What have I learned from Business Taxation

The things that I learned from business taxation is whether you are a sole proprietor, partner, part
of a limited liability company, or a corporation, your business is responsible for adhering to tax
regulations. I also learned that value-added tax is a consumption tax placed on a product
whenever value is added at each stage of the supply chain, from production to the point of sale.
The index for application registration update and its functions which are application for closure
of business, change in registered address, application for replacement of certificate of
registration, application for replacement/cancellation of authority to print receipts and invoice,
application for replacement of tax clearance certificate for tax liabilities, application for
replacement of lost/damaged TIN card, application for change in registered activities, application
for change in registered name/trade name, application for change in tax type details, application
for change in accounting period and application for tax clearance. I learned that estate tax is a tax
levied on the privilege to transfer property or estate of the decedent to his lawful heirs or
beneficiaries and estate tax is also the properties, rights and obligations which are subjected
matter of the succession. Then I learned that donor’s tax is a tax 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, I also learned about the two kinds of donor’s tax which are donation inter vivos and
donation mortis causa. Donation inter vivos is a donation of personal property made by the donor
during his/her lifetime, delivered to the donee with the intention of surrendering control over the
property and donation mortis causa will takes effect upon the death of donor and partakes of the
nature of testamentary disposition. I also learned about the essential requisites of donation which
are capacity of donor, acceptance by done, donative intent in cases of direct gift, delivery
whether actual or constructive of the subject matter of the gift. I learned the functions of formal
requisites of donation which are movable or personal property is made orally in writing except
exceeds ₱5,000 in writing and immovable or real property must be made in public instrument. I
learned that donation is an act of liberty whereby a person disposes gratuitously of a thing or
right in favor of another who accepts it. I learned that mortgage on the donated assumed by the
donee and amount specifically provided by donor as diminution of property donated are
deduction from gross gifts. I also learned that documentary stamp tax is an excise tax levied on
documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale
or transfer of an obligation, rights, or property. Then we discuss about local taxes, local taxes is
tax assessed and levied by a local authority such as a state, county or municipality. The barangay
tax may impose a tax on stores or retailers with fixed business establishments with annual gross
sales, I learned that the city government may impose and collect any of the taxes, fees and
charges imposed by the province or municipality. I learned that the Basic Real Property Tax is an
ad valorem tax on real properties such as lands, buildings, and other improvements, and
machineries imposed by provinces, cities and municipalities within the Metropolitan Manila
Area and is based on the assessed value which is a certain percentage of the market value of the
real property.
I also learned the penalties on official receipts and invoices, for refusal to issue receipts or sales
or commercial invoices the penalties for first offense is P10,000 and for second offense is
P20,000. If the information missing is the correct amount of the transaction the first offense
penalty will be P2,000 and the second offense penalty is P5,000, for possession or use of
unregistered receipts or invoices first offense penalty is 10,000 and second offense penalty is
20,000. Then on excise tax I learned that excise tax is a tax on the production, sale or
consumption of a commodity in a country. I also learned the two types of excise tax which are
specific tax and Ad valorem tax, specific tax is an excise tax imposed which is based on weight
or volume capacity or any other physical unit of measurement and Ad valorem tax is an excise
tax which is based on selling price or other specified value of the goods/articles. I learned that
dowries or gifts made on account of marriage before its celebration or within one year thereafter
by parents to each of their legitimate recognized natural or adopted children is exceptional from
gross gifts. I learned the terminologies of estate tax which are decedent and successor, decedent
is the person who dies and whose properties rights and obligation and successor is a person
whom the properties rights and obligation of the decedent will pass they are heirs or
beneficiaries. I learned that the Comprehensive Tax Reform Program (CTRP) is under the
department of finance and the TRAIN Law will lessen the overall tax burden of the poor and the
idle class. I learned that the simplified tax system will increase the take-home pay of most
individuals thereby putting more money in people’s pockets. On coal excise tax it increase the
rate from P10 per metric ton to P50, P100, and P150, respectively in 2018, 2019 and 2020
covering both domestic and imported coal and the domestic coal remains VAT exempt. TRAIN
also simplifies the excise tax on petroleum, sweetened beverages, alcohol, cigarettes and
automobiles.