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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
taxpayers
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
decedents
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
taxpayers
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
Evidence
a
3)
filing
Weapons
Local
for
Those
if
a
Conviction
protest
of
exempt
war
there
damage
in
from
must
the
first
would
be
be
a

either
income
within
or
without,
such
REVENUE
CODE
Nonresident
1.
Upon
OF
payment
owner
1991,
CODE
or
lessor
of
the
of
aircraft,
duties,
machineries
taxes,
&Efect
other
equipment
7.5%
Deficiency
of
gross
in
contents
rentals
package;
or
fees
Requirements
for
similar
nature.
smuggling
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th
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plane
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725
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.classifed
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to
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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
CITIZENS
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
Governments
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,
taxpayers
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
CIRs
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
donors
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
donors
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,
are
qualifes
under
LOI
105,
163,
210
basis
of
his
cases
on
missing
will
packages,
be
The
tax
is
payable
for
every
separate
corporation
protestant,
of
which
he
as
may
a
result
or
2
the
net
language
what
paid/incurred
Unallocated
to
any
country
and
other
revenues,
constitute
a
lien,
superior
to
all
possession
is
lawful
to
the
MU
Tax
property
NICIPALITI
[LIPAD]
and
are
the
C
ollec
9282,
the
services
ti
Agricultu
on
owner
the
of
of
R
of
PT
an
prop
independent
7.
requests
Special
for
contractor
either
be
the
transaction
itself
or
the
parties
to
be
taxpayer
filed
received
is
required
to
register/which
Tax
on
Sand,
Gravel
and
Other
Not
more
than
10%
of
B.
Nature
and
The
Characteristics
permit
to
extract
performed
has
already
delinquency
or
the
been
effected.
to
date
of
the
sale
realized
Against
taxable
Customs
yr:
If
the
wou
Revenue
transferor
taxable
d
be
Laws
yr:
of
the
taxable
shares
is
yr:
It
is
If
only
any
general
after
installment
the
economic
CBAA
is
not
has
conditions.
paid
ruled
on
that
or
It
before
is
an
the
The
the
CIR
Asia
Domestic
use
to
Pacific
CTA
of
Shipping
prop./rights
Region
within
and
Development
30
belonging
days.
do
not
Hence,
earn
Act
to,
or
of
if
legally
t
e
carriers
by
land,
air
or
water,
for
the
other
agencies
reasonable
shall
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220,
221,
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The
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guaranty
business
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The
Commissioner
)Payment
GROSS
manufacturers
jurisdiction
INCOME
the
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and
require
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TAXABLE
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when
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from
subjected
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is
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Donors
Philippines
Tax
to
the
point
transshipment
shall
form
part
the
GPB
Within
60
days
from
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receipt
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TOPIC
UNDER
THE
SYLLABUS:
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I.
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Principles
COM
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AX
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222)
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ip
Local
treasurer
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prepare
athe
duly
authenticated
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referring
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the
percentage
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tax
on
banks
increase
the
value
of
the
property
liens,
charges
or
as
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deductions.
in
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2.
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me
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ral
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old
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2004';
filed
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120-day
on
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date
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from
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ofice
shipping
of
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registered
BUT
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apprehension
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which
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property
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occupation
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st
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or
sales
or
receipts
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receipts
for
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years
did
The
SCOPE:
1.
they
abated,
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Direct
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state
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in
tax
NITY
refunded
on
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inheritanc
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the
ownership
may
or
as
gifts,
levy
otherwise
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to
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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
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Goods.
individual
year
of
whose
of
sole
income
lease,
has
an
1.
Unlawful
other
evidence
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indebtedness
ust
ce
(Sec
187)
to
conceal
If
the
intention,
resident
withholding
otherwise
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agent
is
shall
a
nonbe
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Within
the
be
considered
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resident
foreign
source
Earnings
It
Commissioner
is
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reserved
right
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for
that
receive
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the
tax
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50%
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the
mporter
s
ent
tthan
ed
to
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floating
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intention
Such
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individuals
possible
earning
involuntary
to
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purely
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STEP
beneficiary
1
DECLARATION
is
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estate,
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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
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same
corporate
entity
On
any
amount
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or
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cant
deficiency
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have
of
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character
assessment
your
cake
subject
and
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eat
to
to
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10%
10%
2.
What
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is
the
said
composition
DUTIES:
sale
to
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Tax
of
of
the
6%
upon
CTA
based
and
on
Conce
dividend
decreased
income
received
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the
nonand
shall
not
be
subject
to
for
the
GPB
the
purpose
only
warrant
if
if:
the
of
passenger
shall
the
be
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boards
tax,
make
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plane
a
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income
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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
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their
professi
the
the
It
March
nce
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of
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be
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manner
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ly
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house
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starting
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products
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Return
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but
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itho
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capitalize
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th
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of
application,
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early
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Annu
al
Registr
ownership
world
ation
is
to
display
owners
personal
Upon
Issuance
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prominently
use
liable
of
for
BIR
on
the
Certificate
the
taxes
invoice
due
of
on
or
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perfected
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deductible
violation
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declared
of
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of
Code
from
the
NIRC
per
the
and
of
moment
return
payors
the
TCC
substantial
Philippines)
and
the
gross
other
donors
laws
non-stock
the
refund
non-profit
was
made,
hospitals
and
and
in
distributive
(creditable
accordance
with
its
laws,
al
government
customers
public
taxable
can
purpose
or
year
of
trace
the
as
to
it
long
include
as
it
is
the
incidental.
income
the
only
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as
Royalties
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books
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other
for
end
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transpired
but
Exemptions
are
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favored
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Requisites
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Phil
Countr
Within
taxable
Revenue
vessels
Interest
s
arrival
ii.
i.
ervices
[2
An

ii.
ii.
1
for
complete;
estate;
Taxable
or
year
individual
vii.
sustain
Valuation
T
may,
aircraft
I
expense
If
p
to
er
there
from
n
co
bonuses
on
un
taxpayer
is
res
(afte
=
the
tr
no
P2,000
y
iden
(ou
full
date
tsid
t
adjustme
has
utilization,
fringe
t
o
e)
of
qu
the
sale,
al
benefits
option
ify
the
for
The
a
Gross
6)
source
Criminal
The
(5
Decedents
i.
j)
Authority
a.
No.
gross
Receipts
Scope
Phi
xii.
withholding
13135
Revenue
vi.
upon
estate
lip
Irrespective
Political
action
to
pi
of
9,
exclude
receipt
Inquire
claims
of
Ma
District
VAT)
a
campaign
may
y
decedent
of
into
of
amounts
any
the
be
Oficer
Bank
shipping
filed
income.
shall
earmarked
Deposit
or
during
be
It
his
applies

duly
for
the
prescriptive
wharfage
.
exempt
l
months
period
dues
from
after
aside
income
from
tax
pursuant
shall
not
liabilities
from
legal
entities
Other
of
instruments
adjustments,
such
as
purchase
returns
entertainment;
income
payment
is
paid
or
payable
this
type
of
tax
[
S
ec.
25,
NI
R
C
]
.
Deductio
b
c
iii.
Partnerships.
Estate
the
exemption.
iii.
tax
If
Taxed
he
survives,
as
a
there/s
only
E
xpen
)
ses
levied
on
[
S
ec.
and
29
(
3
)
the
,
Ar
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
Not
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

10
showing
On
name
related
of
trade,
the
taxpayer
and
laim
o
fthe
imay
lof
lME
eManifest
gal
d
is
bur
se
m
en
tdividend
o
ffrom
pub
lol
ithe
cother
und
sthose
ofor
rof
transferred
P
LIA
for
BLE
less
e.
Tax
del
in
quen
cy
an
d
ta
xhis
person,
enforceable
by
any
appropriate

Attaches
on
the
regardless
of
notice
the
regular
of
CG
from
sale,
barter,
exchange
or
disposition
of
assessed
Depreciati
Fimposition
iTCC)
nidentified
al
texceed
ax
on
net
5%
5%
F
ito
n
al
F
ito
ax
al
on
tfund
ax
net
on
net
Since
the
taxable
income
is
in
the
The
measur
fundamental
e
is
assailed
principles
as
un
con
governing
stitu
tion
al.
the
Voters

Loca
government
appea
(Applicable
SYLLABUS:
only
I.
on
donations
made
a
person
3.
recognition
of
seaman
or
nonresident
citizen
SC
under
the
adequate
remedy
stn
ava
ab
e to
province
levy
and
packages
or
shortages
before
value
arrival
in
the
shall
be
issued
exclusively
alone/together
with
others,
not
e Must
3
Without
A.
Definition
and
concept
of
garages
Requirements
nal
ue
these
expiration
rules
Residenti
shall
of
period
apply
except
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
the
of
the
had
the
Novem
Where
ber
dutiable
21,
value
cannot
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
duly
ew
ly
or
one
d
is
a
accredited
cen
resident
ov
year
e
rtrade
e
d
following
o
alien.
rissued
by
while
Partnerships
The
poultry
more
settlement
or
power
global
of
allowance
of
a
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
production
of
inv
OF
ed
capital
account
under
then
are
en
(BIR
this
to
of
SERVICES
in
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
the
administrative
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
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ega
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tax
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Proportion
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calculated
288
]thereof,
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amount
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shown
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the
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by
GENERAL
PRINCIPLES
Taxes)
Philippin
Entry
of
imported
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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
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LGU
within
s
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lle
cti
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be
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is
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its
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reorganization,
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render
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RDO
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holder
its
bonds
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or
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es:
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in
except
sv*
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e
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yperiod
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direct
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as
rule?
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wells,
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an
that
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reasons
no
case
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Final
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Tax
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o
If
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ticket
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part
enforce
make
and
excess
necessarily
shall
be
common,
carried
over
to
each;
to
the
and
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Philippine
the
close
of
Council
the
of
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year,
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connected
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IAET,
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ve
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is
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than
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P1,000,000
cultural
such
another
for
or
IV.
has
TARIFF
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the
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amount
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CUSTOMS
refunded
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though
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the
Sec.
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one
33
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in
the
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days
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or
date
municipality,
of
distraint
Director,
then
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musical
any
person
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their
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ll
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6%
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S
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26)
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er
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ly
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e
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Commissioner
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The
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ime
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ula
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ry
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inal
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ax
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ely
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ated
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ithe
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d
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conduct
TAX
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for
the
purpose

The
payee
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Net
contracted
Capital
1.
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within
Ordinary/
three
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(3)
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al
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e
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nd
the
ar
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qu
a
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interpreted
BE
DEDUCTIBLE:
liberally
in
order
to
deceased
Once
A
There
registered
tax
BASE
person
is
law
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a
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the
be
person,
following
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Established
solely
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.exchange

(Implemented
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a
written
taxpayer
other
discovery
of
4.
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levy
schedule
of
or
a
service
a
................................98
proceeding
of
performed
FMV
in
is
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published
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for
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a

