Percentage Tax

PERCENTAGE TAX
1
PERCENTAGE TAXES
NIRC/Ref. Taxable Taxable Base Tax
rate
Sec. 116, VAT-exempt Annual Gross 3%

persons under Sales/ Receipts
RR Sec. 109 (V) and Not Exceeding
10963(TRA did not opt to P3,000,000
IN LAW) register as VAT
taxpayers
RR 13-2018 • Cooperatives
are exempt
• SEP who
2
avails the 8%
tax
PERCENTAGE TAXES
NIRC/Ref. Taxable Taxable base Tax rate
Sec. 117 Domestic carriers Gross receipts 3%

a. Cars for Rent
b. Car driven by
lessee
c. Transportation
contractors/ who
transport
passengers by
land
d. Keepers of
garage
Except:
a. Bancas
b. Animal-drawn 3
two wheeled
vehicles
DOMESTIC CARRIERS Year 2006
Sec. 117/RR 9-2007 Updated Minimum
Gross Monthly
Receipts
Jeepney for hire –

1. Manila and other cities P2,400
2. Provincial 1,200
Public Utility Bus –

Not exceeding 30 passengers P3,600
Exceeding 30 passengers but
not exceeding 50 passengers 6,000
Exceeding 50 passengers 7,200
4
DOMESTIC CARRIERS Year 2006
Sec. 117/RR 9-2007 Updated Minimum Gross
Monthly Receipts
Taxis-
1. Manila and other Cities P3,600
2. Provincial 2,400
Car for hire (with chauffeur) P3,000
Car for hire (without chauffeur) P1,800

5
COMMON CARRIER -LAND
 Transport of  Transport of Cargoes
Passenger
 Subject to VAT
 Subject to Common
Carrier’s tax
6
WHAT IS A COMMON CARRIER?
 "any person, corporation, firm or association

engaged in the business of carrying or transporting
passengers or goods or both, by land, water, or air,
for compensation, offering their services to the
public."
7
PERCENTAGE TAXES
NIRC/Ref. Taxable Taxable base Tax rate
International Gross receipts 3%

Sec. 118 air/ shipping
carriers
8
DOMESTIC
CARRIERS - AIR & SEA
DOMESTIC VAT (12%)

FLIGHTS
INTERNATIONAL FLIGHTS ZERO RATED

ORIGINATING FROM PHILS. (0%)
9
NIRC/Ref Taxable Taxable base Tax
PERCENTAGE TAXES rate
Sec. 119 Tax on franchises Not exceeding 3%
Radio/TV (with the P10M Annual
option to register as Receipts
VAT)
Sec. 119 Gas and water Gross 2%

utilities Receipts
Sec 119 PAGCOR Gross 5%

Revenue
Sec. 120 Tax on Overseas Amount Paid 10%

Dispatch, Message or
Conversation Phil. 11
Origin
OVERSEAS COMMUNICATION TAX
Composition of total billings =
( IDD charge + 10% OCT)
Exemptions:
1. Government
2. Diplomatic Services
3. International Organizations
4. News Services
12
PERCENTAGE TAXES
Section/Ref. Taxable Taxable base Tax
rate
Sec. 121 Banks and non- a. Interest,
bank financial commissions and
R.A. 9238 intermediaries discounts from lending
RR 9-2004 performing quasi activities as well as
banking income from financial
functions leasing, on the basis of
remaining maturities
of instruments
5 yrs. or less 5%
More than 5yrs. 1%
R.A. No. b. Dividends and 0%

