Tax in The Philippines

Ma. Michelle Nica D.
Mizon
BS Mathematics IV-1
TAX is an involuntary fee levied on corporations or individuals that is enforced by a level of government in order to
finance government activities.
Different Kinds of Taxes in the Philippines
National Taxes in the Philippines
Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange,
or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of
conditional sale.
Final Capital Gains Tax for Onerous Transfer of Real Property Classified as Capital Assets (Taxable and Exempt)
Tax Rates: For real property - 6%
Capital Gains Tax for Onerous Transfer of Shares of Stocks Not Traded Through the Local Stock Exchange
Tax Rates
For Shares of Stocks Not Traded in the Stock Exchange
- Not over P100,000 - 5%
- Any amount in excess of P100,000 - 10%
Annual Capital Gains Tax for Onerous Transfer of Shares of Stocks Not Traded Through the Local Stock Exchange
Tax Rates
For Shares of Stocks Not Traded in the Stock Exchange
- Not over P100,000 - 5%
- Any amount in excess of P100,000 - 10%
Documentary Stamp Tax is a tax on documents, instruments, loan agreements and papers evidencing the acceptance,
assignment, sale or transfer of an obligation, rights, or property incident thereto. Examples of documentary stamp tax
are those that are charged on bank promissory notes, deed of sale, and deed of assignment on transfer of shares of
corporate stock ownership.
Tax Rates
Tax
Code
Section
174
Document
Taxable Unit
Tax Due Per Unit
Original Issue of Shares of

Stock with par value
P200.00 or fraction thereof 1.00
Original Issue of Shares of

Stock without par value
P200.00 or fraction thereof

1.00
% of
Unit
.5%
.5%
Taxable Base
Par value of shares of

stocks
Actual consideration
for the issuance of
shares of stocks
Stock Dividend
175
Sales, Agreements to Sell,

Memoranda of Sales,
Deliveries or Transfer of
Shares or Certificates of
Stock
Actual value
represented by each
share
P200.00 or fraction
thereof
1.00
.5%
.75
3.75% Par value of such stock
Stock without par value

25%
176
Bonds, Debentures, Certificate P200.00 or fraction

of Stock or Indebtedness
thereof
issued in foreign Countries
.75
177
Certificate of Profits or
Interest in Property or
Accumulation
P200.00 or fraction thereof .50
178
Bank Checks, Drafts,

Certificate of Deposit not
bearing interest and other
Instruments
On each Document
179
All Debt Instruments
180
All Bills of Exchange or Drafts
DST paid upon the

original issuance of
said stock.
3.75% Par value of such

bonds, debentures,
Certificate of Stock or
Indebtedness
.25%
Face value of such

certificate /
memorandum
P200.00 or fraction thereof 1.00
.5%
Issue price of any such

instruments
.15%
Face value of any such

bill of exchange or
draft
181
Acceptance of Bills of
Exchange or order for the
payment of money purporting
to be drawn in a foreign
country but payable in the
Philippines
.15%
Face value of such bill

of exchange or order
or the Philippine
equivalent of such
value, if expressed in
foreign currency
182
Foreign Bills of Exchange and

Letters of Credit
.15%
Face value of such bill

of exchange or letter
of credit or the
Philippine equivalent
of such value, if
expressed in foreign
currency
183
Life Insurance Policies
If the amount of insurance exempt

does not exceed
P100,000.00
1.50
Amount of Insurance
If the amount of insurance

exceeds P100,000.00 but 10.00
does not exceed
P300,000.00
Amount of Insurance

exceeds P300,000.00 but
does not exceed
25.00
P500,000.00
Amount of Insurance

does not exceed
P750,000.00
50.00
Amount of Insurance

does not exceed
P1,000,000.00
Amount of Insurance
75.00
exceeds P1,000,000.00
Amount of Insurance
100.00
184
Policies Of Insurance upon

