Your comment will be posted after it is approved. (Sa BIR sila ung Revenue Officer - Collection). FDI and Corporate Taxation: The Philippine Experience; Rafaelita M. Aldaba, Republic of the Philippines Department of Finance: Comprehensive Tax Reform Program, Reforming the Philippine Tax System: Lessons from Two Tax Reform Programs (Abstract); Benjamin E. Diokno, Bureau of Internal Revenue, Republic of the Philippines: Tax Reform Act of 1997. BASIS OF TAXATION “ BENEFITS-RECEIVED PRINCIPLE ” reciprocal duties of protection and support between the state and its inhabitants 7. It is an enforced contribution - tax is not voluntary and its imposition is in no way dependent upon the will or assent of the person being taxed. (Base ang buwis sa kakayahan na mgbayad. It was levied on natives, including mestizos.' The laws governing taxation in the Philippines are contained within the National Internal Revenue Code. GENERAL PRINCIPLES OF TAXATION FUNDAMENTAL PRINCIPLES IN TAXATION. The advantage of the benefit theory is the direct correlation between revenue and expenditure in a budget. Create a free account to download. For example, because imported products are easier to tax than domestic output, import duties were among the earliest taxes. PDF. Baka dahil maganda lang pakinggan Hahaha. “ LIFEBLOOD THEORY” THEORY OF TAXATION 6. In February 1994, a presidential task force was charged with developing a new Comprehensive Tax Reform Program (CTRP) to increase revenue by adjusting and simplifying the tax code. Explain. No need to be fancy, just an overview. 4.] The power of taxation proceeds upon the theory that the existence of the government is a necessity, that it cannot continue without means to pay its expenses and that for this means it has a right to compel all its citizens and property within its limits to contribute. a. Caruso has the option either to claim the amount of the income tax withheld in US as a deduction from his gross income in the Philippines or to claim it as a tax credit. A. Evan Centanni specializes in world cultures and human geography. (Kasama na jan ung mga ambassador at iba pang diplomatik). Reciprocal Duties - (Benefits-Received or Compensation Theory) In return for the contribution of the taxpayer, he receives the general advantages and protection which the government affords the taxpayer and his property. Several parts of the reform package were adopted and passed separately by the Congress of the Philippines during 1996. That is the reason why we have appropriations: the Heads of Departments submit to the Congress their estimated expenses for the following year - parang feasibility study; then titignan kung ok ba o hindi; pag may budget na pagkukunan ayos lang. Reciprocal Duties - (Benefits-Received or Compensation Theory) In return for the contribution of the taxpayer, he receives the general advantages and protection which the government affords the taxpayer and his property. Copyright 2021 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Advantages and limitations. Free PDF. It is subject to limitations - inherent and constitutional. (Bawal singilin ang kakampi). Primary Purpose (Revenue/Fiscal) - to raise revenues for the support of the government. The amount and rate of tax, which shall be uniform and equitable. INCOME TAX SYSTEM OF THE PHILIPPINES • GROSS INCOME TAXATION-where a Final Tax is imposed on the gross amount of specified types of income. How will the TRAIN law affect incomes taxes of individuals and corporations? Paano kung kulang ang budget pero kailangan talaga? It is proportionate in character - the share of the taxpayer on the public burden is essentially based on one's ability to pay. Basis of taxation C. Scope of taxation B. Situs of taxation D. Theory of taxation. Tax Avoidance - the exploitation of legally permissible alternative rates or methods of assessing taxable property or income in order to avoid or reduce tax liability. The effects of taxation on the willingness to work, save and invest are partly the result of money burden of tax and partly the result of psychological burden of tax. The lifeblood theory constitutes the theory of taxation, which provides that the existence of government is a necessity; that government cannot continue without means to pay its expenses; and that for these means it has a right to compel its citizens and property within its limits to contribute. the government, in the exercise of its civil remedy in collecting the tax due may, b, y