
using
w/o
the
telephone
equipment,
breakable
or
easily
or
a
fixed
noted
that,
unlike
in
internal
revenue
occur
the
as
provisions
anticipated,
or
a
indeed
Code
may
should
not
u
any
internal
by
NEDA
revenue
tax.
Property
necessary
taxes
not
–
accrued
where
before
there
is
an
(2)
amount
for
profit
and
general
exempt
income
Comm
iss
and/or
ioner
of
In
terna
l
vehicles,
beasts
or
persons
local
government
units.
period
of
60
corresponding
subject
to
duties
set-off
and
taxes
and
compliance
in
refund
(exempt,
ex.
UP)
)
Any
Authorized
Agent
Bank
(AAB)
the
specific
documents.
such
PHIC
as
for
(20)
days
notice,
sell
and
dispose
of
the
same
c.
p
roducing
the
gains,
and
whether
derived
property
or
transactions
are,
by
express
NIRC
business
of
persons
preceding
calendar
the
Further
Secretary
distraint
of
Finance;
or
levy
and
Yes,
the
CTA
have
jurisdiction
over

receives
within
the
any
Philippines
money
from
if
he:
any
public
a.
Public
Purpose
be
Tangible
paid
within
personal
the
first
property
twenty
partly
within
without
(20)
the
days
of
quantity,
quality
circumstance
be
deducted
from
gross
income
as
transfer
the
accountabilities
of
the
taxpayer
COMASERCO
W
HO
COL
LE
CTS
is
services
The
provincial,
to
its
affiliates.
city,
municipal
What
through
and
local
Azucarera
1/20
a
of
Service
1%
of
Fees
and
Charges
for
services
or
more
related
businesses.
Pr
Two
soft
in
tin
drinks,
Ki
g
nds
o
f
r
cigars
eceip
of
Procee
ts
and
o
r
sales
din
gs
o
r
4.
More
than
5
1%
and
similar
personal
effects
remain
injuries/sickness
under
)
the
jurisdiction
of
the
Bureau
spouses.
be
allowed
as
tax
the
credits
taxpayer.
or
refunded
while
m.
corporation
in
area
only
when
such
property
is
taxable
year
during
which
net
estate
Directly
connected
to
the
TC
CTA,
his
appeal
is
premature.
[
CIR
v.
V
i
l
l
a]
Benefit
40%
from
to
the
Deposit
city
or
municipality
where
the


products
within
the
Philippines,
patents,
revenue
should
term
or
5.
at
the
Taxable
maturity
Period
of
the
terms
CRED
KEEPERS
ITS
:
OF
non-government
organization,
trust
and
full
that
consideration
extent,
the
in
performance
money
or
money's
of
acts
coincide
with
and
approximate
the
For
production
use
as
supplies
and
sale
I
the
for
course
export
of
the
On
any
amount
in
excess
of
25%
Right
in
become
Property
preceding
Generally
statement
time,
FINAL
yrs.
such
not
(cannot
shall
of
as
demanded
be
be
the
May
included
appealed).
form
be
of
the
as
part
Rentals
and
royalties
from
properties
the
documents,
ordinary
course
the
taxpayer
of
trade
or
,may
business
appeal
and
%
Only
resident
(a)
For
court:
or
the
citizen
the
benefit
CIR
can
of
still
unborn/
D
ONAT
energy,
IONS
graduated
:
and
shall
tax
rates
not
extend
for
an
individual
to
the
sale
or
sales
to
excessively
export
processing
or
in
any
manner
nature
considered
or
otherwise
would
as
(in
require
ordinary
case
of
an
cash
basis
2.
current
]outflow
connected
m
v.
CIR
,tax
will
be
deductible
as
such
(a)
Divide
the
Philippines
into
different
D.
Flexible
itself,
taxes
Tariff
in
the
istate
a
levy,
repository
and
the
of
same
all
arguments.
shall
be
for
Itge
athe
period
can
of
conveyance
used
as
aforesaid
has
no
have
been
erroneously
or
illegally
assessed
properties
NOTE:
For
the
income
electronic
shall
payment
of
tax
for
fle:
Philippines
any
industrial,
commercial
or
(5
on
certain
rights
of
the
people
takes
from
them
ause of such
Uniform
and
exemptions
clothing
allowance
his
estate
not
exceeding
can
claim,
b.
Input
Lessors
Alien
Tax
3.
and
or
of
NRA-ETB.
property
also
afraudulent
note
–and
all
of
forms
time
of
and
property
[Es
G.R.
individual
N
o.
acquiring
L22492,
and
a
business
organization
National
Philippines
Philippines
internal
shall
revenue
file
collected
an
income
and
not
tax
(1)
Public
A
final
funds
demand
are
letter
disbursed
for
by
a
political
of

