FABM | L#3-#4

INTRODUCTION TO PHILIPPINE TAXATION

THE 3 INHERENT POWER OF THE STATE

1. POLICE POWER

2. POWER OF EMINENT DOMAIN

3. POWER OF TAXATION

POLICE POWER

THE POWER OF THE STATE TO ENACT LAWS FOR PROMOTION OF PUBLIC SAFETY AND ORDER, PUBLIC HEALTH, PUBLIC MORALS, EDUCATION AND, GENERAL WELFARE

POWER OF EMINENT DOMAIN

THE STATE TO TAKE PRIVATE PROPERTY FOR PUBLIC PURPOSES UPON PAYMENT OF JUST COMPENSATION

POWER OF TAXATION 

THE POWER OF THE STATE TO EXACT PROPORTIONAL CONTRIBUTION FROM ITS PEOPLE TO COVER THE COST OF GOVERNMENT EXPENDITURES

TAXATION 

THE INHERENT POWER OF THE STATE TO DEMAND CONTRIBUTIONS FOR PUBLIC PURPOSES 

TAXES 

ARE THE ENFORCED PROPORTIONAL CONTRIBUTIONS FROMPERSONS AND PROPERTY LEVIDED BY THE LAW-MAKING BODY OF THE STATE BY VIRTUE OF ITS SOVEREIGNTY FOR THE SUPPORT TO THE GOVERNMENT AND ALL PUBLIC NEEDS 

BUWIS

COLLECTED TAXES FROM THE CITIZEN IN EXCHANGE TO THE PROTECTION THAT WILL BE GIVEN BY THE DATU

SENATE BILL 1026

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STATEMENT OF THE COMMISSION ON HUMAN RIGHTS IN SUPPORT OF — — — THAT SEEKS TO ENSURE EQUAL EMPLOYMENT OPPORTUNITIES TO MEMBERS OF INDIGENOUS COMMUNITIES 

NATIONAL INTERNAL REVENUE CODE OF 1997

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GOVERNING TAX LAW IN THE PHILIPPINES IS THE — — — — OF 1997 

AKA TRAIN TAX LAW 

AKA REPUBLIC ACT NO. 10963

BUREAU OF INTERNAL REVENUE

THIS IS UNDER THE SUPERVISION AND CONTROL OF THE DEPARTMENT OF FINANCE

ITS POWERS AND DUTIES SHAL COMPREHEND THE ASSESSMENT AND COLLECTION OF ALL NATIONAL CHARGES AND THE ENFORCEMENT OF ALL FORFEITURES, PENALTIES, AND FUNDSS CONNECTED THEREWITH

INCLUDING THE EXECUTION OF JUDGEMENT IN ALL CASES DECIDED IN ITS FAVOR BY THE COURT OF TAX APPEALS AND THE ORDINARY COURTS 

ESSENTIAL CHARACTERISTICS OF TAXES

1. IT IS AN ENFORCED CONTRIBUTION 

2. IT IS GENERALLY PAYABLE IN MONEY

3. IT IS A PROPORTIONAL CHARACTER

4. IT IS LEVIED ON PERSONS OR PROPERTY

5. IT IS LEVIDED BY THE STATE THAT HAS JURISDICTION OVER THE PERSON OR PROPERTY

6. IT IS LEVIDED BY THE LAWMAKING BODY OF THE STATE

7. IT IS LEVIED FOR PUBLIC PURPOSE OR PURPOSES

8. IT IS COMMONLY REQUIRED TO BE PAID AT REGULAR PERIODS OR INTERVALS 

TYPES OF TAXES

1. CAPITAL GAINS TAX

2. DOCUMENTARY STAMP TAX

3. DONORS TAX

4. ESTATE TAX

5. PERCENTAGE TAX

6. VALUE-ADDED TAX

7. INCOME TAX

8. WITHOLDING TAX ON COMPENSATION

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 TAX

IS A TAX IMPOSED ON DOCUMENTS, INSTRUMENTS, LOAN AGREEMENTS AND PAPERS EVIDENCING THE ACCEPTANCE, ASSIGNMENT, SALE OR TRANSFER OF AN OBLIGATION, RIGHTS OR PROPERTY 

DONORS TAX

IS A TAX ON A DONATION OR GIFT, AND IS IMPOSED ON THE GRATUITOUS TRANSFER OR 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 CERTAIN THRESHOLD AND ARE NOT VAT-REGISTERED 

VALUE-ADDED TAX

IS A BUSINESS TAX IMPOSED AND COLLECTED FROM SELLERIN THE COURSE OF TRADE OR BUSINESS ON EVERY SALE OF PROPERTIES (REAL OR PERSONAL) LEASE OF GOODS OR PROPERTIES (REAL OR PERSONAL) OR VENDOR OF SERVICES

IT IS AN INDIRECT TAX, THUS, IT CAN BE PASSED ON TO THE BUYER 

WITHOLDING TAX ON COMPENSATION

IS THE TAX WITHHED FROM INDIVIDUALS RECEIVING PUREY COMPENSATION INCOME 

INCOME TAX

EX.) 

1. INDIVIDUAL INCOME TAX

2. CORPORATE INCOME TAX