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Other Percentage Taxes

Here are the answers to your questions based on the information provided: 1. Total tax due (Line 14): P27,500 2. Surcharge for late filing (Line 20): P1,375 3. Interest (Line 21): P137.50 4. Total amount payable excluding compromise penalty (Line 24): P29,012.50

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Alexandra Nicole Isaac
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440 views5 pages

Other Percentage Taxes

Here are the answers to your questions based on the information provided: 1. Total tax due (Line 14): P27,500 2. Surcharge for late filing (Line 20): P1,375 3. Interest (Line 21): P137.50 4. Total amount payable excluding compromise penalty (Line 24): P29,012.50

Uploaded by

Alexandra Nicole Isaac
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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OTHER PERCENTAGE TAXES

9. Exercises: Determine which of the following is subject to VAT, 3% common carrier’s tax or neither
VAT nor 3% common carrier’s tax (Answers for A to F provided)

a) Transport of passengers by domestic common carrier by land, gross receipts 3% CCT


exceeded P3,000,000
b) Transport of goods and cargoes by domestic common carrier by land, VAT- VAT
registered, gross receipts do not exceed P3,000,000
c) Transport of passengers, goods and cargoes by domestic common carrier by air, VAT
not VAT-registered, gross receipts exceeded P3,000,000
d) Transport of passengers, goods and cargoes by domestic common carrier by air, 3% PPT
not VAT-registered, gross receipts do not exceed P3,000,000
e) Transport of passengers, goods and cargoes by calesa Neither
f) Transport of passengers, goods and cargoes by banca Neither

4. Exercises: Determine whether or not the following shall be subject to the common carrier’s tax on
international carriers. (Answers are provided)

a) All Nippon Airlines, maintaining flight operations to and from the Philippines, on YES
freight and cargo fees, cargo originating from the Philippines (passage documents
sold in Japan)
b) Japan Air Lines, maintaining flight operations to and from the Philippines, on NO
freight and cargo fees, cargo originating from the Japan (passage documents sold in
the Philippines)
c) All Nippon Airlines, maintaining flight operations to and from the Philippines, gross NO
receipts from sale of tickets to passengers originating from the Philippines (passage
documents sold in the Philippines)
d) United Airlines, no flight operations to and from the Philippines, on gross receipts NO
from transport of cargo from Singapore to Tokyo (passage documents sold in the
Philippines by its sales agent
6. Exercises: Determine what business tax will the following be subject to

a) Franchise grantee of radio and/or television broadcasting, not VAT-registered, 3% Franchise


gross receipts on sale of air time, P10,000,000 tax
b) Franchise grantee of radio and/or television broadcasting, VAT-registered, gross VAT
receipts on sale of air time, P10,000,000
c) Franchise grantee of radio and/or television broadcasting, not VAT-registered, VAT
gross receipts on sale of air time, P15,000,000
d) Franchise grantee of radio and/or television broadcasting, not VAT-registered, on 3% (Sec. 116)
gross receipts from lease of office spaces, P3,000,000
e) Franchise grantee of radio and/or television broadcasting, VAT-registered, on gross VAT
receipts from lease of office spaces, P3,000,000
f) Franchise grantee of radio and/or television broadcasting, not VAT-registered, on VAT
gross receipts from lease of office spaces, P3,500,000
g) Franchise grantee of radio and/or television broadcasting, payments received from 10% Overseas
persons who used its communication facilities to make overseas calls, P3,000,000 Comm Tax
h) Franchise grantee of water of gas and water utilities on gross receipts from sale of 2% Franchise
water and gas, P3,000,000 Tax
i) Franchise grantee of water of gas and water utilities on gross receipts from sale of 2% Franchise
water and gas, P3,500,000 Tax
j) Franchise grantee of water of gas and water utilities, not VAT-registered on gross 3% (Sec. 116)
receipts from lease of office space, P3,000,000
k) Franchise grantee of water of gas and water utilities, VAT-registered on gross VAT
receipts from lease of office space, P3,500,000
l) Franchise grantee of water of gas and water utilities, not VAT-registered on gross VAT
receipts from lease of office spaces, P3,500,000
m) PAGCOR and its licenses and franchises on gross revenue or earnings from its 5% Franchise
operations and licensing of gambling casinos, gaming clubs and other similar Tax
recreation or amusement places, gaming pools and other related operations
8. Determine which business taxes will the following be subject to

a) Premium on Health and Accident Insurance received by a life insurance company Premiums Tax
b) Premium on Health and Accident Insurance received by a non-life insurance Premiums Tax
company
c) Insurance and reinsurance commissions received by a life insurance company , not 3% (Sec. 116)
VAT-registered , annual gross receipts do not exceed P3,000,000
d) Insurance and reinsurance commissions received by a non-life insurance company, VAT
VAT-registered , annual gross receipts do not exceed P3,000,000
e) Insurance and reinsurance commissions received by a life insurance company , not VAT
VAT-registered , annual gross receipts exceed P3,000,000
f) Interest income earned by the life insurance companies from investing the Exempt from
premiums received in marketable securities, bonds and other financial instruments business tax
g) Non-life insurance premiums received by a non-life insurance companies, VAT- VAT
registered, gross receipts do not exceed P3,000,000
h) Non-life insurance premiums received by a non-life insurance companies, not VAT- VAT
registered, gross receipts exceeds P3,000,000
i) Non-life insurance premiums received by a non-life insurance companies, not VAT- 3% (Sec. 116)
registered, gross receipts do not exceeds P3,000,000
j) Health and accident insurance premiums received by a life insurance company, Premium Tax
gross receipts exceed P3,000,000
k) Health and accident insurance premiums received by a non-life insurance Premium Tax
company, gross receipts exceed P3,000,000
The following data are presented to you: (Answers are provided below)

Gross receipts, sale of tickets P500,000


Gross receipts, sale of food and drinks inside the amusement place 1,000,000
Gross receipts, sale of souvenir inside the amusement place 300,000

Compute the amusement tax assuming the amusement place is a :


1) Race track
2) Cockpit
3) Videoke bar
4) Venue where professional basketball games are held
5) Venue where boxing exhibitions featuring Philippine championship
6) Venue where world boxing championship is held involving a Filipino boxer and promoted by a
domestic corporation

Answers:
1) P1,800,000 X 30% = P540,000
2) P1,800,000 X 18% = P324,000
3) P1,800,000 X 18% = P324,000
4) P1,800,000 X 15% = P270,000
5) P1,800,000 X 10% = P180,000
6) Exempt
Exercise:

Your client, Antonio Manuel, is engaged in various transactions that are subject to percentage taxes.
His address is 143 S. Loyola Street, Sampaloc, Manila. The TIN is 143-678-910-005. He is under RDO
032. Email ad is [email protected].

The following data for the first quarter of the current year are presented for your perusal. Answer the
questions by filling up the line in the actual Quarterly Percentage Tax Return (2551Q).

Gross receipts, sale of gas and water P1,500,000


Expenses, sale of gas and water 200,000
Gross receipts, rentals of office spaces, net of 3% withholding tax 727,500
Expenses, rentals of office spaces 150,000
Gross receipts, life insurance premiums 800,000
Expenses, life insurance business 100,000

Question 1 – Using line 14 of BIR Form 2551 Q, how much is total tax due?
Question 2 – Assuming your client filed the return and paid the tax on July 25 and it was found out that
it was due to willful neglect, using line 20, how much is the surcharge?
Question 3 – Using the same information in the preceding number, using line 21, how much is the
interest?
Question 4 – Using line 24, how much is the total amount payable excluding compromise penalty?

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