Property
P4.00 premium or fraction .50

thereof
12.5% Premium charged
185
Fidelity Bonds and other

Insurance Policies
P4.00 premium or fraction .50

thereof
12.5% Premium charged
186
Policies of Annuities or other

instruments
.25%
Premium or
installment payment
or contract price
collected
.20
.10%
Premium or
contribution
collected
7.5%
Premium charged
Pre-Need Plans
187
Indemnity Bonds
.30
188
Certificates of Damage or
otherwise and Certificate or
document issued by any
customs officers, marine
surveyor, notary public and
certificate required by law or
by rules and regulations of a
public office
Each Certificate
15.00
189
Warehouse Receipts (except if Each Receipt

value does not exceed
P200.00)
15.00
190
Jai-alai, Horse Race Tickets,

lotto or Other Authorized
Number Games
P1.00 cost of ticket
.10
10%
Cost of the ticket

Cost of the ticket
Additional P0.10 on every

P1.00 or fraction thereof if
cost of ticket exceeds
P1.00
191
Bills of Lading or
If the value of such goods 1.00
Receipts(except charter party) exceeds P100.00 and does
not exceed P1,000.00
Value of such goods
If the value exceeds

P1,000.00
Value of such
goods
10.00
Freight tickets covering
goods, merchandise or
effects carried as
accompanied baggage of
passengers on land and
water carriers primarily
engaged in the
transportation of
passengers
Exempt
192
Proxies(except proxies issued Each proxy

affecting the affairs of
associations or corporations,
organized for religious,
charitable or literary
purposes)
15.00
193
Powers of Attorney(except
acts connected with the
collection of claims due from
or accruing to the
Government of the Republic
of the Philippines, or the
government of any province,
city or Municipality)
Each Document
5.00
194
Lease and other Hiring

agreements or memorandum
or contract for hire, use or
rent of any land or tenements
or portions thereof
First 2,000 or fractional

part thereof
3.00
.15%
1.00
.1%
20.00
.4%
10.00
.2%
195
For every P1,000 or

fractional part thereof in
excess of the first P2,000
for each year of the term
of the said contract or
agreement
Mortgages Pledges of lands,

First 5,000
estate, or property and Deeds
of Trust
On each P5,000 or
Amount Secured
Amount Secured
fractional part thereof in

excess of 5,000
196
Deed of Sale, instrument or

First 1,000
writing and Conveyances of
Real Property (except grants,
patents or original certificate
of the government)
15.00
1.5%
For each additional P1,000 15.00

or fractional part thereof
in excess of P1,000
197
Charter parties and Similar

Instruments
1,000 tons and below
1,001 to 10,000 tons
Over 10,000 tons
198
Stamp Tax on Assignments

and Renewals or Continuance
of Certain Instruments
1.5%
P500.00 for the

first 6 months
Plus P50 each
month or fraction
thereof in excess
of 6 months
P1,000 for the
first 6
months Plus P100
each month or
fraction thereof in
excess of 6
months
P1,500 for the
first 6
months Plus P150
each month or
fraction thereof in
excess of 6
months
Consideration or Fair
Market Value,
whichever is higher (if
government is a
party, basis shall be
the consideration)
Consideration or Fair
Market Value,
whichever is higher (if
government is a
party, basis shall be
the consideration)
Registered gross
tonnage
Registered gross
tonnage
Registered gross
tonnage
At the same rate

