OTHER PERCENTAGE TAXES – imposed in lieu of VAT.

Section 117: TAX ON COMMON CARRIERS

Transactions subject to OPT: For
1. Exempt from VAT 1. Cars for rent or hire
2. Domestic Carrier 2. Transportation who transport passenger
3. International Carrier 3. Domestic carrier by land for transport of
4. Franchise holder of water and gas passengers
5. Bank and non-bank intermediaries 4. Keepers of garage
6. Finance companies Not included:
7. Life insurance company 1. Banca owners and;
8. Agent of foreign institution 2. Owners of animal-driven vehicle
9. Amusement places Rate: 3% of minimum gross receipts or actual receipts,
10. Winnings from race horses whichever is higher.
11. Sales of stock through Initial Public
Offering(IPO) Minimum Receipts
Manila Provincial
SECTION 116: TAX ON PERSONS EXEMPT FROM VAT Jeep 2,400 1,200
If gross sales or receipts equal or less than 3,000,000 PUB
and not VAT registered. Up to 30 3,600 3,600
31-50 6,000 6,000
Rate: 3% 50-up 7,200 7,200
Base: If sale of goods= Gross sales; Taxis 3,600 2,400
If lease and services= Gross Receipts Car w/chauffer 3,000 3,000
Car w/o chauffer 1,800 1,800

3% is not applicable to: Province of Camarines Norte

1. Cooperative, except cooperatives with reserves and Jeep 1,000 actual
net savings more than 10M. BUS 31 seater 7,000
2. Fees, per diems, allowances and other income
received by corporate directors 5,200x3% MALI ITO
3. Marginal income earner with receipts equal or less 6,000+1,200=7,200x3%
than 100,000 for 12-month period.
4. Persons who are VAT-registered Tax on common carrier?
5. Persons who are not VAT-registered but
sales/receipts is greater than 3,000,000 Section 118: INTERNATIONAL FOREIGN CARRIER-SHIPPING AND
AIR CARRIER
Every 25th day following the close of taxable quarter
Rate: 3% base on gross receipts of cargo from Philippines
to foreign country Dividends in Equity = 0%
Royalties, Rental, and other income = 7%
LAND AIR SEA Net gain in trading debt instrument = 7%
Domestic Passenger 3% OPT VAT VAT
Carriage Cargo VAT VAT VAT SECTION 122: FINANCE COMPANIES = use rate in section 121
International Passenger-DC N/A 0% VAT 0% VAT
Carriage Goods & N/A 0% VAT 0% VAT SECTION 123= Tax on life insurance = 2% of premiums
Cargoes received
Passenger-FC N/A No OPT No OPT Except: Received by cooperative, refunded within 6
Goods&Cargoes N/A 3% OPT 3% OPT months, reinsurance premium paid and collected from
domestic company in which there is branch in foreign
UNDER CREATE LAW, 1% shall be payable until June 30, 2023 country.
for all those paying 3% except the franchise on radio, tv
and the likes. Section 124: Agent Foreign Insurance = Fire, Marine= 10%
of collected insurance premium
Section 119: FRANCHISE If owners of properties = 5% of premiums paid
1. Radio, TV and the likes in which sales/receipts is
less than 10M=Tax rate is 3% of gross receipts Section 125: AMUSEMENT TAXES – base on Gross receipts
2. Gas and water = 2% of gross receipts 1. Cockpits – 18%
3. PAGCOR = 5% of gross revenues 2. Cabarets – 18%
3. Night/Day club – 18%
SECTION 120: OVERSEAS COMMUNICATION – For outgoing calls, 4. Boxing – 10%, except:
meaning from Philippines to Foreign country. a. World title fight
If calls within Philippines, subject to VAT. b. Promoted by Filipino citizen
Tax rate and base: 3% of gross receipts c. One contender is Filipino
Except: 5. Professional Basketball – 15%
1. Diplomatic services 6. Jai-Alai – 30%
2. International organization 7. Race Track – 30%
3. News services
4. Government SECTION 126: WINNING FROM RACE HORSES:
1. Owners of race horses = 10% of Prize
SECTION 121: BANKS AND NON-BANKS 2. Winnings from double, quinella, and trifecta bets =
4% of winnings
Interest from lending activities 3. Winnings in horse races other than number 2 = 10%
1. Maturity 5 years or less = 5% of winnings
2. Maturity 5 years or more = 1%
SECTION 127: STOCK TRANSACTION TAX – Not deductible
expenses
If listed = Gross selling price one half of 1%. Under
TRAIN 6/10 of 1%
If sale in IPO-
Ratio of: Shares sold/Outstanding shares
If ratio: 25% & below = tax rate is 4%
25 – 33% = tax rate is 2%
33 – up % = tax rate is 1%

To get the tax, Shares sold times selling price per share
x the rate.

IPO 25,000 shares

TOTAL OUTSTANDING 90,000 shares

IPO SOLD at 5/share

OPT ON STOCK TRANSACTION?

1. Get ratio
25,000/90,000 x100=28%
2. Get the bracket of ratio

28%=25-33 which is taxed at 2%

3. Tax

25,000x5=125,000x2%=2500