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+penalty
Philippines
)taxes
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Housing
received
Act
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ror
e
Country

pursuant
to
the
ordinance
whom
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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
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and
traded
over
or
33
in

pursuit
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stock
2%
of
exchange
The
tax
is
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personam)
to
the
buyer
of
the
goods,
port
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while
still
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the
custody
or
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the
money
or
moneys
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
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income
articles
lost
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Taxable
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revenue-raising
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30%
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Collector
schedules
and
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protest
storage
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If
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Goods
released
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subject
expense
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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
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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
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registered
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Real
Phils.
P
ro
pert
y
Tax
form
part
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cost
of
purchased
services,
An
individual
who
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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
Importers
the
duties,
purpose
registration
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fees
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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;
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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
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allowances)
or
there
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charitable
is
no
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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.
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ordinance
Installment
their
202-203,
respective
may
sale
be
of
total
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posted
taxable
in
at
income.
least
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mortgage
exceeds
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on
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2316)
maintenance
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to
is
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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
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common
burden
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whichever
any
or
one
5-32%
is
realized
EARLIER.
that,
received
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referred
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with
BIR
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currency
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or
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shall
Congress
become
taxable
and
issuer
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income
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actual
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required
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constructively,
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to
business
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shall
of
is
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be
Employer
part
right
or
can
all
or
of
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income
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FBT
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derived
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E:
PROPERTIES
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Taxable
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or
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fact
currency
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allocated
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of
whether
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ratable
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RCIT
fiduciary,
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October
.
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Accounting
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at
and
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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
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be
Prieto,
rights
included
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in
the
computing
fully
Philippines
paid
net
fthe
ilLocal
e
ddays
disseminate
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w
istof
h
in
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information.
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15
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CODE
gains
broadcasting,
one
OF
tax
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1987
flin
payment
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transport
any
grantor
A
person
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622]
v.
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under
.dec
goods
absolutely
Sec.
and/or
given
passengers
up
purpose,
preceding
to
year
achieve
does
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some
exceed
social
P10
or
.which
tax
(Sec.
101)
TAX
a)
that
2%
there
property
of
the
was
corporations
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
Govt.
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
%
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
tthe
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

Place
of
use
or
location
engaged
in
trade
Shares,

3%
tax
obligations
on
the
gross
or
receipts
bonds
derived
importation
is
neither
prohibited
nor
c
Withholding

Taxation
Withholding
A
Tax
of
corporation
on
Agent
(WA)
shall
include
Restr
**
maximum
ic
tion
60,000)]
sd
as
to
tax
E
=
xten
business,
12,000
sio
n
o
fto
or
consequence
the
Tax
assessment
allowance
shall
become
FINAL
and
(gain)
for
repair,
processing,
or
On
before
the
...........59
AVOIDANCE

(a)
citizens
General
can
bring
suits
if
t=
h
e
from
Other
assessment
Tax
Payment
Tax
Minimization
a
Rul
Activities
On
or
before
the
and
end
of
purely
calendar
for
of
Royalties
on
books
&
other
literary
F
iuse
n
y
al
TMust
ax EFCDS
of
Fperson
i(b
n
al
T
ax
of
10%
F
iWithholding
n
rece
al
T
ax
pt
of
of
10%
assessment
F
25%
iof
nsttypes
al
F
T
ior
ax
nas
(Sec
al of
tcurrent
ax10%
animals,
and
for
manifest
clerical
f.
services
previously
dies,
the
by
business
agricultural
is
contract
continued,
growers
and
and
the
Residence
Income
fled,
or
Brought
by
separation
its
foreign
net
flm
producers
for
income,
any
cause
for
the
individual

3
Double
Sale
of
stock
in
trade
by
a
real
estate
Philippines,
become
dutiable
from
the
iv.
Claims
a
gain
st
In
so
lven
tPupon
old;
(ii)
5
Recovery
)exempted
government
of
lost
earnings
Taxable
17
Improperly
Accumulated
Earnings
35%
shares
(2006in
net
income
of
3.
a
F
be
ng
a
inordinately
c
a
m
for
refund
large.
or
tax
Therefore,
the
assessment,
and
consequently,
during
the
corporation
designated
periods
sociedad
would
not
anonima
only

be
fle
a
The
bond
The
VAT
exemptions
due
on
or
paid
are
by
not
a
to
VAT-registered
be
treated
from
the
VAT
under
Tax
Code,
withholdi
rendered
in
2.
Example:
shall
be
cost
irrevocable
=
15,000;
for
SV
the
5,000;
yea
for
Boxing
exhibitions,
wherein
World

Manila
and
Taxable
P
2,400
Indivisible
single
obligation
State
collected
from
their
members
to
rgoods.
aise
transfer
is
Deductions
o
fIndividuals
"its
tr
an
business
scend
en
tal
to
the
intended
tan
ce"
RDO,
Gains
from
sale
of
shares
of
stock
right
of
the
c)
State
an
anticipated
to
tax
prior
the
benefit
privilege
to
an
to
transmit
the
executor,
administrator,
or
any
heir,
principal
delinquent
place
of
taxpayer
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and
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located
N/A
Income
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ep
o
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y
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k
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the
year
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quality
of
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and
deposit
performance
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ore
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or
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Collection
Oficer
or
at
or
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the
same
time
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goods
being
delinquency
shall
be
cancelled.
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these
constitutes
as
valid
license
fees
for
such
resolution
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plan
and
such
declaration,
afidavit
or
other
documents;
rivers
and
Earnings
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services
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the
Philippines
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and
on
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Treasurer
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and
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dues,
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all
Administrati
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Relative
enjoining
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ls
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Customs
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to
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make
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RDO
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(1)
year
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OF
THE
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ODS
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PT
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Manifests
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to
associated
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the
delivery
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compromise
5.
2.
of
sales
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the
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the
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subdivisions
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the
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2210,
2211)
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and
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determined
Personal
property
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is
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Time
for
Payment
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transferors
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30
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e
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thereafter
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ects
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6%
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the
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and
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have
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produce,
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requires
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proof;
manager,
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the
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request
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Premiums

a
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EXCLUSION
FROM
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criminal
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lease
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avoid
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of
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income
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deduction
year
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property
totals
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Registr
P
owe
)
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en
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efit
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eory
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subdivision,
established
tax
gross
became
Philippines
on
his
or
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due
income;
income
law
(sec.
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as
194,
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LGC)
sources
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not
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The
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means
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C.
Power
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The
the
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Taxation
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first
Compared
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export
traders
action
shall
include
commission
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op
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er
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ds
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ation
Income
income
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..............................................
the
three
s
ue
Tax
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derived
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quarters
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144
taxable
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trade
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Su
tis
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ty
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Million
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B
for
to
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Trust
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Principles
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the
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Tax
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8
CODE
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uct
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tax
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ip
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amount
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carry
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materials
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money
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Philippines
Period

quarter
shall
[3]
issue:
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originates
Special
Types
may
in
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of
PAYABLE;
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of
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(8
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Prizes
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%
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Rationale:
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designed
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services.
scitizens
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capital
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credit
Sell
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ay
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Sale
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195)
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2,000,00
2,500,00
.Substitutes,
e
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activity
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The
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Collector
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decision
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)
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Dimposition
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er

son
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Every
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4
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Source
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Congressional
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milling
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est.
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ng
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o
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rive
eceip
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Generally,
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cities
C.
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Gains
Realized
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operational
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filing
of
its
returns
and
taxpayers
in
a
foreign
other
corporation
are
not
determine
years
kind,
of
service
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time
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connection
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technical
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within
6
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2
Administrative
Fines
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settled
early.
Legislators
declaration
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to
sue
to
Gross
Gift
xx
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then
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amount
by
which
tax
exceeds
from
foreign
currency
transactions
with
non-residents,
Royalties,
175)
rentals
property
7%
necessarily
economic
used
nature
by
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ordinary
xthe
stay,
he
is
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resident.
One
who
acts
or
works
or
exercise
of
some
valued.
"Identical
goods"
shall
mean
goods
Treasurer
of
the
city
or
municipality
the
regulation
of
the
business.
Entry
of
goods
at
less
than
their
true
business,
in
the
manner
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to
Part
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income
Part
of
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income
wide
information
as
the
Secretary
of
without
plants
the
or
Philippines
equipment
acquisition
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any
as
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into
the
Philippines
other
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fees,
charges
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importation
subject
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Rule
qualifedly
prohibited
articles
are
transfer
the
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the
taxpayer
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4.
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income
1
When
actually
the
treasurer
7.5%
sto
fnal
ega
y PD
return
is
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the
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e
revenue
inland
waters
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vessels
Right
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to
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C
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ANCEL
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the
AX
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IABILITY
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sale
:avoidance
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to
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But
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merchandise.
Tax
ru
ary
21,
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19
case
90]
loading
DUTIES
Required
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are:
located
Anything
3.
that
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is
COU
not
be
imposed
by
the
local
government
Community
Unallocated
Tax
[IE
R]
appeal
to
the
CTA
is
still
reckoned
from
following:
5.
Civil
Action
(Sec.
1204)
funds
custom
laws.
the
payment
of
tax
liabilities
on
GOVE
(P50,000)
All
same
local
RNING
the
fees
Revenue
and
charges
District
shall
Office(RDO)
be
No
A)
additions
Lien
(Sec.
shall
257,
be
LGC)
made
of
superior
to
the
price
all
cost
of
maintaining
governmental
functions,
3.
employed
Settlement
&
occupying
of
any
same
seizure
positions
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When
there
is
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dispute,
but
the
Ge
n
e
rClaim
al
R
u
lto
e
: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
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household
effects
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Fringe
benefits
Has
are
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income
only
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oficers
G
ROUNDS
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taxes
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FOR
S
USPENSION
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OF
the
due
THE
date
R
shall
UNNING
be
sale
OF
together
Secretary
impose
over
of
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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
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of
remedy
within
being
amount
60
days
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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
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province
calendar
or
or
city
or
in
where
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any
year.
the
property
manner
relationship)
welfare
)To
Any
previous
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Drawback
net
gifts
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properties
imposed
2.
reliefs
The
of
When
the
shall
fact
living
in
sales,
there
shall
under
that
not
Title
at
be
the
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is
a
apply
(2)
corporation
subject
fraud
hereof
of
to
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to
output
intent
12%
Tax
is
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VAT
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mere
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rabbits
A
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taxpayer
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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
Presidents
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
non-stock,
from
sources
as
nonprofit
revenue
within
private
of
cumulative
totals
of
the
sales,
purchases,
(3
Don
q.
c.
The
............................................................
The
property
Lease
interchangeably
ation
Iss
(b)
violated.
owner
uance
,
corporations
of
Additional
b.
ev
ECONOMIC
which
residential
or
distribution
id
obligations
en
of
shall
ce.
p
shall
reli
Involves
not
for
mi
from
be
of
nary
BENEFIT
be
of
the
a
attached
deprived
escaping
purposes
question
lessee,
a
THEORY
it
of
to
taxable
of
is
being
fact
not
the
of
4.
a
the
Registr
5)
Tax
General
i.
The
value
at
required
v.
ion
[1
cancellation
If
for

o
f
legally
delivery
of
E
to
ach
ST
be
AT
the
T
E
yp
withheld
separated,
of
to
T
e
AX
a
o
business
agreed
f
resident
In
tern
must
al
the
local
registration
or
have
spouse
exportactual
been

export
ts

addition
to
the
other
3rd
companies,
etc.)
joint
giving
accounts,
rise
to
associations,
order
to
ensure
its
payments.

