Beruflich Dokumente
Kultur Dokumente
ACADEMICS DEPARTMENT
http://www.facebook.com/atlas.ue
0915-1049090 & 0905-2101285
Sources: Income Taxation, Omar Erasmo G. Ampongan; Transfer and Business Taxation, Edwin
Valencia; CPAR and ReSA Review Materials
KINDS OF DONATION:
DONATION MORTIS CAUSA – takes effect upon the death of the donor. It
partakes of the nature of a testamentary disposition and shall be governed by the
law on succession
DONATION INTER VIVOS – intended by the donor to take effect during his
lifetime. The delivery of the property may be postponed, however, until the
donor’s death. The donor’s tax is imposed on donation inter vivos.
RULE OF RECIPROCITY:
a. When there is reciprocity – The intangible personal properties situated in
the Philippines given as gifts by a non-resident alien donor are not
subject to donor’s tax.
b. When there is no reciprocity – The intangible personal properties
situated in the Philippines given as gifts by a non-resident alien donor are
subject to donor’s tax.
When the donee or beneficiary is stranger, the tax payable shall be thirty
percent (30%) of the net gifts.
A STRANGER is a person who is:
a. Not a brother or sister (whether of the whole or half blood), spouse,
ancestor or lineal descendant.
b. Not a relative by consanguinity in the collateral line within the fourth
degree of relationship.
Any contribution in cash or in kind to any candidate, political party or coalition of
parties for campaign purposes shall be governed by the Election Code, as
amended.
STRANGER RELATIVE
Total (gross) gifts xxx xxx
Less: Deductions (Exemptions) xxx xxx
Total net gifts xxx xxx
Add: Prior net gifts xxx xxx
Total net gifts subject to tax xxx xxx
Tax Due xxx xxx
Total tax due xxx
Less: Tax credits/payments
Payments for prior gifts (xxx)
Foreign donor’s tax paid (xxx)
Tax Payable (overpayment) xxx
Net gift shall mean the net economic benefit from the transfer that accrues to
the donee
The computation of the donor’s tax is on a cumulative basis over a period of
one calendar year.
Husband and wife are considered as separate and distinct taxpayers for
purposes of donor’s tax.
With the exception of moderate donations for charity or on occasions of family
rejoicing, neither spouse may donate any community or conjugal property
without the consent of the other.
Every donation between the spouses during the marriage shall be void except
for moderate gifts, which the spouse may give each other on the occasion of
any family rejoicing, and donation mortis causa.
If what was donated is a conjugal or community property and only the husband
signed the deed of donation, there is only one donor for donor’s tax purposes,
without prejudice to the right of the wife to question the validity of the donation
without her consent pursuant to the pertinent provisions of the Civil Code of the
Philippines and the Family Code of the Philippines.
The donor’s tax shall not apply unless and until there is a completed gift.
ADMINISTRATIVE PROVISIONS:
Filing of Return and Payment of tax Requirements – any individual who
makes any transfer by gift (except those which, under Section 101, are exempt
from the tax) shall, for the purpose of the said tax, make a return under oath in
duplicate. The return shall set forth:
a. Each gift made during the calendar year which is to be included in
computing net gifts
b. The deductions claimed are allowable
c. Any previous net gains made during the same calendar year
d. The name of the donee
e. Such further information as may be required by rules and regulations
made pursuant to law.
Time of Filing and Payment of Tax – the return of the donor required in this
Section shall be filed within thirty (30) days after the date the gifts is made
and the tax due thereon shall be paid at the time of filing.
Place of Filing of Return
a. In case of resident donors:
Authorized agent bank
Revenue District Officer
Revenue Collection Officer
Duly authorized Treasurer of the city or municipality where
the donor was domiciled at the time of the transfer
b. In case of non-resident donors:
Value-Added Tax is a form of sales tax. It is a tax on consumption levied on the sale, barter,
exchange or lease of goods or properties and services in the Philippines and on importation of
goods into the Philippines. It is an indirect tax, which may be shifted or passed on to the buyer,
transferee or lessee of goods, properties or services.
-Any person or entity who, in the course of his trade or business, sells, barters, exchanges,
leases goods or properties and renders services subject to VAT, if the aggregate amount of
actual gross sales or receipts exceed One Million Five Hundred Thousand Pesos
(P1,500,000.00).
