Learned From Business Taxation.docx

What have I learned from Business Taxation

The things that I learned from business taxation is whether you are a sole proprietor, partner, part of a limited liability company, or a corporation, your business is responsible for adhering to tax regulations. I also learned that value-added tax is a consumption tax placed on a product whenever value is added at each stage of the supply chain, from production to the point of sale. The index for application registration update and its functions which are application for closure of business, change in registered address, application for replacement of certificate of registration, application for replacement/cancellation of authority to print receipts and invoice, application for replacement of tax clearance certificate for tax liabilities, application for replacement of lost/damaged TIN card, application for change in registered activities, application for change in registered name/trade name, application for change in tax type details, application for change in accounting period and application for tax clearance. I learned that estate tax is a tax levied on the privilege to transfer property or estate of the decedent to his lawful heirs or beneficiaries and estate tax is also the properties, rights and obligations which are subjected matter of the succession. Then I learned that donor’s tax is a tax donation or gift and is imposed on the gratuitous transfer of property between two or more persons who are living at the time of the transfer, I also learned about the two kinds of donor’s tax which are donation inter vivos and donation mortis causa. Donation inter vivos is a donation of personal property made by the donor during his/her lifetime, delivered to the donee with the intention of surrendering control over the property and donation mortis causa will takes effect upon the death of donor and partakes of the nature of testamentary disposition. I also learned about the essential requisites of donation which are capacity of donor, acceptance by done, donative intent in cases of direct gift, delivery whether actual or constructive of the subject matter of the gift. I learned the functions of formal requisites of donation which are movable or personal property is made orally in writing except exceeds ₱5,000 in writing and immovable or real property must be made in public instrument. I learned that donation is an act of liberty whereby a person disposes gratuitously of a thing or right in favor of another who accepts it. I learned that mortgage on the donated assumed by the donee and amount specifically provided by donor as diminution of property donated are deduction from gross gifts. I also learned that documentary stamp tax is an excise tax levied on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, rights, or property. Then we discuss about local taxes, local taxes is tax assessed and levied by a local authority such as a state, county or municipality. The barangay tax may impose a tax on stores or retailers with fixed business establishments with annual gross sales, I learned that the city government may impose and collect any of the taxes, fees and charges imposed by the province or municipality. I learned that the Basic Real Property Tax is an ad valorem tax on real properties such as lands, buildings, and other improvements, and machineries imposed by provinces, cities and municipalities within the Metropolitan Manila Area and is based on the assessed value which is a certain percentage of the market value of the real property.

I also learned the penalties on official receipts and invoices, for refusal to issue receipts or sales or commercial invoices the penalties for first offense is P10,000 and for second offense is P20,000. If the information missing is the correct amount of the transaction the first offense penalty will be P2,000 and the second offense penalty is P5,000, for possession or use of unregistered receipts or invoices first offense penalty is 10,000 and second offense penalty is 20,000. Then on excise tax I learned that excise tax is a tax on the production, sale or consumption of a commodity in a country. I also learned the two types of excise tax which are specific tax and Ad valorem tax, specific tax is an excise tax imposed which is based on weight or volume capacity or any other physical unit of measurement and Ad valorem tax is an excise tax which is based on selling price or other specified value of the goods/articles. I learned that dowries or gifts made on account of marriage before its celebration or within one year thereafter by parents to each of their legitimate recognized natural or adopted children is exceptional from gross gifts. I learned the terminologies of estate tax which are decedent and successor, decedent is the person who dies and whose properties rights and obligation and successor is a person whom the properties rights and obligation of the decedent will pass they are heirs or beneficiaries. I learned that the Comprehensive Tax Reform Program (CTRP) is under the department of finance and the TRAIN Law will lessen the overall tax burden of the poor and the idle class. I learned that the simplified tax system will increase the take-home pay of most individuals thereby putting more money in people’s pockets. On coal excise tax it increase the rate from P10 per metric ton to P50, P100, and P150, respectively in 2018, 2019 and 2020 covering both domestic and imported coal and the domestic coal remains VAT exempt. TRAIN also simplifies the excise tax on petroleum, sweetened beverages, alcohol, cigarettes and automobiles.