as that imposed
on the original
instrument.
Donors Tax is a tax on a donation or gift, and is imposed on the gratuitous transfer of property between two or more
persons who are living at the time of the transfer. Donors tax is based on a graduated schedule of tax rate.
Tax Rates
Effective January 1, 1998 to present (Republic Act No. 8424)
Net Gift Over
But not Over
The Tax Shall be
Plus
Of the Excess Over
100,000.00
exempt
100,000.00
200,000.00
2%
100,000.00
200,000.00
500,000.00
P 2,000.00
4%
200,000.00
500,000.00
1,000,000.00
14,000.00
6%
500,000.00
1,000,000.00
3,000,000.00
44,000.00
8%
1,000,000.00
3,000,000.00
5,000,000.00
204,000.00
10%
3,000,000.00
5,000,000.00
10,000,000.00
404,000.00
12%
5,000,000.00
10,000,000.00
and over
1,004,000.00
15%
10,000,000.00
Notes:
1. Rate applicable shall be based on the law prevailing at the time of donation.
2. When the gifts are made during the same calendar year but on different dates, the donor's tax shall be computed
based on the total net gifts during the year.
Donation made to a stranger is subject to 30% of the net gift. A stranger is a person who is not a:
brother, sister (whether by whole or half blood), spouse, ancestor and lineal descendants; or
relative by consanguinity in the collateral line within the fourth degree of relationship.
Estate Tax - is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and
beneficiaries at the time of death and on certain transfers which are made by law as equivalent to testamentary
disposition. Estate tax is also based on a graduated schedule of tax rate.
Tax Rates
Effective January 1, 1998 up to Present
If the Net Estate is
Over
But not Over
The Tax Shall be
Plus
Of the Excess Over
P 200,000.00
Exempt
P 200,000.00
500,000.00
5%
P 200,000.00
500,000.00
2,000,000.00
P 15,000.00
8%
500,000.00
2,000,000.00
5,000,000.00
135,000.00
11 %
2,000,000.00
5,000,000.00
10,000,000.00
465,000.00
15 %
5,000,000.00
1,215,000.00
20 %
10,000,000.00
10,000,000.00
Income Tax - is a tax on all yearly profits arising from property, profession, trades or offices or as a tax on a persons
income, emoluments, profits and the like. Self-employed individuals and corporate taxpayers pay quarterly income taxes
from 1st quarter to 3rd quarter. And instead of filing quarterly income tax on the fourth quarter, they file and pay their
annual income tax return for the taxable year. Individual income tax is based on graduated schedule of tax rate, while
corporate income tax in based on a fixed rate prescribe by the tax law or special law.
Tax Rate
A. For Individuals Earning Purely Compensation Income and Individuals Engaged in Business and Practice of Profession
Amount of Net Taxable Income
Over
Rate
But Not Over

P10,000
5%
P10,000
P30,000
P500 + 10% of the Excess over P10,000
P30,000
P70,000
P2,500 + 15% of the Excess over P30,000
P70,000
P140,000
P140,000
P250,000
P250,000
P500,000
P500,000
P125,000 + 32% of the Excess over P500,000 in 2000 and onward
Note: When the tax due exceeds P2,000.00, the taxpayer may elect to pay in two equal installments, the first installment
to be paid at the time the return is filed and the second installment 15 of the same year at on or before July the
Authorized Agent Bank (AAB) within the jurisdiction of the Revenue District Office (RDO) where the taxpayer is
registered.
Tax Rate
Taxable Base
1. Domestic Corporations:
a. In General
30% (effective Jan. 1, Net taxable income from all sources

2009)
b. Minimum Corporate Income Tax*
2%
Gross Income
c. Improperly Accumulated Earnings
10%
Improperly Accumulated Taxable Income
2. Proprietary Educational Institution
10%
Net taxable income provided that the gross

income from unrelated trade, business or
other activity does not exceed 50% of the total
gross income
3. Non-stock, Non-profit Hospitals
10%
Net taxable income provided that the gross

income from unrelated trade, business or
other activity does not exceed 50% of the total
gross income
a. In General
30%
Net taxable income from all sources
2%
Gross Income
10%
30%
4. GOCC, Agencies & Instrumentalities
5. National Gov't. & LGUs

a. In General
2%
Gross Income
10%
a. In General
30%
2%
Gross Income
10%
6. Taxable Partnerships
7. Exempt Corporation
a. On Exempt Activities
0%
b. On Taxable Activities
30%
8. General Professional Partnerships
0%
9. Corporation covered by Special Laws
Rate specified under

the respective special
laws
10. International Carriers
2.5%
Gross Philippine Billings
11. Regional Operating Head
10%
Taxable Income
12. Offshore Banking Units (OBUs)
10%
Gross Taxable Income On Foreign Currency

Transaction
30%
On Taxable Income other than Foreign

Currency Transaction
10%
Gross Taxable Income On Foreign Currency

Transaction
30%
On Taxable Income other than Foreign

Currency Transaction
13. Foreign Currency Deposit Units (FCDU)
*Beginning on the 4th year immediately following the year in which such corporation commenced its business
operations, when the minimum corporate income tax is greater than the tax computed using the normal income tax.
Passive Income
1. Interest from currency deposits, trust funds and deposit substitutes
20%
2. Royalties (on books as well as literary & musical composition)
10%
- In general
20%
3. Prizes (P10,000 or less )
5%
- In excess of P10,000
20%
4. Winnings (except from PCSO and lotto)
20%
5. Interest Income of Foreign Currency Deposit
7.5%
6. Cash and Property Dividends

