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KINDS OF TAXES INCOME TAX

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DESCRIPTION Income Tax is a tax on a person's income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997 (Tax Code), as amended, less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code, as amended, or other special laws.

WHEN PAYABLE

Annual Income Tax For Individuals Earning Purely Compensation Income (Including NonBusiness/NonProfession Related Income) and For Marginal Income Earners Annual Income Tax For SelfEmployed Individuals, Estates And Trusts (Including Those With Mixed Income,i.e.,

On or before the 15th day of April of each year covering taxable income for the preceding taxable year

Final Adjustment Return or Annual Income Tax Return - On or

before the 15th day of April of each year covering income for the preceding year

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Compensation Income and Income from Business and/or Practice of Profession ) Quarterly Income Tax For SelfEmployed Individuals, Estates And Trusts (Including Those With Mixed Income, I.E., Compensation Income and Income from Business and/or Practice of Profession) Annual Income Tax For Corporations And Partnerships Quarterly Income Tax For Corporations And Partnerships Improperly Accumulated

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April 15 for the first quarter August 15 for the second quarter November 15 for the third quarter

Final Adjustment Return or Annual Income Tax Return - On or

before the 15th day of the fourth month following the close of the taxpayers taxable year

Corporate Quarterly Declaration or Quarterly Income Tax Return On or before the 60th day following the close of each of the quarters of the taxable year Within fifteen (15) days after the close of the taxable year

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Earnings Tax For Corporations Capital Gains Tax

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Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale.

Final Capital Gains Tax for Onerous Transfer of Real Property Classified as Capital Assets (Taxable and Exempt) Annual Capital Gains Tax for Onerous Transfer of Shares of Stocks Not Traded Through the Local Stock Exchange Documentary Stamp Tax

Within 30 days after each sale or disposition of shares of stocks or real property. In case of installment sale, the return shall be filed within 30 days following the receipt of the first down payment and within 30 days following the subsequent installment payments. Only one return shall be filed for multiple transactions within the day. Individual Taxpayers On or before April 15 of each year covering all stock transactions of the preceding taxable year Corporate Taxpayers On or before the fifteenth (15) day of the fourth (4) month following the close of the taxable year covering all transactions of the preceding taxable year The Documentary Stamp Tax return (BIR Form 2000) shall be filed in triplicate (two copies for the BIR and one copy for the taxpayer) within five (5) days after the close of the month when the taxable document was made signed, issued, accepted or transferred; when reloading a metering machine becomes necessary; or upon remittance by Collection Agents of collection from sale of loose stamps. The Documentary Stamp Tax shall be paid upon filing of the return. Documentary Stamp Tax is a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, right or property incident thereto.

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Donors Tax

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Donors Tax is a tax on a donation or gift, and is imposed on the gratuitous transfer of property between two or more persons who are living at the time of the transfer. It shall apply whether the transfer is in trust or otherwise, whether the gift is direct or indirect and whether the property is real or personal, tangible or intangible. Estate Tax is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers, which are made by law as equivalent to testamentary disposition. It is not a tax on property. It is a tax imposed on the privilege of transmitting property upon the death of the owner. The Estate Tax is based on the laws in force at the time of death notwithstanding the postponement of the actual possession or enjoyment of the estate by the beneficiary.

Within thirty days (30) after the date the gift (donation) is made. A separate return will be filed for each gift (donation) made on the different dates during the year reflecting therein any previous net gifts made during the same calendar year. If the gift (donation) involves conjugal/community/property, each spouse will file separate returns corresponding to his/ her respective share in the conjugal/community property. This rule will also apply in the case of co-ownership over the property.

Estate Tax

File the return within six (6) months from decedent's death. However, the Commissioner may, in meritorious cases, grant extension not exceeding thirty (30) days. The Estate Tax imposed shall be paid at the time the return is filed by the executor or administrator or the heirs. However, when the Commissioner finds that payment on the due date of the Estate Tax or of any part thereof would impose undue hardship upon the estate or any of the heirs, he may extend the time for payment of such tax or any part thereof not to exceed five (5) years, in case the estate is settled through the courts or two (2) years in case the estate is settled extra-judicially. Extension of Time of Filing: When the Commissioner finds that the payment of the estate tax or of any part thereof would imposed undue hardship upon the estate or any of the heirs, he may extend the time for payment of such tax or any part thereof not to exceed five (5) years in case the estate is settled through the courts, or two (2) years in case it

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settled extra-judicially. Where the request for extension is by reason of negligence, intentional disregard of rules and regulations, or fraud on the part of the taxpayer, no extension will be granted by the Commissioner. If an extension is granted, the Commissioner or his duly authorized representative may require the executor, or administrator, or beneficiary, as the case may be, to furnish a bond in such amount, not exceeding double the amount, not exceeding double the amount of tax and with such sureties as the Commissioner deems necessary, conditioned upon the payment of the said tax in accordance in the terms of extension. The request for extension shall be filed with the Revenue District Officer (RDO) where the estate is required to secure its TIN and file the estate tax return. The application shall be approved by the Commissioner or his duly authorized representative. Percentage Tax Not later than 20th day following the end of each month Filing Through Electronic Filing and Payment System (eFPS) Percentage tax is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales and/or receipts do not exceed P750,000 and who are not VAT-registered.

