I.
Different kinds of Taxes
a. As to object
i. Personal/Poll or Capitation Tax – a fixed amount imposed upon all
persons, or upon all persons of a certain class, residents within a
specified territory, without regard to their property or occupation.
Example: Community tax or cedula
Can you be imprisoned for not paying community tax?
ii. Property Tax – Tax imposed on property, whether real or personal,
in proportion either to its value or in accordance with some other
reasonable method of apportionment.
Example: Real Property Tax
What are real properties? What are personal properties?
Which government agency is tasked for the assessment and
collection of poll and real property tax?
iii. Privilege/Excise Tax – a charge upon the performance of an act,
the enjoyment of a privilege, or the engaging in an occupation.
Which of the following is a privilege or excise tax? Income Tax,
Estate Tax, Donor’s Tax, VAT – ALL are excise taxes.
Is this the same as excise tax imposed on fuel or on alcoholic
beverages?
b. As to burden or incidence
i. Direct – One that is demanded from the person who also shoulders
the burden of tax; Incidence of taxation and the economic burden
fall on the same entity.
ii. Indirect – One which is shifted by the taxpayer to someone else;
the economic burden is passed on to another entity.
Example: VAT and other percentage taxes
What is the difference between incidence of taxation and economic
burden of taxation?
1
Are withholding taxes an example of indirect tax? Why or why not –
No. incidence and burden fall on the same person. The withholding
agent merely collects. The amount withheld can be used by the
taxpayer as tax credit, thus incidence and burden is still upon him.
c. As to tax rates
i. Specific – tax of a fixed amount imposed by unit or number or by
some standard of weight or measurement.
Example: Excise tax on cigar, cigarettes and liquors
ii. Ad valorem – tax based on the value of the property with respect to
which the tax is assessed. It requires the intervention of assessors
or appraisers to estimate the value of such property before the
amount can be determined.
Example: Real Property Tax, Income Tax, Estate Tax and Donor’s
Tax
iii. Mixed – a choice between ad valorem and/or specific depending on
the condition attached.
d. As to purposes
i. General/Fiscal or revenue – solely for the purpose of raising
revenue for the government.
ii. Special/Regulatory or Sumptuary – tax levied for a specific purpose
other than raising revenues
e. As to scope or authority to impose
i. National Tax – Tax levied by the National Government
ii. Local or Municipal – Tax levied by a local government
What is a local government? How is it different from the National
Government?
Does the Local Government have inherent power to tax? No.
In our jurisdiction, where does the Local Government derive its
power to tax? The Constitution and from statutes or laws enacted
by Congress such as the Local Government Code.
2
f. As to graduation
i. Progressive - a tax rate which increases as the tax base increases;
ii. Regressive – tax rate decreases as the tax base or bracket
increases;
iii. Proportionate – a tax of a fixed percentage of the tax base.
II. Taxes distinguished from other forms of charges
3
4
5
