AP 8

1. Common Taxes in the
Philippines

2. Capital Gains Tax
The tax rate paid on most capital gains
depends on the income tax bracket.

3. Documentary Stamp Tax
tax on documents, instruments, loan
agreements, and papers

4. Donor’s Tax
tax on a donation or gift, and is imposed on the gratuitous
transfer of property

5. Estate Tax
tax on the right of the deceased person to transmit his/her
estate to his/her lawful heirs and beneficiaries at the time
of death

6. Income Tax
a tax on all yearly profits arising from property, profession,
trades or offices, or as a tax on a person’s income,
emoluments, profits, and the like.

7. Percentage Tax
a business tax imposed on persons or entities who
sell or lease goods, properties, or services in the
course of trade or business

8. Value Added Tax
is a business tax imposed and collected from the seller in
the course of trade or business on every sale of properties
it can be passed on to the buyer

9. Withholding Tax on Compensation
tax withheld from individuals receiving purely
compensation income.

10. Expanded Withholding Tax
a creditable tax against the income tax due of the payee for
the taxable quarter year

11. Final Withholding Tax
constitutes the full and final payment of the Income Tax due from
the payee on the said income.

12. Withholding Tax on Government
Money Payments
tax withheld by government offices and instrumentalities,
including government-owned or controlled corporations
and local government units, before making any payments
to resident suppliers of goods and services.