FORMAT OF COMPUTATION: GROSS ESTATE

Exclusive Common
Gross Estate XXX XXX
Less: Deductions (XXX) (XXX)
Net Estate before share of surviving spouse XXX XXX
Less: Share of surviving spouse -
Net Estate before special deductions XXX XXX
Less:
Special Deductions
Family Home
Standard Deductions
Medical Expenses
Taxable Net Estate
Tax Due
Less: Estate Tax Credit
Tax Payable

FORMAT OF COMPUTATION: GROSS ESTATE

Stranger Relative
Total (Gross) Gifts XXX XXX
Less: Deductions (Exemptions) XXX XXX
Total Net Gifts XXX XXX
Add: Total prior net gifts XXX XXX
Total Net Gifts subject to tax XXX XXX
Tax Due XXX XXX
Total Tax Due XXX XXX
Less: Tax Credits/Payments XXX
Payments for prior gifts (XXX)
Foreign donor's tax paid (XXX)
Total Payable (overpayment) XXX
Total
XXX
(XXX)
XXX

XXX

(XXX)
(XXX)
(XXX)
XXX
XXX
(XXX)
XXX
FORMAT OF COMPUTATION:
Taxpayer in Estate Tax: Estate (juridical person)
represented by:
Administrator: appointed by court (absence of last will & testament)
Executor: appointed in the last will & testament

Gross Estate

(+) Real or Immovable Property

(+) Tangible Personal Property
(+) Intangible Personal Property
+Resident/Citizen
-Non resident Alien with reciprocity
+Non resident Alien without reciprocity

(+) Certain kinds of transfer

For any Donor's Tax initially paid as a result of transfer will form part/claim as TAX CREDIT for
such transfer will now fall under Estate Tx or Creditable (deducted to Payable)
+Trnsfr in contemplation of death

+Revocable Transfer

+Trnsfr under the gen. power of apptmnt.(Only power to appoint was given as to who will own
the property)

+Trnsfr with retention of certain rights.(to be later on execute an Absolute transfer @ d

time of death)

+Trnsfr for insufficient fund.(para ma-subj sa Estate tax may kinalaman sa taas na item)

(+) Family Home

(+) Other Items
+Proceeds of Life Insurance
+Proceeds of Life Insurance (Revocable or Irrevocable?)Revocable
(-)3rd P is irrevocably designated as beneficiary Irrevocable
(-)Proceeds/benefit fr SSS or GSIS
(-)Proceeds come fr group insurance From Employer
+Claims against insolvent Persons
(-)Uncollectible amt of claims is deducted in GE
(-)Exemptions or exclusion from GE; hindi isasama
+Merger of the usufruct in d owner of naked title
+Transm.of inheritance of fiduciary heir to the fideicommissary
+Transm frm the first Heir to another with the WILL of Pred.
+Transfr to social welfare,cultural & charitable inst
(-)Exemptions by special law
+Amt received from war damages
+Amt received fr US Veterans Adm.
+Benefit received fr GSIS,SSS
+Retirement Benefit of employees of private firm
+Intangible PP of NRA decedent under reciprocity clause
 Less: Allowable Deductions
A Ordinary Deductions(ELITE)

Funeral Expense
I.1 Timeline: up to Interment/Cremation

Judicial Expenses
2
Timeline: Estate Tax Return or 6 mos + 30 days extension Settlement of estate

Casualty Loss (what if may nawalang property sa GE after death)

3
Timeline: Estate Tax Return or 6 mos + 30 days extension Settlement of estate

Claims against the ESTATE

4
Timeline:before Death

Unpaid Mortgages
5 Timeline:before Death

Claims against Insolvent Person

6
Timeline:before Death

Unpaid Taxes
7
Timeline:before Death

Transfer for public purpose

II.
Deducted from: EXCLUSIVE property of decedent
 Vanishing Deduction_Property Previously Taxed
-received fr prior decedent
-received fr donor
-acquired in Xchange for Orig prop so received
1.The present decedent died w/in 5 yrs fr transfer of d prop fr a prior decedent or donor
2.The property must be located in the Phils
3.The prop formed part of d taxable estate of d prior decedent or of d prior decedent or d
III taxable gift of d donor
4.The estate tax or donor's tax on d gift must have been finally determined and paid
5.The prop must be identified as the 1 received fr the prior decedent, or something acquired in
xchange thereof
6.No vanishing deduction on d property was allowable to the estate of the prior decedent.
*to eliminate the impact of double taxation