- To individuals from Domestic Corporations
10 %
- To Domestic Corporations from Another Domestic Corporations
0%
7. On capital gains presumed to have been realized from sale, exchange or other disposition of
real property (capital asset)
6%
8. On capital gains for shares of stock not traded in the stock exchange
- Not over P100,000
5%
- Any amount in excess of P100,000
10%
9. Interest Income from long-term deposit or investment in the form of savings, common or
individual trust funds, deposit substitutes, investment management accounts and other
investments evidenced by certificates
Upon pretermination before the fifth year , there should be imposed on the entire income from
the proceeds of the long-term deposit based on the remaining maturity thereof:
Holding Period
Exempt
- Four (4) years to less than five (5) years
5%
- Three (3) years to less than four (4) years
12%
- Less than three (3) years
20%
B. For Non-Resident Aliens Engaged in Trade or Business

1. Interest from currency deposits, trust funds and deposit substitutes
20%
2. Interest Income from long-term deposit or investment in the form of savings, common or
individual trust funds, deposit substitutes, investment management accounts and other
investments evidenced by certificatesUpon pretermination before the fifth year, there should Exempt
be imposed on the entire income from the proceeds of the long-term deposit based on the
remaining maturity thereof:Holding Period:
-Four (4) years to less than five (5) years
5%
-Three (3) years to less than four (4) years
12%
-Less than three (3) years
20%
3. On capital gains presumed to have been realized from the sale, exchange or other disposition
6%
of real property
4. On capital gains for shares of stock not traded in the Stock Exchange
- Not over P100,000
5%
10%
C) For Non-Resident Aliens Not Engaged in Trade or Business

1. On the gross amount of income derived from all sources within the Philippines
25%
2. On capital gains presumed to have been realized from the exchange or other disposition of
6%
real property located in the Phils.
3. On capital gains for shares of stock not traded in the Stock Exchange
- Not Over P100,000
5%
10%
D) On the gross income in the Philippines of Aliens Employed by Regional Headquarters (RHQ) or Area Headquarters
and Regional Operating Headquarters (ROH), Offshore Banking Units (OBUs), Petroleum Service Contractor and
Subcontractor
On the gross income in the Philippines of Aliens Employed by Regional Headquarters (RHQ) or
Area Headquarters and Regional Operating Headquarters (ROH), Offshore Banking Units (OBUs),
15%
Petroleum Service Contractor and Subcontractor

E) General Professional Partnerships
General Professional Partnerships
0%
F) Domestic Corporations
1) a. In General on net taxable income
30%
b. Minimum Corporate Income Tax on gross income
2%
c. Improperly Accumulated Earnings on improperly accumulated taxable income
10%
2) Proprietary Educational Institution and Non-profit Hospitals

- In general (on net taxable income)
10%
10%
- If the gross income from unrelated trade, business or other activity exceeds 50% of the total
30%
gross income from all sources
4) GOCC, Agencies & Instrumentalities
a. In General - on net taxable income
30%
2%
10%
5) Taxable Partnerships
a. In General on net taxable income
30%
2%
10%
6) Exempt Corporation
a. On Exempt Activities
0%
b. On Taxable Activities
30%
8) Corporation covered by Special Laws

laws
G) Resident Foreign Corporation

1) a. In General on net taxable income
30%
2%
10%
2) International Carriers on gross Philippine billings
2.50%
3) Regional Operating Headquarters on gross income
10%
4) Corporation Covered by Special Laws

laws
5) Offshore Banking Units (OBUs) on gross income
10%
6) Foreign Currency Deposit Units (FCDU) on gross income
10%
Percentage Tax is a business tax imposed on persons or entities who sell or lease goods, properties or services in the
course of trade or business whose gross annual sales or receipts do not exceed the amount required to register as VATregistered taxpayers. Percentage taxes are usually based on a fixed rate. They are usually paid monthly by businesses or
professionals. However, some special industries and transactions pay percentage tax on a quarterly basis.
Tax Rates
Coverage
Basis
Tax Rate
Persons exempt from VAT under Sec. 116
Gross Sales or Receipts
3%
Domestic carriers and keepers of garages
Gross Receipts
3%
Gross Receipts
3%
Electric , gas and water utilities
Gross Receipts
2%
Radio and television broadcasting companies whose

annual gross receipts of the preceding year do not
exceed P 10,000,000 and did not opt to register asVAT
taxpayer
Gross Receipts
3%
Banks and non-bank financing intermediaries
Interest, commissions and discounts from lending

activities as well as income from leasing on the
basis of remaining maturities of instruments:
International Carriers:
International air/shipping carriers doing business in the
Philippines
Franchise Grantees:
Short term maturity (not over 2 years)
5%
Medium term maturity (over 2 years but not over 3%