-Any person, whether or not made in the course of his trade or business, who imports goods
The Monthly VAT Declaration (BIR Form 2550M) and Quarterly VAT Return (BIR Form 2550Q)
shall be filed with any Authorized Agent Bank (AAB) in the place where the taxpayer is
registered or required to be registered. In cases of no-payment, the return shall be filed with the
Revenue District Office (RDO)/LTDO and LTAD where the taxpayer is registered or required to
be registered. In places where there are no AABs, it shall be filed with and the tax paid to the
Revenue Collection Officer or duly Authorized City or Municipal Treasurer of the place where
the RDO is located.
Output tax means the VAT due on the sale, lease or exchange of taxable goods or properties or
services by any person registered or required to register under section 236 of the Tax Code.
Input tax means the VAT paid by a VAT-registered person in the course of his trade or business
on importation of goods or local purchase of goods or services, including lease or use of
property, from a VAT-registered person. It shall also include the transitional input tax determined
in accordance with Section 111 of the Tax Code.
The term "goods or properties" shall mean all tangible and intangible objects, which are capable
of pecuniary estimation and shall include:
a) Real properties held primarily for sale to customers or held for lease in the ordinary course of
trade or business
b) The right or the privilege to use patent, copyright, design or model, plan, secret formula or
process, goodwill, trademark, trade brand or other like property or right
c) The right or the privilege to use in the Philippines any industrial, commercial or scientific
equipment
d) The right or the privilege to use motion picture film, films, tapes and discs
e) Radio, television, satellite transmission and cable television time
The term "sale or exchange of services" means the performance of all kinds of services in the
Philippines for others for a fee, remuneration or consideration, including those performed or
rendered by the following:
a) The lease or the use of or the right or privilege to use any copyright, patent, design or model,
plan, secret formula or process, goodwill, trademark, trade brand or other like property or right
b) The lease or the use of, or the right to use of any industrial, commercial or scientific
equipment
d) The supply of any assistance that is ancillary and subsidiary to and is furnished as a means
of enabling the application or enjoyment of any such property, or right or any such knowledge or
information
e) The supply of services by a nonresident person or his employee in connection with the use of
property or rights belonging to, or the installation or operation of any brand, machinery or other
apparatus purchased from such non-resident person
f) The supply of technical advice, assistance or services rendered in connection with technical
management or administration of any scientific, industrial or commercial undertaking, venture,
project or scheme
g) The lease of motion picture films, films, tapes and discs
h) The lease or the use of or the right to use radio, television, satellite transmission and cable
television time
It is a sale, barter or exchange of goods, properties and/or services subject to 0% VAT pursuant
to Sections 106 (A) (2) and 108 (B) of the Tax Code.
The following services performed in the Philippines by VAT-registered persons shall be subject
to zero percent (0%) rate:
a) Processing, manufacturing or repacking goods for other persons doing business outside the
Philippines which goods are subsequently exported where the services are paid for in
acceptable foreign currency and accounted for in accordance with the rules and regulations of
the Bangko Sentral ng Pilipinas (BSP)
b) Services other than those mentioned in the preceding paragraph, the consideration for which
is paid for in acceptable foreign currency and accounted for in accordance with the rules and
regulations of the Bangko Sentral ng Pilipinas (BSP)
c) Services rendered to persons or entities whose exemption under special laws or international
agreements to which the Philippines is a signatory effectively subjects the supply of such
services to zero percent (0%) rate
d) Services rendered to vessels engaged exclusively in international shipping
e) Services performed by subcontractors and/or contractors in processing, converting, or
manufacturing goods for an enterprise whose export sales exceeds seventy percent (70%) of
total annual production
·
a) Sale of goods which are directly shipped by a VAT-registered resident to a place outside the
Philippines
b) Sale of goods which are considered as "deemed" export sales by a VAT-registered person to
certain entities who are also residents of the Philippines:
· Sales to export-oriented enterprises which the Code considers as export sales at the level of
the supplier of raw materials
· Sales to entities, the exemption of which, under a special law or an international agreement
with the Government of the Philippines, effectively zero rates such sales
· Sales of gold to the Bangko Sentral ng Pilipinas
· Foreign currency denominated sales of goods
c) Sales considered as exportation of goods under a special law such as Executive Order No.