(1
services;
v.
For
taxation
not
on
persons,
purposes,
and
the
ultimately
general
paid
are
Pension
zeroTrust
following
Contributions
the
%

a
Glob
sworn
NOTE:
purchaser,
statement
If

deduction
payment
he
fails
customer
To
tal
to
regard
register,
TBenefits
Ithe
fro
if
m
the
or
ess
ou
client,
he
tax
tsid
is
required
ethey
liable
any
shall
to
be
to
be
in
Transfers
ii.
INPUT
th
Final
e
actu
TAX
adjustment
impelled
al
VA
Tby
p
aid
by
o
the
n
su
thought
ch
good
s,
of
an
i.
Goods
franchise
or
properties:
Gross
selling
price
.D.
addition
compensation
to
other
taxes,
for
a
tax
the
equal
last
to
10%
payroll
mission
of
orGLOBAL
within
60
adequate
reason
of:
Individuals
TAX
residing
within
specified
exported
a.
National
and
sold
-only
in
imposed
foreign
by
markets
the
national
upon
established
L
E
2.
xamp
The
Commissioner
in
that
litigated
transaction
for
the
remainder
is
subject
of
the
to
year.
VAT,
but
the
seller
is
jurisdiction
contributed
until
to
payment
the
earning
of
duties,
chance
or
through
luck
generally
Capital
Can
cellat
Gains
ion
disability)
from
o
fnot
VAT
Sale
of
Shares
received
from
a
CREDI
return
of
capital
are
not
allowed
toor
withholding
VAT)
)performance
revenue,

Availed
if
there
is
no
======================
.claim
Corporations
IMITATI
......61
and
sugar
Purpose
into
A
raw
deficiency
of
sugar
Taxation
tax,
or
any
surcharge
%
allocation
(Stock
aspects
from
Amount
groping
From
of
in
Tax
Collected
dark,
speculating
143-98
(1)

Within
the
framework
of
national
Gross
i.
[(90,000/200,000
If
negligence
Income
as
Gradual
cited
the
Pthe
iRelatively
diminution
n
x
60,000)]
Co
m
missi
Pthe
=
in
oner
the
Merely
of
service
P
making
or
as
a
prior
partake
nature
of
deductions
and
are
impositions
Sum
of
shall
years
=
5
+
4
+
3liability
+
2
+
1
=
15
accordance
hence
with
in
of
goods,
Subject
having
196
to
at
least
one
(1)
Filipino
Subject
contender
to
of
Requisites
c.

Allocation
for
of
input
tax
on
mixed

Deductio
sthat
income
bear
the
tax
RDO
Code
of
the
old
RDO
until
foreign
country
graduated
rates
either
as
capital
taxable,
commercial
furnished
banks
including
branches
of
foreign
banks
shall
secure
B.
Residence
s
T
To
O
Call
constitute
ANCEL
T
AX
L
IABILITY

:however,
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BIR
of
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clarified
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that
which
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claim

trade
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from
sources
w/in
the
The
against
the
insolvent
person
should
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collected
without
assessment)
as
a
organized
Taxatio
of
Gener
Profession
exchange
and
other
items
4.
of
all
his
family;
Penalty
Net
gift
Punishable
law
Not
punishable
by
of
unlawful;

definite
purpose
which
in
its
nature
Includes
both
return
on
capital
gains
physical

the
characteristics,
payees
income
quality
tax
and
reputation.
on
the
nonpayment
of
the
tax
discovered
by
rendered,
proceeds
cannot
qualify
as
corporation
classifcation
or
resident
as
mak
to
foreign
quality
ng
the
assessment
or
value;
xx
ng
tax
co
(5)
1)
be
E
quitable
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and
Additional
based
as
far
as
Commissioner,
shall,
by
rules
and
Taxable
Those
constructed
and
and
maintained
by
the
local

Proprietary
educational
institution
. ect on;
017-2003
Alien

Interest
in
partnership
and
joint
payment
of
tax
but
the
amount
of
the
issued
the
by
tax
the
Commissioner
shall
notify
of
the
Customs
executor
and
for
or
Public
Utility
Bus
another
A
6
months)
owned
:a
and
used
by
local
water

the
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h
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e
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place
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waters
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maximum
civil
unless
the
of
the
assessment
if
Component
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merged
in
City
the
or
general
force
provincial,
Property
at
the
Tax
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by
110]
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note
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of
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7
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1983]
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=
x
conferred
by
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people.
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taxpayer
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opted
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Philippines
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processors,

LIMITATIONS
:Personal
an
Annual
Information
Return
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Income
waters
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791
within
First
its
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Express
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business
situs
in
the
Philippines,
Shares,
o
3
justices
each
BUT
this
shall
not
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allowed
in
(Sec
attributed
222A)
to
or
identified
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AUTHORI
Unmanifested
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ighteen
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years
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age
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28,
ip
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em
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ip
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Cooperatives
duly
to
regional
headquarters
attach,
staf
assigned
to
Phil
diplomatic
allowance.
of
Philippines
description
Feb.
of
Allowances
each
of
of
any
year
property
(benefits
industrial,
to
commercial
rank
and
file)
or
notification
collection
earning
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to
tax
be
property
but
exhibited
a
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to
a
in
beneficiary.
not
prosecution
less
than
If
refund
or
credit
including
the
verification
of
direct
Commissioner
farm
inputs,
so
machineries
much
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the
agent
bank
Philippines
by
non-residents
is
civil
and
DUMPIN
firm
or
association
doing
TOPIC
UNDER
certain
THE
conditions
SYLLABUS:
under
Sec.
32(B)
years
from
discovery
of
fraud
or
intent
to
by
reason
of
financial
incapacity
The
name
the
donee;
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Interest
intentional.
income
tax
earned
C
its
on
interest,
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r
a
ct
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al
expenses.

those
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value
Medical
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Expenses
is

whichever
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r
device
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income
among
numerous
a
A
General
wr
tten
NRFCs
c
m
for
income
refund
Taxable
may
therefore
taxable
also
in
exemption.
prima
quarter.
facie
evidence
of
a
purpose
to
avoid

temporary

Casual
absence
sale
from
if
personal
constituted
property
family
on
return,
unless
he
informs
the
CIR
of
any
tax.
co.
or
a
foreign
holding
co.
during
appreciably
prolong
its
life,
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income
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the
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able
value
to
assign
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and
internal
thus
Philippines.
proceeds
shall
rule
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on
w/c
of
the
which
act
appeal
as
are
supervisory,
within
invested
60
days
communication
&
coordinating
individual
engaged
or
center
tax
in
for
trade/business
their
suspension
or
is
made
allowed
w/in
when
the
taxable
the
following
year
To
take
and
turkey
the
There
If
Testimony
net
must
capital
of
the
be
loss
person
is
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sustained
protection
receipts
the
third
for
year
visa
and
services
and
.....................7
has
support
thereafter,
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rendered
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secured
40%...
the
[
S
e
c.
2009
Since
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not
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date
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other
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me
services
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declaration
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under
declaring
in
on
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under
or
the
existing
but
after
of
Philippines
official
the
loss
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Jan.1,
special
gains
special
correct
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for
laws
laws,
taxable
be
others
income,
filed
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or
rendered
Employees
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J.
the
Tax
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L
restrictions
GC
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ess
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law
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Rev
rule
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e
]
T
ax
who
oriented
FORMU
has
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ng
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month
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which
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the
gains
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such
the
period
private
in
which
sector
they
participating
are
received,
in
becomes
Limitation
complete
cost:
Imposed
when
Regarding
either:
the
organization
and
Philippines
insurance
or
government
companies
entity
to
take
paid
)
output
shall
to
partnership
the
not
tax
automatically
and
input
is
tax
cancel
for
the
the
TIN
of
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al
output
...................
substantiating
indicated
VAT
taxed
Philippine
but
by
121
including
input
VAT.
frivolous
In
supporting
expenses
graduated
executors
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return
tax
mater
rate
taxable
or
ials
administrators,
unless
an
d
graduated
otherwise
all
graduated
of
tax
provided.
them
rate
are
tax
rate
royalties
Philippines
connection
with
the
improperly
period,
the
employer
accumulated
shall
determine
taxable

The
Sec.
right,
deduction
246
either
of
applicable
alone
NIRC
or
provides
in
only
conjunction
that
to
goods
in
passenger
or
which
properties;
collections
takes
place
are
at
made
any
port
c
Gui
del
Source
b.

(b)
ii.
viii.
ines
sale
i.
Communication
[2
International
Requisites
Amount
principle
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Dealings
for
on
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xcep
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tion
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other
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in
Deductibility
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the
:
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of
nt
non-resident
in
adequate
gain
income
by
g
or
the
of
of
loss
of
Tax
BIR
is
alien
the
to
a
consideration

3.
(3
(c
Power
Income
to
grant
partly
local
tax
within
exemptions
and
partly
IV.
le

case
consigned
TARIFF
agreed
AND
are
to
in
CUSTOMS
fact
sold
by
the
CODE
OF
administrative
month
and
after
penal
the
sanctions
close
of
the
provided
not
allowed
any
tax
refund
or
credit
for
any
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rated
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or
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e
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Deposit
Every
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person
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banks
wh
who
ich
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is
er
required
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are
made
to
register
available
Registr
ation
TS
1.
create
territory
its
Without
own
sources
regard
of
to
their
income
taxable
to
him.
days
from
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time
of
fling
of
the
written
government
foreign
government
by
resident
of
consulate
received
deducted
his
order
from
of
recall
the
gross
sales.
Rather,
Stock
Not
or
TI
interest
from
all
thereon
on
the
due
[double
The
1998];
under
donor

Francia
deduct
ato
legitimate
unless
renounces
in
v.
In
the
terme
business
yr.
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certificati
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te
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ourt
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ifIt
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persons
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P27,700
19
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ntern
al
Re
ven
ue
v
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acertain
deposit
is
The
================
(1
terminal
Ways
Radio
of
shifting
leave
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the
television
pay
tax
burden
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broadcasting
government
(FBO)
Photographic
after
the
close
cinematographic
the
taxable
quarter
ON
as
which
communication
or
action
7.5
1]
useful
tariff
1,500,000
value
bills
conversion
[of
Sec.
tangible
2,000,000
27
(real
2)
property
,or
Art.
2,500,000
V
I]
due
DEDUCTIBILITY:
transactions
Provided,
development
finally,
program
that
sales
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goods,
or
certain
ns:
therefore,
deductible
from
the
gross
C
Stock
Not
Traded
in
the
Stock
Transaction
retroactive
application
-c.,
free
May
from
grant
tax
individual
exemptions
but
may
It
particular
is
not
taxable
when
the
activities
that

end
may
processing
of
the
be
authorized
year
or
and
toll
by
without
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imposition
to
transact
of
Most
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gain
in
or
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Intended
ordinary
of
to
its
equal
multiple
income
If
he
makes
a
written
application
and
can
ii.
(2)
intentional
PAL,
In
disregard
G.R.
N
of
o.
rules
180
066,
and
restraint
on
exercise
of
religion
or
Location
of
property
included
as
part
of
the
gross
estate
of
the
its
properties,
5.
n
or
services,
al
including
al
lease
Gain

on
sale
of
Philippines.
Therefore,
Operating
withholding
1,450,00
of
1,900,00
tax
shall
2,100,00
be
return
may
be
required
to
fle
an
information

No

taxation
in
the
objectionable
or
or
granted
by
an
employer
in
cash
Mar
deficiency;
ub
edifferences
n
iin
v
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but
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[ber
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.of
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authority
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print
receipts
or
infringes
their
treated
as
Location
gross
income
of
Property
under

(d)
the
The
disposition
Government
Household
realized
is
in
furniture
the
or
last
any
will
of
and
and
its
Final
political
utensils
Property
4.
DESTINATION
and
operated
Basis
exclusively
stock
law
for
securities
religious,
E.
Principles
of
Sound
Tax
may
be
promptly
accomplished
is
a Denied
Exemption
practicable
on
the
corporation
Partnership
from
(GPP)
FCD
(b)
Specific
Items
enumerated
under
2
When
the
taxpayer
requests
a
Minor
in
appearances
shall
not
ESTATE
property
TAX
business
CREDIT
(NRAETB)
is
a
may
remedy
be
entitled
against
to
a
gift.

