Beruflich Dokumente
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Business Taxes
Onerous transfers
“in the course of trade or business” – regular conduct or pursuit of a commercial or an
economic activity except isolated transactions
Services rendered by a nonresident foreign person in the Phil is considered being
rendered in the course of trade or business
If for subsistence or livelihood with receipts not exceeding 100k for any 12-month
aggregated is not subject to business taxes (marginal income earners)
Based on gross sales or receipts irrespective of the result of the operation
Types of Business Taxes
VAT
OPT
Excise Tax
VAT
Tax on the value added by every seller to the purchase price or cost in the sale or lease of
goods, property or services in the ordinary course o trade or business as well as on importation
of goods into the Philippines, whether for persona or business use.
Sale, barter, exchange or lease of goods or properties and services in the Philippines
“Cross border doctrine” no VAT, only those consumed in the Phil
May apply not later than 10 days before the beginning of the calendar quarter
Shall pay the registration fee
Once registered, liable to output tax and be entitled to input tax credit beginning on the
first day of the month following the registration.
C. Cancellation or registration
1. Written application with demonstration of GR/GS for the following 12 months will
not exceed 3M
2. If he has ceased to carry on his business.
Beginning on the first day of the following month the cancellation was approved.
Power of Commissioner to suspend business operations
Not less than 5 days
1. Failure to issue receipts or invoices
2. Failure to file vat return
3. Understatement of taxable sales or receipts, 30%
4. Failure to register
VAT is an ad valorem tax payable by the customer
Advance payment of VAT is required with raw and refined sugar.
Applicabl base price of 1,400 per 50 kg bag