distraint of personal property or by levy of real property, take the same to satisfy the tax liability if. Criminal in nature b. The theory of taxation, progressive or other, should cor-respond to these facts. Halimbawa: (1) kaya madami ang opisina o Districts para hindi mahirapan ang madlang people, (2) kaya in-accredit and mga banko (hindi ibig sabihin nito na walang tiwala ang BIR sa mga collection agent) para mapadali ang pangongolekta at pagbabayad, (3) yung Electronic Filing and Payment System o EFPS ginawa nila para hindi hassle), Constitutional Limitations - (Naaayon sa ating saligang batas), Exemption of property actually, directly and exclusively used for religious, charitable and educational purpose (Section 30 of the Tax Code), Levy - it is the legislative act that determines that a tax of a certain amount or of a certain percentage shall be imposed on the persons, properties, or acts subject thereto. Taxation, imposition of compulsory levies on individuals or entities by governments. b. (Sa BIR eto yung mga Examiner or Revenue Officer (Assessment); mga Special Investigators sa Special Investigation Division), Collection - It is the getting by the concerned government agencies of the taxes imposed. The total tax requirement is the area (ABEO) out of which A is willing to pay GCEO and B is willing to pay FDEO. By: Garry S. Pagaspas, CPA Let me share you an overview on how corporate income taxation applies in the Philippines, in general. Theories of Taxation which the government adopts should be equitable so that tax avoidance is decreased. The basis is the reciprocal duties of… This power is legislative in nature and is … Create your own unique website with customizable templates. Some barangays however united to form a confederation. The tax base for domestic corporations and resident foreign corporations is taxable income (gross income less allowable deductions) [30% regular corporate income tax] or gross income [2% minimum corporate income tax], whichever is applicable. Let us start with the understanding of the thing called “corporation” by its nature as defined in the Corporation Code of the Philippines and for tax purposes as defined by the National Internal Revenue Code of the Philippines. Tax structure of pakistan Abdul Basit. Download PDF Package. Q: What is Real Property Tax? (pwede lang ito kung yung tax ay indirect, example: VAT pwd ipataw ng seller sa buyer ang VAT). (Sa madaling salita, hindi dapat pahirap sa pagbabayad. Despite successful tax reforms in 1986, in less than a decade new tax exemptions had reduced the Philippines’ tax revenue to among Southeast Asia’s lowest. (Inutos na nga sa kanila ng Constitution tapos iuutos pa nila sa iba), Exemption of Government Agencies/Instrumentalities exercising essential  governmental function. Take note that they are NOT involved in the collection thereof. PDF. Centanni is editor of Political Geography Now at www.polgeonow.com. History of Taxation in the Philippines  Pre – Colonial Period (900 – 1521)  Government were called “ Barangays ”  No national government  There was no “ datu ” strong enough to unite the archipelago into one nation. Taxation is the earliest and most prevalent form of government inter­ference with the economic life of individuals and business enter­prises. THE PHILIPPINE TAX SYSTEM National Tax Law (10) The 1987 Philippine Constitution sets limitations on the exercise of the power to tax. The Congress shall evolve a progressive system of taxation. Taxation in the Philippines CheryLanne Demafiles. The manner and mode of enforcement and collection, The situs of taxation - may be exercised only within the territorial jurisdiction of the taxing authority, Public purpose - for general welfare. the House of Representatives (from which the tax bill is introduced) and the Senate. This paper. Constitution: Article VI, Section 28 of the Constitution states that "the rule of taxation shall be uniform and equitable" and that " Congress shall evolve a progressive system of taxation ". PDF. (Basically, ito yung pag gawa ng batas), Assessment - it is the official action of an officer authorized by law in ascertaining the amount of tax due under the law from a taxpayer. You have computed for your taxable income, proceed to computing for the support of the taxpayer 's to! For corporate income and theory of taxation philippines Senate and equitable power can not pay its expenses and can... 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