Multiply
by:
tax
any
private
regulations,
privilege
prescribe.
I.
TAX
And
ON
it
may
Income
be
exercised
even
where
The
No.
Winnings
11891
transfer
from
0,
N
of
ovem
PCSO
land
&
made
Lotto
by
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person
exempt
to
exempt
Treasurer
decides
reasonable
(within
Exempt
60
private
days
from
25%
Exempt
receipt
F
ith
n
al
of
tfor
axnot
received
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unit
concerned;
distinction
Country
Object
entirely
escape
To
merely
minimize
a
period
tax
may
three
be
shifted
(3)
years
or
passed
from
on
the
to
the
date
of
administrator
of
the
amount
of
the
tax.
NOTE:
engaged
in
In
the
case
of
properties
tax
income
tax
concluded
audit
cases
the
time
of
transfer
B.
TPrincipal
Obusiness
CANCEL
Ttaxpayer
AX
L
IABILITY
:charge
Samples
such
quantity
and
of
such
Municipality
the
districts
i.
may
continue
beyond
the
maritime
models
not
adopted
for
practical
use,
and
administrative
Not
exceeding
or
30
judicial
3,600
action.
is
treasurer,
or
their
duly
authorized
deputies.

actors
are
Filipinos
benefit.
except
as
provided
in
this
Section:
Provided,
categories.
It
does
include
.Amoun
======================
jurisdiction.
of
death
of
the
decedent.
warrant.
)[time
]Judicial
exporter
or
maintains
happening
tax
credit
in
said
of
was
city
determined
or
to
have
its
1.
When
the
CIR
is
prohibited
from
It
is
legislative
in
character.
any
relevant
case
documents.
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given
Tax
Withheld
at
Source
(Form
No.
Within
to
Forfeiture
or
over
only
necessary
to
E
xc
contain
lnot
us
io
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n
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specific
and
provision
it
prohibiting
brewers,
distillers,
rectifiers,
and
105
Ph
il
126
3]
Applying
exclusively
the
earned
rule
of
or
strict
realized
construction
by
either
to
no
limit
a.
venture
Nothing
in
Sec
222A
shall
According
1.
Basic
real
to
the
Local
Government
Code,
1.
===========================
2.
Arrastre
Protest
nd
Granted
Protest
registered
E
xcepti
on:
with
Common
the
CDA;
carriers
that
are
compliance
with
the
statutory
requirements
are
scientific
subject
bank
supposedly
equipment
to
FBT
accounts
but
rather
for
as
administrative
compensation
may
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mission
abroad,
personnel
Defcien
of
Reparations
two
for
(2)
the
public
places
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in
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the
NIRC.
municipality
Provided,
or
Full
and
there
fnal
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condition
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provides
that
c.
equipment,
including
spare
parts
thereof,
improvement
on
real
property
it)
file
w/in
business
outside
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Philippines
be
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tted
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the
mporter
n
Such
A
ax
p
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e
rDelinquency.
s
ub
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st
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be
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into
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input
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rtTo
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istudies
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e
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Penalties
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th
n
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yrs
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of

MWEs
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revenue
Difference
stamps
when
Special
returned
in
the
tax
income
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upon
receipt
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shareholders
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interest
such
appeal.
that
or
members
is
subject
Failure
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home
due
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to
travel
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taxable
or
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or
preceding
taxes
work
abroad,
to
Imposed
Amount
on
Partners
Received
are
by
liable
Heirs
for
income
RA
4917
tax
on
affiliates,
subsidiaries
Permanent
or
for
or
employee
branches
the
use
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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.
Donation,
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.
A
JUDICIAL
foreign
enterprise
[2
custody
corporation
of
the
not
engaged
dependent
in
trade
can
.ive
E
xempt
is
subject
basis:
io
informing
][1
ns
estate/trust
,To
]12
shares
to
Tax
recognized
for
records)
stock
Philippine
[revenue
Sec.
without
192,
L
GC
the
]household
Non-resident
persons
who
perform
services
for
in
the
Tax
Code
and
implementing
What
with
is
revocation,
the
any
Dividends
employer
person
modification
other
to
on
designate
than
account
or
those
the
reversal
persons
of
derived
its
DOCTRINE
taxable
T
RANSCE
year,
NDE
TAL
for
considered
outside
and
as
the
a
Philippine
corporation
on
liable
another
to
input
cannot
Limi
Government
addition
taxes
claim
shall
P10,000
paid.
to
input
the
of
information
VAT,
the
for
fully
the
required.
period
in
Tax
which
death
to
Place
with
the
h
igh
the
o
seller
fother
er
(i.e.,
f
BIR
lviolation
.Authorized
ifor
n
g
the
motivating
factor
or
of
the
permit
for
the
withdrawal
said
installment
and
basis
(b)
At
least
60
years
old
U
y
A
C
dies
h
abide
ia
aco
and
by
S
on
leaves
the
s
v
decision
.does
C
in
o
l(non-establishment
his
lHeirs
ec
of
tthe
will
o
the
rthe
of
a
SC
Cus
lot
as
to
tof
to
o
ms,
the
his
i.
To
LGUs
TV
in
respect
to
matters
of
local
Gross
sources
revenue
whether
for
passenger,
4.
power;
162
r,
SC
or
RA
incurred
753]
the
for
on
e
Local
Incen
(6
(e)
tives
taxes,
Passive
viii
taxpayer

Bad
an
Majo
It
fees
d
must
Investment
Tax
who
or
repair
charges
be
has
paid
been
(replaceme
Income
may
or
audited
be
collected
withi
fo
the
no
th
6)
9.
CIVIL
ii.
Power
iii.
Gross
tax
AND
to
information
adjust
Estate
CRIMINAL
local
tax
from
rates
a
[ax
Sec.
foreign
tax
Traded
in
o
the
Stock
Exchange
property,
occupation
or
business
)
merely
protest.
a.
IF
protest
is
found
not
equivalent
to
be
when
nonresident
the
citizens
aliens
who
they
are
condone
required
or
to
remit
deduct
taxes
the
(Sec.
total
192)
flms,
properties
undeveloped,
substantiat
exposed
b
al
inf
outside
necessa
it
x.
The
heir
or
beneficiary
has
a
subsidiary
estate
of
in
If
has
the
kind,
an
deceased
GPP
irrevocable
availed
owner
of
shall
option
the
submit
itemized
be
to
2.
)
constitutional
constitutional
%
of
the
of
BIR
the
may
be
the
decision
Services
Allo
wab
le
d
edu
Place
ction
of
s
performance
fro
m
gro
ss
of
from
exhaustion,
wear
and
tear
and
2.
are
limited

The
value

of
General
personal
Earnings
in
Any
Commissioner
order
Generally,
guidelines
constituti
to
required
arrive
that
the
for
at
by
th
Agent
the
income
Creditable
law
effects
net
purpos
or
tax
taxable
Bank
applicable
derived
shall
WVAT:
fixed
of
(AAB)
gift.
not
th
on
in
employees
with
50%
demonstrate
Ex.
FCDS
share
National
whose
units
in
collections
internal
&
other
revenue
for
depositary
f:
taxes,
(2
banks
under
the
E
xcep
J
ul
tion
y
7,
s:
2009]

F
or
w
a
application
r
d
s
h
i
ft
i
n
g

the
transfer
of
burden
iii
Tax)
regulations
fraud
constitution
on
the
rates,
or
at
part
partners
least
the
of
tax
the
will
burden
be
1987
a
certain
religion
decedent.
case
taxes
are
payable
Examples
services
any
In
surcharge
of
case
judicial
made
of
by
for
a
failure
VAT-registered
"wrong-venue
to
qualify
fling
supplier
for
of
distributing
Requ
An
ir
ed
NOTE:
exception
Expenses,
Su
personal
tax
ppor
Amounts
tin
to
g
losses
Do
the
cu
rule
men
contributed
&
is
ts
other
where
for
claimin
deductions
both
by
g
the
Exchange
income.
It
not
extend
to
required
on
FOR
Expenses
laws,
or
use
of
properties,
in
the
course
of
trade
g
He
Amount
dressing,
is
merely
Received
which
a
are
by
tax
covered
collector,
by
the
NOT
VAT
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
water
...............................................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
givers
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
CBAAs
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
tax
be
exchanges)
because
nt)
treated
year,
he
as
n
properly
derives
cash
te
ACTION
191,
Philippines
(Sec.
authority
LGC
85)
]sales,
cargo
incurred
or
mail
taxable
originating
year
from
where
selling
price
exceeds
P1,000
and
Professional
Tax.
The
At
such
amount
and
Professionals
5.
1.
Conduct
by
the
To
Tariff
be
paid
Commission
to
the
province
of
an
[Forfeiture
24
made
tapes
a
for
use
in
connection
to
payment
public
of
shall
Ex.
service
Community
register
without
each
Tax
(Cedula)
type
of
internal
Phil
Philippines
by
resident
ed
when
Filipinos
y
a
person
lto
or
Phil.
o
liable
ry
to
pay
r60
abe
tax
sor
liability
for
the
The
affirmative
votes
of
4
Justices
for
levy
taxes,
fees,
and
charges
subject
to
income

brother
collection
from
B
reside
who
the
is
permanently
in
Philippines
limitations
cost
specifically
identifiable
limitations
to
the
real
sellin
g
pr
ice
b.
the
A
Su
TAX
Gross
BIR,
holding

bm
c.
In
Debts
iss

within
Listed
deductible
case
receipts
ion
Amount
A
or
30
of
of
due
and
investment
d
a
days
of
oc
from
since
corporation,
is
traded
expense
umen
deposit
to
from
a
rentals
it
method
ts
the
prolongs
company
in
deducted
wi
that
the
death,
the
thi
exceeding
is
of
n
stock
holding
the
actual
a
list
a
(1
The
(7
Residual

Les
ii.
[3
(a
home
Exchange
taxing
no
Gains
(1)
n
-obsolescence.
p
is
Deduction
ro
powers
generally
d
from
u
cthe
iof
nby
g
expropriation
of
we
(Sec.
property
characterized
local
lis
lthe
srehabilitation
&
86)
governments
m
iResidence"
n
e
of
s
by
by
Con
located
this
installment
Chapter
ng
within
e
ean
REMEDIES
3)
Posting
appealable
B.
of
Notice
to
the
CTA.
(Compensation
i.
service
(2
normal
deposit
of
approximate
to
a
person
taxed
Also
depending
does
applies
the
not
to
Net
Capital
sales
in
Gains:
were
addition
made,
to
basic
apply
salaries,
for
the
to
issuance
a
.(2
taxpayer
sequ
a
religion)
en
BOIces
deduction
o
f4917
issu
under
in
=
g
err
on
eou
s
VA
T
f.
Inpu
His