Group A - Twenty-Five (25) days following the end of the month Group B - Twenty-Four (24) days following the end of the month Group C - Twenty-Three (23) days following the end of the month Group D - Twenty-Two (22) days following the end of the month

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Group E - Twenty-One (21) days following the end of the month VAT Manual Filing Value-Added Tax is a form of sales tax. It Not later than the 20th day following the end of each month Through Electronic Filing and Payment System (eFPS): Period for Business Industry filing Monthly VAT Declarations is a tax on consumption levied on the sale, barter, exchange or lease of goods or properties and services in the Philippines and on importation of goods into the Philippines. It is an indirect tax, which may be shifted or passed on to the buyer, transferee or lessee of goods, properties or services.

Group A
Insurance and Pension Funding Activities Auxiliary to Financial Intermediation Construction Water Transport Hotels and Restaurants Land Transport

25 days following the end of the month

Group B
Manufacture and Repair of Furniture Manufacture of Basic Metals Manufacture of Chemicals and Chemical Products

24 days following the end of the month

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Manufacture of Coke, Refined Petroleum & Fuel Products Manufacture of Electrical Machinery & Apparatus N.E.C. Manufacture of Fabricated Metal Products Manufacture of Food, Products & Beverages Manufacture of Machinery & Equipment NEC Manufacture of Medical, Precision, Optical Instruments Manufacture of Motor Vehicles, Trailer & Semi-Trailers Manufacture of Office, Accounting & Computing Machinery Manufacture of Other Non-Metallic Mineral Products Manufacture of Other Transport Equipment Manufacture of Other Wearing Apparel Manufacture of Paper and Paper Products Manufacture of Radio, TV & Communication Equipment/ Apparatus Manufacture of Rubber & Plastic Products

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Manufacture of Textiles Manufacture of Tobacco Products Manufacture of Wood & Wood Products Manufacturing N.E.C. Metallic Ore Mining Non-Metallic Mining & Quarrying

Group C
Retail Sale Wholesale Trade and Commission Trade Sale, Maintenance, Repair of Motor Vehicle, Sale of Automotive Fuel Collection, Purification and Distribution of Water Computer and Related Activities Real Estate Activities

23 days following the end of the month

Group D
Air Transport Electricity, Gas, Steam & Hot Water Supply Postal & Telecommunications Publishing, Printing & Reproduction of Recorded Media Recreational, Cultural & Sporting

22 days following the end of the month

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Activities Recycling

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Renting of Goods & Equipment Supporting & Auxiliary Transport Services

Group E
Activities of Membership Organizations, Inc. Health and Social Work Public Admin & Defense Compulsory Social Security Research and Development Agricultural, Hunting, and Forestry Farming of Animals Fishing Other Service Activities Miscellaneous Business Activities Unclassified Quarterly ValueAdded Tax Return Withholding Tax Filing Via EFPS Group A - Fifteen (15) days following end of the month Group B - Fourteen (14) days following end of the month Group C - Thirteen (13) days following end of the month Group D - Twelve (12) days following end of the month Group E - Eleven (11) days following end of the month - Expanded Withholding Tax is a kind of -Withholding Tax on Compensation is the tax withheld from income payments to individuals arising from an employeremployee relationship. Within twenty five (25) days following the close of taxable quarter.

21 days following the end of the month

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withholding tax which is prescribed on

Note: The staggered manner of filing is only allowed to taxpayers using the Electronic Filing and Payment System (EFPS). Please refer to RR No. 26-2002 for the groupings of taxpayers based on the industry classification.

certain income payments and is creditable against the income tax due of the payee for the taxable quarter/year in which the particular income was earned. - Final Withholding Tax is a kind of withholding tax which is prescribed on certain income payments and is not creditable against the income tax due of the payee on other income subject to regular rates of tax for the taxable year. Income Tax withheld constitutes the full and final payment of the Income Tax due from the payee on the particular income subjected to final withholding tax. -Withholding Tax on Government Money Payments (GMP) - Percentage Taxes - is the tax withheld by National Government Agencies (NGAs) and instrumentalities, including government-owned and controlled corporations (GOCCs) and local government units (LGUs), before making any payments to non-VAT registered taxpayers/suppliers/payees -Withholding Tax on GMP - Value Added Taxes (GVAT) - is the tax withheld by National Government Agencies (NGAs) and instrumentalities, including

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government-owned and controlled corporations (GOCCs) and local government units (LGUs), before making any payments to VAT registered taxpayers/suppliers/payees on account of their purchases of goods and services.

Excise Tax

Before release of imported goods from the customs or before removal of goods from the place of production