OTHER PERCENTAGE TAXES 5.

TAX ON AGENTS OF FOREIGN INSURANCE

COMPANY
1. TAX ON PERSONS EXEMPT FROM VAT (NON-VAT Tax Rate and Tax Base:
under Sec 116) 1. 4% of the total premium collected shall be
TRANSACTIONS SUBJECT: Sale, lease of goods or imposed upon every fire, marine or
properties, or performance of services. miscellaneous insurance agent authorized
RATE and BASE: 3% of gross sales under the Insurance Code to procure policies or
insurance as he may have previously been
Requisites: legally authorized to transact on risks located in
1. The gross annual sales do not exceed P3 million; the Philippines for companies not authorized to
AND transact business in the Philippines.
2. Must not be a VAT registered taxpayer.
2. 5% on premiums paid shall also be imposed
EXEMPTION FROM 3% NON-VAT: on owners of property who obtain insurance
1. Self-employed individuals and professionals directly with foreign insurance companies.
whose annual gross sales and other non-
operating income do not exceed P3 million and This tax shall not apply to reinsurance premiums.
who opted for the 8% income tax. 6. TAX ON BANKS AND NON-BANK FINANCIAL
2. Cooperatives INTERMEDIARIES PERFORMING QUASI-BANKING
2. COMMON CARRIERS’ TAX: Domestic Carriers FUNCTIONS
What are subject? Tax Base: Gross Receipts derived from sources
1. Cars for rent or hire driven by the lessee; within the Philippines
2. Transportation contractors on land, including Tax Rates:
persons who transport passengers for hire; a. On interest, commissions and discounts from
3. Other domestic carriers by land for transport of lending activities as well as income from
passengers, except owners of bancas and financial leasing, on the basis of remaining
owners of animal-drawn two-wheeled vehicles; maturities of instruments from which such
and receipts are derived:
4. Keepers of garages.
Maturity period:
RATE AND BASE: 3% of gross sales Five (5) years or less 5%
Business tax on Transport Network Vehicle Service More than 5 years 1%
(TNVS) b. On dividends and equity shares and
Status TNVS/Partner net income of subsidiaries 0%
With CPC (franchise) 3% Franchise Tax c. On royalties, rentals of property, real or
personal, profit from exchange and all
Without CPC 3% non-VAT/12% VAT other items treated as gross income 7%
under Sec 32 of the Code
3. COMMON CARRIERS TAX ON INTERNATIONAL
CARRIERS d. On net trading gains within the taxable
Who are subject? International air carriers and year on foreign currency, debt
international shipping carriers doing business in the securities, derivatives and other similar
Philippines. financial instruments 7%
Rule on international carriers: In case the maturity period is shortened thru
pretermination, then the maturity period shall be
Business Tax Passengers Cargoes reckoned to end as of the date of pretermination for
VAT Exempt Exempt purposes of classifying the transaction and the
correct rate of tax shall be applied accordingly.
Taxable on
3% Carriers Tax Exempt
outgoing 7. TAX ON OTHER NON-BANK FINANCIAL INTER-
flight/voyage MEDIARIES INCLUDING FINANCE COMPANIES,
Rate and Base: 3% of gross sales MONEY CHANGERS AND PAWNSHOPS