Net Estate before special deductions

Less:
B Special Deductions
Net Estate before share of surviving spouse

Less: Share of surviving spouse

I Net share of surviving spouse in the CONJUGAL PERTNERSHIP/COMMUNITY PROPERTY

Family Home
II
Dwelling House where they & their family reside and the land on which it is situated

III Standard Deductions

IV Medical Expenses
Timeline:incurred w/in 1 yr b4 the death of the decedent

V Amounts received by HEIRS under RA No. 4917

The amt of the separation benefit is included as part of GE of the decedent
C Charges against Exclusive or Conjugal/Community Property Under Family Code

Taxable Net Estate

Tax Due

Less: Estate Tax Credit

Tax Payable

INTANGIBLE PROPERTIES LOCATED IN THE PHILS-FRANSHASHASHA,case of NRA-Situated in PH

1.Fran exercised in PH
2.SOB issued by any corp organized in the PH

3.SOB issued by FC,at least 85% of d buss located in PH

4.SOB issued by FC if such SOB have acquired buss situs in PH (85% rule in unneccesary)Ung perang
natanggap ay para sa pagpapaganda ng buss sa PH
5.SH & Rights in partnership established in PH
 Motives that preclude a Transfer - contemplation of death (not allowed)

1 To relieve donor fr the burden of mgt

2

Formula for Gross Estate of Married Decedent

1. If the couple was under the conjugal partnership of gains

Conjugal Properties xxx

Add: Exclusive Properties of Decedent xxx
GROSS ESTATE xxx

2. If the couple was under the absolute community of properties

Community properties xxx
Add: Exclusive properties of decedent xxx
GROSS ESTATE xxx

In the absence of the contract:

Before Aug 2, 1988 - Conjugal/Relative Community
On or After Aug 3,1988 - Absolute Community

Recognition
CPOG
Property of SS - Exclusive - Not included in Decedent's GE
- Conjugal

ACOP
Property of SS - Exclusive - Not included in Decedent's GE
- Community

>Properties obtained from labor, work or profession (either or both spouses)-->Conjugal/Community

Merger of the usufruct in d owner of naked title

Si A ang mgpapamana sa 2 anak - B ikaw ang legal na may ari nyan, at C ikaw ang may right na
gumamit nyan habang nabubuhay si C of w/ specific date kung kelan nya gagamitin, pagnamatay si C
or ng lapse na ang pd ibabalik na kay B,
Included sa GE of A:YES
Included sa GE of B:YES
Included sa GE of C:No

What if B died first: Still Taxable to B (real owner)

If C is the only one left, he can own the prop (naked Title)

Transm.of inheritance of fiduciary heir to the fideicommissary

Si X (Grandfather)na magpapamana ng CAR,hinihingi ni Z(son of Y) kaso masyado pang
bata,ittransfer muna kay Y(Father) pero kung dumating ang tamang edad.Y died, car will
automatically goes to Z

Included sa GE of X:YES
Included sa GE of Y:NO (Fiduciary)
Included sa GE of Z:YES (Fideicommisary)
To be qualified as fiduciary and Fideicommissary Relationship
The relationship SHOULD BE ONE degree - Father-->Son or Son-->Father

if more than 1 degree…below is applicable

Transm frm the first Heir to another with the WILL of Pred.

