Taxation

By Arlan Abragan

History of Taxation
EGYPT
First known taxation system around 3000 BC 2800 BC in the first
dynasty of the Old Kingdom
Scribes (tax collectors)

GENESIS 47:24
But when the crop comes in, give a fifth of it to the Pharaoh. You may
keep the rest as seed for the fields and as food for yourselves and your
households and your children.
History of Taxation in PH
Manila-Acapulco Galleon Trade
Polo Y Servicio (Forced Labor)
Bandala
Encomienda System
Tribute
History of Taxation in PH
Manila-Acapulco Galleon Trade
Was the main source of income for the colony during its early years
Brought silver from Nueva Castilla and silk from china by way of
Manila
Polo Y Servicio (Forced Labor)
Forced labor for 40 days of men ranging from 16 - 60 years old who
were obligated to give personal services to community projects
Falla which was worth one and a half real
History of Taxation in PH
Bandala
One of the taxes collected by the Filipinos
Mandala round stock of rice stalks
Encomienda
A large tract of land given to a person as a reward for a meritorious act
Encomenderos
Tribute
The residence tax during the Spanish times
It may be paid in cash or kind, partly or wholly

What is a Tax?
It is a fee or charge imposed by the government on income, wealth,
and profit of persons and businesses as well as property owned.
It can also be levied on commodities that people buy.
Main source of revenues for the government.
Can either be direct or indirect.
Who Pays taxes?
Resident Citizens
Taxed on all their income derived from sources within and without
the Philippines.

Aliens Individuals
Whether a resident or not, is taxable only on income derived from
sources within the Philippines.


Purposes of Taxes
The Four Rs of Taxation
Revenue
Redistribution
Repricing
Representation

Exemptions
Charitable institutions, churches, parsonages or convents, mosques, and
non-profit cemeteries and all lands, buildings and improvements
actually, directly, and exclusively used for religious, charitable, and
educational purposes.

- Article VI, Section 28, Paragraph 3


Forms of Taxes
Capital Gains Tax
It 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.

Documentary Stamp Tax
is a tax on documents, instruments, loan agreements and papers
evidencing the acceptance, assignment, sale or transfer of an
obligation, rights, or property incident thereto.
Forms of Taxes
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.
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.
Forms of Taxes
Income Tax
is a tax on all yearly profits arising from property, profession,
trades or offices or as a tax on a persons income, emoluments,
profits and the like.
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 or receipts do not exceed P550,000 and
are not VAT-registered.
Forms of Taxes
Value Added Tax
is a business tax imposed and collected from the seller in the
course of trade or business on every sale of properties (real or
personal) lease of goods or properties (real or personal) or
vendors of services. It is an indirect tax, thus, it can be passed on to
the buyer.
Percentage Tax
Is a tax imposed on goods manufactured or produced in the
Philippines for domestic sale or consumption or any other
disposition. It is also imposed on things that are imported.
Alcohol, tobacco, petroleum, and mineral products

Income Tax Rate Table for Individual
Taxpayers in the Philippines
TAX TABLE
If TAXABLE INCOME is: TAX DUE is:
Not over P 10,000 5%
Over P 10,000 but not over P 30,000 P 500 + 10% of the excess over P 10,000
Over P 30,000 but not over P 70,000 P 2,500 + 15% of the excess over P 30,000
Over P 70,000 but not over P 140,000 P 8,500 + 20% of the excess over P 70,000
Over P 140,000 but not over P 250,000 P 22,500 + 25% of the excess over P
140,000
Over P 250,000 but not over P 500,000 P 50,000 + 30% of the excess over P
250,000
Over P 500,000 P 125,000 + 32% of the excess over P
500,000
Thank You.