UNIVERSITY OF MINDANAO

Tagum College

Department of Accounting Education

Accountancy Program

Physically Distanced but Academically Engaged

Self-Instructional Manual (SIM) for Self-Directed Learning (SDL)

Course/Subject: ACC 321 – Business Taxation

Name of Teacher: Jon D. Inocentes,CPA

THIS SIM/SDL MANUAL IS A DRAFT VERSION ONLY; NOT FOR

REPRODUCTION AND DISTRIBUTION OUTSIDE OF ITS INTENDED USE.
THIS IS INTENDED ONLY FOR THE USE OF THE STUDENTS WHO ARE
OFFICIALLY ENROLLED IN THE COURSE/SUBJECT.
EXPECT REVISIONS OF THE MANUAL.
 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Q&A List
In this section you are going to list what boggles you in this unit. You may
indicate your questions but noting you have to indicate the answers after your
question is being raised and clarified. You can write your questions below.

Questions/Issues Answers

1.

2.

3.

4.

5.

Keyword Index Do Not Copy

• Value-added tax
• Input tax
• Output ta

\
Big Picture in Focus: ULOb. Apply taxation rules in determining
Other Percentage Tax (OPT).

Metalanguage
The terms used for this specific unit learning outcome are already discussed and
explained in the essential knowledge section as part of the discussion. Hence,
having separate presentation will mean redundancy.
Essential Knowledge
To perform the aforesaid big picture (unit learning outcomes), you need to fully
understand the following essential knowledge laid down in the succeeding pages.
Please note that you are not limited to exclusively refer to these resources. Thus,
you are expected to utilize other books, research articles and other resources that
are available in the university’s library e.g. ebrary, search.proquest.com etc., and
even online tutorial websites.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Topic: Other Percentage Tax (OPT)

Percentage taxes are taxes imposed on the sale, barter or exchange or importation
of goods, or the sale of services bases upon the gross sales, value in receipts
derived by the manufacturer, producer, importer, or seller ( De Leon Comprehensive
Review of Taxation,p.324,1998 Ed)

These are usually measured by a certain percentage of the gross selling price or
gross receipts and are on the sale of goods or services and not on their
manufacture, production or importation.

Other percentage taxes are in addition to income and other taxes paid, unless
specifically exempted. Generally, if the transaction or establishment is subject to
other percentage taxes, then it is exempt from valued added tax, and vice-versa.

It is possible; however, that an individual engaged in business or business is exempt

from both from the payment of value-added tax and from any percentage tax
imposed by the National Internal Revenue Code.

PERCENTAGE TAXES

Section Particulars Tax Base Tax rate

116 Tax on persons exempt from VAT
Do Not Copy

Monthly gross sales 3%

(except or receipts

Beginning January 1, 2019 , annual

gross receipts not exceeding Php
500,000.0 shall be exempt from 3%

Exempt effective January 1, 2019 if

annual gross receipts not exceeding
Php 500,000.00

Purely self-employed and/or

professionals has option to avail an
8% tax on gross sales/receipts and
other non-operating income in
excess of P250,000

Illustration 1

Gross receipts Registered? ANSWER

Case 1 P 1,200,000 YES 12% VAT

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Case 2 2,000,000 YES 12% VAT

Case 3 3,500,000 NO 12%VAT
Case 4 900,000 NO 3% Non-VAT
Case 5 90,000 NO Exempt
Case 6 15,000 YES 12% VAT
Illustration 2

Marino is an owner of a small variety store. His gross sales in any one year do not
exceed P3,000,000. He is not VAT-registered. The following data are taken from the
books of the variety store for the quarter ending March 31, 2019:

Merchandise inventory, Dec. 31, 2018 P 10 000

Gross sales 45 000
Purchases from VAT-registered supplier 38 500
The percentage tax due is:
45,000 x 3% = 1,350

Section Particulars Tax Base Tax

rate
119 Tax on franchises:
1. On gas and water utilities Monthly gross sales 2%
or receipts

2.On radio and/or television Monthly gross

Do Not Copy

broadcasting companies with annual receipts or pay VAT 3%

GR of not more than P10,000,000 at their option. Once
exercised, it becomes
irrevocable.
Illustration 3
Korakuta Company, a television broadcasting company had the following data in its
books.