[1]
Legitimate,
the
use
illegitimate
of
or
Willfully
chargeable
or
otherwise
to
capital
files
acct.
a
Donation
inter
a
donation
made
a
uniform
Individual
classifcation
be
recogniz
taxpayers
system
whe
earning
to
th
be
deficiency;
b)
F
alse
but
or
such
amounts
return
previously
is
willfully
be
Authorized
Amounts
ii.
the
basis
agent
received
for
computing
in
advance
VAT.
Landed
are
sales
or
lower”
than
][3
of
the
taxable
year
prior
shall
be
subject
to
the
provisions
of
Section
24
(a)
attachments
tax
actuarially
or
willfully
sound;
supplies
false
or
which
the
joint
shall
depositors
be
filed
on
are
or
still
before
living
January
at
the
Exemptions
withholding
undepreciated
agent.
granted
The
to
payor
GOCCs
shall
costs
with
claim
existing
this
of
Efect:
the
income
of
such
trust
shall
be
gross
income
and
after
deducting
the
sum
of
Tax
In
case
resolution
of
Division
on
the
MR
or
NRA-NETB
25%
devoting
income
all
E
nterprises
its
tax
income
that
to
are
the
accomplishment
iv
full
consideration
quotation
at
date
in
money
of
death
or
money’s
(or
date
.engaged
(12)
businesses
months
or
properties
yextended
)i.
payment
of
another
corp.
(both
corps.

(m)
acceptable
ItFinal
partakes
withholding
foreign
of
an
tax
currency
absolute
on
certain
forgiveness
income
Regional
operating
headquarters
–the
incom
...................
ii.

[3
137
less
just
in
due
month
date
branches
shall
would
apply
of
iof
m
foreign
po
se
undu
banks
epayment
h
a
rd
sbe
h
iincome
p
upon
addition
ns
to
other
TAX
CREDITS
)expenses;
of
person,
Aliens
the
employed
by
ofshore
banking
another
for
conservation
or
investment
Note
by
that
any
the
one
payment
of
the
of
joint
taxes
is
an
suc
To
the
discussed
purchaser
under
of
Upon
payment
of
house
or
referred
to
as
Branch
rendered
by
persons
who
are
not
just
additions
of
personal
expenses
and

For
purposes
of
amusement
tax,
collection
When
of
Real
the
Property
due
Income
is
Tax,
in
within
i.e.
tax
of
on
Two
land
any
of
defined
the
earnings
3
prizes,
heirs,
as:
and
he
svivos:
profits;
may
extend
or
competition
the
time
for
.a
administrative
system
)o
–or
and
certain
penal
sanctions
provided
for
2)
be
To
supplied
Obtain
with
any
or
Information
assigned
athe
Taxpayer
(costs,
(a)
to
Actual
carrying
funeral
out
expenses
their
purpose
or
five
and
percent
roficial
ation
VAT
or
house
and
lot
and
other
residential
ores
)plantation
The
into
from
cancellation
saleable
VAT
form,
of
spare
business
parts,
registration
Subsidiary
to
legacy
by
the
fduciary
heirs
or
legatee
to
word
“VAT”,
the
issuer
shall,
in
addition
to
constructively
government
NOTE:
Remedy
is
taxpayer
is
to
the
must
year
the
not
loss
have
1600)
was
previously
sustained
fled
by
the
received
to
be
begistr
an
ficer
proportion
o
of
property
with
u.
sanctioned
by
national
sports
In
use
order
of
or
that
for
the
a
foreign
privilege
corporation
of
using
E
ST
AT
E:
of
o
printed
prominently
al
on
ts
the
invoice
d
or
exclusion
or
disadvantage
of
the
other

options
are
m
u
texcess
u
ally
%
(a)
Monetary
benefits
Philippines,
patents,
copyrights,
secret
NOTE:
Together
of
Ifof
there
property
they
is
intention
directly
with
respect
or
to
indirectly
unload,
to
even
which
if
damaged
containers
(glass
or
cartons),

o
fysales
iv.
Any
th
e
Taxes
be
person
sta
suficient
given
te
are
who,
for
imposed
controlling
th
in
documentary
e
the
on
purpo
course
weight
taxpayer’s
se
of
evidence
unless
o
fParent
trade
final
such
or
in
with
published
value
within
15
days
a.
Decedent's
Interest
implements,
years;
cumulative
depreciation
wearing
achievement
apparel,
rate
200%
domestic
(Ex.
Rev
enue,
[exempt
G.R.
Nos
.of
or
exported
taxes,
the
supervening
cause
applies
in

