21.08.2019-268 views -Taxation Issues
UNIVERSITY OF BUSINESS, ECONOMICS AND MANAGEMENT
CASAUL, EUGENE N. BSBA LOGISTIK II Reaction paper
Regarding taxation problems
The individual income tax consists of income taxes on reimbursement income (from employment), business income, and passive income (interests, dividends, royalties, and prizes). In 1998 payment income tax rates were restructured into 6 bands with marginal costs ranging from five per cent to 35%. Exemption levels are twenty, 000 pesos (about $400) for individual, and 32, 1000 pesos (about $640) pertaining to married couples. In 2000, the company income tax rate was decreased from 33% to 32%. The tax rate on home based business opportunity is thirty percent. For citizen foreign businesses, after-tax income remitted in foreign countries are subject to a 15% tax, except for corporations registered with the Philippine Economic Sector Authority (PEZA), the Table of Expense (BOI), the Bases Conversion Development Expert, or operating in independent particular economic areas (ecozones), all of these are eligible intended for special taxes and customs incentives, exemptions and cutbacks designed to catch the attention of foreign, new, necessary and/or export-oriented international investment. The Omnibus Purchase Code of 1987 lies out taxes incentives administered by the BOI of the Division of Taxation and Development, and the annual Investment Focus Plan (IPP) sets out the investment areas, national and regional, where these offers currently refer. In 2002 the nationwide list included export actions, industrial development and exploration, agricultural/fishery production and processing, logistics, drugs and medication, engineered items, environmental assignments, IT providers, Infrastructure, mass housing tasks, R and D actions, social service, tourism, devoted and documentary motion pictures and new tasks with a minimal cost of $2 million. Exceptional economic areas (SEZs) can be designated because export digesting, free control and/or i . t (IT) parks, each status providing a timetable of duty holidays, faveur from transfer duties about capital goods and natural material, and preferential income tax rates with an increase of favorable treatment accorded pioneer industries above non pioneer or broadening companies. Taxation on transactions include a value added tax (VAT) of 10%. For smaller businesses not authorized with the VALUE-ADDED TAX a percentage sales tax of 3% to five per cent is applied, although larger for activities involving issues of public morality: refuge are taxed 18%, caberets, 18% and jai-lai and racetracks, 30%. Excise taxation are enforced on picked commodities such as alcoholic beverages, tobacco products, earrings and petroleum products. In addition , the government levies a variety of additional taxes, which includes mining and petroleum taxation, residence taxation, a mind tax in immigrants previously mentioned a certain age and staying past a certain period, document seal of approval taxes, subscriber (gift) taxes, estate taxation, and capital gains taxation. A record stamp tax is billed on inventory certificates, proofs of indebtedness, proofs of ownership, and many others, and normally amount to. 75% to 1% of the similar or encounter value of the certificate. A progressive schedule of donor taxes starts with gifts above L 100, 500 (about $18, 500), and lays out seven artists (2%, 4%, 6%, 8%, 10%, 12%, and 15%) with the top marginal rate applying to gifts above L 10, 000, 000 (about $186, 520). The accelerating estate taxes begins in P two hundred, 000 (about $37, 000) and lies out five bands (5%, 8%, 11%, 15% and 20%) up to P 10, 000, 1000 (about $186, 520). The main city gains tax is 6% on genuine property; five per cent on benefits of L 100, 1000 or much less from the sale for stock certainly not listed on the stock market, and 10% on profits over P 100, 000. Some urban centers, such as Manila, levy their own wholesale and retail product sales taxes. Government revenues in 2001 amounted to 13. 8% of GDP, in short supply of total bills and net lending to get the year, which will came to 19. 1% of GDP, departing a debt of...