Gross receipts during the month P2,000,000

Purchase of materials and services (subject to VAT) 165,000
Purchase of materials and services(not subject to VAT) 130,000

COMPUTE the following:

a. The Other Percentage Tax due if the gross receipts last year amounted to P9,
750,000.
b. The VAT payable if the gross receipts last year amounted to P13, 600,000.

a.) Gross receipts P2,000,000

Rate of tax 3%
Franchise tax 60,000

b.) Output tax (2,000,000x12%) 240,000

Less: Input tax (165,000x12%) 19,800

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

VAT payable 220,200

Section Particulars Tax Base Tax rate

Amusement taxes from operators of:
Boxing exhibitions Quarterly gross 10%
Exempt, if a World or Oriental receipts
championship in any division is at
stake, promoted
125 by a Filipino citizen or Corporation,
at least 60% Filipino owned, and
one of the

Professional basketball games Quarterly gross 15%

receipts
Cockpits Quarterly gross 18%
receipts
Cabarets, night or day clubs Quarterly gross 18%
receipts
Jai-alai and race tracks Quarterly gross 30%
receipts

For the purpose of the amusement tax, the term “gross receipts” embraces all the
receipts of the proprietor, lessee or operator of the amusement place. Said gross
receipts also include income from television, radio, and motion picture rights, if any.
Do Not Copy

Illustration 4

Carrie Rista operates a racetrack. Other than the restaurant that it operates, it also
allows “Burger ka Dyan Burger” a burger stand operated by a concessionaire, to sell
foods inside its premises. The gross receipts during the month are as follows:

From operation of race track P 1,200,000

From restaurant 600,000
From television coverage 400,000

The gross receipts of “Burger ka Dyan Burger” amount to P450, 000.

Question 1: How much amusement tax is payable by Carrie Rista.

Race track P 1,200,000
Restaurant 600,000
Television coverage 400,000
Gross receipts 2,200,000
Rate of tax 30%
Amusement tax 660,000

When a restaurant is owned or operated by a person other than the proprietor,

lessee or operator of the amusement place, the receipts derived from the operation

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

of the restaurant is subject to either value-added tax or to 3% “Percentage Tax On

Persons Exempt VAT”.

Section Particulars Tax Base Tax rate

Winner of the prizes in double 4% of
forecast/quinella & trifecta bets the net
126 Tax on winnings prize
Person winning not in double 10% of
forecast/quinella & trifecta bets the net
prize

Owners of winning race horses 10% of

the prize

Section Particulars Tax Base Tax rate

123 Tax on life insurance premium, Insurance premiums 5%
except purely cooperative collected
companies or associations

Section Particulars Tax Base Tax rate

⚫ Owners of property who obtain On premiums paid 5%
124 insurance
Do Not Copy

directly with foreign companies

Insurance premiums 10%
⚫ Agents of foreign insurance collected
companies
(fire, marine or miscellaneous
insurance agents)

Illustration 5

Nanny Niguro insured his life with Filipino Life Insurance Company. The total amount
of premiums paid to the company during the month was P 20,000. Out of this
amount, P 7,000 was paid in cash and the balance in a promissory note.
How much is the tax on life insurance premiums?

Gross premiums collected P 20,000

Rate of tax 2%
Tax on life insurance premiums 400

127-A Tax on sale, barter or exchange of shares of stock listed and traded through
the local stock exchange (LSE), other than sale by a dealer in securities –
.006 or .60% of gross selling price or gross value in money of the shares of
stock sold, bartered, exchanged or otherwise disposed of.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

127-B Tax on shares of stock sold or exchanged through the LSE in an initial public offering
of shares of stock of a closely held corporation in accordance with the proportion of
shares of stock sold, bartered or exchanged or disposed of to the total outstanding
shares of stock after the listing in the LSE:
Up to 25% 4% of GSP
Over 25% to 33 1/3% 2% of GSP
Over 33 1/3% 1% of GSP

Illustration 6
Celeste sold 10,000 shares of stock costing P 95, 000 for P 100, 000. The par value
of the stocks is P 9 per share.

Q. If the shares are listed and traded in the Philippines Stock Exchange, how much
is the Stock Transaction Tax on the sales?

Gross selling price P 100,000

Rate of tax .006
Stock transaction tax 600

Q2. If the shares are not listed and traded in the Philippine Stock Exchange, how
much is the Stock Transaction Tax on the sale?
Do Not Copy

None. However, the sale is subject to a final withholding tax, computed as follows:
Gross selling price P100,000
Less: Cost 95,000
Net capital gain 5,000
Rate of tax 15%
Final withholding tax (income tax) 750

Illustration 7
Printers Corporation closely held, has an authorized capital stock of 10, 000
shares with par value of P 1.00 per share as of January 1, 2011. Of the 10, 000
authorized shares, 2, 500 thereof is subscribed and fully paid up by the following
stockholders:

Galog 500
Oyang 500
Idong 500
Kulas 500
Manay 500
Total shares outstanding 2500

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Printer Corporation finally decides to conduct an initial public offering and

initially offers 2,500 of its unissued shares to the investing public. After the IPO in
March 2009, Printers Corporation’s total issued shares increased from 2,500 to
5,000 shares.