resident
If
not
foreign
in
corporation
accordance
w/
Before
2006
32

located
pay
the
within
difference
between
tax
test
for
determining
the
The
following
are
from
the
status
after
the
lapse
of
3
consecutive
exchange
of
in
the
printing
year.
from
legal
L-28508
or
-9,
Jother
ul
y
7,
provision,
[c
d.
exempted
from
all
or
certain
PCS
months
of
or
legal
auction
compensation
or
with
prior
because
approval
the
of
persons
arriving
from
foreign
countries
cases
and
two
year
period
is
following
cases
capital
investment.
January
(c
fund;
or
of
each
transacts
subsequent
other
oficial
quarter,
as
the
prayers,
masses,
entertainment,
the
or
barangay
Test:
illegal
whether
provided
the
for
proceeds
in
RR
8-98))
will
used
for
All
other
information
necessary
for
If
he
does
submit
more
.property
Philippines
rendered
to
the
new
Establishes
RDO
,died
[G.R.
where
the
No.
he
fact
is
transferring.
of
his
physical
cigarettes,
and
other
co
in
mmer
th
epublic
BOC
cial
invo
ices
Another
approach
is
the
evaluation
of
200
ofice
If
these
are
subject
to
different
rates
of
years
Exemption
of
personal
accompanying
travelers
or
tourists
in
Tax
Credit
Certificate:
treasur
taxpayer
was
exempt
from
and price
the
seller
in
an
exempt
transaction
is
not
C]
is
taxes,
and
means
TAXES
PROPER,
Damages
will
be
exempt
only
ifabout
they

Substitutes,
(5)
or
Trust
upon
Interest
Funds
surrender
and
on
loan
of
the
at
contract
less
than
if
All
more
persons
than
who
½
of
are
which
engaged
remain
in
uncultivated
business

philanthropic
copyrights
.............................................
and
organization
properties.
or
research
18
5.
needs
the
worth,
or
works
or
the
exercise
some
of
the
GARAGES
business;
imported
or
goods;
P100,000
donors
of
unascertained
gross
income
in
person(s)
the
yr.
w/
of
contingent
recovery
to
b.
Merger
of
usufruct
in
the
owner
of
the
the
of
to
transfer
services
the
CTA
constitutes
related
within
to
30
a
the
days
complete
maintenance
from
the
gift,
laps
or
compromise
proper
claimant
provided
the
when
the
products
are
sold.
The
wrongfully
collected
Refund
the
to
setsubject
stay,
to
and
makes
subject
his
of
home
zones
subject
taxpayer)
to
Th
e
pub
lic
pur
po
se
o
flike
th
e
tax
law
mu
st
exist
at
th
esthe
of
at
least
knowledge
used
in
court
of
or
participation
in
case
of
in
administrative
the
unlawful
or
liabilities
collected,
income
and
there
within
of
must
any
the
be
penalty
Philippines.
2
units
claimed
of
portion
of
their
property
for
the
support
of
the
returns
required
to
be
filed
earlier
under
for
zones
lease,
or
place
areas
of
sale
Septe
mber
5,
1967]
scientific
equipment
Supply
of
=============================
subdivision
general
delinquent
3%
table
of
or
are
quarterly
taxes
not
cancelable
gross
(c)
applied
Authority
as
as
if
he
of
hereinabove
the
Commissioner
at
the
end
of
provided
such
of
Internal
year
or

between
living
shall
be
considered
ed
as
donation
n
e
bank
return,
regardless
of
the
amount
of
Addition
to
Creditable
Filipinos
made,
employed
in
case
any
payment
by
ROHQs
has
been
cost
treated
=
invoice
as
revenue
amount,
of
the
customs
period
in
duties,
which
assessed
(b)
Stocks
Subject
or
and
collected
other
to
a
without
assessment
pretenses
included

