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Module 4 Intro To Business Tax

The document discusses various business taxes in the Philippines including excise tax, VAT, and other percentage tax (OPT). Excise tax is imposed on "sin" products like alcohol, tobacco, petroleum at either the production or importation point. VAT of 12% applies to taxable transactions while OPT uses varying percentage rates for non-VAT sales. Business tax returns for VAT (Form 2550Q) and OPT (Form 2551Q) are due by the 25th of the month after the quarter ends. Excise tax is paid before removal of products from production facilities for domestic goods or customs custody for imports.

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Lexer John Lorenzo
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25 views6 pages

Module 4 Intro To Business Tax

The document discusses various business taxes in the Philippines including excise tax, VAT, and other percentage tax (OPT). Excise tax is imposed on "sin" products like alcohol, tobacco, petroleum at either the production or importation point. VAT of 12% applies to taxable transactions while OPT uses varying percentage rates for non-VAT sales. Business tax returns for VAT (Form 2550Q) and OPT (Form 2551Q) are due by the 25th of the month after the quarter ends. Excise tax is paid before removal of products from production facilities for domestic goods or customs custody for imports.

Uploaded by

Lexer John Lorenzo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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BUSINESS TAXES

The following are stated in the Internal Revenue Code as business taxes:

 Excise tax ( referring to TAX on importation and production of ( “sin”products”) collected at point of production
or before release of importation from custom house.

Business Tax on transfers in the conduct of business

 Value-added tax , 12% on taxable transaction (sales or gross receipts with in the Philippines)

or

 Other Percentage tax , rate other than 12% on NON VAT sales or receipts (OPT, 3%,5%,7%,10%,15%,18%,30%)

BUSINESS TAX RETURNS:


2550Q for VAT registered business, has a deadline set not later than the 25th day following the end of the quarter.
2551Q, or also known as Quarterly Percentage Tax Return are taxes imposed on individuals/businesses who sell/lease goods
or services which are exempted from Value Added Tax (VAT) with annual sales not exceeding 3,000,000 PHP.
The deadline for filing and payment of BIR Form 2551Q is on or before 25th of the following month after the close of the
quarter.
2200 (A,AN,C,M,S,T), For each place of production, a separate return shall be filed and the excise tax shall be paid before
removal of the alcohol products from the place of production.
EXCISE TAX

Excise tax, tax on production or importation of “Sin” products for consumption in the Philippines.

Purpose of imposing Excise Tax – Control/regulation, to discourage production, importation and consumption.

Excisable goods/ services (Sin ) products:


1. Alcohol Products (Sections 141-143)
a. Distilled Spirits (Section 141)
b. Wines (Section 142)
c. Fermented Liquors (Section 143)
“Sin” products
2. Tobacco Products (Sections 144-146)
stamped with
a. Tobacco Products (Section 144)
b. Cigars & Cigarettes (Section 145) BIR IRS to
c. Inspection Fee (Section 146) evidence
payment of
3. Petroleum Products (Section 148) excise tax
4. Mineral Products (Sections 151)
5. Miscellaneous Articles (Section 149-150)
a. Automobiles (Section 149)
b. Non-essential Goods (Section 150)
c. Non-essential Service (Section 150-A) - RA 10963 [TRAIN Law))
d. Sweetened Beverages (Section 150-B)-(RA 10963 [TRAIN Law])
EXEMPT from Excise Tax:
 Petroleum products used as input,
 feedstock, or as raw material in the manufacturing of petrochemical products, or
 Raw material in the refining of petroleum products, or
 as replacement fuel for natural gas fired combined cycle power plants,

Exempt:
 Purely electricity-powered automobiles, Pick-up
 Note: Hybrid vehicles powered by electricity in combination of gasoline shall be subject to 50% of the
applicable excise tax rates on automobiles

The following are EXEMPT from excise tax on sugar sweetened beverages:
 All milk products, including plain milk, infant formula milk, follow-on milk, growing up milk, powdered milk,;
 One hundred percent (100%) natural fruit juices;
 One hundred percent (100%) natural vegetable juices;
 Meal replacement and medically indicated beverages;
 Ground coffee, instant soluble coffee, and pre-packaged powdered coffee products;
 Coconut sap sugar and purely steviol glycosides - Exempt
TYPES OF EXCISE TAX:

Specific Tax – refers to the excise tax imposed which is based on weight or volume capacity or any other
physical unit of measurement.

= No. of Units/other measurements x Specific Tax Rate

Ad Valorem Tax – refers to the excise tax which is based on selling price or other specified value of the
goods/articles.

= No. of Units x Selling Price of any specific value per unit x Ad Valorem Tax Rate

TIME OF PAYMENT:
In General
 On domestic products
Before removal from the place of production
 On imported products
Before release from the customs' custody
INTEGRATED REVENUE STAMP on Cigarettes:
All locally-manufactured packs of cigarettes to be removed from place of production shall be affixed with the new IRS ;

With respect to imported cigarettes, no importation and subsequent release of cigarette from customs house shall be
allowed unless the new IRS shall have been affixed thereto

BOND in lieu of EXCISE TAX:

Initial Bond. - In case of initial bond, the amount shall be equal to One Hundred thousand pesos (P100,000):
Provided, That

if after six (6) months of operation, the amount of initial bond is less than the amount of the total excise tax paid
during the period, the amount of the bond shall be adjusted to twice the tax actually paid for the period.

Bond for the Succeeding Years of Operation. - The bonds for the succeeding years of operation shall be based on the
actual total excise tax paid during the period the year immediately preceding the year of operation.
BUSINESS TAXES
For Transfers in the Conduct of Business

12% VAT

OPT (Other Percentage Tax)

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