At the IPO, one of the existing stockholders, Manay, has likewise decided to
sell her entire 500 shares to the public.
Q1: If he unissued shares were offered at P10 per share, how much is the tax due
on the primary offering?
Shares offered to the public 2,500
Divide by number of shares outstanding 5,000
Ratio of percentage 50%

Initial offer price (2,500xP10) 25,000

Rate (over 33 1/3%) 1%
Initial Public Offering Tax 250
Q2. If the shares of Manay were offered also at P10 per share, how much is the total
tax due on the Initial Public Offering?
On primary offering P 250
On secondary offering:
Shares offered by Manay to the
public 500
Do Not Copy

Divide by number of shares

outstanding 5,000
Ratio of percentage (not over
25%) 10%

Offer price (500xP10) 5,000

Rate (not over
25%) 4% 200
Total tax on initial Public Offering 450
On primary P250
offering

On secondary offering:
Shares offered by Manay to the 500
public
Divide by number of shares 5,000
outstanding
Ratio of percentage (not over 25%) 10%

Offer price (500xP10) 5,000

Rate (not over 4% 200
25%)

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Total tax on initial Public Offering 450

Q3. In case Oyang decides to offer his existing 500 shares to the public subsequent
to the IPO at P20 per share, will the sale be subject to IPO tax?

No. In case another stockholder decides to offer his existing shares to the
public subsequent to the IPO, he shall subject to a tax of ½ of 1% of the gross selling
price.

Section Particulars Tax Base Tax rate

123 Tax on life insurance premium, Insurance premiums 5%
except purely cooperative collected
companies or associations

Section Particulars Tax Base Tax rate

117 Monthly gross 3%
Percentage tax on domestic receipts
common carriers by land for the
transport of passengers and
keepers of garages, except owners
of bancas and animal-drawn two-
wheeled vehicles. Do Not Copy

In computing the percentage tax provided in Section 117 (Common Carrier’s Tax) of
the National Revenue code, the following shall be considered the minimum
quarterlygross receipts in each particular case (RR 9-2007)

Minimum Minimum
Quarterly Monthly

Jeepney for hire-

1.Manila P 65,700 P 21,900
2.Provincial 32,900 10,967
Public utility bus
Not exceeding 30 passengers 98,600 32,867
Exceeding 30 but not exceeding 50 164,200 54,733
Exceeding 50 197,100 65,700
Taxis
1.Manila 98,600 32,867

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 Department of Accounting Education
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Telefax: (084) 655-9591, Local 116

2.Provincial 65,700 21,900

Car for hire (with chauffeur) 82,100 27,637
Car for hire (w/o chauffeur 49,300 16,434

Illustration 8

Barbosa Lines operates seven (7) buses with a capacity of 40 passengers, playing
the routeNaga City to Iriga City, and Iriga to Naga. During the month, it had the
following data:

Gross receipts from passengers P250,000

Gross receipts from carriage of goods, net
of tax 50,000
Purchase of spare parts (inclusive of tax) 38,640
Purchase of supplies from VAT suppliers (invoice
value) 1,400

REQUIRED: Compute the business taxes payable by Barbosa

Lines:

a. From carriage of
passengers
Gross receipts Do Not Copy

P250,000
Minimum (54,733x7) 383,131
Rate of tax 3%
Common carrier's tax 11,493.93

b. From carriage of
goods
Output tax
(50,000x12%) 6,000
Less: Input tax
Spare parts
(38,640x3/28) 4,140
Supplies (1,400x3/28) 150
Total 4,290
(50,000/300,000*)x4,290 715
VAT payable 5,285

*Gross receipts from passengers 250,000

Gross receipts from carriage of
goods 50,000

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Total gross
receipts 300,000

Section Particulars Tax Base Tax rate

123 OPT on international carriers (air & Monthly gross 3%
shipping) receipts

Illustration 9
Air Philippines Express, a domestic airline company is engaged in domestic and international
transports. During the month, it had the following gross receipts:

Place of Travel Passenger Cargo

From Philippines to other Asian countries P 10,000,000 P1,000,000
From other Asian countries to the Philippines 12,000,000 1,500,000
Domestic operation only 20,000,000 2,000,000

Is the airline company subject to Common Carrier's Tax or to VAT?