Presumptive
Time
Generally,
VAT
employer
right
Sale
and
of
by
the
to
place
agricultural
exercise
during
qualifed
ceased
cooperatives
Senior
because
Citizens
to
of
nonthe
installments,

the
twoyear
period
is
from
the
properly
apportioned/
al
allocated
thereto
MAC
HINE
RY
discounts
of
cash
refund/tax
determined
credit:
and
granted
at
return"
to
the
NOTE:
commissioners
Allowable
Tax
satisfaction
Credit
shall
that
his
burden,
as
burden
of
.expenses
taxpayer.
under
merely
R.A.
If
to
a
preservation
of
the
co-owned
tax
credit
)private
residence
is
in
line
wa
ver
n
wr
tevery
ng
before
exp
(3
Payment
par.,
Collec
4.
payee's
Sec.
before
to
283,
r,
[security
other
May
delivery
NIRC)
28
tax
,to
by
liability
executor
on
or
said
printer
can
organization,
print
the
same.
unless
period
is
b.
producer
Municipal
to
distributor
or
local
until
-deemed
imposed
it
finally
by
employment
that
purpose
is
coterminous
by
the
delinquent
is
exempt
taxpayer,
since
it
where
or
business
gain
exemptions
or
(but
not
additional
utilities
The
(1
general
Fees
exemption
imposing
of
rule
executor
of
is
services
that
or
a
administrator
foreign
by
agricultural
corporation
5%
a
i.
s,
Deficiency
deduct
The
country
&
in
Interest
full
from
OR
in
re
capitalize
the
which
tax
sis
due
he
&
is
arat on of
CLAU
transactions
SE

)claims
SC
respect
payments

[difference
Sec.
to
employees
who
are
CG
from
sale/disposition
of
principal
1.
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For
Capital
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brand
Gains:
obligations
new
or
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bonds
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the
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term
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DESTINATION
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and
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TRANSACTIONS
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expenses
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personal
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after
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death
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of
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NET
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compensation
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means
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fle
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tax
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situated
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is
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vi
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importations
properties
impositions
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and/or
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books
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the
of
case
of
accounts,
assets,
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between
Final
FMV
tax
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of
the
means:
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audit
cases
that
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prescribing
within
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(6)
a
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AD
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E
BY

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the
prizes
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year
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there
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======
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The
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property
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revenue
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currency,
debt
securities,
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PERS

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determining
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Nonresident
SOUR
RATE
warehouse,
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factory,
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manufacturers
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deductions]
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Basis
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t
io
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:
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to
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taxes.
following
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of
lapse
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intent
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be
Report
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on
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the
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within
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material
10
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days
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by
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the
Importations
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embassies,
packages
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enc
between
es
n
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for
marked
sample
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and
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investigation
services
punishable

income
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by
or
law
inquiry
amount
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into
paid
locally
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for
the
tax
or

Reciprocity:
such
foreign
country
must
grant
same
9504,
CE
designate
liable
Customhouse
personnel
Special
for
CTA
Real
the
in
en
levies:
SEATO,
Prop
tax
AFP
are:
military
personnel
charged
chartered
not
cannot
for
the
be
use
confiscated.
of
any
wharf
but
for
granted
basis
by
for
such
at
depository
banks
under
said
EFCDS
the
of
time
a
willful
and
attempt
place
of
(Sec
to
sale
evade
196)
and
the
taxes.
articles
An
income
35%)
grantors
due
IF
Brazil
from
medical
will
reduce/credit
expenses
at
least
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(b)
Income
Exempt
under
Treaty
In
that
case,
what
is
being
not
TOPIC
under
UNDER
THE
SYLLABUS:
particular
(whichever
is
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
a.
within
duly
Special
there
income
served
the
Education
shall
said
earned
and
no
period
be
Fund
from
property
allowed
shall
(SEF)
is
be

located
1%
personal
deemed
b.
Properties
the
Exempt
extent
from
that
Real
they
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are
connected
Tax
o
dividing
net
income
of
GPP).
political
subdivision,
exclusively
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escaping
exemptions
the
effect
must
of
the
not
progressive
be
confused
rates
with
of
Appeal
to
Customs
Commissioner
make
and
annum
Redeem
from
the
or
due
change
date
until
unused
it
on
is
Antipaid
stamps
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Goods.

Sale
or
lease
of
goods
or
properties
or
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initial
THE
SYLLABUS:
general
advantages
and
protection
which
buyer
shall
and
extend
trust
companies)
to
the
seller,
making
these
Refunds
could
Between
be
under
valid.
this
grantor
[
MMIC
paragraph
&
v.
fduciary
shall
of
be
Regional
Operating
Headquarters
property
Automatic
of
Multinational
appeal
for
to
Customs
Companies
=
engaged
in
any
of
quarter
shall
be
reduced
by
the
total
amount
autonomy.
Such
taxes,
fees,
and
charges
based
on
the
zonal
value
or
fair
a.
Being
generally
considered
as
pets
taxable
2.
purpose
under
Over
COC
year
each
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Imported
of
stock
or
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of
employee
law.
avoiding
the
be
shall
[
RTC,
B
Articles
IR
used
time
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for
R
provincial,
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by
l
i
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g
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municipal
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for
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year,
3
with
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its
as
equal
................................................
to
30%
(2009
onwards;
35%
145
2006representative
treated
may
in
the
order
succeeding
suspension
or
the
Philippines
on
a
more
or
less
2.
earned.
Nature
1.
and
Prospectivity
These
Source
amounts
of
of
Taxing
tax
are
Power
carried
processing,
packing,
repacking
in
the
invoice
be
presented
while
a
VAT
oficial
without
regard
expense
of
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the
state
or
incurred
of
health
upon
of
such
province
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an
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
during
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
a
se
destination,
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
Attorneys
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
====
e
basis
as
an
loss
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
Court
Y:
Itthe
said
is
a
that
declaration
the
BIR
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
buyers
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:
]
any
t
charged
initial
amount
the
g
LGC)
of
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
taxpayers
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

donors
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
decedents
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
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e
odutiable
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uor
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g Such
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International
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CIR
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Systems
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a
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ay
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the
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.currency
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N
o
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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
govt
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,
decedents
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
Accountants
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
Customs
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
decedents
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
Donors
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
donors
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
taxpayers
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

[
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
taxpayers
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
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Accounted
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Within
15
days
to
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Philippines
on
account
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person
sale
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auction
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within
Provided,
30
not
days
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subject
after
pay
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ment
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The
that
trade
process
on
the
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barter,
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.................................
by
virtue
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122
its
taxable

Excluded
principal
impositions
ofice
of
the
pursuant
CORPORATION
to
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from
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such
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costs
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addition
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both
for
the
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required
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quorum
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income
not
cannot
include
tax
be
on
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their
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entire
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and
Liability
both
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rests
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units
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for
is
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otherwise,
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P10,000)
the
rendered
treated
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recorded
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the
books,
and
impose:
government
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or
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estate
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the
transmission
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and
withhold
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final
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of:
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That
the
information
suficient
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cooperative
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plan,
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foreign
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tax
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of
Since
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power
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ma
involved
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cannot
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continue
documents
without
mentioned
means
to
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pay
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its
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Phil
and
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made
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as
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under
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6
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of
the
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directly
on
the
X
Tax
rate
(Sec.
84)
5-32%
20
Exempt
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contracted.
subdivisions
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the
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by
of
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power
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Right
taxes
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to
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ry
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amade
right
s,
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it
Foreign
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corporation
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NOTE:
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iv
x.
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the
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shall
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has
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ly
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the
3
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years
services.
general
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husband
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is
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set
be
at
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considered
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x
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suppliers
product
only
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price
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are
found
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Arts.
to
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CU
ST
OM
S
arr
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va
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dead
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n
death
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ured
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ma
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sbe
the
the
hands
Commissioners
emoluments
the
life
In
case
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foreign
Business
The
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provisions
Sanggunian
of
is
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114
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e
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(5
i.
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A
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tax
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upon
person
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consideration
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of
60
days
24,
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19
97]
the
date
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transactions
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at
for
Section
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parents
24
(d),
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each
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to
of
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if
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if
than
Royalties
waived
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Place
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of
use
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location
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tax
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collection:
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method
by
of
law-making
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body
VAT
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and
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not
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all
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employer
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Intent
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Share
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failure
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primarily
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the
on
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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.
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TAX
must
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On
purchases
(3
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Original
of
Deductions
jurisdiction
(BELT
in
tax
collection
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resident
of
nonresident
citizens

by
alien
The
nature.
collection
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local
taxes,
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charges
Philippines
as
can
proven
by
business
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)rules
paid
to
winner
for
A)
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of
the
amount
due,
in
NOTE:
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gift
if
the
initial
payment
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25%
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tax
Delivery
shall
of
subje
gift,
actu
a
or
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and
xx
.

iii.
RA,
NRAbe
taxed
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another.
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absence
or
lack
actual
knowledge
of
violator
)
has
court
knowingly
of
competent
and
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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
govt
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
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n
il
a
v.
ALL
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,
FEES
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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
that
and
declared
to
sales
limitation.
financial
to
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its
If
the
GPP
availed
itemized
CIR;
deceased
------------------------------------------------penalties
prescribed
under
applicable
refers
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taxpayer
such
It
documents
must
not
be
which
Seizure
Code
&
Arrest
(authority
inquire
into
bank
th
%
the
preparing
other
lower
persons
rate
and
engaged
packaging
of
tax
on
in
interest
hogs/chicken
income
Filed
qualifed
with
as
any
a
MWE,
Authorized
the
income
Agent
is
Bank
(AAB)
jeopardize
the
interest
of
the

a.
case;
may
The
be
merger
than
the
governments.
granted
municipality
BIR
2
public
or
consolidation
only
places
upon
Delegation
specific
in
of
corporations
impose
the
to
the
city
and
or
ofcorporation
sold
prop
be
carried
to
the
new
Contracting
State
with
which
the
Philippines
taxable,
the
]eral
only
exception
being
that
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
Beaucha
shall
pay
mp
The
v.
the
Si
cost
P500
lk
:of
of
registration
supplies
in
fee,
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:
Gross
taxes
exempt
failed
selling
provided
to
from
is
su
price
eBUR
by
f.
(2
[(90,00
Source

(b)
If

If
i.
[6
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,
barter
or
exchange
the
goods
or
taxpayers
]of
The
paid
family
for
expenditures
initial
from
by
le.
purposes
home
the
payments
must
of
for
be
the
mining
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
and
for
violations
where
of
tax
in
d.
(c
Transmission
Return
percentage
NOTE:
5.
on
capital
You
from
can
of
gains
the
the
deduct
first
realized
MCIT
heir,
from
Carry
legatee
sale
or
of
recognized
natural,
or
adopted
children
tof
o
surviving
a.
)person;
Grant
n
provincial,
G
s:
e
n
spouse
of
rwhich
ul
municipal
e:
Taxable
and
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
[1
All
pay
6.
for
other
deduct
men
for
and
ts
the
partnerships
as
made
end
cost
benefit
of
b
y
of
le
the
no
ss
the
ee
matter
for
how
exemption
1
must
Protest
be
able
donors
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
in
is
real
property
b
Rationale
addition
to
the
gross
If

detention.
tax
estate,
has
whichever
From
date
is
lower,
it
A
but
taxpayer
in
no
case
On
)and
The
the
exporters,
beneficiary
ct
and
is
on
whether
estate,
manufacturers,
al
or

-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
of
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
Efectively
Zero-Rated
Suit
assailing
the
validity
of
tax
sale
exclusively
than
accrue
to
them:
[
T
O
B
S
]
administrator
or
executor
or
upon
full
(3)
Professional
8.
beneficiary
short
sales
of
of
property
a
trust
registration
that
the
VAT
fee
invoice
has
is
the
been
sellers
paid
best
may
proof
be
does
not
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
Taxs
primary
purpose,
or
at
least
one
of
Limit
the
geographical
area
in
which
P1.00
Forfeiture
st
for
every
Cases
Final
Tax
that
in
e
v
e
n
in
certificate
t
h
e
a
b
se
4.
n
which
c
Escape
e
o
f
remains
pro
from
f
i
t
a
tt
Taxation
r
unutilized
i
bu
t
a
b
le
after
5
party
is
also
depend
not
subject
on
the
to
happening
VAT,
but
may
of
the
======================
In
places
where
there
are
no
AABs

with
2.
8.
Nature
Taxpayers
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
no
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
engaging
becomes
in

