1. Reported by:
Gutierrez, Don Jerick
Mendoza, Nathalie
Lopez, Jay-Gel
Perez, Mhae
Cruz, Sarah Jane
2.
3. Double Taxation:
Double Taxation is the levying of tax by two
or more jurisdictions on the same declared
income (in the case of income taxes), asset
(in the case of capital taxes), or financial
transaction (in the case of sales taxes).
This double liability is often mitigated
by tax treaties between countries.
4. Examples:
Is where someone is taxed on a source of
income in two different countries.
Can also happen in a purely domestic sphere
if (usually by accident) two different heads
of charge levy tax on an item, without any
relief given for the double tax.
5. For VAT, there shouldn't be double taxation,
but you can get "tax on a tax".
*VAT (Value Added Tax) is a type
of consumption tax that requires a 12%
additional tax that is placed on a product
whenever value is added at a stage of
production and at final sale.
6. Examples of product and business with
VAT:
Petrol
Alcohol
Grocery stores
Manila Water Company
Meralco
Jollibee and other fast food
Toll Gates
Department stores
Processed Food
Etc.
7. Examples of business/transactions are
exempt from VAT:
Services subject to percentage tax
Sale or importation of fertilizers, seeds, livestock and
poultry
Importation of personal and household effects
Private schools accredited by CHED, DepEd, TESDA
and public schools
Services rendered by an employee to an employer
Export sales by non-VAT registered persons
8.
9. Tax Exemptions:
Tax exemption refers to a monetary
exemption which reduces taxable income.
Tax exempt status can provide complete
relief from taxes, reduced rates, or tax on
only a portion of items.
10. Examples:
Charitable institutions, churches, convents,
mosques, non-profit cemeteries.
Actually, directly, and exclusively used for
religious, charitable and educational purposes.
-If properties, assets, revenues derived are related
from religious, educational, and non-profit
organizations – they may be exempted for taxes.
11. Non-stock and non-profit educational institution
and government educational institution.
Non-stock corporation and organization operated
exclusively for religious, charitable, scientific,
athletic or cultural purposes.
Non-profit civic league or organization.
Non-profit business league, chamber of commerce
or board of trade.
Cemetery company-owned and operated
exclusively for the benefit of its members.
12. Prizes and winnings from a charity horse race
sweepstakes from the Philippine Charity Sweepstakes
Office.
SSS and GSIS Benefits.
Benefits received from the US government through the
US Veterans Administration.
Annual taxable income of Senior Citizens or those at
least 60 years old who have income of not more than
P60,000 per year.