It is subject to value-added tax. The output tax is computed as follows:

Do Not Copy

From domestics operation:

Passenger
(20,000,000x12%) 2,400,000
Cargo (2,000,000x12%) 240,000 2,640,000

From Philippines to other Asian countries

(10,000,000+1,000,000)x0%
Output tax 2,640,000

Section Particulars Tax Base Tax rate

123 Tax on overseas dispatch, message or Quarterly gross 10%
conversation originating from the receipts from
Philippines such services

Exempted from Sec. 120 are:

• Diplomatic services
• International organizations
• News services
• Government

Section Particulars Tax Base Tax rate

Tax on banks and non-bank
financial

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

intermediaries performing quasi-

banking functions:
Monthly gross
122 On interests, commissions and receipts
discounts from lending activities as
well as income from financial
leasing, based on remaining
maturities of the instruments, as
follows:
1%
Maturity period of more than 5 years 5%
Maturity period of 5 years or less

Note: In case of pretermination, the

maturity period shall be reckoned to
end as of the date of pretermination
for purposes of classifying the
transaction and applying the correct
rate of tax.

On royalties, rental of property (real Monthly gross 7%

or personal), profit from exchange receipts
and all other items treated as gross
income under Section 32 of the tax
Do Not Copy

code.
On trading gains within a taxable Monthly gross 7%
month on foreign currency, debt receipts
securities, derivations and other
similar financial instruments
On dividends and equity shares in 0%
the net income of subsidiaries

Section Particulars Tax Base Tax rate

Tax on other non-bank financial
intermediaries,including finance
companies, money changers
and pawnshops:
Monthly gross
125 On interests, commissions and receipts
discounts from lending activities as
well as income from financial
leasing, based on remaining
maturities of the instruments, as
follows:
1%
Maturity period of more than 5 years 5%
Maturity period of 5 years or less

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Note: In case of pretermination, the

maturity period shall be reckoned to
end as of the date of pretermination
for purposes of classifying the
transaction and applying the correct
rate of tax.

On royalties, rental of property (real Monthly gross 7%

or personal), profit from exchange receipts
and all other items treated as gross
income under Section 32 of the tax
code.
On trading gains within a taxable Monthly gross 7%
month on foreign currency, debt receipts
securities, derivations and other
similar financial instruments
On dividends and equity shares in 0%
the net income of subsidiaries
Illustration 10
The Filipino Bank has the following income/loss:
Do Not Copy
March April
Interest income with maturity of less than 5years P50,000 P100,000
Rentals 50,000 50,000
Net trading gain (loss) (10,000) 20,000

REQUIRED: Compute the gross receipts tax for the month of March and April.
March:
Interest income with maturity of less than 5 P2,500
years
(P50,000x5%) 3,500
Rentals
(50,000x7%) 6,000
Gross receipts tax, March

April:
Interest income with maturity of less than 5
years
(100,000x5%) 5,000
Rentals
(50,000x7%) 3,500
Net trading gain, April 20,000
Less: Net trading loss,
March (10,000)
Adjusted net trading gain 10,000

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

X Rate of tax 7% 700

Gross receipts tax, April 9,200

Return and payment of other percentage taxes

a. General rule: Every person liable to pay percentage taxes shall file a monthly
return of the amount of his gross sales, receipts or earnings and pay the tax
thereon within twenty (20) days after the end of each taxable month. The
taxpayer may file a separate return for each branch or place of business, or a
consolidated return for all branches or places of business with the authorized
agent bank, Revenue District Officer, Collection Agent or duly authorized
Treasurer of the City or Municipality where said business or principal place of
business is located, as the case maybe.
b. Exceptions:
⚫ The tax on overseas dispatch, message or conversation originating from the
Philippines shall be paid by the person rendering the service within twenty (20)
days after the end of each quarter.
⚫ Amusement taxes shall be paid by the proprietor, lessee, operator or any party
liable within twenty (20) days after the end of each quarter.
⚫ The tax on winnings shall be deducted and withheld by the operator, manager
or person in charge of the horse races and remitted to the Bureau of Internal
Revenue within twenty (20) days from the date the tax was deducted and
withheld.
⚫ The stock transaction tax of 1/2 of 1%, shall be collected by the stock broker
and remitted to the Bureau of Internal Revenue within five (5) banking days
Do Not Copy

from the date of collection.