Transfr to social welfare,cultural & charitable inst

1.Public is the beneficiary
2.Monitor Office expenses - yung binibigay na donations, nde lalagpas doon na 30% ang gagamitin
nila sa ofc expenses

Technique:If may asawa mas maganda na i-classify in Gross Estate into Common and Exclusive para
pag computa ng SSS pipick up mo nlang ang amt
Ordinary Deductions - Ito lang ang need na i- classify kung may asawa man- Common or Exclusive
Deductions. Based sa formula in computing SSS
Special Deductions - hindi na classify, 100% deductible

ADMINISTRATIVE:?
MAY NAKA ATTACHED NA PROPERTY
What is Estate: is the mass of property, rights and obligation left by a decedent.

>Land,Bldg - fixed on the ground

>Equpt,Fur,Machines,Jewelry
>Recbles,bills&coins,bank dep,shares of stocks,bonds,franchise

>Intangible situated in PH - not included in GE

>Intangible situated in PH -included in GE. For country don't have-any kind of death
taxes, with death tax but allows exemption to Fil

>thought of death ;to avoid to utilize the lower rate in Donation tax as compared to
Estate tax -wlang ligtas sa BIR
>enjoyment of prop may be revoked by decedent;habang buhay si Decedent pdeng i-assign
nya ulit ang property sa iba.

>dec was given auth to hold prop during his lifetime & name beneficiaries when he dies
>If General power of Apptment was given - he can choose anyone including himself as to
who will own d property.INCLUDED
>If Special power of Apptment was given - Dec specifically identified the beneficiary
EXCLUDED if he was'nt identified as ben.

>dec retains for himself the economic benefit of prop & to designate person who may
exercise such rights. Habang buhay si Dec sa kanya mapupunta ang kita/gain na kanyang
ibinigay

Estate,Executor,Administrator - revocable or irrevoc.(always INCL)

INCLUDED ; Wife as beneficiary -revocable
EXCLUDED ; Deduct/Ignore
Deduct/Ignore
EXCLUDED ; Deduct/Ignore ; to be INCLUDED in GE it shd be the decedent who avail the
life insurance
Full amount in included in GE

applied to Real property; see below for explanation

no income pass on to d benefit of private ind & not more than 30% of such shall be used
for administrative purpose
mourning apparel of SS & unmarried minor
children,foods&drinks,publication,telecom,interment

*analyze if the fees will benefit the estate or necessary/essential

-supported with receipt / invoices
Ex:Atty fees,court fees,acct fees,appraiser fees,clerk hire, cost of
preserving,distributing,restoring the estate,brokerage fee
Inventory taking,administration,payment of debts of estate

Arising fr fire,storm,shipwreck,robbery,theft. Occuring during the settlement of the

estate and b4 the last day 4 d payment of estate tax (last day to pay: 180 days after
the decedent's death)
*FMV at the time of death - Pref. Creditor (Govt,employees)
OPTION:1. Deduct to Estate Tax Due or
2. Deduct to ITR

Estate is the DEBTOR, Unsecured Debt,if loan incurred w/in 3 yrs b4 death the Adm or
Executor is required to render a stmt showing the disposition of loan proceeds
-if loan based on debt inst. -such inst MUST be NOTARIZED

Estate is the DEBTOR, Secured Debt(stipulated in contract)

1. Verification is done as to who is the beneficiary of the loan proceeds
2.Accomodation Loan-loan proceeds went to another person,the value of the unpaid loan
must be included as a recble of d estate.
3. If there is legal restriction to recognize recble of estate, it shall not be allowed
as deductions
4. In ALL instances, Mortgage property, to the extent of the interest of the decedents,
should always form part of thr GE.
Estate is the CREDITOR, Secured Debt(stipulated in contract),
Requisites: 1.Debtor of Estate is insolvent (Debd>Asset)
2.Full Amt of Receivable should be included in GE
3.Recvble not collectible, incap. of debtor is proven

Taxes w/c have accrued as of death of the decedent w/c were UNPAID.

