Beruflich Dokumente
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Local Taxes
1. Tax on transfer of real property – sale/donation/barter or other mode of transferring
ownership.
- includes merger/consolidation
-seller/donor/transferor/executor/administrator is liable
-provinces: not to exceed 50% of 1% of the total consideration or FMV
-cities/municipalities within MM: not to exceed 75% of 1%
-RA 7279 (Socialized Housing Act) – exempt from transfer tax
2. Tax on Sand
Lepanto v. Ambanloc (June 29, 2010)
Can the Province of Benguet under the Benguet Revenue Code impose a sand and gravel tax on
Lepanto? Yes.
3. Franchise Tax
-imposed by provinces and cities/municipalities
-even if there is exemption prior to Jan. 1, 1992 (effectivity of LGC) because of blanket exemption
under Sec. 193
-tax base is gross receipts or capital investment
-Doctrine of Preemption – “except as otherwise provided in this Code.”
-may be imposed with the local business tax. Not direct double taxation. Different in character
and purpose.
-exemptions: holders of certificate of public convenience of operators of PUV
*Gross sales/receipts
-money or equivalent received, actually or constructively.
-but EXCL:
i. discounts, if determinable at the time of sales
ii. sales return
iii. excise tax
iv. VAT
Payment of Tax
Accrual – Jan. 1
When due – annual (Jan. 20); quarterly (within 20 days of the 1st month)
Situs of Tax
1. Sales made by branches/sales outlets – 100% recorded in branch/outlet; pay 100%
2. Sales made by head/principal office – 100% recorded in HQ/PO; pay 30% - where HQ/PO is
located; pay 70% where factory, plant or plantation is located (when plantation is located in a
place other than the location of factory, 60% - factory 40% plantation); if more than 1 factory,
divide pro rata based on volume of production
Real Property
-includes lands, buildings, machineries and other improvements
-definition of improvements and machineries are in Sec. 199
-Art. 415, NCC (nos. 1, 3, and 5)
Types
1. Basic RPT (Sec. 232) – 1% province; 2% MM
2. Special Education Funds (Sec. 235) – 1%
3. Idle Land Tax (Sec. 236) – not more than 5%
Not really RPT
4. Special levies (Sec. 240)
Taxing authorities
Provinces
Cities
Municipalities within MM
Collection/enforcement
City or municipal treasurer
Deputized barangay treasurer
Tax declaration
A document filed to be made basis for the assessment of tax.
Must be in the name of the possessor (if owner of property is exempt but beneficial use is granted
to a taxable person).
Within 30 days from the filing of tax declaration, a property must be declared to be exempt if it
really is. Otherwise, it shall be listed as taxable.
Rules for machinery under DOF Local Finance Circular No. 01-02
1. If permanently attached to land and buildings, then subject to RPT even though it is not
actually, directly, and exclusively used for religious, charitable or educational purposes.
2. If not permanently attached to real estate:
-subject to RPT if it is an essential and principal element of an industry, work or activity
without which such industry, work or activity cannot function
-not subject to RPT if is not essential and principal element of an industry, work or activity
3. If used actually, directly, and exclusively for educational purposes by non-stock, non-profit
educational institutions, not subject to RPT.
Rates of RPT
1. Basic RPT
Provinces – not more than 1% of assessed value
Cities/Municipalities within MM – not more than 2% of assessed value
2. Special Levies
SEF – 1% of AV
On idle lands – not more than 5% of AV
Special levy – not more than 60% of the AV
Computation
FMV xx
Assessment level x x%
Assessed value xx
(tax base)
RPT rates
Basic 2%
SEF x 1%
xx
Special classes/properties
-land, buildings, machinery, and other improvements
Prescription of assessment
5 years from due date
10 years from discovery of fraud
Condonation or reduction of real property tax by the President (Sec. 277, LGC)
Remission of tax by the Sanggunian (Sec. 276, LGC)
DAY 4
Tariff and Customs Law
Tariff – schedule of duties/rates on importe/exported goods.
Kinds:
1. Revenue tariff
2. Protective tariff
3. Customs
4. Import
Sec. 100
Duty due on all imports unless exempt.
Importation
Ordinary sense
-bringing merchandise within the limits of the port with intent to unload.
Legal sense
-see Sec. 1202, TCC
Feeder v. CA (1991)
Mere intent to unload is sufficient to commence an importation.
Ma’am: Take note of this case.
Entry
-Secs. 1301 and 1801, TCC
-see Chevron v. Commissioner of Customs
-triple meaning (1) the documents filed at the customs house; (2) the submission and acceptance
of the documents and (3) the procedure of passing goods through the customs house.
Transaction Value = PAP (price actually paid) + additions (packing costs, commission/brokerage
fees except buying commissions
DAY 6
Transfer Taxes
Transactions
Onerous – for valuable consideration
e.g. VAT, % tax
Estate tax
1. excise tax
2. direct tax
3. purpose is to generate fiscal revenue
4. estate bears the burden
5. amount is based on FMV of estate
6. progressive tax
Property transfers
Gross estate
Less: Allowable deduction
=taxable net estate
Estate tax due
“All property” = beneficial ownership of which belongs to the decedent at the time of death.
1. Citizen or resident decedent (i.e. resident and non-resident citizen and resident alien)
i. RP wherever situated
ii. TPP wherever situated
iii. IPP wherever situated
2. Taxable transfers
-personal, real, immovable, movable properties transferred by decedent during lifetime but in
the nature of testamentary dispositions.
i. transfers in contemplation of death.
ii. revocable transfer
iii. under general power of appointment
iv. for insufficient consideration
v. with retention or reservation of certain rights
Power of appointment
-power to determine who shall become owner of the property or recipient of the income.
-could be general or special/limited