OTHER PERCENTAGE TAXES (TITLE V)

1. Other Percentage Taxes (Secs. 116 to 128) as amended by RA 9337 and RA 9238.
2. Secs 13 to 24 of RA 9337.
3. The NIRC Annotated by De Leon & De Leon, Vol. 2, 2003 ed., pp. 163 to 285. [Take
note of the amendments after its publication].

SUGGESTED QUESTIONS

1. What are percentage taxes?

2. What transactions are subject to percentage taxes?
3. What is the situs of the tax?
4. Who are liable to 3% tax under Sec 116?
5. Give the instances when persons otherwise subject to 3% percentage under Sec 116
are not subject to it?
6. How is the tax determined? Or what is the basis of the tax?
7. What deductions are allowed, if any?
8. When does the tax attach? When is it payable? And Where?
9. Is it subject to any tax credit or refund?
10. May it be imposed concurrently with our other taxes, whether local or national?
11. Who are subject to percentage tax under Sec 117? Domestic carriers & keepers of
garages.
12. A trucking company is engaged in transporting consumer goods from Manila to Bicol
for which it gets paid transportation service fees. Are these fees subject to Carrier’s%
tax under Sec 117?
13. Superferry is transporting passengers and cargoes from Manila to Cebu. Are the fees it
collects subject to 3% carrier’s tax?
14. What is the basis of the tax under Sec 117?
15. What carriers are exempt from the tax under Sec 117?
16. Who are subject to % tax under Sec 118? International carriers
17. What is the basis of the tax under Sec 118?
18. Who are subject to % tax under Sec 119? Franchise Tax on radio/TV/gas/h2o.
19. What is a franchise?
20. May radio/TV franchise holders be subject to VAT?
21. What services are subject to overseas communication tax under Sec 120?
22. Who are liable for the payment of this tax?
23. Who are exempt from this tax?
24. Who are liable to tax under Sec 121? Banks & non-bank financial intermediaries.
25. Who are liable to tax under Sec 122? Other non-bank financial intermediaries.
26. Read RR 9-2004 and RR 10-2004 implementing Sec 121 and 122.
27. Who are liable under Sec 123? Life insurance
 28. What are the deductions from the gross receipts for purposes on computing % tax on
life insurance companies?
29. Are insurance companies operating like mutual cooperative subject to premium tax and
DST? The Tax Code is clear. On the one hand, Section 121 of the Code exempts
cooperative companies from the 5 percent percentage tax on insurance premiums. On
the other hand, Section 199 also exempts from the DST, policies of insurance or
annuities made or granted by cooperative companies. Being a cooperative,
respondent is thus exempt from both types of taxes.

It is worthy to note that while RA 8424 amending the Tax Code has deleted the income
tax of 10 percent imposed upon the gross investment income of mutual life insurance
companies -- domestic and foreign -- the provisions of Section 121 and 199 remain
[68] [69]

unchanged. [Rep of the Phils v. Sun Life of Canada, GR 158085, Oct 14, 2005]
[70]

30. Who are subject to % tax under Sec 124? Foreign agents of ins.
31. Who are liable under Sec 125? Amusement tax
32. What is the basis of the tax? What do gross receipts include?
33. Are Shoemart Cinema’s receipts from movies shown therein subject to Amusement tax
under Sec 125?
34. What receipts are subject to amusement tax?
35. What receipts of amusement places are not subject to amusement tax under Sec 125?
36. Are clubs subject to % tax under Sec 125 or to VAT under Sec 108?
37. Who are liable under Sec 126? Tax on Racehorse winnings.
38. Who are liable under Sec 127? Tax on sale of stocks and IPO
39. What is meant by closely held corporation?
40. Are the gains from the sale of stocks listed and traded in the stock exchange subject to
income tax?
41. Is the ½ of 1% tax deductible as a business expense?
42. CIR v Bank of Commerce, 149636, Jun 29, 2005. Gross Receipts subj to GRT
includes 20% FWT.
43. Phil Basketball Association of the Philippines v CA, GR 119122, Aug 8, 2000 –
LGUs do not have power to tax PBA.