Net
capital
gain
is
added
to
======================
results
the
right
in
no
Income
either
chargeable
alone
or
in
against
conjunction
the
purchased
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
]an
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.
.exchange
Pa
ymen
While
the
which

Normal
60-day
t
o
appears
it
f
tax
is
period
not
Cost
ant
at
ec
favored,
regular
are
ed

en
not
the
t
to
intervals
deemed
a
th
contributions
statute
e
tr
an
sold
sfer
may
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
donors
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
taxpayers
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
taxpayers
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
years
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
buyers
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
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th
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A
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lace
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ffor
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prescribed
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ure
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iii
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letter
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OP
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5.
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PRINCIPLES
Taxing
Power
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Local
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engaged
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if
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y
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city
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Income
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S
ec
14
7
]
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on
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the
Additional
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the
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of
Exemptions
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for
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at
3.
otherwise
provided
In
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exported
(Sec
1701-1708)

r
ght
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from
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AAB,
the
return
will
be
filed
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1
same
Appe
ones
with
(6)
the
period
months
patrimony
Revenue
that
from
the
Collection
to
the
seller
registration
another
recognized
Oficer
without
or
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duly
to
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availed

once
May
every
be
10
imposed
years
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by
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nd
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o
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l
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s
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selling
price
or
or
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or
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mortgage
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other
assumed
compensation
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buyer
personal
over
the
The
grant
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through
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or
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110
[B]
citizen
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or
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to
bid
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2.
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Treasurer
of
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Revenue
District
Cars
for
hire
ing
mun
c
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of
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certificate
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another
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the
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t
surviving
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e
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il
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g
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Income
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Tax
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abovementioned
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limits
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fixed
in
the
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public
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of
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profession,
also
Assessment
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Input
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tax
In
his
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intangible
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ordinance
year,
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liable
such
bidder
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sales
allowed
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for
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defer
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as
or
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disposed
which
shall
the
trust,
for
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income
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the
try
B,
11K
(actual)
withholding
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Tax
Due
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fees
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sealing
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licensing
individual
banks
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owners
good
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by
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property.
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exhaustion
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purpose
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to
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org.
period
of
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no
6
amount
and
4
is
years,
shown
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tax
by
raising
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Philippines
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one
In
shall
the
The
Sec.
be
unjustly
237
the
enriched
plaintiff
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or
benefited
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at
on
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due
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appearing
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in
the
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vs.
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and
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in
Macara
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sound
ig
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financial
197
basis
interment
deductible
authority
without
show
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his
liabilities
stockholders
surrounding
intention
to
knowledge
of
but
of
distribute
profits
circumstance.
leaving
also
or
a
information
the
in
demand
Philippines
the
form
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for
fraudulent
1
28315
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their
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its
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taxable
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OF
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purposes
physical
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ofice
banking
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units
taxpayers
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source
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deficiency
or
delinquency,
.1991
ETB
misinterpreted.
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%
g
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situated;
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ai
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nor
shall
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imprisonment
be
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stay
or
abroad
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SCRA
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and
subtracting
INCOME
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as
therefrom
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generate
iv.
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[4

[a]
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ar
supply
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abe
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atheir
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29,1999]
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uance
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263)
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soon
Sale
(1):
exclusive
De
as
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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:
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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)
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followed
Interest

partly
actual
by
when
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his
without;
shall
exploration
TIN;
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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
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tax
rate
than
titems
Cessna
plane
for
smuggling
operations
ii.
of
date
of
entitled
exposed
Co
to
mm
to
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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
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registration
be
granted
on
the
Invo
icin
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ror
equ
ir
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ts
sale
of
which
preferred
which
in
A
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person
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previously
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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
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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
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r
e
Gross
the
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n
t
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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
Donors
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
corporations
on
costs
a
persons
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
taxpayers
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,
donors
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
govt
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
Attorneys
Particular
Only
and
ii.
aircraft,
the
references
fees
proportion
to
including
partie
be
in
deductible
of
engine,
the
to
total
should
equipment
c.
Transfers
Donors
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
refund
or
in
e
its
of
Po
wer
GOVE
)Provincial
o
separate
f[10
Commission
R
NME
ii.
NT
Methods
item
er
to
of
su
staxpayer;
p
en
dof
th
e
bu
sin
al
ess
d.
That
it
complies
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
taxpayers
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
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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
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individual:
TO
WHOM
ii.
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Rate:
purposes
Compliance
4%
filed:
of
since
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gross
Requirements:
it
is
only
value
acting
in
money
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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
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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
No
or
injunction
to
restrain
which
the
intangible,
cooperatives
period
deficiency
he
shall
wherever
duly
payment
taxes
registered
situated.
is
of
tax.
with
In
case
and
of
in
accumulation
of
its
earnings,
and
a
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
that
sources
e
and
he
k
or
pay
is
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
%
not.
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
obligation,
bond
Philippines;
corporation:
are
.Gains
conducted
v.
by
the
members
thereof
with
instruments
ma
related
n
special
a
ta
or
to
y
.bears
ones
law;
and
profession
and
f.
general
of
.he
business
i.

Requisites
should
deductions

LOSS
deduction
If
or
shall
the
head
be
=
advance
for
observed.
no
excess
ofice
in
Deductibility:
(1)
longer
and
to
payment
of
and
[method
th
the
all
S
ec.
(2)
be
branches.
GP
187,
is
above
an
a
loan
fil
its
a
held
General
(1)
ad
Consolidation
contrary
of
income
two
or
shall
no
tDeduction
be
products
from
If
required
at
ion
o
fsources
evidence
E
ach
T
yp
e
is
o
not
fyto
In
tern
submitted
al
within
Provided
A
person
whose
not
more
than
30%
are
exempt
of
the
indi
v
ia
d
u
al
tthe
a
xp
a
er
[1]
file
For
a
final
consolidated
return
of
all
(a)
May
SCs
be
must
distributed
be
qualifed
to
the
as
such
by
the
not
more
10%
where
(b
return
may
the
be
enjoyment
fled
with
was
Revenue
subject
District
at
No.
collection
of
assets,
payment
of
debts
or
the
Payments
flin
a
g
specifically
engaged
incurred
in
enumerated
for
trade
the
than
in
LGC
Difference
the
pays
taxable
dwelling
the
tax.
between
Home
Ofice
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or
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eter
min
tax
ation
base
oion)
fof
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tNEDA
T
Cr
ed
it
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viii
attributable
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service
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ease
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The
d
be
amount
contrary
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to
tax
shown
as
Registr
(a
2.
(2
Sale
Definition
Procedural
ation
Gross
of
above
residential
income
details
contribution
lot
and
[transactions
Secs
with
taxable
.ax
gross
(covering
54,
55,
selling
gross
income
price
rRegistr
egister
performance
Within
thirty
[1]
Straight-line
days
(30)
after
the
date
the
gift
to
tax
is
limited
to
the
territorial
necessary
to
substantiate
the
actual
income
"VATexempt
sale"
shall
be
written
regulation,
amount
Sec.
bears
a
citizen
204
to
the
and
Income
C.
value
resident
Credit
of
derived
his
at
entire
the
or
by
time
refund
ofshore
GE
of
wherever
his
taxes
NE
T
is
(e
o
fappraisal
but
Share
(head
just
must
th
of
capital
e
compensation
family
not
d
contribution
be
ec
or
ed
married),
between
en
to
t
the
of
state
for
(wheth
related
each
for
Service
)Philippines
Corporation
income
tax
existing
tax/illegally

On
or
residents,
there
before
business/
PAL)
being
assessed
the
are
no
15
appeal,
day
of
the
the
procedure
fourth
month
set
1
C
v
Act
on
PROPERTIES.....................
Polished
and/or
4
Appea
husked
80
elec
w
rice,
th
n
60
corn
days
grits
from
business
either
business,
a
taxation.
VAT
or
taxable
due
to
or
changes
VAT-exempt
in
or
schedular
form
part
the
return
of
may
cost
be
confined
made:
of
goods
each
sold

PERCENTAGE
OF
COMPLETION
warrant
)multiple
Enterprises
was
A
VA
)there
Must
T
-r
from
egister
in
be
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filed
ed
p
er
when
so
n
may,
the
amount
tto
th
at
th
claimed
at
th
e
provisions
packing,
on
(1)
or
exceeds
P1
capital
million,
or
the
surplus
input
invested
tax
cannot
in
be
process
...................................................
business,
ordinary
loss
revenue
taxes
authorized
in
order
by
to
the
safeguard
Commissioner;
the
interest
or
For

eign
If
under
Curr
makes
en
cy
a
D
laws
eno
written
min
a
ated
application
Sale
and
can

Suspension
unless
of
business
claim
operations:
In
receives
purpose
payment
of
the
for
contribution
services
rendered
was
to
help
to
its
elect
y
E:
a.
Did
not
impose
a
transfer
tax
or
death
o
At
least
50%
of
the
total
combined
under
annual
Inherent
registration
fee
has
been
duly
paid,
Method:
subdivisions,
instrumentalities
If
merely
an
At
accommodation
the
It
is
only
made
then
by
considered

Limited
as
entered
to
150
into
in
tons
the
course
and
of
above,
trade
(i)
prop
b
be
hi
carried
duly
the
new
agen
principal
return,
government
statement
or
(from
other
investments
document
shall
in
unmarried
minor
is
made
children
by
a
dealer
of
the
in
deceased
RATE
S(c
[1
In
(1)
case
Taxes
Between
of
on
doubt,
Real
members
Property
tax
of
statutes
S
a
family
are
Capital
[1
amounts
from
Sale
previously
of
Shares
abated,
(a
Deduction:
in
the
petitions
included
following
for
items)
in
review
the
(GRIP
with
profit
the
[educational]
employer
fails
employee
institutions
to
withhold
[therefore
S
ec.
of
and
th
(b
Gifts
properties;
made
to
and
the
National
Government
======================
during
n:
are
the
two
year
or
more
pecuniary
impositions.
i.
Inadequate
BIR
Commissioner
records
as
as
prerequisite
expressly
-gross
The
means
VAT
Cooking
directly
that
all
oil
attributable
and
or
ratably
investigation,
and
then
.C
transfer
Passive
taxes
or
(b
and
the
Charges
Nonresident
Exclusively
VAT
value
is
for
received
not
services
billed
used
Alien
rendered
for
separately,
educational
a
in
the
an
2
principal
As
to
who
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
of
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.
Withholding
a
(c)
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
taxpayers
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)
donors
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.
banks
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
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to
corporation,
such
Philippines
a
preof
goods
the
assessment
vs.
3
from
company
year
Ermita,
customs
period.
notice
G.R.
services
of
passengers
rendered
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to
cargo
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by
th
without
the
institutions
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foreign
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corporation
true
Two
copy
or
of
more
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OSCA
trusts
ID.
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information
over
or
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amount
option
realized
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sources
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>
the
th
vehicles,
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Payment
aircraft
of
and
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purchased
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ass
ess
ment
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ribe
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applies
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for
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50%
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on
or
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day
property
will
May
be
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listed
applied
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to
the
payment
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taxable
exercise
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Philippine
to
forfeiture
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Embassy
power
by
or
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the
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in
the
]selling
taxpayer
the
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the
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such
example:
input
tax
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Sec.
191
LGC)
qu
ter
Co
is
.,
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nc.
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Returns
Terminate
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ction
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value
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RA
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27
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pt
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10%
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for
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ORE
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commissioners
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securities)
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e
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corporations
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balance
Guidelines
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tax
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ich
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c

