TAXATION

Taxation

is the inherent power of the state to demand contributions for public purposes.

• Public Order and Public Safety

• Infrastructure

• Education

• Helps control inflation and economy

• Shifting of wealth

What benefits do the public enjoy if the government function?

Necessity Theory

Funds are needed by the government.

Life Blood Theory

Taxation is the lifeblood of the government. The government cannot survive without it.

Benefits Received Theory

This follows the symbiotic relationship doctrine. Subjects should pay taxes for government services received. These services are necessary for the subjects to enjoy the benefits of an organized society.

PRIMARY

- to provide funds or property with which to promote the general welfare and protection of its citizens and to enable it to finance its multifarious activities.

Mode of cost distribution

a mode by which the state allocates its costs or burden to its subjects who are benefited by its spending.

TAXES

are the enforced proportional contributions from persons and property levied by the law-making body pf the state by virtue of its sovereignty for the support of the government and all public needs.

POWER OF TAXATION

The power of the state to exact proportional contribution from its people to cover the cost of government expenditures.

Republic Act no. 10963

Tax Reform for Acceleration and Inclusion (TRAIN)

Amending numerous sections of the Republic Act No. 8424, National Internal Revenue Code of 1997.

Capital Gains Tax

is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines.

Documentary Stamp

is a tax on documents, instruments, loan, agreements and paper evidencing the acceptance, assignment, sale or property incident thereto.

Donor's Τax

is a tax on a donation or gift, and is imposed on the gratuitous transfer of property between two or more persons who are living at the time of the transfer.

Estate Tax

is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers which are made by law as equivalent to testamentary disposition.

Percentage Tax

is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales or receipts do not exceed a certain threshold and are not VAT-registered.

VALUED-ADDED TAX

is a business tax imposed and collected from the seller in the course of trade or business on every sale of properties (real or personal) lease of goods or properties (real or personal) or vendors of services. It is a indirect tax, thus, it can be passed on the buyer

INCOME TAX

is a tax imposed on all yearly profits arising from property, profession, trades or offices or as a tax on a person's income and profits.

WITHHOLDING TAX

is the tax withheld from individuals receiving purely compensation income.