Local And National Taxes

Classes of Taxes as to Scope or Authority a.) National Tax -

Refers to those taxes imposed by the national government through the Bureau of Internal Revenue or the Bureau of Customs.

Example: Corporate Income Tax, Customs Duties b.) Local Tax -

Refers to those taxes imposed by the local government such as cities, municipalities or provinces. *An additional tax on top of federal and state taxes, usually collected in the form of property taxes. Also called "municipal tax".

Example: Real Estate

National Tax •

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Generally, 10% value-added tax (VAT) imposed on: - Importation of goods - Sale, barter, exchange, or lease of goods, properties, services in the Philippines, with certain exceptions Gross receipt tax on the following endeavors: - 0%-5%, on bank and other non-bank financial intermediaries - 5%, on insurance companies - 3%, on common passenger carriers - 2%, on electric, gas, and water utilities - 3%-30%, on other businesses Excise tax on certain products (e.g., tobacco, alcohol, mineral and petroleum products, jewelry, automobiles, etc.)

Local Tax • • • •

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Real estate tax Documentary stamp tax Overseas communication tax On manufacturers, wholesalers, exporters, and contractors: - Percentage tax on sales or gross receipts, imposable rate depending on the place where the business is situated Percentage tax on banks and other financial institutions