Percentage Tax

Index for Percentage Tax:

Percentage tax is a business tax imposed on persons or entities/transactions:

Who sell or lease goods, properties or services in the course of trade or business and are exempt from value-added tax (VAT) under Section 109 (w) of the National Internal Revenue Code, as amended, whose gross annual sales and/or receipts do not exceed Php 1,919,500 and who are not VAT-registered; and

Engaged in the following industries/ transactions:

Cars for rent or hire driven by the lessee, transportation contractors, including persons who transport passengers for hire, and other domestic carriers of passengers by land (except owners of animal-drawn two-wheeled vehicle) and keepers of garages

International air/shipping carriers doing business in the Philippines on their gross receipts derived from transport of cargo from the Philippines to another country

Franchise grantees of –

radio and/or television broadcasting whose gross annual receipts for the preceding year do not exceed Php

10,000,000.00 and did not opt to register as VAT taxpayers

Overseas dispatch, message or conversation transmitted from the Philippines, except those transmitted by the Philippine government, any embassy and consular offices of a foreign government, public international organizations enjoying exemptions pursuant to an international agreement and news messages to a bona fide correspondent furnishing general news service

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

Other non-bank financial intermediaries (including pawnshops)

Person, company or corporation (except purely cooperative companies or associations) doing life insurance business

Fire, marine or miscellaneous agents of foreign insurance companies

Proprietor, lessee or operator of cockpits, cabarets, night or day clubs, boxing exhibitions, professional basketball games, Jai-Alai and racetracks, including videoke bars, karaoke bars, karaoke televisions, karaoke boxes and music lounges

Winnings in horse races

Sale, barter or exchange of shares of stock listed and traded through the local stock exchange or through initial public offering

Source: www.bir.gov.ph

Category: Taxes

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