⚫ The stock transaction tax of 4%, 2% and 1%, in case of primary offering, shall
be paid by the corporation within thirty (30) days from the date of listing of the
shares of stock in the local stock exchange. In case of secondary offering, the
tax shall be collected by the stockbroker and remitted to the Bureau of Internal
Revenue within five (5) banking days from the date of collection.
Any person retiring from a business subject to percentage tax shall notify the nearest
internal revenue officer, file his return and pay the tax due

Self-Help: You can also refer to the sources below to help you
further understand the lesson.
Ballada, W., & Ballada, S. (2018). Transfer and business taxation: made easy.(17th
ed.). Philippines: DomDane Publishers & Made Easy Books.

Ampongan, O. (2013).Business & transfer taxes. (2nd ed.).Manila: Conanan

Educational Supply.

Tabag, D. (2018) Cpa reviewer in taxation with special notes. Manila: Professional
Review and Training Center.

Let’s Check

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

From the list of possible answers below (Letter A to D) choose the LETTER that
best describes the following statements:
A. SUBJECT TO VAT
B. SUBJECT TO OTHER PERCENTAGE TAXES
C. EXEMPT FROM VAT AND OTHER PERCENTAGE TAXES
D. NOT SUBJECT TO BUSINESS TAX
2.
1. Sales of goods by Ana worth P 450,000,not-VAT registered, not exempt. Its
gross sales is P 650,000.
2. Sales of medicine by hospital pharmacy to in-patients
3. Export sales by persons who are not VAT registered.
4. Gross receipts earned by a cockpit on a “ 2-cock Derby”
5. Interest earned on loans granted by a lending institution.
6. Sales or importation of books.
7. Gross selling price from the sale of share of stocks in the Philippine stock
exchange.
8. Sale of mango fruits by a mango plantation.
9. Gross receipts from carriage of goods and cargo.
10. Export sales by persons who are VAT registered.

II- MULTIPLE CHOICE QUESTIONS

1. Which of the following statements is incorrect?

a. The percentage tax is basically on sale of services
Do Not Copy

b. The percentage tax may be imposed on sale of goods

c. The percentage tax may be imposed together with the value added tax
d. The percentage tax maybe imposed together with the excise tax

2. The operator of one of the following places is not subject to amusement tax:
A. Cockpits C. bowling alleys
B. Racetracks D. KTV karaoke joints

3. One of the following is subject to 3% percentage tax

a. Establishments whose annual gross sales or receipts exceed P 3,000,000
and who are VAT registered
b. Business whose annual gross sales receipts or sales exceed P 3,000,000
and who are not VAT Registered
c. VAT registered establishment whose annual gross receipts do not exceed P
3,000,000
d. Establishments whose annual gross sales do not exceed P 3,000,000 and
who are not VAT registered.

4. The franchise tax of grantees of radio and/or television broadcasting whose

annual gross receipts of the preceding year do not exceed P 10 000 000 shall be:
b. 2% of the gross receipts C. 10% of the gross receipts
c. 3% of the gross receipts D. 12 % of the gross receipts

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 Department of Accounting Education
Mabini Street, Tagum City
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Telefax: (084) 655-9591, Local 116

4. Banks and non-bank financial intermediaries performing quasi-banking functions

are subject to:
A. Value-added tax C. Franchise tax
B. Gross receipts tax D. Amusement tax
5. Which of the following is subject to 0% gross receipts tax?
a. Gross receipts on interest, commissions and discounts from lending
activities and income from financial leasing.
b. Dividends and equity shares in net income of subsidiaries.
c. Royalties, rentals of property, real or personal, profits from exchange
and all other items treated as gross income in the Tax Code.
d. Net trading gains within the taxable year on foreign currency, debt
securities, derivatives and other similar financial instruments.

6. First statement: The 10% tax on winnings is based on actual amount paid for
every winning ticket after deducting the cost of ticket.
Second statement: The rate of tax on winnings in case of double forecast/
quinella and trifecta bets shall be four (4%) of the actual amount paid for every
winning ticket after deducting the cost of the ticket.
a. Both statements are correct c. only the first statement is correct
b. Both statements are incorrect d. only the second statement is
correct

7. A common carrier by land is engaged in the transport of passengers, goods and

cargoes. He is not VAT-registered. What business taxes is he liable to the
Do Not Copy

government?
a. 12% VAT
b. 3% common carrier’s tax
c. 3% tax on VAT-exempt persons on gross receipts from transport of goods
and cargoes and 3% common carrier’s tax on gross receipts from
transport of passengers.
d. 12% VAT on gross receipts from transport of goods and cargoes and 3%
common carrier’s tax on gross receipts

8. An international carrier is subject to the following tax-

a. 12% value-added tax and ordinary income tax on gross receipts within the
Philippines.
b. 0% VAT and 2.5% income tax on gross receipts within the Philippines.
c. 3% other percentage tax on gross receipts
d. 3% other percentage tax on gross receipts and ordinary income tax on gross
income

