Taxation is the process by which governments collect money from individuals and organizations to fund public expenditures like infrastructure and services. Taxes have a long history and serve important purposes, such as generating revenue, funding public programs, and equitable contribution to a nation's wealth. Taxes are levied according to laws and have characteristics like being compulsory payments made based on an individual's ability to pay.

2. TAXES
Money collected by the government and spent
according to the needs and priorities determined by
Congress

3. What is tax?
■ 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. What is the History of Tax?
■ To support the colony, several taxes and monopolies were established. The
buwis (tribute), which could be paid in cash or kind, with tobacco, chickens,
produce, gold, blankets, cotton, rice, or other products depending on the
region of the country.
■ Also, there was the bandalâ (from the Tagalog word mandala, a round stack of
rice stalks to be threshed), an annual forced sale and requisitioning of goods
such as rice.
-Polo y Servicious

5. Purpose and significance of Tax
Primary purpose: generates funds or revenues use to defray expenses incurred by
the government in promoting the general welfare of its citizenry.
Public expenditure
Other purposes: to equitably contribute to the wealth of the nation.

6. Characteristics of Tax
■ It is enforced contribution. Its payment is not voluntary nature, and the
imposition is not dependents upon the will of the person taxed.
■ It is generally payable to 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 based on the ability
to pay principle: the higher income of the taxpayer 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.
■ 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 within the
jurisdiction of the taxing state are subject for taxation.
■ It is levied by the law-making body of the state. This means that 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.

7. How to pay Tax?
How to Compute Income Tax
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
amount increases. This means that the higher taxable base amount increases. This
means that the higher taxable income you have, the higher your income tax

8. What Percent of Income Is Taxed?
■ The percent of your income that is taxed depends on how much you earn and
your filing status. In theory, the more you earn, the more you pay. The federal
income tax rate ranges from 10% to 37%.

9. Tax Schedule Effective January 1, 2023 and onwards