and
in
forbidden
devices
to
lessen
contracts,
commitments,
agreements
Securi
4
of
25
Republic
legally
of
ties
the
C
adopted
or
following
Act
po
ratio
No.
9295,
year.
n,
[
101
otherwise
false
but
or
constructing
o
not
r
a
new
principal
i.
posting
business
a
notice
at
the
main
inaccurate
information
thereunder
after
ii.
fr
au
du
len
t
to
exchanges,
hence,
the
net
the
as
new
fair
input
market
trial
registered:
is
tax
still
value
upon
adverse:
if
it
filing
is
lower
of
by
his
more
own
than
VAT
they
have
control.
nearest
to
the
date
death,
if
no
payments;
A
branch
It
must
be
funded
by
promotion
of
the
purposes
enumerated
in
)
]
are
parties
to
e.
ending
Types
on
the
of
Properties
last
day
of
any
month
in
advance
from
the
taxable
income
of
the
simultaneous
authorized
depositors
by
with
the
BSP
to
d
h
De
velo
pmen
t
C
or
por
atio
n
accredited
by
the
DepED,
the
CHED
services
profit
remittances
with
or
the
the
lessee
income
and
the
the
corpus/principal
Non-resident
15%
subject
to
the
gross
The
receipts
amount
contributed
must
be
Partner’s
thousand
distributive
share
from
the
net
payment
at
.
of
the
time
of
the
filing
of
the
quarterly
in
Tax
units.
Total
GI
non-deductible
expenditures
were
made
(5%)
of
the
gross
estate
whichever
is
persons
according
to
their
profession
or
position
cash
(meaning,
you
recognize
the
and
name,
building
business
and
style,
other
if
any,
structures
address
and
2.
Identification
The
submission
Number
and
(TIN)
acceptance
which
he
of
the
shall
Deductions
from
Gross
Company
Income.
is
referred
intent.
They
should
not
be
construed
as
the
light
of
taxpayer’s
ability
to
fle
supplies,
a
return
materials,
accessories,
By
Air
dwellings
valued
at
Domestic
Domestic
volume
shall
A
direct
not
of
automatically
correlation
cancel
of
anticipated
the
TIN
of
needs
the
3.
any
liability
for
other
percentage
taxes,
be
associations
passive
(c
respect
may
within
incomes
be
to
the
which
and
capital
assessed;
gains
are
the
fduciary
Transmission
from
the
first
retirement
recognized
benefits
immediately
from
the
succeeding
same
or
the
another
year
party
(a)
to
International
Air
Carrier
resident
payor
in
behalf
action
of
the
taxpayer
in
cargo
not
received
but
by
voluntarily
an
individual
registered
from
a
domestic
under
e
x
c
l
u
sive,
and
resort
to
one
microcomputers,
facsimile
machines,
telex
a
d
min
business,
ister
in
g
an
elimin
atin
g
no
n
interpretation
from
date
is
of
clearly
publication,
erroneous.
(PE
ZA
)
within
5
animals,
and
must
support
product
of
Sportsman
such
and
claim
of
(i.e.
the
year
corporate
award
charters,
does
r
egard
ed
or
waiver
of
Ph
ilipp
in
es,
p
aten
ts,
from
and/or
a
publication
accu
jo
in
mu
t
lation
sto
of
ck
books,
o
co
f
pro
mp
fits.
an
y,
in
sur
an
ce
o
r
mu
tu
al
fu
nd
the
tax
is
local
taxation
because
the
period
for
the
un
con
stitu
tion
reasonableness
al
act
con
sells,
sti
of
tut
an
es
b
ar
advertising
a
ter
s
o
r
%
b.
wh
Tr
a
ich
n
sf
e
to
r
i
n
gran
C
on
t
t
e
o
m
r
p
d
la
en
t
ion
y
th
o
e
f
De
clai
a
t
m
h
for
r
efund/
cr
ed
it

TIN
is
can
198
celled
9]
upon
:
School
texts
]
or
p
er
son
al
hou
seho
ld
Annual
RF:
(1)
Cooperatives
duly
taxes,
either
entirely
or
in
part.
o
f
p
e
r
s
on
s,
e
x
c
e
ss
b
agga
g
e
,
c
a
r
go,
a
n
d
mail
the
territorial
jurisdiction
of
the
Secretary
government
years
of
from
Finance,
and
the
dispose
taxpayer
are
not
same
at
case
may
be,
unless
otherwise
provided
in
the
products
sources.
to
as
lapse
may
be
like
are
value
not
deductible.
received
in
the
form
of
documents
w
i
t
h
in
the
60-day
(3)
freight,
insurance
fees
and
other
presence
Labroad
with
a
definite
the
twofold
involving
3]
criminal
ofenses:
tax,
the
gross
sales
receipts
of
each
was
being
taxed
were
these
COMASERCO
is
The
old
RDO
can
still
institute
collection
on
er
income
tax,
and
b.
Intangible
personal
property
property
from
distraint
within
the
or
levy
Pubic
Utility
Charges
for
the
operation
of
their
baggage
a)
may
be
applied
d.
if
remedies
available
does
not
hence,
no
deductions
are
allowed
for:
or
shall
unimproved
secure
market
by
rate
the
to
owner
the
of
extent
the
property
of
the
arise
together
with
personal
injury;
institution
organization;
provided,
not
Similar
Arrangements
and
located.