9. A telephone company, Vat-registered, provides services for domestic and

overseas calls. What business taxes will be due from the services offered?
A. VAT on both services
B. Overseas communications tax on both services
C. VAT on domestic calls and overseas communications tax on overseas
calls.
D. Franchise tax on both services

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

10. Boxing exhibitions shall be exempt from amusement tax when the following
conditions are present:
1- Involves World, Oriental or Philippine Championships in any division.
2- Both of the contenders are citizens of the Philippines.
3- Promoted by citizens of the Philippines, or association at 60% of the
capital is owned by Filipino citizens.
A. All of the three conditions are correct.
B. None of the three conditions are correct.
C. Only conditions 1 and 2 are correct.
D. Only condition 3 is correct.

11. Gloria invested P 500 000 in the shares of stock of Tabako Corp. the
corporation’s shares are listed and are traded in the local stock exchange. Gloria
sold the shares for P 350 000 through the local stock exchange. The percentage
tax on the sale is:
a. P 6 000 b. 2,100 c. 3 000 d. 2 500

12. WateGas Company who operates a gas and radio/television broadcasting

franchise provides the following receipts:
Gas franchise P 2,000,000
Radio franchise 10,000,000
Operating expenses (5,000,000)
Net Income P 7,000,000
The total percentage tax on franchise is:
Do Not Copy

a. P340,000 c. P210,000
b. P360,000 d. P240,000
13. Banco Deposito had the following data for the first month of the current year:
Interest commissions and discounts from lending activities
(remaining maturity of instrument is 5 years) P 5,000,000
Income from financial leasing
(remaining maturity is more than five years )
3,000,000
Dividends and equity shares in net income of subsidiaries 1,000,000
Rentals of properties 500,000
Net trading gains within the taxable year on foreign currency 300,000

How much is the gross receipts tax?

A. P 386,000 C. P 336,000
B. P 250,000 D. P 326,000
14. Tintin Dera is the owner of a small grocery store with a gross sales in any (one)
year period do not exceed P 3,000,000. She is not a VAT registered taxpayer.
She submits the following data for the month of January 2018.
Merchandise Inventory, December 31, 2017 P 123,450
Gross sales 67,800
Purchases from VAT registered suppliers 156,980
The percentage tax is
a. P 34,823
b. P 6,870

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c. P 2,034
d. P 9,876
15. Henares , a Filipino citizen, promoted a word boxing championship in Manila
featuring Ahas a Filipino champion. Gate receipts amounted to P 3,000,000 and
additional receipts from television coverage was P 2,000,000. The amusement
tax is :
a. 0 b. 300,000 c. 200,000 d. 500,000

P 400 000
16. Revenues from the current period
Collections during the period of:
Revenues of prior periods 50 000
Revenues of the current period 300 000
Revenues of the succeeding period 10 000
(advances)
The business tax if a race track:
a. P 64,800 c. P 90 000
b. P 54,000 d. P 108 000

17. A, operates a ferryboat. During a particular quarter, its receipts consist of the
following:
Gross receipts: (without VAT)
Transport of passengers P1,000,000
Transport of goods 1,500,000
Transport of cargoes 500,000
Do Not Copy

The common carrier’s tax payable is

a. .P 30,000
b. P 90,000
c. P100,000
d. None
18. Using the data above, the output VAT is
A. P360,000 B. P 90,000 C. P100,000 D. P240,000

In the second quarter of 2019, a taxpayer engaged in the sale of services and
whole annual gross receipts do not exceed P 3,000,000 has the following data:
Accounts receivable, beginning of the quarter P 50 000
Sales during the quarter 100 000
Accounts receivable, end of quarter 75 000
Purchase of supplies, total invoice amount 11 200
19. The percentage tax due for the quarter is:
A. P 2 250 C. P 1 914
B. 3 000 D. 2 664

20. Assuming the taxpayer is VAT-registered, the VAT payable is:

A. P 2 250 C. 7 656
B. 9 000 D. 7 800

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Let’s Analyze

1.Dugong Trans, is a common carrier by sea. During a particular quarter its receipts
consist of the following( Figures are net of any business taxes)
Transport of passengers P 3,000,000
Transport of goods 5,500,000
Transport of cargoes 6,500,000
The total business taxes payable is ____________________

2. Dugong Trans, is a common carrier by land. During a particular quarter its

receipts consist of the following( Figures are net of any business taxes)
Transport of passengers P 3,000,000
Transport of goods 5,500,000
Transport of cargoes 6,500,000
The total business taxes payable is ____________________

