Taxation in the Philippines is controlled by the Bureau of Internal Revenue (Philippines)

Bureau of Internal Revenue (Philippines)

The Bureau of Internal Revenue is an attached agency of Department of Finance. BIR collects more than one-half of the total revenues of the government.-Functions:...

. Taxes in the Philippines range from 5% to 35%

Exceptions

• 20,000 Pesos ($400) for individuals
• 30,000 Pesos ($640) for married couples
• Exceptions for Small and Medium Enterprises with income of less than 100,000 Pesos

Cedula

Cedula is a community tax that is paid annually at the Barangay Hall. It is often rated at 5% of income.

Value Added Taxes (VAT)

In the Philippines, the rate of VAT is at 12%. With some additional VAT:

• Cockpits and Cabarets: 18%
• Jai-Jalai and racetracks: 30%

And with some exceptions:

• Small Businesses: 10%
• Not VAT-registered businesses: 3-5%

Excise taxes

Alcoholic beverages, tobacco products, jewelry, petroleum products, mining and petroleum taxes, residence taxes, a head tax on immigrants above a certain age and staying beyond a certain period, document stamp taxes, donor (gift) taxes, estate taxes, and capital gains taxes. A document stamp tax is charged on stock certificates, proofs of indebtedness, proofs of ownership, etc, and normally amount to .75% to 1% of the par or face value of the certificate are imposed with excise taxes.