QuestionsQuestions (Republic Act No. 1612)
A privilege tax must be paid before any covered business or occupation can be lawfully begun or pursued.
No. One line of business does not become exempt by being conducted with some other business or occupation for which such tax has been paid.
The tax on business is paid by the person, firm, or company conducting the business; the occupation tax is paid by each individual engaged in a calling subject thereto.
Fixed taxes are due and payable on or before January 20 of each year. A person first beginning a business must pay the tax before engaging therein.
It provides a graduated fixed annual tax based on gross annual sales from the preceding calendar year, with stated peso amounts depending on sales brackets.
The merchant pays the graduated fixed annual tax based on the individual sales of the business not subject to percentage tax.
The initial graduated fixed annual tax to be paid is ten pesos.
It is payable before the person begins to engage in the business, and thereafter within the regulation period in January along with other fixed privilege taxes without penalty.
They must file a true and complete return of gross monthly sales/receipts (or gross value of output removed) and pay the tax due within ten days after the end of each month.
If not paid within the prescribed time, the tax increases by 25% (increment becomes part of the tax). For willful neglect to file or willful false/fraudulent return, a surcharge of 50% of the tax/deficiency is added.
The taxpayer must notify the nearest internal revenue officer, file the return or declaration, and pay the tax due within ten days after closing the business.
The importer must pay in advance based on the import invoice value before release from customs custody, with specific add-ons (freight, postage, insurance, commission, customs duty, etc.) and with a factor: +100% for articles under Section 184; +50% for Section 185; and +25% for Section 186.
It is equivalent to 50% of the gross value in money of the articles sold/bartered/exchanged/transferred, paid by the manufacturer or producer (with deductions for taxed materials where applicable).
Automobiles with selling price not exceeding ₱7,000 are taxed at 50% of gross selling price. If exceeding ₱7,000 but not exceeding ₱10,000, taxed at 75%; if exceeding ₱10,000, taxed at 100%.
Transactions involving articles subject to Title IV specific taxes; agricultural products and ordinary salt in original form when sold by the producer/owner of land where produced; minerals and mineral products sold by the lessee/concessionaire/owner of mineral land; articles subject to Section 189; and articles shipped/exported abroad by the manufacturer/producer, regardless of shipping arrangements.
Exempt: persons whose gross quarterly sales/receipts do not exceed ₱500; those engaged exclusively in public market places selling at retail domestic meat/fruits/vegetables/game/poultry/fish and similar domestic food products; and peddlers/sellers at fixed stands selling exclusively similar domestic food products with total stock in trade not exceeding ₱100 retail value on any one day.