In a Nutshell

Che-che is a CPA. The following are her data during the period (amounts are net of
tax):
Salary as accounting teacher and reviewer P 20 000
Motel business (amounts are exclusive of tax):
Gross receipts from business (VAT 250 000
Do Not Copy

registered) 25 000
Discounts
Purchases: 28 000
From VAT-registered suppliers 27 500
From non-VAT suppliers 25 000
Business expenses (60% VAT)
Practice of profession (not VAT-registered):
Gross receipts 47 500
Purchases
From VAT registered sellers 21 200
From non-VAT sellers 18 000
Expenses- profession 24 000

1. The VAT payable is-

2. The percentage tax payable is

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Q&A List
In this section you are going to list what boggles you in this unit. You may
indicate your questions but noting you have to indicate the answers after your
question is being raised and clarified. You can write your questions below.

Questions/Issues Answers

1.

2.

3.

4.

5.

Keyword Index
• Other percentage tax Do Not Copy

• Gross Receipts
• Gross Selling price

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 Course Schedules

Activities Date Where to Submit

Big Picture A (Week 1-3) ULOa: Let’s Check Oct. 27, 2020 CF email/ Quipper
Activity
Big Picture A (Week 1-3) ULOa: Let’s Oct. 29, 2020 CF email/ Quipper
Analyze Activity
Big Picture A (Week 1-3) ULOb: Let’s Check Nov. 3, 2020 CF email/ Quipper
Activity
Big Picture A (Week 1-3) ULOb: Let’s Nov. 5, 2020 CF email/ Quipper
Analyze Activity
FIRST EXAM Nov. 6, 2020 Quipper
Big Picture B (Week 4-5) ULOa: Let’s Check Nov. 10, 2020 CF email/ Quipper
Activity
Big Picture B (Week 4-5) ULOa: Let’s Nov. 12, 2020 CF email/ Quipper
Analyze Activity
Big Picture B (Week 4-5) ULOb: Let’s Check Nov. 14, 2020 CF email/ Quipper
Activity
Big Picture B (Week 4-5) ULOb: Let’s Nov. 14, 2020 CF email/ Quipper
Analyze Activity
Big Picture B (Week 4-5) ULOc: Let’s Check Nov. 17, 2020 CF email/ Quipper
Activity
Big Picture B (Week 4-5) ULOc: Let’s Nov. 19, 2020 CF email/ Quipper
Analyze Activity
SECOND EXAM Nov. 20, 2020 Quipper
Big Picture C (Week 6-7) ULOa: Let’s Nov. 24, 2020 CF email/ Quipper
Check Activity
Big Picture C (Week 6-7) ULOa: Let’s Nov. 24, 2020 CF email/ Quipper
Analyze Activities
Big Picture C (Week 6-7) ULOb: Let’s Nov. 26, 2020 CF email/ Quipper
Check Activity
Big Picture C (Week 6-7) ULOb: Let’s Nov. 26, 2020 CF email/ Quipper
Analyze Activity
Big Picture C (Week 6-7) ULOc: Let’s Check Dec. 1, 2020 CF email/ Quipper
Activity
Big Picture C (Week 6-7) ULOc: Let’s Dec. 1, 2020 CF email/ Quipper
Analyze Activity
Big Picture C (Week 6-7) ULOd: Let’s Dec. 3, 2020 CF email/ Quipper
Check Activity
Big Picture C (Week 6-7) ULOd: Let’s Dec. 3, 2020 CF email/ Quipper
Analyze Activity
THIRD EXAM Dec. 4, 2020 Quipper
Big Picture D (Week 8-9) ULOa: Let’s Dec. 8, 2020 CF email/ Quipper

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Check Activity
Big Picture D (Week 8-9) ULOa: Let’s Dec. 8, 2020 CF email/ Quipper
Analyze Activities
Big Picture D (Week 8-9) ULOb: Let’s Dec. 10, 2020 CF email/ Quipper
Check Activity
Big Picture D (Week 8-9) ULOb: Let’s Dec. 12, 2020 CF email/ Quipper
Analyze Activities
FINAL EXAM Dec. 17-18, Quipper
2020

Online Code of Conduct

1) All teachers/Course Facilitators and students are expected to abide by an

honor code of conduct, and thus everyone and all are exhorted to exercise
self-management and self-regulation.

2) Faculty members are guided by utmost professional conduct as learning

facilitators in holding OBD and DED conduct. Any breach and violation shall
be dealt with properly under existing guidelines, specifically on social media
Do Not Copy

conduct (OPM 21.15) and personnel discipline (OPM 21.11).