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created
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you
appeal
it
to
the
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taxpayer
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all
income
appeals
received
to
or
the
earned
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books
NIRC
goods
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other
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person
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income
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subsequently
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Under
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ome
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Treaty
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om
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document
S
our
the
ces
Philippines
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case

exactions
d)
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e
Revocati
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accordance
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minimize

is
shorter
less
the
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life
as
of
may
double
be
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taxation
government
unit
be
observed
ii.
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of
Customs
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respect
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the
tenth
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due
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of
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purpose
Issuance
person

of
of
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taxes
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the
certification
on
non-availability
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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
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All
income
.No.
2210
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TCC
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c.
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ge
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return:
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Imposed
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within
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insurer
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th
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other
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races
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i.
Recipient
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selected
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circuses,
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issue
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it
would
appear
may
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fund
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similar
arrangement
f.
Tax
on
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agencies
and
multinational
companies;
regardless
of
the
origin,
purpose
hence,
of
distributing
the
Province
to
such
may
on
contrivances,
constitutionality
of
passengers
instruments,
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legality
by
hire
of
appliances
tax
and
ordinance
common
or
)
Foreign
public
improvements
Income
designed
for
the
involuntarily
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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
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the
only
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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
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in
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hereof
20
ii.rain
2009;

30%
B
IR
of
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all
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sales
te
]
recorded
in
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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
,
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of
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notwithstanding
h
]
the
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Rate
e
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Impose
Persons,
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necessary
expenses
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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
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concomitant
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.......................................
aggregate
prominently
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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
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REALIZED
of
by
S
international
a
may
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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
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indirectly
authorized
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to
or
adjust
for
not
the
more
tax
rates
than
as
20
)
payment
days
from
sale
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insurance
(from
Comm
GR
the
OSS
iss
allowed
ioner
time
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Inc
when
apply
ome
In
to
terna
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assessment
om
transfers,
l
R
s
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our
ces
was
trusts,
e,

3
y
ear
Importer:
s.
the
refers
ITR
to
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person
who
brings

Tax
Credit:
paid
subject
to
fnal
gross
sales
Expenses
from
for
in
that
shall,
the
person
for
before
the
and
deceaseds
making
part
of
gross
wake,
payment
estate
on
d)
13
month
pay
&
other
benefits
(i.e.
the
fling
of
can
ascertain
t15
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,
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d
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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
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gn
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h
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e
N
I
return
R
ion
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of
]
Local
statement
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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
its
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
donors
may
in
not
the
taxes
be
attached,
oficials
&
employees
the
earnings
Corporation
enjoyment
of
the
citizenry
within
the
States
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
spartiesIt
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
,
following
[
CTA
E
B
C
a
s
e
the
N
o
.
90
If
there
is
a
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
insurance
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
(iii
of
the
State.
substitutes
for
the
imported
material
(no
[4

amusement
Effec
CUSTOMS
Example:
proceeds
cost=15,000;
DUTIES
from
the
SV=5,000;
Substitutes,
Failure
Trust
to
Taxes........................
Funds
refund
and
excess
withholding
128
tax
Zero-Rated
per
Ex.
month
Income
vs.
VAT-Exempt
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

2.
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

&
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.
5
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
taxpayers
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
gross
distributive
share.
cost
included
of
goods
as
part
sold.
of
gross
income
5
2.
2)
(3
On
2010]
Taxable

the
nes
Accumulation
Service
Tax
grant
Trusts:
Rules:
payment,
liability
of
of
tax
warrant
of
earnings
month
against
of
in
Procedur
in
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
in
Real
or
TO
not
ACTION
Property
in
BY
and/or
services
taxed
at
12%
the
Failure
all
tax
e
ge
is
in
that
such
to
the
pay
supporting
on
or
documents
before
government
Taxpayer
ING
Siso
is
fnal
n
prohibited
v.
return
An
cheta
made
from
,of
[made
130
profits
SCRA
because
Taxes
is
deducted
not
necessarily
and
disqualifed
withheld
by
donee

a
mistake
by
way
of
of
fact,
such
as,
he
is
not
aware
of
necessarily
identification
taxable
in
for
comparison
tax
income
purposes.
with
deducti
other
units
th
Need
for
evidence
of
source
of
income
-10,00
That
are
)transaction
the
debts
every
BIR,
Bankruptcy
within
fire,
30
days
or
from
the
of
a
death,
afrom
list
E:
transferred
.death;
11,
Return
computing
20
[2
additional
05
as
The
a
gift,
the
exemptions:
amount
taxable
income
of
of
premium
the
Operating
C
TA
Cand
a
s
e
N
o
.Section
Condition
Publication
same
as
charges
receivable
for
death
of
the
notices;
estate,
months,
at
the
time
than
of
acquisition
those
that
counted
are
exempt

CIR
or
his
o
Sale
duly
of
authorized
Stocks
representative
a
domestic
presumed
beyond
what
the
statute
A
2006-2008)
subject
corporation
to
the
tax
may
on
employ
gross
income
either
allowed
as
avessel:
State
or
computation
residence.
other
can
forms
exercise
of
of
indemnity
its
taxing
incentives
&
Christmas
bonus)
the
total
classified
a
6185,
profits
Ma
Not
materially
for
y
over
17,
the
P100,000
different
from
the
facts
on
2
or
Assembled
or
manufactured
in
the
Barangay
When
residents
the
Clearance.
exemption
aof
is
in
No
favor
city
of
the
or
5.
the
Philippines
and
is
liable
from
In
the
case
of
tramp
vessels,
pecuniary
ts)
A.
withholding
Assigne
marin
nature
or
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which
miscellaneo
could
have
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been
agen
rental,
Tr
an
E)
sfer
then
Interest

oRME
development
fas
on
extended
expenditures
=
Appraisal,
assessment,
levy
and
collection
value
or
market
value
of
the
property,
taxes
IV.
TARIFF
AND
CUSTOMS
may
be
recognized
input
tax
It
is
authority
territorial
tax
[1
for
is
failure
specifically
in
operation
to
deduct
granted
from
shall
The
and
power
be
withhold
such
to
as
those

rendered
.................................................15
by
professionals
The
other
family
Paid
than
home
or
those
incurred
must
that
during
are
be
exempt
part
the
taxable
under
COMPROMIS
such
goods;
payments.
tools;
No
registration
of
any
)zonal
)Brother,
property
ii.
Intangible
for
extent
of
the
gains
such
DIRECTLY
AND
EXCLUSIVELY
for
services
est.
of
life=5
his
person
or
property,
of
the
land
had
been
donated
GE
NE
RAL
RU
LE
:Income
No
exemptions
from
No.
11545
5,
O
ct
ober
vi
Cost
of
materials
Similar
local
articles
base
Arrangements
not
substitute
shall
later
previously
be
the
for
acquisition
and
the
exported
materials)
and
cost
Exportation
or
%
the
-required
-taxpayer
consigned
Philippin
CIR
v.
Ceb
u
To
yo
C
orp
transferee
orat
io
n,
[based
G.R.
No
.shall
REQUIREMENTS
FOR
TAX
system
uses
destination
principle
as
a
i.
Property
Deductions
8.
engages
from
Taxpayers
in
Gross
Income
is
Remedies
D

1.
istr
Law
(2
seedlings
If
Appeal
ibu
Tax
described
Nonresident
tion
th
exemptions
alien
within
o
f]is
and
who
as
gif
30
gains
Citizen
are
days
and
(donatio
strictly
from
-tax
profits,
citizen
receipt
construed
including
of
involv
of

Registration
of

that
ifNon-revenue/special
aonce
or
bounty
was
allowed
to
any
g
Transfers
for
Insufficient
is
not
a:
[as
R
R
2-98]
Laboratory
Passenger/cargo
Restraint
services
on
are
15
without
Where
the
principal
and
his
The

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
in
favor
of
a
non-profit
INCOME
Interest
Income
TEST
OF
SOURCE
OF
services
importation

of
Import
entry
or
other
transferring
pop,
rock,
or
partnership
Taxes
on
(except
premiums
GPP);
paid
Share
by
of
way
an
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
includes
the
physical
facilities
for
production,
accumulated;
&
provided
in
therefore
i.
Concep
it
is
ci
on
not
[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
the
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
be
invoked
be
by
ordinary
the
AND
enumeration)
=======================
are
withdrawn.
Decisions
of
of

Object
the
and
accrual
a.
other
3
yrs

from
fling
of
return
due
person
provides
that
in
case
the
protest
is
not
STOCK
Prizes
LIS
TE
D
&
AND
TRADE
D
NIRC
shall
be
the
imported
income,
(2009
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.
anothers
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
Commissioners
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
governments
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
workers
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--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

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

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ar
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T
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good
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by
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of
Primary
Jurisdiction.
developme
al
thos
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and
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money
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is
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gain
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(1)
Estate
Tax
is
Domicile
of
the
allowed
take
testimony
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persons
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5)
REQUIREMENTS
E:
his
death:
year
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liability
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for
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sources.
In
be subject
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NOTE:
proceeds
Cons
2
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6,
1954
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]1
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ve
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ds
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exemptions
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must
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in
The
IAET
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investments
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trade
to
evidenced
the
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following
business
to
(within
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days
business
or
professional
expenses
Persons
%
here
within,
partly
NOTE:
subjected
Any
to
income
different
of
nonresidents,
sets
of
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5
or
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yrs
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e
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o
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ttime
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e
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or
detain
finance
There
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the
no
said
double
corporation
intermediaries,
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of
in
party
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The
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RE
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IZE
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ENT
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ty
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ax
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The
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of
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and
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not
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after
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acquisition
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return,
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the
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aby
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.(m
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while
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3.
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fees
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and
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contractors
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seller
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company,
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rights
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(2)
Exception:
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petition
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review
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for
city
the
or
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did
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107)
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.I.
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Net
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credit
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penalties
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or
the
180-day
period,
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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
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of
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with
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the
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Ablaza:
POEA
occurred
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The
[is
B
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IR
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li
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tion
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ffor
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Those
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Exemp
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basis
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property
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their
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location
District
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A
not
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year;
point
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)
In
case
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the
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Other
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within
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Earner
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year
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If
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trade
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file
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return
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valorem
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allowed
.
all
cases
international
higher
of:
than
agreements
the
consideration
in
authority
taxpayer,
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on
property,
such
individuals
options,
schemes
or
objectives
reckoning
excessive,
and
cash
oppressive,
pursue
receipts,
policy
confiscatory
decisions.
for
the
statute
or
when
returned
after
having
been
bank,
Revenue
District
Oficer,
Collection
(
Sec.
192
LGC)
o
Gain
derived
from
sale
of
real
a
From
b.
Calendar
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the
Resale
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1.
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provision
a
Business
Year
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real
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12-99]
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period
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Payment
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tax
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(1)
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In
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of
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of
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subsidized
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from
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or
[
automatically
S
ec.
Donations
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business
TC
to
subject
C
]
the
of
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to
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to
Property
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General
]
shall
Barangay
death
Rule:
BIR
be
Form
Chairman
specifying
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the
Building
RDO
(a
Gifts
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National
Government
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16.
i.
a.
transfers
PERSONS
Advertisement
subject
WHO
CAN
and
to
AVAIL
sale
the
OF
tax
o
grantor
title
C.
Taxpayers
Suit
Impugning
the
headquarters
established
There
are
reasonable
grounds
to
...............................................17
of
Manila
the
penalties
exclusive
Goods/cargo
Electric
provided
properties
Company
for
Domestic
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of
either
v.
Vera,
12%
spouse,
false
VAT
[67
or
When
abate
source
principle
Exceptional
as
to
or
taxing
regard
State
to
the
to
November
1,
the
price
needs
)
The
)
revenue
following
Philippines
professio
is
sales
of
real
properties
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becomes
credit
arises,
Example:
VAT
is
originally
assessed
tender
price
of
5.
WHO
MAY
Regular
CLAIM/APPLY
exaction
FOR
TAX
Property
Ownership.
The
of
the
other
disposition
manufacture
seller,
of
finished
donor,
transferor
feeds
(except
or
Requisites
(3)
Compensation
the
Deductions
criterion
for
total
amount
Control
as
to
of
refund
is
services
ownership
which
performed
was
not
of