1.Tranfer MUST be TESTAMENTARY in character to be deductible

2.By way of donation mortis causa executed by decedent b4 his death
3.In favor of Govt of d Phils or any political subd thereof
4.For exclusive public purposes
Rate(based on Gap)- diminishes over a pd of 5 yrs
100%-if not more than 1 yr
80%-if more than 1 yr but not more than 2 yrs
60%-if more than 2 yrs but not more than 3 yrs
40%-if more than 3 yrs but not more than 4 yrs
20%-if more that 4 yrs but not more than 5 yrs
*Estate Tax must have been finally determined & paid by pror decedent or the Donor's
Tax must have been paid by the DONOR

Capital/or exclusive property of surviving spouse shall not be deemed part of

decedent's GE

>Actual residential home of d Decedent at time of his death as certified by Brgy

Captain
>Total value of Family home MUST be included in GE of d decedent
>Allowable deduction MUST be FMV of d family home as included in GE OR to the extent of
d decedent's interest - ACOP/CPOG

P 1,000,000 without need of substantiation for the benefit of the decedent

>All Medical Exp incurred(whether paid or unpaid)w/in 1 yr

>Substantiated by OR,Invoices,SOA certified by Hosp
>Cost of Medicines, Hosp bills & Doctor's fees
Deductible provided that the amount od the separation benefit is included as part of
the GE of the decedent

The Tax credit os granted for estate taxes paid to a foreign country on the estate of
citizens & residents aliens subject to the ff limitations below

Non Resident Alien - Formula of Limit on Allowable Deductions on GE

Phil GE
World GE X World ELIT
Additional on Differences
Fruits

CPOG - During marriage, - CONJUGAL on both from Conjugal Prop & Excl Prop
ACOP - During marriage, - Source is COMMUNITY on Conjugal from Conjugal Prop & Source is Exclusive from Excl Prop
- Kung ano ang puno, iyon ang bunga
(+) Whichever is Higher
(-) Whichever is Lower

FMV:Financial Acctg - No
It is the FMV declared for real property tax purposes
Zonal Value - valuation of BIR, website of BIR

Par Value Arithmetic Mean = Highest Quotation + Lowest Quotation/2

*Gitna
 Measurement Exemption

FRANSHASHASHASHA

If any of this is not a bonafide sale for an adequate Amt to be included in GE:
consideration in money/moneys worth only the excess of FMV FMV @Death XXX
@ time of death over consideration received is included in -Cash Consd Recd XXX
GE GE, included XXX

(-)Trnsfer for adequate

consideration, otherwise Income
tax/buss tax will be
applied(considered valid SALE
1. Actual Amt (-)Expense defrayed by relative &
2. 5% of GE
Friends
3. 200,000
(-)Expenses after interment
LOWEST

Actual Amt - No limit but only to expenses that will (-)Atty fee for personal interest
benefit of the estate, not benefit of the heirs among estate

(-)covered by Insurance
Actual or FMV at the time of death,not compensated by
(-)Pref Creditor
insurance (-)Claimed as deduction in ITR

(-)Income Tax upon inc received

after death
(-)Prop Taxes not accrued b4 death
(-)any estate tax
(-)unpaid obli incurred incident to
Actual Amt his death
(-)Indebtedness not condoned by
CREDITOR
(-)Action to collect must not have
prescribed

Actual Amt

Uncollectible Amt due to insolvency

Only the portion uncollectible is deductible

(-)Real Property Tax not accrue

before death(Accrue every Jan of the
year)
Amt accrued b4 death
(-)income tx on inco received after
death
(-)Estate tax

ACTUAL AMT -all bequest,legacies,devises or tranfr to

-Govt,provided not more than 30% of the donation is used (-)Property allocated to SS
for asmin purposes
FMV of Prop prev Taxed*** PXXX CPOG - ded from Exclusive Property
(-)Mortgage pd by present Dec (XXX)
Initial Basis XXX ACOP - ded from Exclusive Prop or
(-)Proportional Ded Community Prop.
(initial basis/GE x
Ded-ELITE + Trans for P Use) (XXX)
Final Basis XXX
Rate %
Vanishing Deductions XXX
***Value taken is the LOWER amt bet Value of prop in GE of
prior dec/value of the gift & the value of the same prop in
GE of Present dec