3) All students are likewise guided by professional conduct as learners in

attending OBD or DED courses. Any breach and violation shall be dealt with
properly under existing guidelines, specifically in Section 7 (Student
Discipline) in the Student Handbook.

4) Professional conduct refers to the embodiment and exercise of the

University’s Core Values, specifically in the adherence to intellectual
honesty and integrity; academic excellence by giving due diligence in virtual
class participation in all lectures and activities, as well as fidelity in doing
and submitting performance tasks and assignments; personal discipline in
complying with all deadlines; and observance of data privacy.

5) Plagiarism is a serious intellectual crime and shall be dealt with accordingly.

The University shall institute monitoring mechanisms online to detect and
penalize plagiarism.

6) All borrowed materials uploaded by the teachers/Course Facilitators shall be

properly acknowledged and cited; the teachers/Course Facilitators shall be
professionally and personally responsible for all the materials uploaded in
the online classes or published in SIM/SDL manuals.

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

7) Teachers/Course Facilitators shall devote time to handle OBD or DED

courses and shall honestly exercise due assessment of student
performance.

8) Teachers/Course Facilitators shall never engage in quarrels with students

online. While contentions intellectual discussions are allowed, the
teachers/Course Facilitators shall take the higher ground in facilitating and
moderating these discussions. Foul, lewd, vulgar and discriminatory
languages are absolutely prohibited.

9) Students shall independently and honestly take examinations and do

assignments, unless collaboration is clearly required or permitted. Students
shall not resort to dishonesty to improve the result of their assessments (e.g.
examinations, assignments).

10) Students shall not allow anyone else to access their personal LMS account.
Students shall not post or share their answers, assignment or examinations
to others to further academic fraudulence online.

11) By handling OBD or DED courses, teachers/Course Facilitators agree and

abide by all the provisions of the Online Code of Conduct, as well as all the
requirements and protocols in handling online courses.

12) By enrolling in OBD or DED courses, students agree and abide by all the
provisions of the Online Code of Conduct, as well as all the requirements
Do Not Copy

and protocols in handling online courses.

Monitoring of OBD and DED

(1) The Deans, Asst. Deans, Discipline Chairs and Program Heads shall be
responsible in monitoring the conduct of their respective OBD classes through
the Blackboard LMS. The LMS monitoring protocols shall be followed, i.e.
monitoring of the conduct of Teacher Activities (Views and Posts) with
generated utilization graphs and data. Individual faculty PDF utilization reports
shall be generated and consolidated by program and by college.

(2) The Academic Affairs and Academic Planning & Services shall monitor the
conduct of LMS sessions. The Academic Vice Presidents and the Deans shall
collaborate to conduct virtual CETA by randomly joining LMS classes to check
and review online the status and interaction of the faculty and the students.

(3) For DED, the Deans and Program Heads shall come up with monitoring
instruments, taking into consideration how the programs go about the conduct

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

of DED classes. Consolidated reports shall be submitted to Academic Affairs

for endorsement to the Chief Operating Officer.

Course prepared by:

JON D. INOCENTES,CPA
Name of Course Facilitator/Faculty

Course reviewed by:

MARIA TERESA A. OZOA, CPA, MBA

Name of Program Head

Approved by:

GINA FE G. ISRAEL, ED D
Name of Dean

Do Not Copy

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 Department of Accounting Education
Mabini Street, Tagum City
Davao del Norte
Telefax: (084) 655-9591, Local 116

Work Plan for Lecture

Days
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Modality Synchronous Asynchronous Synchronous Asynchronous Synchronous Asynchronous
Type of • Teacher to • Learner to Learner to • Learner to
Learner to Learner Teacher to Learner
interaction Learner Content Content Content
• Uploading of • Utilization of SIM • Group Sharing • Utilization of • Discussion • Utilization of
Learning a. Collab SIM (Clarification or New SIM
Materials • Videos b. Forum lessons)
c. Zoom • Videos a. Collab • Videos
• Discussion • Self-directed b. Forum
a. Collab Activities • Consultation • Self-directed c. Zoom • Self-directed
b. Forum Activities Activities
Suggested c. Zoom • Supplementary Rest
Activities Activities Day
• Giving of
Formative • Quiz
Assessment
• Consultation
• Giving of
Performance
Task

Prepared by: Reviewed by:

JON D. INOCENTES,CPA MARIA TERESA A. OZOA, CPA,MBA
Faculty Program Head
Approved by:
GINA FE G. ISRAEL, EdD
Dean of College

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