What Are the Business Taxes in the Philippines?
Learn about the different kinds of business taxes to determine what suits your corporation.
What business taxes should you know before incorporating in the Philippines?
There are basically two kinds of taxes: local taxes and national taxes. These taxes are governed by the National Internal Revenue Code. The regular conduct or pursuit of a commercial or an economic activity, including transactions incidental to it, by any person, are treated as “In the course of trade or business” which shall be held liable to pay business taxes.
What are the different kinds of business tax?
An indirect tax and the amount of tax may be shifted or passed on to the buyer, transferee or lessee of the goods properties or services.
Applies to goods manufactured or produced in the Philippines for domestic sales or consumption or to any other disposition, things imported, as well as services performed in the Philippines.
Other Percentage Tax
Applies to any person whose sales or receipts are exempt under Section 109(B) of the Tax Code from the payment of value-added tax and who is not a VAT-registered person shall pay a tax equivalent to three percent (3%) of his gross quarterly sales or receipts; Provided, that your annual gross sales and/or gross receipts do not exceed Php 3,000,000.00.
A tax on all quarterly and yearly profits arising from property, profession, trades or offices, or as a tax on a person’s income, emoluments, profits and the like. Different tax treatments apply to different classifications of taxpayers or income earners.