4 years)
Long term maturity
Over 4 years but not over 7 years
1%
Over 7 years
0%
On Dividends
0%
On royalties, rentals of properties, real or personal, 5%

profits from exchange and all other items treated
as gross income under Sec. 32 of the Code
Finance Companies
On interest, discounts and other items of gross

income paid to finance companies and other
financial intermediaries not performing quasi
banking functions
5%
Interest, commissions and discounts paid from their

loan transactions from finance companies as well
as income from financial leasing shall be taxed
based on the remaining maturities of instruments:
Short term maturity (not over 2 years)
5%
Medium term (over 2 years but not over 4 years) 3%

Long Term Maturity
Over 4 years but not over 7 years
1%
Over 7 years
0%
Total premiums collected
5%
Total premium collected
10%
Total premium collected
5%
Cockpits
Gross receipts
18%
Cabarets, Night or Day Clubs
Gross receipts
18%
Boxing exhibitions
Gross receipts
10%
Professional basketball games
Gross receipts
15%
Jai-alai and race track (operators shall withheld tax on

winnings)
Gross receipts
30%
Life Insurance Companies (except purely cooperative

companies or associations)
Agents of foreign insurance companies: (except
reinsurance premium)
Proprietors, lessee or operator of the following:
Every stock broker who effected a sale, barter, exchange Gross selling price or gross value in money of
or other disposition of shares of stock listed and traded shares of stocks sold, bartered, exchanged or
through the Local Stock Exchange (LSE) other than the
otherwise disposed
sale by a dealer in securities
A corporate issuer/stock broker, whether domestic of
foreign, engaged in the sale, barter, exchange or other
disposition through Initial Public Offering
(IPO)/secondary public offering of shares of stock in
closely held corporations
of 1%
Gross selling price or gross value of in money of

shares of stocks sold, bartered, exchanged or
otherwise disposed in accordance with the
proportion of stocks sold, bartered or exchanged or
after listing in the stock exchange
Up to 25 %
4%
Over 25% but not over 33 1/3%
2%
Over 33 1/3 %
1%
Value Added Tax - is a business tax imposed and collected from the seller in the course of trade or business on every
sale of properties (real or personal) lease of goods or properties (real or personal) or vendors of services. It is an indirect
tax, thus, it can be passed on to the buyer, causing this to increase the prices of most goods and services bought and
paid by consumers. VAT returns are usually filed and paid monthly and quarterly.
TAX RATES
On sale of goods and properties - twelve percent (12%) of the gross selling price or gross value in money of the
goods or properties sold, bartered or exchanged
On sale of services and use or lease of properties - twelve percent (12%) of gross receipts derived from the sale
or exchange of services, including the use or lease of properties
On importation of goods - twelve percent (12%) based on the total value used by the Bureau of Customs in
determining tariff and customs duties, plus customs duties, excise taxes, if any, and other charges, such as tax to
be paid by the importer prior to the release of such goods from customs custody; provided, that where the
customs duties are determined on the basis of quantity or volume of the goods, the VAT shall be based on the
landed cost plus excise taxes, if any.
On export sales and other zero-rated sales - 0%
Excise Tax is a tax imposed on goods manufactured or produced in the Philippines for domestic sale or consumption or
any other disposition. It is also imposed on things that are imported.
TYPES OF EXCISE TAX:
Specific Tax refers to the excise tax imposed which is based on weight or volume capacity or any other physical
unit of measurement
Ad Valorem Tax refers to the excise tax which is based on selling price or other specified value of the
goods/articles
MANNER OF COMPUTATION:
Specific Tax = No. of Units/other measurements x Specific Tax Rate
Ad Valorem Tax = No. of Units/other measurements x Selling Price of any specific value per unit x Ad Valorem
Tax Rate
EXCISE TAX RATES:
A. ALCOHOL PRODUCTS
NEW TAX RATES based on Republic Act No. 10351
PARTICULARS
2013
2014
2015
2016
2017
Remarks
2018
onwards
20%
20%
20%
20%
Php21.63
Effective
1/1/2016, the
specific tax rate
shall be
increased by
4% every year
thereafter
A. DISTILLED SPIRITS, AD VALOREM & SPECIFIC TAX