or
incidental
to
proper
operations
A.
Customs
Sale
of
Real
property
located
in
the
The
amount
of
royalties
and
e
functions
interests
normally
incident
to,
and
naked
title
Abatem
For
use
as
raw
would
materials
supplied
in
government
expenditures
the
extent
of
the
income
tax
benefit
of
transfer
is
subject
to
VAT
as
a
deemed
sale

Resident
prosecutor
5%-32%
aliens
–doing
must
for
not
taxable
give
individuals
consent
and
value
of
internal
revenue
temporarily
in
the
country
becomes
a Necessary
sale
to
enterprises
duly
registered
and

Allowed
as
deduction
in
the
remedies
have
been
exhausted.
It
is
also
of
compensation/
compensation/
have
receipts
been
collected
without
authority,
of
any
the
otherwise
staggered
specially
filing
disposed
system,
of
the
by
taxpayer
law
shall
P4,000
(f)
Actual
yearly
medical
benefits
not
=========
current
assets
for
ii.
If
the
taxpayer
got
married
or
whether
Securities
real
limit
or
of
personal,
are
liable
to
VAT
SC
RA
231]
.or
Revenue
instrumentality
may
and
be
considered
and
in
a
so,
decision
a
law
is
on
ayear
obligations
entrance
with
ofis
foreign
the
countries
persons;
perfection
at
the
moment
when
freight,
they
are
insurance
received,
and
but
as
other
revenue
charges
of
the
For
large
taxpayers,
the
filing
of
district
return,
known
as
'The
Domestic
Shipping
due
written
notice
by
the
employer,
the
computing
the
taxable
income
of
the
quotation
available
at
the
time
of
or
defeat
is
not
child,
chargeable
to
property
of
aor.
income
or
in
practice
of
his
(n)
Documentary
stamp
the
declaration
tax;
of
Personal
and
household
effects,
vehicles
of
v.C
A,
[exemption
2004]
For
instance,
if
Corp.
established
in
the
Philippines
by
recipient
of
income.
[4
no
longer

them
or
arrive
at
a
reasonable
time
other
corporate
than
income
tax.
distributed
in
accordance
with
or
licensee
compensation,
Foreign
rule
on
the
lower
statement
filing
of
(not
the
exceeding
returns
shall
be
(pay-as-you-file)
P200,000)
under
th
sai
TIN
of
the
purchaser,
customer
or
client,
to
as
dividends
such
tax:
Code
improvements
and
implementing
on
it,
including
regulations,
machineries.
the
include
all
receipts
of
the
proprietor,
pesos
(P2,000),
the
taxpayer
OTHER
subject
requires
2.5M
to
and
final
intervention
below
taxes
at
of
preferential
assess
rates
explosives,
chemicals,
transpo
and
Aliens
by
petroleum
whether
held
in
Philippines
or
abroad
machine,
cash
furniture
and
fixtures,
production,
receipts,
sales,
gross
income,
days
the
date
the
importer
be
u
er
R.A
.capital
7916;
yet
unloaded,
and
there
isABC
taxab
ind
tems.
title
of
the
ownership,
storage
articles
of
raw
of
materials
incorporation,
exch
an
ges
good
sloss
or
pro
perties
or
misapp
lication
oemployed
ffrom
su
ch
efects
filing
of
(dispensers,
ex
the
cept
claims
ais
ny
for
vehi
refund
vessel,
or
credit
of Accompany
as
do
in
g
bu
sin
ess,
th
er
ecle,
determined
by
the
transportation
period,
expenses
then
for
the
the
180-day
public
utilities
Penalty
owned,
on
operated
local
treasurer
and
for is
aspect
of
ripeness:
provide
plain,
orleperson
having
legal
interest
therein.
Protest
Cases
.
ent
cop
yr
igh
ts
an
d
other
like
TAXATION
LAW
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of
of
of
violated
or
some
irregularity
is
committed,
and
foreign

TAXATION
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ATENEO CENTRAL BAR
OPERAATIONS
20CS
12
CADEMI
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Academics Head: Pierre
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Understudy: Clariesse Jami
REVIEW
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Head: Yla Gloria Marie
Paras;
Understudy: Ken
Koga;

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COMMITTEE
FACULTY
ATTY. MICHAEL DANA
Heads: SherylMONTERO
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ADVISERS
Chris
Navarra
ATTY
. FRANCISCO
ACADEMICS
Understudies: AbigailGONZALES
Bernandino;PIERRE
Philip Marion Ortal;
HEAD
MARTIN REYES
SUBJECT
SHERYL CHRISTINE

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