Gross Conjugal/Community Prop PXXX

(-)Conj/Comm Deductions (XXX)
Net Conjugal/Comm Prop (NCP) XXX
Share of the SS(1/2 x NCP XXX

1.Excl Prop - Full Val incl in GE

2.Conj/Comm Prop -1/2 of d value incl in GE
3.Partly Excl,Partly Conj/Comm - Exclusive Part(Full
Val)Conj/Comm - (1/2 x Val)
in all 3 cases, Max Amt is 1,000,000
WHICHEVER IS LOWER (CASE vs 1M)

1,000,000

(-)Unpaid Medical Exp incurred prior

not exceed 500,000
to the 1 yr pd.

ANY AMOUNT received by the heirs from decedent's employer

as a consequence of the death of the employee-decedent

Rules for Estate Tax Credit

A. One Foreign Country ONLY
The tax credit is whichever is lower between
a. Estate tax paid to the foreign country
b. Tax Credit Limit

NTE, Foreign Country X Phil Estate tax

NTE, World
(NTE - Net Taxable Estate)
 B.More than One Country
The tax credit is whichever is lower between Limit A and
Limit B
LIMIT A: Whichever is lower bet

a. Estate tax paid to the foreign country

b. Tax Credit Limit
NTE, Foreign Country X Phil Estate tax
NTE, World
LIMIT B: Whichever is lower bet
a. Total of estate tx pd to ALL for countries
b. Tax Credit Limit

NTE, Outside Phil X Phil Estate tax

NTE, World

& Source is Exclusive from Excl Prop

Exclusive Common Total Remarks
XXX XXX XXX
 (XXX)

(XXX)

(EITHER) (EITHER)
depending on prop depending on
attached prop attached

(EITHER) (EITHER)
depending on prop depending on
attached prop attached

(EITHER) (EITHER)
depending on prop depending on
attached prop attached

(EITHER) (EITHER)
depending on prop depending on
attached prop attached

(EITHER) (EITHER)
depending on prop depending on
attached prop attached

(XXX)
(XXX)

XXX XXX XXX

- (XXX)

FOR RESIDENTS AND

(XXX) CITIZEN ONLY
NRA - NOT ALLOWED

FOR RESIDENTS AND

(XXX) CITIZEN ONLY
NRA - NOT ALLOWED
FOR RESIDENTS AND
(XXX) CITIZEN ONLY
NRA - NOT ALLOWED
FOR RESIDENTS AND
(XXX) CITIZEN ONLY
NRA - NOT ALLOWED
(XXX)

XXX
XXX

(XXX)
XXX
VALUATION OF GROSS ESTATE
1.Usufruct
2.Real Property
3.Personal Property
4.Shares Traded in Local Stock Exchange
4.Shares Not Traded in Local Stock Exchange

Si A ang mgpapamana sa 2 anak - B ikaw ang legal na

may ari nyan, at C ikaw ang may right na gumamit
nyan habang nabubuhay si C of w/ specific date kung
kelan nya gagamitin, pagnamatay si C or ng lapse na
ang pd ibabalik na kay B,
Included sa GE of A:YES
Included sa GE of B:YES
Included sa GE of C:No

What if B died first:

If C is the only one left, he can own the prop (naked Title)
 Based on latest basic Mortality Table
FMV vs ZV (whichever is Higher)
FMV
Par Value arithmetic mean bet highest and
Lowest quotations
Common(ORDINARY SHARES) - Book Value
Preferred Shares - Par Value

prop (naked Title)

FORMAT OF COMPUTATION: GROSS ESTATE

Total (Gross) Gifts

(+)Direct Gift
(+)Real Property
(+)Tangible Personal Property
(+)Intagible Personal Property
(+)Indirect Gift
(+)Remmission of debt

(+)Remuneration of Hereditary Rights

(+)Transfer of property for insufficient consideration

(+)Gift through creation of a trust

Less: Deductions (Exemptions)

(+)Dowry

(+)Gifts to the Government

(+)Gifts to eductl,chartble,rel corp
(+)Encumbrances on the property donated assumed by the donee.

