GLIMPSE OF A CPA'S MIND

Income Tax Holiday Gross Income Tax (5%) 1 As to Income Tax 100% exemption from Income Tax 5% preferential tax rate on Gross Income -six (6) years for pioneering entities -four (4) years for non-pioneering -extendable up to eight (8) years after meeting certain criteria 2 As to VAT imposition Zero-rated VAT registered VAT Exempted 3 As to Real Property Tax Subject to RPT (Real Property attached   to Real Estate) Not subject to RPT (see EO 226) 4 As to other taxes Subject to other National & Local Taxes Not subject to Local & National Taxes 5 Expanded Withholding Tax (EWT) Exempted from EWT ...

The Bureau of Internal Revenue (BIR), in connection with the recent amendments to the VAT law, is in the process of drafting a Revenue Memorandum Circular (RMC) which aims to provide guidelines on the taxation of sales, lease or exchange of goods, property and services to, within and without the PEZA special economic zones (Ecozones) and the Subic Bay Freeport Zone (SBFZ). R.A. 7916, better known as “The Special Economic Zone Act of 1995” expressly provides that “[T]he Ecozone shall be managed and operated by the PEZA as a separate customs territory.” Similarly, R.A. 7227 entitled “The Bases Conversion and Development Act of 1992” clearly states that “[T]he Subic Special Economic Zone shall be operated and managed as a separate customs territory ensuring the free flow of goods and capital within, into and exported out of the Zone xxx.” Currently, the tax treatment of sales of goods and services to and by a PEZA-registered enterprise within and without the Ecozone is go...

Philippines - Income Tax  Taxation of international executives Tax returns and compliance Tax rates Residence rules Termination of residence Economic employer approach Types of taxable compensation Tax-exempt income Health insurance Expatriate concessions Salary earned from working abroad Taxation of investment income and capital gains Additional capital gains tax (CGT) issues and exceptions General deductions from income Tax reimbursement methods Calculation of estimates/prepayments/withholding Relief for foreign taxes General tax credits Sample tax calculation All income tax information is summarized by Mark Anthony G. Grabillo, a Certified Public Accountant, based on the Republic of the Philippines Bureau of Internal Revenue . Tax returns and compliance When are tax returns due? That is, what is the tax return due date? The Philippine Annual Income Tax Return (BIR Form 1700) is filed ...