1) AD VALOREM TAX RATE Based on the Net Retail Price
(NRP) per proof (excluding the
excise and value-added taxes);
and
2) SPECIFIC TAX - Per proof liter
15%
Php20
15%
Php20
Php20
Php20.80
B. WINES, per liter of volume capacity

1) Sparkling wines/ champagnes,
where the NRP (excluding the
excise and VAT) per bottle of
750ml
volume
capacity,
regardless of proof is:
Php500.00 or less
Php250
Php260
Php270.40
Php281.22
Php292.47
More than Php500.00
Php700
Php728
Php757.12
Php787.40
Php818.90
2) Still wines and carbonated

wines containing 14% of alcohol
by volume or less
Php30.00
Php31.20
Php32.45
Php33.75
Php35.10
3) Still wines and carbonated

wines containing more than 14%
Php60.00
Php62.40
Php64.90
Php67.50
Php70.20
Effective
1/1/2014, the
specific tax rate
shall be
increased by
4% every year
thereafter
(of alcohol by volume) but not

more 25% of alcohol by volume
4) Fortified wines containing
more than 25% of alcohol by
volume
Taxed as distilled spirits
C. FERMENTED LIQUORS , per liter of volume capacity

1) If the NRP (excluding excise
and VAT) per liter of volume
capacity is:
Php 50.60 and below
Php15.00
Php17.00
Php19.00
Php21.00
Php23.50
More than Php 50.60
Php20.00
Php21.00
Php22.00
Php23.00
Php23.50
2) If brewed and sold at

microbreweries
or
small
establishments such as pubs and
restaurants, regardless of the
NRP
Php28.00
Php29.12
Php30.28
Php31.50
Php32.76
Effective
1/1/2018, the
specific tax rate
shall be
increased by
4% every year
thereafter
Effective
1/1/2014, the
specific tax rate
shall be
increased by
4% every year
thereafter
NOTE:
IN CASE OF FERMENTED LIQUORS AFFECTED BY THE "NO DOWNWARD RECLASSIFICATION " PROVISION, THE 4%
INCREASE SHALL APPLY TO THEIR RESPECTIVE APPLICABLE TAX RATES
B. TOBACCO PRODUCTS
NEW TAX RATES based on Republic Act No. 10351
PARTICULARS
2013
2014
2015
2016
2017
(a) Tobacco twisted by hand or

reduced into a condition to be
consumed in any manner other
than the ordinary mode of drying
and curing;
Php1.75
Php1.82
Php1.89
Php1.97
Php2.05
(b) Tobacco prepared or partially

prepared with or without the use of
any machine or instrument or
without
being
pressed
or
sweetened; and
Php1.75
Php1.82
Php1.89
Php1.97
Php2.05
(c) Fine-cut shorts and refuse,

scraps, clippings, cuttings, stems,
midribs and sweepings of tobacco;
Php1.75
Php1.82
Php1.89
Php1.97
Php2.05
2. Chewing tobacco unsuitable for

use in any other manner
Php1.50
Php1.56
Php1.62
Php1.68
Php1.75
Remarks
2018
onwards
A. TOBACCO PRODUCTS, per kilogram