Total Net Gifts

Add: Total prior net gifts
Total Net Gifts subject to tax
Tax Due
Total Tax Due
Less: Tax Credits/Payments
Payments for prior gifts
Foreign donor's tax paid
Total Payable (overpayment)
 Measurement

1.Specif. & categorically done in favor of identified heirs

2.To the exclusion or disadv of other heirs
Amt Taxable:
1.FMV of d property sold is higher than the selling price
FMV at d time of tranf XXX
2.Tranfr happened during lifetime, in form and in substance
Selling Price (XXX)
3.The prop sold is NOT a real prop classified as cap,asset
Taxable Gift XXX

1.Gift made on acct of marriage

2.Given before its celebration or within 1 yr thereaftr
3.Give to legitimate,recognized natural or adopted children
4.Amt of exemption is 10,000 per donor per child
 Exemption
Stranger Relative
XXX XXX

(-)Real Property, as
capital asset

XXX XXX

XXX XXX
XXX XXX
XXX XXX
XXX XXX
XXX XXX
XXX
(XXX)
(XXX)
XXX
VAT Subject Transactions

1 Sale of Goods/Properties a. VATABLE

2 Sale of Services
3 Lease of properties
4 Exportation b. EXEMPT
..in the ordinary course of trade or business
means regular conduct of a commercial or economic activity including transactions incidental thereto
NRA - applied the rule of regularity

Purchases
Importation
Presumptive
Transitional
Standard

Computation of VAT Payable

Output Tax exceeds Input Tax at the end Output Tax XXX
Less: Input Tax (XXX)
of Taxable year
VAT PAYABLE XXX

Input Tax inclusive of input tax Output Tax XXX

carried over from previous quarter Less: Input Tax (XXX)
exceeds Output Tax EXCESS INPUT TAX XXX

Selling Price: Follow Accrual Basis "Revenue" - Collected or Not

Receipts: Cash Basis Only Collections + Unearned (Advances from Customers)
Importation: For Business or Personal (may VAT)

Can we claim as Input VAT Business - CLAIMABLE

Personal- EXPENSED

Business Taxes
1 IV VAT
2 V OPT
3 VI Excise, Tobacco, Auto, Frag, Gas, Wine

Zero Rated Transactions

1 Exportation 1. Actual - tumatawid sa ibang bansa
Deemed

2 FCDT (Foreign Currency Denominated Transactions)

3 Effectively Zero Rater Transactions

Deemed Exportation
1. Sale of Raw Materials, Packaging Materials
Qualification:
1. Raw Materials/Packaging Materials - Check
2. Sale to Non Resident Buyer - Check
3. but delivered to local export oriented enterprise - Check
A. Taxpayer--> Non Resident Buyer -->Local Export oriented enterprise
(hindi sya pdeng mg export,pinadaan nya
kay LEO <--
1. Raw Materials/Packaging Materials - Check
2. Sale to Local Export oriented enterprise - Check
3. Local export oriented enterprise that exceed 70% of total amount production- Check
B. Taxpayer --> Local Export oriented enterprise --> Non Resident Buyer
 TRAIN - Exempt

2. Sale of Gold to BSP

TRAIN - Exempt

Ecozone
CAVITE >Defined portion of teritory
>If you plant to e a building, you can
apply as Ecozone
>Effect: areas declared as Ecozone, known
as Foreign Territory as if ng eexport siya
kaya 0 %
ECOZONE

Sale of Services

2 Foreign Currency Denominated Transactions

Nangyayari sa Phils-->buyer is Foreign Non residents

>Goods in Sec 149 & 150 Non essential->Jewelries,Toilet Water (Eau de Toilette)
>Babayaran sa Foeign Currency
 12% Output VAT
0% Zero Rated

ansactions incidental thereto

Output VAT
P I S O
Purchase + Input Sales + Output

Seller-->Buyer (Transfer)
With Choice: Seller In Importation: No choice, only Exclusive
Exclusive: x 12% Exportation --> Importer; always Exclusive
Inclusive: x 12% /1.12

duction- Check
Classif. of Seller V V N N V V
Import <-- A --> B --> C --> D --> E --> F

