Business Base Rate

(SCOFA BLT wfa)

SALE of stock (Sec 127) Monthly
Thru local exchange (Sec 127-A) -not a dealer in securities on Gross Selling Price 6/10 of 1
their sales of stocks inventory
Thru IPO (Sec 127-B) for closely held corp
Offered to the public for the 1st time
Shares sold:
Up to 25% 4%
> 25% but < 33⅓% Gross Selling 2%
> 33⅓% 1%
Price

COMMON CARRIERS and keepers of garage(Sec. 117) Monthly

 Domestic
-goods and cargoes(thru sea,air or land) Quarterly Gross 12%
-passengers
 Sea/air Receipts 12%
 Land 3%
Minimum presumptive gross receipts for KEEPERS of
garage and COMMON CARRIER
Areas covered by Operation
(Quarterly Receipts)

Cities Provinces

Jeepney for hire

1978 2400 1200

2006 update 65700 32900

Public Utility bus

1978:

<30 passengers 3600 3600

>30 but <50 6000 6000

>50 7200 7200

2006 Update

<30 passengers 98600 98600

>30 but <50 164200 164200

 >50 197100 197100

Taxi

1978 3600 1200

2006 Update 98600 65700

Car for hire

1978

w/ chauffeur 3000 3000

w/o chauffeur 1800 1800

2006

W/ chauffeur 82100 82100

W/o chauffeur 49300 49300

*only the highlighted words are acceptable.

INTERNATIONAL carriers (SEC.
118) Quarterly Gross Receipts 3%
-GR from cargoes,excess baggage or mails
 Phil registry

-from Phil to other countries 0%

-domestic transport VAT

 Foreign registry
Anywhere 3%
Amount PAID 10%
OVERSEAS communication from the Phil (Sec 120)
Quarterly
- Paid by the person making the call
- Should be originating from Phil
- Tax is collected by the provider of the communication facility
remitted w/in 20 days after quarter end
- Provider /owner of communication facility subject to VAT
EXEMPT (DING)
- Diplomatic
- Int’l org.
- News
- Gov’t
FRANCHISE (Sec 119) Monthly
 Electric, gas, and water utilities 2%
 Radio/TV (annual GR preceding yr. ≤10M) Gross 3%
-may opt to register under VAT
-irrevocable forever once registered
Receipts
AMUSEMENT places (Sec 125) BPCJ Quarterly
 Cockpits, Night clubs or Cabarets 18%
Jai-alai and Race tracks Gross 30%
Prof Basketball 15%
Boxing Exhibition
Receipts 10%
EXEMPT: -embrace all receipts
-world or oriental championship -includes
-one of contenders is a Filipino TV,radio&motion
-promoted by Filipino citizens or by corp. in w/c owed by 60% of pictures rights
Filipinos
BANK and nonbank fin intermediaries or QUASI-BANK (Sec 121) Monthly
a. Interest, commissions, discounts
Remaining maturity:
≤ 5 yrs. Income collected 5%
> 5 yrs. 1%
b. Dividends 0%
-should be gross of
c. Royalties and Rentals of property,profits 7%
d. Net trading gain on:
final income tax 7%
-foreign currency, debt instruments & derivatives
2%
LIFE insurance companies (Sec 123) Monthly Premiums
Exemption:
1. Premium is refunded from the date of receipt
collected
2. Premiums collected outside Phil from NRA
TAX winnings (Sec 126) Monthly 20 days from date of witholding
Horse Races/ Jai-alai
Owner of the horse prize 10%
Bettor: ordinary Win(every ticket) 10%
Bettor: Double, trifecta, Forecast and quinella (2345) less the ticket cost 4%

TAX on other fin intermediaries w/o quasi-banking functions (Sec 122) Monthly
From lending (interest,commissions,discounts
Remaining Maturity: 5 yrs and below Gross Receipts 5%

Remaining Maturity: 5 yrs above 1%

From other sources Gross Income 5%
Premiums collected 4%
TAX on agents of foreign insurance companies (Sec 124)
Monthly
 Owner of property pays directly to foreign insurance Premium paid 5%
companies
P1,919,500 and below and are not VAT reg- Monthly

NOTE:
SEC 118
√If international carrier just focus on the outgoing flights. Ignore where billed. CARGOES, BAGGAGE & MAILS

SEC 120
Call origin Call Destination Business Tax
Phil Phil 12% VAT
Abroad Phil 0% VAT (exempt if zero rated req is not met)
Phil Abroad 10% overseas communication tax

SEC 121
√BANK- refers to entities engaged in the lending of funds obtained in the form of deposit
√NON-BANK financial intermediaries- principal function include lending,investing or placement of funds.
√Net trading loss cannot be carried over as deduction against trading gains in the ff year.
√Cannot be apply to BSP

SEC 123
SUMMARY of Tax Rules on INSURANCE
Life Insurance Non-Life Insurance
Direct premiums 2% premium tax Vatable
Re-insurance premium Exempt Exempt
Insurance commission Vatable Vatable
(insurance & reinsurance)

SEC 127
√In case of SECONDARY OFFERING, stock broker shall remit the tax to the BIR within 5 banking days from
collection date.
√In case of PRIMARY OFFERING, corporate issuer shall file return and pay tax within 30 days from date of
listing thru local stck exchange

PROPORTION OF SHARE OFFERING

Primary Primary shares ÷ outstanding shares after IPO
Secondary Secondary shares ÷ outstanding shares after IPO

√follow-on, follow-thru sale is not subject to IPO tax

√the sale of the dealer in security whether thru PSE or directly to buyerand their commission income shall be
vatable.
Withholding of Percentage Tax at Source

-sale to gov't agencies, instrumentalities and GOCC is subj to 3%

withholding tax
-seller should attach BIR form 2307 in filing monthly return