Professional Documents
Culture Documents
1. Tax credits
2. Tax reductions
3. Reduction of the Philippines
income tax rates TWO CLASSES OF LIMITATIONS OF
4. Tax exemptions TAXATIONS:
5. Tax treaties
1. The Constitutional limitations
Q: When an item of income taxed in 2. The inherent limitations
the Philippines and the same income
is taxed in another country, is there a
case of double taxation? CONTITUTIONAL LIMITATIONS:
Answer: Generally yes, but being
indirectly a double taxation imposed Bill of Rights ARTICLE III
different taxing authority, it is not
prohibited. However, to avoid the impact SECTION 1. No person shall be
of double taxation, some countries have deprived of life, liberty or property
considered it as allowable deduction as without due process of law, nor shall be
a tax credit. denied the equal protection of the law.
Sec. 29, Article VI. NO MONEY SHALL NOR SHALL ANY PERSON BE
BE PAID OUT OF THE TREASURY, DENIED THE EQUAL [ROTECTION OF
EXCEPT IN PURSUANCE OF AN THE LAW:
APPROPRIATION MADE BYLAW.
For the classification to be reasonable, it
Sec. 5, Article X. Constitution has must be shown that:
given broad powers of taxation to 1. It rests on substantial
local government units, this distinctions;
delegation, however, is subject to 2. It is germane to the purpose
such limitations as may be provided of the law;
by law. 3. It is not limited to the
existing conditions only;
The Local Tax Code only allows 4. It applies equally to all
provinces and cities to impose a tax members of the same class.
on the transfer of ownership of real
property.
NO LAW IMPAIRING THE
Foreign corporations effecting a OBLIGATION OF CONTRACTS
donations are subject to donors tax only SHALL BE PASSED. (Sec. 10, Article
if the property donated is located in the III).
Philippines.
What constitutes an impairment of the
Executive agreement has the force and obligation of contract is the revocation of
effect of treaty under the provision of an exemption which is founded on a
Revenue Code. Taxation is subject to valuable consideration because it takes
International Comity. a form and essence of a contract.