4. FRANCHISE TAX Tax Base: Gross receipts

Who are subject? Franchise holders of: Tax Rates:
1. Radio/television broadcasting companies a. On interests, commissions and discounts from
whose annual gross sales of the preceding year lending activities as well as income from
do not exceed P10 million - 3% of gross sales financial leasing on the basis of remaining
maturities of the instruments from which such
2. Gas and water utilities - 2% of gross sales receipts are derived:
All other franchise holders shall pay the VAT. The Maturity period:
radio and television broadcasting companies shall Five (5) years or less 5%
have an option to be registered as a value-added More than 5 years 1%
taxpayer and pay the tax due thereon.
b. From all other items treated as gross
Once this option is exercised, it becomes income under Sec. 32 of the tax code 5%
irrevocable.
8. TAX ON OVERSEAS DISPATCH, MESSAGE OR FILING OF RETURN (BIR FORM NO. 2551Q) AND
CONVERSATION ORIGINATING FROM THE PHIL PAYMENT OF PERCENTAGE TAXES
(OVERSEAS COMMUNICATIONS TAX)
1. TIME FOR FILING AND PAYMENT
RATE AND BASE: 10% of the amount paid upon Large and non-large taxpayers-within 25 days after
every overseas dispatched, message or the end of every quarter on the following:
conversation transmitted from the Philippines
(outgoing) by telephone, telegraph, telewriter a. VAT-exempt taxpayers with annual gross sales
exchange, wireless and other communications not exceeding P3M;
equipment services. b. Domestic carriers and keepers of garages;
c. International air/shipping carriers;
Exemptions– This tax shall not apply to: d. Franchisees of gas or water utilities;
1. Government e. Franchisees of radio and/or TV broadcasting
2. Diplomatic services with annual gross sales of the preceding year
3. International organizations does not exceed P10M;
4. News services f. Franchise grantees sending overseas dispatch,
Time for filing – The person rendering services shall messages or conversations from the Philippines
collect and pay the tax within 20 days after the end g. Proprietors, lessees or operators of cockpits,
of each quarter. cabarets, night or day clubs, boxing exhibitions,
professional basketball games, jai-alai and
9. AMUSEMENT TAX
racetracks.
The following amusement places shall be subject to
h. Banks, non-bank financial intermediaries and
the corresponding tax rates based on gross receipts:
finance companies.
10% Place for boxing exhibitions i. Life insurance companies; and
15% Place for professional basketball games j. Agent of foreign insurance companies.
18% Cockpits, cabarets, night or day clubs
30% Jai-Alai and race tracks 2. Every person subject to the other percentage taxes
shall file, either electronically or manually, a
Boxing exhibitions where World or Oriental quarterly return of the amount of the person's gross
Championships in any division is at stake shall be sales or earnings and pay, either electronically or
exempt from amusement tax, if - manually, with any authorized agent bank,
1. One of the contenders is a citizen of the Revenue District Office through Revenue Collection
Philippines; AND Officer or authorized tax software provider, the tax
2. Said exhibitions are promoted by due thereon within 25 days after the end of each
a) citizens of the Philippines, OR taxable quarter.
b) by a corporation or association at least 60% In the case of a person whose VAT registration is
of the capital of which is owned by such cancelled and who becomes liable to the tax
citizens. imposed in Section 116 of this Code, the tax shall
accrue from the date of cancellation and shall be
10. TAX ON WINNINGS paid in accordance with the provisions of this
Persons subject: Any person who – Section
1. Wins in horse races.
2. Owns a winning race horse, based on the prize. 3. Any person retiring from a business subject to
percentage tax shall notify the nearest internal
Tax Rate and Tax Base: revenue officer, file, either electronically or
a. Winner in horse races . . . . 10% manually, the person's return and pay, either
But if from: Double, forecast, quinella and electronically or manually, the tax due thereon
trifecta bets - 4% within twenty (20) days after closing the business.
BASE: Actual amount of winnings or dividends
on every ticket after deducting the cost of
ticket.
b. Owner of winning horse -10% of the prize
11. STOCK TRANSACTION TAX
On the sale, barter, exchange or other disposition
of shares listed and traded thru a local stock
exchange, other than by a dealer in securities.
Tax Base: Gross selling price/gross value in money
Tax Rate: 6/10 of 1% (.006)
Filing and payment – Within 5 banking days from
the date of collection.
FILING AND PAYMENT - The operator, manager or
person in charge of horse races shall file and pay
within 20 days from the date the tax was deducted and
withheld (BIR Form 1600-WP).