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TAXES AND LEVIES IMPOSED and COLLECTED BY THE PHILIPPINE GOVERNMENT

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TAXES AND LEVIES IMPOSED and COLLECTED BY THE PHILIPPINE GOVERNMENT

Ma. Ivy V. Fuentiblanca
I-BSBA Block 3
Mrs. Galang

Economics and Land Reform
A. Under the National Internal Revenue Code:

1. Income Taxes
It is a tax on a person's income, emoluments, profits arising from property, practice of profession, conduct of trade or business or on the pertinent items of gross income specified in the Tax Code of 1997 (Tax Code), as amended, less the deductions and/or personal and additional exemptions, if any, authorized for such types of income, by the Tax Code, as amended, or other special laws. Explanation of the reporter: “People who lived and worked in country or receive income must pay their Income tax.”

A. Individual Taxes

(A) On the taxable income defined in Section 31 of this Code, other than income subject to tax under Subsections (b), (c) and (d) of this Section, derived for each taxable year from all sources within and without the Philippines be every individual citizen of the Philippines residing therein; (B) On the taxable income defined in Section 31 of this Code, other than income subject to tax under Subsections (B), (C) and (D) of this Section, derived for each taxable year from all sources within the Philippines by an individual citizen of the Philippines who is residing outside of the Philippines including overseas contract workers referred to in Subsection(C) of Section 23 hereof; and (C) On the taxable income defined in Section 31 of this Code, other than income subject to tax under Subsections (b), (C) and (D) of this Section, derived for each taxable year from all sources within the Philippines by an individual alien who is a resident of the Philippines. .

B. Corporate Taxes:
Corporate income tax rate both for domestic and resident foreign corporations in Philippines is 30%, based on net taxable income. Company tax is payable by domestic companies on all income derived from sources within and outside the Philippines. Foreign corporations, whether resident or nonresident, are taxable only on income derived from sources within the Philippines. Explanation of the reporter: “However, non-resident foreign corporations are, in certain circumstances, subject to a final withholding tax on passive (investment) incomes at rates generally higher than the applicable tax rates applying to domestic and resident foreign corporations. Resident companies are those that are created or organized under the laws of the Philippines or foreign companies duly licensed to engage in trade or business in the Philippines.” 2. Treatment of Fringe Benefit:

For purposes of the Tax Code, Fringe Benefit means any good service or other benefit furnished or granted in cash or in any kind by an employer to an individual employee (except rank and file employees as defined subsequently) such as, but not, limited to the following: 1. Housing

2. Expense account
3. Vehicle of any kind
4. Household personnel, such as maid, driver and others.
5. Interest on loan at less than the market rate to the extent of the difference between the market rate and the actual rate granted; 6. Membership fees, dues and other expenses heard by the employer for the employee in social and athletic clubs or other similar organizations 7. Expenses for the foreign travel

8. Holiday and vacation expenses
9. Educational assistance to the employee for his dependents and 10. Life or health insurance and other non-life insurance premiums or other similar amounts in excess of what, the law Explanation of the reporter:

“In general, the term "fringe benefit" mean any good, service, or other benefit furnished or granted by an employer in cash or in kind, in addition to basic salaries, to an individual employee such as, but not limited to housing, expense accounts, vehicles of any kind, household personnel, such as maid, driver and others, interest on loan at less than market rate to the extent of...