9337 equity shares in the net
income of subsidiaries
13
PERCENTAGE TAXES
Section/Ref. Taxable Taxable base Tax rate
R.A. No. c. Royalties, rental of 7%
9337 property, real or
personal, profit
from exchange
and all other items
R.A. gross income
No.9337 d. On net trading
gains within the
taxable year on
foreign currency, 7%
debt securities,
derivatives and
other similar 14
instruments
% TAXES
Section Taxable Taxable base Tax
/Ref.
rate
Sec. 122 Other non-bank a. Interest, commissions, 5%
financial discounts and all other
R.A. 9238 intermediaries(non-bank items of gross income
RR 9-2004 financial intermediary
not performing quasi b. Interest, commissions
RR16- banking functions) and discounts from
2005 including pawnshops lending activities as
and moneychangers well as income from
doing business in the financial leasing, on
Phils. the basis of remaining
Pawnshops are maturities of the
classified as Other Non- instruments from
bank Financial which such receipts
Intermediaries under are derived:
RR 10-2004
15
PERCENTAGE TAXES
Section /Ref. Taxable Taxable base Tax rate
Maturity of 5yrs. 5%
or less
More than 5 yrs.
1%
16
Financial
Institutions
5%
Non-bank
1% Banks Financial
7% Intermediaries
Not performing quasi-

Performing quasi- banking function
banking function (INCLUDES FINANCING
COMPANIES)
17
5%, 1%, 7% 5%, 1%
PERCENTAGE TAXES
Sec. 123 Tax on Life Insurance Total Premium 2%

Premiums (RMC 22-2010)
Sec. 124 Tax on agents of Foreign Total Premium 4%

Insurance Companies not
authorized in the Phils.
Sec. 124 Tax on agents of Foreign Total Premium 5%
Insurance Companies
authorized in the Phils.
Sec. 125 Amusement Gross Receipts 18%

Taxes on Cockpits
18
PERCENTAGE TAXES
Sec. 125 Cabarets, Nights or Day Clubs Gross 18%

Receipts
RMC 18- Karaoke bars, karaoke
2010 televisions, karaoke boxes & Gross Receipts 18%
videoke bars
Sec. 125 Boxing Exhibitions Gross Receipts 10%
Sec. 125 Professional basketball games Gross receipts 15%
Sec. 125 Jai-Alai and racetracks Gross receipts 30%

19
% TAXES
Sec. 126 Tax on Winnings Winnings or 10%
Every Person Who dividends based on
wins the actual amount
paid for every
winning ticket after
deducting the cost of
ticket
Winnings from double

forecast/quinella/ 4%
trifecta/other
winnings
Sec. 126 Owners of winning Prize 10%

horses 20
PERCENTAGE TAXES
Section Taxable Taxable Tax rate
/Ref. base
Sec. 127 Tax on Barter or Exchange of Gross 6/10 of
Shares of Stock listed and traded selling 1%
through the local stock exchange price
(GSP)
Sec. 127 Through Initial and secondary
public offering-proportion of
shares of stocks dispose to total
outstanding shares
up to 25% GSP 4%
Over 25% but not over 33 1/3% GSP 2%
Over 33 1/3%
GSP 1%
21
 The end
22

Percentage Tax

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Percentage Tax

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PERCENTAGE TAX

Sec. 116, VAT-exempt Annual Gross 3%

Sec. 117 Domestic carriers Gross receipts 3%

Jeepney for hire –

Public Utility Bus –

Car for hire (with chauffeur) P3,000

Car for hire (without chauffeur) P1,800

 "any person, corporation, firm or association

International Gross receipts 3%

DOMESTIC VAT (12%)

INTERNATIONAL FLIGHTS ZERO RATED

Sec. 119 Gas and water Gross 2%

Sec 119 PAGCOR Gross 5%

Sec. 120 Tax on Overseas Amount Paid 10%

Composition of total billings =

( IDD charge + 10% OCT)

R.A. No. b. Dividends and 0%

Not performing quasi-

Sec. 123 Tax on Life Insurance Total Premium 2%

Sec. 124 Tax on agents of Foreign Total Premium 4%

Sec. 125 Amusement Gross Receipts 18%

Sec. 125 Cabarets, Nights or Day Clubs Gross 18%

Sec. 125 Boxing Exhibitions Gross Receipts 10%

Sec. 125 Professional basketball games Gross receipts 15%

Sec. 125 Jai-Alai and racetracks Gross receipts 30%

Winnings from double

Sec. 126 Owners of winning Prize 10%

Over 25% but not over 33 1/3% GSP 2%

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