Percentage Tax
Percentage Tax
Percentage Tax
(6) Tax on other non-bank financial intermediaries: Mr. B is a trader. His gross sales in the preceding year
amounted to P3,000,000. His gross annual sales in the
(7) Tax on life insurance companies: preceding year did not exceed P3,000,000. Is he subject
(8) Tax on agents of foreign insurance companies: to the three percent (1%) percentage tax.
(9) Amusement Tax ➢ Yes, because his gross sales did not exceed the
3M threshold for VAT.
(10) Tax on Winnings
(11) Tax On stock Transaction
Illustration 3
Mr. C sells agricultural food product. In 202a his gross
GENERAL RULES on tax base and taxpayer of sales amounted to P440,000. For the first month of 202b
percentage taxes. his gross sales amounted to P100,000, What business
tax would he pay in 20A
Generally, percentage taxes are based on gross receipts.
The term "gross receipts" means cash actually or ➢ None. He is not subject to the value added tax
constructively received. Receivables, although Income because he is exempt under paragraph (a) of
thereon is earned already, are not yet taxable. Section 109 of the National Internal Revenue
Code. He is not subject to the one percent (1%)
percentage tax because his exemption is not
under paragraph on volume sales.