Tax
NOTE:
base
=
Depletion
total
value
of
Oil
used
and
by
Gas
BOC
wells
in
any
respective
heir
or
consumed
the
imported
used
in
goods
business
drugs
and
merchandise
is
subject
to
VAT.
Secretary
of
Trade
and
Industry
or
================
consignor
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Not
Th
chargeable
exerci
to
is
capital
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to
th

Taxes
s;
d
ng,
nt,
e
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the
y
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the
A
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differs
or
from
15
of
the
current
taxable
year
provisions
in
the
of
Sec.
Philippines
114
of
the
Tax
Code
and
Immediacy
(4
return
Semiof
Test

It
or
states
Semi-Global
that
the
Tax
Foreign
corporation,
involving
customs
which
collateral
Corporation
are
the
line
not
institution
extinguished
as
a
Non-Resident
accredited
by
his
death
nonattached
Even

if
to
a
the
Customs
real
property
seizure
which
is
illegal,
are
exclusive
actually,
12.

g
ZERO-RATED
expenditures
SALES
incurred
prior
recognized,
Allow
of
the
FMV
a
but
similar
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in
the
an
exemptions
time
amount
of
death
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from
in
over
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transfer
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de
termi
nat
io
n
exerci
Example:
Nobel
prize
award
aliens
notwithstanding,
a
Generally,
appeal
there
will
be
shall
to
a
be
no
PERSON
allowed
within
provisions
public
artwork,
30as
credit
days
of
design
from
against
the
work
the
lapse
and
output
of
plans
the
tax
180and
but
.
the
TAX
tax
REFUND
base
TAX
from
receipt
of
the
return
determining
gross
income,
deductions
)
an
alien
decedent
at
the
difficulties
in
determining
the
dutiable
value
[5
individuals
B)
Penalty:
50%
of
the
tax
or
of
the
to
duty equal
corporations:
to
the
bounty
only
or
drawback
===========================
For
the
Commissioner
to
ascertain:
youve
payment
availed
of
of
the
RPBP,
tax
you
required
cannot
to
avail
or
o
years
(3
Under
the
Constitution
In
order
be
irrevocable,
tax
following
cases:
without
flat
to
and
income
Filipinos
immunities
tax
rates.
pursuant
The
applicable
to
an
essential
governmental
CIT
IZE

N/
RES
Fringe
IDE
NT
benefit
ALIE
N
Application
of
income
within
subject
does
not
to
pay
same.
Applies
to
property
all
must
have
to
all
formed
Only
part
of
the
Property
Tax
Sales

ROYALTIES
to
p5
er
son
safter
oApplies
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ra
en
tities
property
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o
se
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Correctness
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in
making
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salaries,
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the
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...............................................
134
(3)
The
right
Creditable
of
a
citizen
Withholding
and
aTax
taxpayer
to
Provided,
that
sales
of
export
products

)foreign
provided
necessary,
it
for
lots,
only
]Business
corporation
corporate
readjustment
ebe
b.
Oth
er
location

i.
exportation
of
merchandise;
and
A
city
can
validly
tax
the
sales
to
customers
amounts
the
elevated
said
previously
business
to
him
on
or
abated,
automatic
principal
refunded
place
review
or
of
donation
apparatus
purchased
from
such
Real
property
within
and
without
talent
the
certificates
representative.
Income
of
taxes,
stock
In
the
real
or
other
case
estate
securities.
of
a
property
corporation,
total
VAT-exempt,
price
the
invoice
or
receipt
shall
6.
Claim
for
Tax
Refund
or
Credit
2.
Criminal

provided
in
no
case
shall
the
total
Trading
In
for
mation
con
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;
)a.
of
Registration
said
deposit
Requirements
account,
(see
unless
the
Income
Derived
under
the
A.
Through
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
and

headquarters
of
multinational
1.
a.
Court
not
Protest
exceed

within
P10,000,000.00
60
days
from
shall
be
2.
the
factory,
project
ofice,
plant,
or

Taxes,
when
refunded
(1)
Citizens
prematurely
fled.
world
(1)
employee
Gen
er
al
relationship
Ru
le:
all
between
corporations,
them;
f.
shall
On
seizure
which
banks
be
or
allowed
and
remain
forfeiture
other
unless
uncultivated
fnancial
proceedings
the
taxpayer
or
are
actions
files
charges
shall
be
the
ca
l
e
nd
ar
y
ear,
does
not
automatically
register
the
other
r)(held
egu
lar

ity
claimed
or
to
file
a
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
less.
to
constitute
should
a
(a
Resident
Final
Tax
Rate:

of
the
50%
in
value
of
outstanding
stock
b).
Civil
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
a
gross
use.
(e)
Compensation
for
Injuries
or
Sickness

Any
business
where
the
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
taxpayers
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
1
related
names,
taxes
to
corporation
to
raise
to
TIN,
the
addresses
money
for
and
shares
public
y
FOR
REFUND
contrary
to
declared
national
policy.
exported
and
loaned
for
use
temporarily
Agent,
sources
Types
tax
or
or
of
not
of
duly
energy
allowable
Insurance
authorized
such
as
as,
deductions.
Treasurer
but
not
limited
of
the

]
from
sources
articles
without
the
the
Philippines
for
companies
not
any
part
on
or
before
the
date
However,
]
our
VAT
property
law
itself
in
the
provides
Philippines
for

a
clear
any
entity
finance,
to
provide
for,
or
to
be
THE
imposed
INPUT
TAX
herein
Housing
(2)
(b
When
Pawns
subject
Aliens
2
distrained,
ho
or
Requiremen
p
more
to
Com
listed
the
result
pan
tax
signed
and
y,
from
imposed
I
nc.,
not
the
by
[
G.
traded
used
by
the
R
.
this
No.
of
oficer,
Title,
stoc
6.
PROTESTING
b.
where
In
case
[b
he
of
Administrator
is
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
taxpayers
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
taxpayers
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,
from
Domesti
sources
by
aof
reasonable
)
(a)
Schedular
Personal
needs
the
exemptions
balance
System
of
to

the
For
transactions
b.
[4
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
.
Division

requirement
of
giving
prior
the
money
sketches
so
expended.

should
date
be
of
treated
submission
as
part
of
of
complete
cost
of
goods
======================
]
deficiency
tax,
in
CREDIT
should
may,
not
be
made
upon
for
the
depreciation,

Not
Upon
primarily
failure
Ofline
held
of
carriers:
for
the
sale
said
those
to
customers
agents
without
or
taxes
or
death
imposition
of
fines,
surcharges,
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
for
complaint
of
registration
is
will
filed
be
HO
and
(3
Resident
Branch
are
Alien

Subsidiary
an
individual
is
taxed
whose
international
The
function)
Domestic
agreement)
Shipping
Development
increases;
of
withheld
another
Construed
direct
unless
RPBP);
taxes
strictly,
he
but
are
can
take
you
to
show
note
be
can
preferred
of
that
avail
7
of
===========
the
(BIG-PEN-T)
TCC
TOPIC
rates
exemption
UNDER
will
time
depend
of
must
THE
his
on
death
SYLLABUS:
be
the
classifcation
founded
on
of
the
a
fees
to
be
or
filed,
corporations,
the
value
of
from
the
gross
transactions
estate
not
with
whose
stay
in
the
Philippines
is
180
und
er
sp
ecial
)
Tax
month
ii.
refund
Who
takes
are
not
The
required
government
issues
a
persons,
)
a
return
persons,
particular
employed
and
occupying
the
same
t.
gross
Importation
maintain
estate
an
of
of
life-saving
previous
decedent
equipment,
or
the
safety
(1
Bank
an
othe
nonfinanci
Upd
Doctrine
ates
Employ
of
Constructive
Receipt
is
By
A
party
legally
taxing
adversely
adopted
corporate
child
afected
income
is
entitled
may
and
to
file
all
a
outside
similar
items
the

holding
period.
b)
From
The
reportable
foreign
capital
otherwise
credited,
repaid
in
shall
respect
be
included
of
such
tax;
as
part
or

Informers
laws
o
r
in
tern
ation
al
agr
eemen
ts
to
wh
ich
th
e
Sale
On
transitional
Philippines
of
Real
Non-recognition
input
Inventory
of
gain
of
or
goods
loss
as
if
(LGC
Sec
3
action
Any
As
to
residue
tax
rates
over
or
and
determination
above
what
is
required
business
nonresident
due
to
is
located
adverse
person
decision
versus
Monetized
invo
ice
Philippines,
to
another
value
of
vacation
from
purchase
interest,
and
sick
commissions,
leave
the
waiver
taxes
du
must
e
a
t
be
signed
by
any
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

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)
Donors
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
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written
protest
Products.
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The
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may
of
technical
advise,
stockholders
Annuities
city
government
as
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when
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booked
and
or
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If
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Use
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TOPIC
UNDER
THE
SYLLABUS:
safety
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registered
ator
improvement
y
efect
ively
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,original
jects
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ch
sales
as
sale
[2]
treaty
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the
Declining
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balance
from
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exempt
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to
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The
253)
Commissioner
....................................................
may,
by
rules
ii.
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Specific
derived
tax
imposed
and
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on
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d.
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services
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messages
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and
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NATIONAL
INTERNAL
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person
reward
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admission
]within
of
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properties
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to
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the
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same.
erroneous
held
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primarily
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VAT
only
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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
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and
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output
schedule
.the
(c
VAT
collection
of
of
lawful
duty
on
dutiable
allowed
or
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as:
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corporation
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assessment
net
income
after
195,
tax
LGC).
of
Pa
ymen
tafter
employed,
not
Constitution
provides
corporation
that
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all
been
assets
)constructively
A
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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
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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
Workmens
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
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the
from
owner
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person
20
10]
er
s
h
ehis
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or
of No.of
individuals
earning
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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
prosecutors
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
Donors
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
donors
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
companys
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
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the
to
review
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or
es
c.
d.
E
ffect
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of
Capital
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expense

Obstru
tha
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Prima
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Facie
Notice
Per
iod
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Evidence
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of
claimed
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assessment

as
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must
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for
Exemptions
are
ORY
not
presumed,
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when
but
does

not
result
in
an
output
tax
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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
ones
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
Taxpayers
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
Justices
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
4Donors
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
donors
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
prop