Output VAT - Sale ü ü X X ü ü

Input VAT - Purchase ü ü X X X ü

Note: It is not the staus of the buyer, It is the seller status

Is the registration of buyer matter in Importation? NO

What if ?
N V V N
Import <-- A --> B E --> F
Output VAT - Sale X X
Input VAT - Purchase X X
Generalization:
If A is NV All Vat Taxpayer
No Input All have Output
No Output For VAT taxpayer who wants to claim Input Tax, They
should buy to a Vat Taxpayer

If F is NV
No Input
No Output
 -->Export

ZERO RATED
YES REFUND

-->Export
EXEMPT

claim Input Tax, They

VAT Exempt Transactions

1 Agriculture (A,B,F)
A Sale or importation of Agricultural Food Product Marine Food Product
o For human consumption in their orignal state

SPECIAL CASES:
o Rabbit (E) considered agricultural food product

o Muscovado (E) ONLY in sugar

o Sugar (E)
UNDERGONE SIMPLE PROCESS
o Freezing, drying,salting,broiling,roasting,smoking or stripping; Includes advanced tech means of
packaging(E)

EX: A sale of dressed chicken by SM to its customers even if the supermarket is subject to VAT (E)
A sale of smoked fish by its producer even if seller-producer is earning annual gross sales omore that
P 1,919,500 (E)
A sale of fresh Tilapia and fresh eggs in the market (E)
A sale of Chicken by an angricultural contract grower to Magnolia Corp (its supplier of feeds) is
exempt from VAT (E)
A sale of sugarcane
OTHER NOT FAMILIAR MARINE PRODUCTS
o Crustaceans (crabs,lobster), Trout (fish)(E)
OTHER NOT FAMILIAR AGRI PRODUCTS o livestock,fouls,poultry
OTHERS
o Tuyo(E) ,Daing(E) and Salted Egg(E)
EXEMPTIONS:

o Bamboo Poles (V) though in its original state, however it's nof for human consumption -Hindi nakakain
o does not include fighting cocks,racehorses,zoo animals & PET animals -except rabbit (V)
EX: A sale of a goldfish by a petshop (V)

A sale of fried chicken by a fastfood chain to its customers, frying involves cooking oil (V)

B Sale or Importation of raw materials that will be needed for agricultural products ONLY
o fertilizer,seeds,seedlings & fingerlings(E)
o feeds of marine food products including ingredients -use to manufacture of feeds E)
EXEMPTIONS:
o feeds of race horses, fighting cocks, aquarium fish,zoo animals and PET (V)
o Ingredients to make fertilizer (V)

F Services by Agri Growers - Milling for Rice, Sugar and Corn

4 Cooperatives (L,M,N)
L Agricultural Cooperatives
o Products in its original state)-Member/NonMember (E)
o Processed Product-Produced by Coop: Member(E)Nonmember(E)
o Processed Product-Not Produced by Coop: Member(E)Nonmember(V)

M Credit or Multipurpose Coop(Gross Receipts)

o Interest(E)

N Sales by Coop - NOT AGRICULTURE COOP (V)

NOT CREDIT COOP (V)
NOT ELECTRICAL COOP (V)

o All other Coop activities (E)

 2 Requirements

1. Registered & good standing with COOP DEVT AUTHORITY

2. Share Capital Contribution does not exceed 15K

5 Residential Properties (P,Q)

P Sale of real properties (5 SCENARIO)
1.Capital Asset & not held for sale (E)
2.Govt Housing-LOW COST HOUSING:Level 1(450k-1.7M);Level 2 (1.7M-3M)(E)
3.Govt Housing-SOCIALIZED HOUSING

o House & Lot - 400K ; lot Only - 160K (40% of max limit in H&L) (E)
o Lot ONLY - does not exceed 3,199,200 (E)
4. Sale of Residential LOT valued @ 1,919,500 and H&L @ 3,919,200
Sale to Mr. A (E) - do not exceed 3,199,200
Sale to Mr. B (E) -NOT ADJACENT
Sale to Mr. C (V) -ADJACENT (magkatabi)

