Taxation in the Philippines: Flashcards

Flashcards about Taxation in the Philippines

What is the primary source of revenue for the Philippine government?

Taxation

What article and section of the 1987 Philippine Constitution provides the constitutional basis for taxation?

Article VI, Section 28

Name one purpose of taxation in the Philippines.

Fund public services, infrastructure, and social programs

What was a common form of taxation in pre-colonial Philippines?

Labor service

What type of taxation was introduced during the Spanish Colonial Period?

Systematic taxation

What is 'Polo y servicios'?

Forced labor during Spanish Colonial Period

When was income tax introduced in the Philippines?

1913

In what year was the Bureau of Internal Revenue (BIR) created?

1904

What type of tax was implemented during the Post-Independence Era?

Sales tax

Give an example of a direct tax in the Philippines.

Income Tax

Give an example of an indirect tax in the Philippines.

Value Added Tax (VAT)

What is the current VAT rate in the Philippines?

12%

When was the Tax Reform for Acceleration and Inclusion (TRAIN) implemented?

2018

What was a key change introduced by TRAIN?

Reformed personal income tax

When was the Corporate Recovery and Tax Incentives for Enterprises (CREATE) implemented?

2021

What was a key change introduced by CREATE?

Reduced corporate income tax

Give an example of a local government tax.

Real property tax

What are the main tax administration bodies in the Philippines?

Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC)

What type of transactions does digital taxation cover?

E-commerce transactions

Name one challenge in Philippine taxation.

Tax evasion and avoidance