BSA2105 FS2021 OPT DA22418 PDF

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Summary

BSA 2105 Atty. F. SorianoOTHER PERCENTAGE TAXESPercentage tax, conceptPercentage tax is a business tax imposed on persons, entities or transactions which are not subject to the VAT, but are not exempt from business tax.The Other Percentage Taxes (OPT) under the Tax Code Tax on the sale or lease of g...

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BSA 2105

Atty. F.R. Soriano OTHER PERCENTAGE TAXES

Percentage tax, concept Percentage tax is a business tax imposed on persons, entities or transactions which are not subject to the VAT, but are not exempt from business tax. The Other Percentage Taxes (OPT) under the Tax Code 1.

Tax on the sale or lease of goods or properties or the performance of services of non-VAT registered persons, other than the transactions mentioned in paragraphs (A) to (AA) of Sec. 109 (1) of the Tax Code, the gross annual sales and/or receipts of which do not exceed the amount of Three Million Pesos (P3,000,000.00). (Sec. 116, NIRC) (RR No. 13-2018)

2.

Tax on services rendered by domestic common carriers by land, for the transport of passengers and keepers of garages. (Sec. 117)

3.

Tax on services rendered by international air or shipping carriers for the transport of goods or cargo originating in the Philippines and going abroad. (Sec. 118)

4.

Tax on services rendered by franchise grantees of radio and/or television broadcasting whose annual gross receipts of the preceding year do not exceed Ten Million Pesos (P10,000,000.00), and by franchise grantees of gas and water utilities. (Sec. 119)

5.

Tax on services rendered for overseas dispatch, message or conversation originating from the Philippines. (Sec. 120)

6.

Tax on banks and non=bank financial intermediaries. (Sec. 121)

7.

Tax on finance companies. (Sec. 122)

8.

Tax on services rendered by any person, company or corporation (except purely cooperative companies or associations) doing life insurance business of any sort in the Philippines. (Sec. 123)

9.

Tax on services rendered by fire, marine or miscellaneous insurance agents of foreign insurance companies. (Sec. 124)

10.

Tax on services of proprietors, lessees or operators of cockpits, cabarets, night or day clubs, boxing exhibitions, professional basketball games, Jai-Alai and race tracks. (Sec. 125)

11.

Tax on winnings. (Sec. 126)

12.

Tax on sale, barter or exchange of shares of stock listed and traded through the local stock exchange or through initial public offering. (Sec. 127)

Quarterly Percentage Tax (Quarterly Percentage Tax Return – BIR Form No. 2551Q) Coverage Persons who are not VAT-registered, who sell goods, properties or services, whose annual gross sales and/or receipts do not exceed P3,000,000. Persons who lease residential units where the monthly rental per unit exceeds Fifteen Thousand Pesos (P15,000.00), but the aggregate of such rentals of the lessor during the year does not exceed P3,000,000. Cars for rent or hire driven by the lessee, transportation contractors, including persons who transport passengers for hire, and other domestic carriers by land for the transport of passengers (except owners of bancas and owners of animal-

Tax Base Gross sales or gross receipts

Rate

Gross receipts

3%

Gross receipts

3%

3%

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drawn two-wheeled vehicle) and keepers of garages. International air/shipping carriers doing business in the Gross 3% receipts on Philippines on their gross receipts from transport of cargo from transport of cargo from the Philippines to another country. the Philip-pines to a foreign country Franchise grantees of radio and/or television broadcasting Gross receipts 3% companies whose annual gross receipts for the preceding year do not exceed P10,000,000.00, and did not opt to register as VAT taxpayers. Franchise grantees of gas and water utilities Gross receipts 2% Overseas dispatch, message or conversation transmitted from the Amount paid for service 10% Philippines by telephone, telegraph, tele-writer exchange, wireless and other communication equipment services, except those transmitted by: (a) The Philippine Government or any of its political subdivisions or instrumentalities; (b) Diplomatic services; (c) Public international organizations or any of their agencies based in the Philippines enjoying privileges, exemptions and immunities which the Philippine Government is committed to recognize pursuant to international agreement; and (d) News services for messages which deal exclusively with the collection of news items for, or the dissemination of news through public press, radio or television broadcasting or news ticker service furnishing a general news service similar to that of the public press. Banks and non-bank financial intermediaries performing quasi- Interest, commissions and banking functions discounts from lending activities as well as income from financial leasing on the basis of the remaining maturities of instruments from which receipts are derived: 5%  If maturity period is 5 years or less  If maturity 1% period is more than 5 years Dividends and equity 0% shares and net income of subsidiaries 7% Royalties, rentals of property, real or personal, profits from exchange and all other items treated as gross income under Sec. 32 of the Tax Code, as amended 7% Net trading gains within the taxable year of foreign currency, debt securities, derivatives and other similar instruments 5% Other non-bank financial intermediaries (including pawnshops Interest, commissions, as clarified under Revenue Regulation No. 10-2004) discounts and all other items treated as gross income under the Tax Code as amended

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