5. Condominium - #4 applies
Sale to Mr. D (E) - do not exceed 3,199,200
Sale to Mr. E (V) -ADJACENT (magkatabi)
Sale to Mr. F (V) -ADJACENT 10th & 11th flr but
NO Regulation yet magkatabi
REASONABLE JUDGEMENT: ADJACENT

Q Lease of Residential Units

o Residential (units)- with a monthly rental not exceeding 12,800 regardless of the amt of aggregate
rentaks recevd during the yr (E)
o Commercial (units)- not exceeding annual gross rentals amount to 1,919,500 (E)
EXEMPTIONS:
Parking Lot (V)
Not mentioned:
A sale of timber to a lumberyard by an owner of a timberland (V)
A sale of timber to a lumberyard to a furniture manufacturer (V)
A sale of furniture by a furniture manufacturer to a manufacturer dealer (V)
The sale of palay by a farmer,rice trade and of cooked rice in a restaurant (V)
Sale of refined sugar (V)
2 Importation of Personal & Household Effects (C,D)
C From Other Countries-RA returning home & NRA to resettle in Phils
o Provided that such goods are exempt fr custome duties (E
From Other Countries-First time in the Phils, change of address is bona fide, settle in
D
the Phils
o Maninirahan na sa Phils kaya in-exempt (E
o Timing requirement - Person accompanying such - 90 days before or after their arrival
(E

3 Institutions (G,H,R,U,J)
G Medical,dental,hospital & veterinary services (E)

o Sale to In Patients confined in the hospitals (E)

EXEMPTIONS:
o Professional Fees (V)

o Sale to Out patients in the hospitals (V)

H Educational Services rendered by

o Private educ inst.,DepED,CHED,TESDA & Govt Educ Inst. (E)
o With Accreditations (E)
EXEMPTIONS:
o Review School,Training School,CPE,Tutorial(KUMON) (V)

R Sale or Importation of Publications & Printing of: NW,MAGS,REV OR BUL

3 Requirements (E)
1. Printed at regular intervals
2. Available for Subscriptions @ fixed rate
3. Not principally devoted to PAID ADVERTISEMENT
EXEMPTIONS: e-book, online library
Advertisement in publication (V)
U BANKS - Services of banks,non-bank finl intermediaries-quasi banking func.
o Money changers,pawnshops - subj to Percentage tax(E)

Services rendered by Regional Area Headquarters

o Supervisory, Communication and Coordinating Concern No VAT/NO IT(E)
o Multinational Corp - Regional Area HQ- do not derive o earn Income(E)
Regional Operating HQ- derive o earn Income(V)10%

6 Transportation (S,T)
o Transport of passengers by international carriers doing buss in Phils -
S International(E)

o Transport of cargo by international carriers doing buss in Phils - International(E)

S Sale,importation and lease of passenger and cargo vessels and aircraft

o including engine and spare parts(E)
o domestic and international, subject to restriction & mandatory vessel retirement
program og MARINA (E)
 Importation of fuel, goods & supplies by persons engaged in international shipping & air
T transport operations
o International (E)

7 Percentage Tax (E)

8 Individual earning Compensation Income (I)

o employer-employee relationship

EX: Medical Services rendered to confined patient by a doctor employed in hospital. (E)
9 Special Laws (K)
o Sales to Senior Citizen and PWD
o Treaty to which Phils is signatory
o Law granted to Petroleum Exploration Concessionaires
10 Export - normally zero rated
o Export by Non Vat registered Taxpayers (E)

EXEMPTIONS:
o Export of Fresh kamatis (ZERO RATED)0%
* Not fall in (A) because it refers to Importation not Exportation