226 (Omnibus Investments Code of 1987) and Republic Act No. 7916 (PEZA Law)
Taxpayers may file their application with the Audit Information, Tax Exemption and Incentives
Division (AITEID) at the BIR National Office.
The Contractor's Final Payment Release Certificate is issued by the BIR before a government
contractor is fully paid for his contract with the government. Taxpayers may file their application
at the BIR National Office at the Audit Information, Tax Exemption and Incentives Division
(AITEID)
a) Transfer, use or consumption, not in the course of business, of goods or properties originally
intended for sale or for use in the course of business
b) Distribution or transfer to:
· Shareholders or investors as share in the profits of the VAT-registered person; or
· Creditors in payment of debt
c) Consignment of goods if actual sale is not made within sixty (60) days following the date such
goods were consigned
d) Retirement from or cessation of business, with respect to inventories of taxable goods
existing as of such retirement or cessation
It is a sale of goods, properties or service and the use or lease of properties which is not subject
to output tax and whereby the buyer is not allowed any tax credit or input tax related to such
exempt sale.
a) Sale of non-food agricultural products, marine and forest products in their original state by the
primary producer or owner of the land where the same were produced
b) Sale of cotton and cotton seeds in their original state and copra
c) Sale or importation of agricultural and marine food products in their original state, livestock
and poultry of a kind generally used as, or yielding or producing foods for human consumption
and breeding stock and generic materials thereof
d) Sale or importation of fertilizers; seeds, seedlings and fingerlings; fish, prawn, livestock and
poultry feeds, including ingredients, whether locally produced or imported, used in the
manufacture of finished feeds (except specialty feeds for race horses, fighting cocks, aquarium
fish, zoo animals and other animals generally considered as pets)
e) Sale or importation of coal and natural gas, in whatever form or estate, and petroleum
products (except lubricating oil, processed gas, grease, wax and petrolatum) subject to the
Excise Taxes imposed under Title VI of the Tax Code
f) Sale or importation of raw materials to be used by the buyer or importer himself in the
manufacture of petroleum products subject to excise tax, except lubricating oil, processed gas,
grease, wax and petrolatum
g) Importation of passenger and/or cargo vessels of more than five thousand tons, whether
coastwise or ocean-going, including engine and spare parts of said vessel to be used by the
importer himself as operator thereof
h) Importation of personal and household effects belonging to residents of the Philippines
returning from abroad and nonresident citizens coming to resettle in the Philippines; Provided,
that such goods are exempt from customs duties under the Tariff and Customs Code of the
Philippines
i) Importation of professional instruments and implements, wearing apparel, domestic animals,
and personal household effects (except any vehicle, vessel, aircraft, machinery, other goods for
use in the manufacture and merchandise of any kind in commercial quantity) belonging to
persons coming to settle in the Philippines, for their own use and not for sale, barter or
exchange, accompanying such persons, or arriving within ninety (90) days before or after their
arrival, upon the production of evidence satisfactory to the Commissioner of Internal Revenue,
that such persons are actually coming to settle in the Philippines and that the change of
residence is bona fide
j) Services subject to percentage tax under Title V of the Code
k) Services by the agricultural contract growers and milling for others of palay into rice, corn into
grits, and sugar cane into raw cane sugar
l) Medical, dental, hospital and veterinary services subject to the provisions of Sec. 17 of RA
7716, as amended
m) Educational services rendered by private educational institutions, duly accredited by the
Dept. of Education Culture and Sports (DECS), and Commission on Higher Education (CHED),
and those rendered by the government educational institutions
n) Sale by the artist himself of his works of art, literary works, musical compositions and similar
creations, or his services performed for the production of such works
o) Services rendered by individuals pursuant to an employer-employee relationship
p) Services rendered by regional or area headquarters established in the Philippines by
multinational corporations which act as supervisory communications and coordinating centers
for their affiliates, subsidiaries or branches in the Asia-Pacific Region and do not earn or derive
income from the Philippines
“If any of you lacks wisdom let him ask God, who gives generously to all without reproach, and
it will be given him.” -James 1:5
“God is able to do immeasurably more than what we can think or imagine.” –Ephesians 3:20
“I can do all things through Christ who strengthens me.” –Philippians 4:13