Taxation involves the process by which governments raise revenue through legal means to fund government expenses and promote citizen welfare, and includes the collection of a share of individual and organizational incomes. Taxes are compulsory contributions imposed by law that are generally paid in cash based on an individual's ability to pay, with higher incomes resulting in higher tax amounts. Taxes can be levied on people, property, acts, rights, or privileges within a government's jurisdiction as determined by law for public purposes.

2. TAXATION is defined in many ways.
Commonly heard definitions include:
It is the process by which the sovereign, through its law
making body, races revenues use to defray expenses of
government.
It is a means of government in increasing its revenue
under the authority of the law, purposely used to promote
welfare and protection of its citizenry.
It is the collection of the share of individual and
organizational income by a government under the authority
of the law.

4. Distinction of
Tax

8. It is enforced contribution. Its payment is not voluntary nature,
and the imposition is not dependent upon the will of the person
taxed.
It is generally payable in cash. This means that payment by
checks, promissory notes, or in kind is not accepted.
It is proportionate in character. Payment of taxes should be base
on the ability to pay principle; the higher income of the tax payer
the bigger amount of the tax paid.
It is levied (to impose; collect) on person or property. There are
taxes that are imposed or levied on acts, rights or privileges. Ex.
Documentary tax.

9. It is levied by the state which has jurisdiction over the
person or property. As a general rule, only persons,
properties, acts, right or transaction with in the jurisdiction
of the taxing state are subject for taxation.
It is levied by the law making body of the state. This
means that a prior law must be enacted first by the
congress before assessment and collection may be
implemented of the 1987 constitution.
It is levied for public purposes. Taxes or imposed to
support the government for implementation of projects and
programs.

10. 1. As to subject matter
•
•
Personal, Poll or Capitation Tax (ex. Residence Tax)
Property Tax. (ex. Real State Tax)
2. As to who bears the burden
•
•
Direct Tax (ex. Income Tax)
Indirect Tax (ex. Buying of goods and services (RVAT) )

11. 3. As to purpose
General Tax (ex. Almost All Taxes)
Special Tax
4. As to scope
National Tax (ex. National Revenue Taxes)
Local Tax
MODYUL 22 ANG PAMBANSANG BADYET.pdf

15. How to Compute Income Tax in the
Philippines
Computing income tax expense and payable is different
for individuals and corporations. Taxable corporations may be
taxed using a fixed income tax rate.
On the other hand, if you are a self-employed
professional or an owner of a single proprietorship business,
your income tax expense is computed using a graduated tax
rate. It is a progressive tax which the tax rate increases as the
taxable base amount increases. This means that the higher
taxable income you have, the higher your income tax
expense is.

16. Personal Excemption
1. Single or divorced
without dependent
P50,000
2. Head of the Family
P50,000
3. Married individuals
P50,000

17. In
,
government spending, government
expenditure, or government spending on
goods and services includes all government
consumption and investment by a state.
DBM Files2012 Annual Report.pdf

18. Government acquisition of goods and
services for current use to directly satisfy
individual or collective needs of the
members of the community is called
government final consumption
expenditure (GFCE.)
Government acquisition of goods and
services intended to create future benefits,
such as infrastructure investment or research
spending, is called gross fixed capital
formation, or government investment, which
usually is the largest part of the government

21. DBM FilesBudget
Deficit Financing.pdf

24. Internet:
Others:
National Statistical
Coordination Board (NSCB)
Batayang Ekonomiks