OTHER PERCENTAGE TAX

1. TAX ON PERSONS EXEMPT FROM VAT

Sale, lease of goods or properties, performance of services, the gross annual sales
and/or receipts of which do not exceed to 3M, and the taxpayer is not VAT-
Registered

3% of quarterly gross sales/receipts

2. CARRIER’S TAX

a. Domestic Carriers

1. Cars for rent or hire driven by lessee

2. Transportation contractors, including persons who transport passengers for
hire
3. Other domestic carriers by land for transportation of passengers, except
owners of animal drawn two wheeled vehicles
4. Keepers of garages

Minimum Quarterly Gross Receipts

Jeepney

1. Manila and other cities – P2,400

2. Provincial - P1,200

Public Utility bus

1. Not exceeding 30 passengers - P3,600

2. Excedding 30 but not exceeding 50 - P6,000
3. Exceeding 50 - P7,200

Taxi
1. Manila and other Cities - P3,600
2. Provincial - P2,400

Car for hire (with chauffeur) - P3,000

Car for hire (w/o chauffeur) - P1,800

3% of actual quarterly gross receipts or minimum gross receipts which ever is

higher

Domestic carriers by AIR or WATER are subject to VAT on the carriage of

passengers and/or goods or cargoes

b. International Carriers

International SEA or AIR carriers for passengers or cargoes from the Philippines
to a foreign country

3% of gross receipts

Passenger Goods/Cargo
Abroad to Phil Not Taxable Not Taxable
Phil to abroad Not Taxable 3% Percentage Tax
Phil to Phil Not Taxable Not Taxable
 Transport of passenger by international carrier doing business in the
Philippines shall be exempt from VAT and shall not be allowed to register for VAT
purposes.

3. FRANCHISE TAX

Radio and television broadcasting companies whose annual gross receipts of the
preceding year do not exceed P10M – 3% of gross receipt

Gas and water utilities – 2%

All other franchise holders shall pay vale added tax. The radio and television
companies shall have the option to be vat registered.

4. TAX ON OVERSEAS DISPATCH MESSAGE OR CONVERSATION

Overseas dispatch, message or conversation transmitted from the Philippines

(outgoing) by telephone, telegraph, telewriter exchange, wireless and other
communications equipment services.

10 % of the amount paid

The person rendering the services shall collect and pay the tax within 20 days after
the end of each quarter.

5. TAX ON AGENTS OF FOREIGN INSURANCE COMPANIES

Fire, marine, or miscellaneous insurance agent authorized under the IC to procure

policies of insurance as he may have previously been legally authorized to transact
on rsiks located in the Philippines

4% of the net premium received except reinsurance premium

6. AMUSEMENT TAX

Place for boxing exhibitions 10%

Place for professional basketball games 15%
Cockpits, cabarets, night or day club 18%
Jai-Alai and race tracks 30%

7. TAX ON WINNINGS

Wins in horse races -10%

Double, forecast, quinella and trifecta bets 4%

Base: Actual amount of winnings or dividends after deducting the cost of

tickets

Owns a winning race horse – 10% of the prize

The operator, manager or person in charge of horse races shall file and file and pay
within 20 days from the date the tax was deducted and withheld.

8. STOCK TRANSACTIONS TAX

Sale, barter, exchange or disposition of shares listed and traded thru a local stock
exchange, other than by a dealer in securities - 6/10 of 1%

Within 5 banking days from the date of collection.

 Initial public offering of stock in a closely-held corporations

Up to 25 % - 4%
Over 25% but not over 33 and 1/3% -2%
over 33 and 1/3% -1%

Within 30 days from the date of listing of the shares in the local stock exchange

9. TAX ON BANKS AND NON-BANK FINANCIAL INTERMEDIARIES

All banks and non-bank financial intermediaries performing quasi-banking

functions

On gross receipts from sources within the Philippines

a. Interest, commission and discount from lending activities, financial

leasing

Maturity Period
5 years or less 5%
More than 5 years 1%

b. Dividends and equity shares and net income of subsidiaries -0%

c. Royalties, rentals of properties and other exchanges -7%
d. Trading on foreign currency -7%

10. TAX ON OTHER NON-BANK FINANCIAL INTERMEDIARIES

Interest, commission and discount from lending activities, financial leasing

Maturity Period
5 years or less 5%
More than 5 years 1%

FILING OF RETURN AND PAYMENT OF TAXES

Except on Overseas communications tax, tax on winnings, stock transaction tax and
initial public offerings tax, filing and payment shall be made on 20 days after the end of
every month