1. Tobacco Products
B. CIGARS, per cigar
Effective
1/1/2014, the
specific tax rate
shall be
increased by 4%
every year
thereafter
3. Cigars
(a) Based on the NRP per cigar
(excluding the excise and valueadded taxes), and
(b) Per cigar
20%
20%
20%
20%
20%
Php5.00
Php5.20
Php5.41
Php5.62
Php5.85
Effective
1/1/2014, the
specific tax rate
shall be
increased by 4%
every year
thereafter
C. CIGARETTES , per pack
1. Cigarettes packed by hand
Php12.00
Php15.00
Php18.00
Php21.00
Php30.00
Php21.00
Php25.00
Php30.00
Php28.00
Php29.00
Php30.00
Effective
1/1/2018, the
specific tax rate
shall be
increased by 4%
every year
thereafter
2. Cigarettes packed by machine,

where the NRP (excluding excise
and VAT) per pack is:
(a) Php11.50 and below
Php12.00
(b) More than Php11.50
Php25.00
Php17.00
Php27.00
INSPECTION FEE - There shall be collected inspection fees on leaf tobacco, scrap, cigars, Cigarettes and other
manufactured tobacco and tobacco products as follows:
PRODUCT TYPE
INSPECTION FEE
(1) Cigars
P 0.50 per thousand pieces or fraction thereof
(2) Cigarettes
P 0.10 per thousand sticks or fraction thereof
(3) Leaf Tobacco
P 0.02 per kilogram or fraction thereof
(4) Scrap and other manufactured tobacco
P 0.03 per kilogram or fraction thereof
C. PETROLEUM PRODUCTS
PRODUCT TYPE
TAX RATES
Lubricating oils and greases, including but not limited to base stock for lube oils
and greases, high vacuum distillates, aromatic extracts and other similar
preparations, and additives for lubricating oils and greases, whether such
additives are petroleum based or not
P 4.50 per liter
Processed gas
P 0.05 per liter
Waxes and petrolatum
P 3.50 per kilogram
Denatured alcohol, if used for motive power [i.e. one hundred eighty (180)
proof ninety percent (90%) absolute alcohol]. Provided, that unless otherwise
provided by special laws, if the denatured alcohol is mixed with gasoline, the
excise tax which has already been paid, only the alcohol content shall be
subject to tax
P 0.05 per liter
Naphtha, regular gasoline and other similar products of distillation
P 4.35 per liter
Naphtha used as raw material in the production of petrochemical products or

as replacement fuel for natural gas-fired combined cycle power plant, in lieu of
P 0.00 per liter
locally-extracted natural gas during the non-availability thereof

Leaded premium gasoline
P 5.35 per liter
Unleaded premium gasoline
P 4.35 per liter
Aviation turbo jet fuel
P 3.67 per liter
Kerosene
P 0.00 per liter
Kerosene used as aviation fuel
P 3.67 per liter
Diesel fuel oil, and on similar fuel oils having more or less the same generating
power
P 0.00 per liter
Liquefied Petroleum Gas ; Provided, that if used for motive power, it shall be
taxed at the equivalent rate as the Excise Tax on diesel fuel oil
P 0.00 per liter
Asphalt
P 0.56 per kilogram
Bunker fuel oil, and on similar fuel oils having more or less the same generating
power
P 0.00 per liter
D. MINERALS AND MINERAL PRODUCTS

PRODUCT TYPE
TAX RATES
On coal and coke
Ten Pesos (P10.00) per metric ton
All mineral and mineral products (non-metallic), quarry

resources
Two percent (2%) bases on the actual market value, in

the case of those locally-extracted or produced; and, in
the case of importation or the value used by the
Bureau of Customs in determining tariff and customs
duties, net of Excise Tax and Value-Added Tax.
On locally-extracted natural gas and liquefied natural gas
P0.00
On indigenous petroleum
Three percent (3%) of the fair international market

price thereof
NOTE:
In the case of mineral concentrates not traded in commodity exchanges in the Philippines or abroad, such as copper
concentrate, the actual market value shall be the world price quotations of the refined mineral products content thereof
prevailing in the said commodity exchanges, after deducting the smelting, refining and other charges incurred in the
process of converting the mineral concentrates into refined metal traded in those commodity exchanges.
On minerals and mineral products sold or consigned abroad, the actual cost of ocean freight and insurance shall be
deducted from the tax base.
E. AUTOMOBILES AND OTHER MOTOR VEHICLES
OVER
UP TO
RATE
P 600,000
2%
P600,000
P 1,100,000
P 12,000 + 20% in excess of P 600,000
P1,100,000
P2,100,000
P112,000+ 40% in excess of P1,100,000
P2,100,000
over
P512,000 + 60% in excess of P2,100,000
F. NON-ESSENTIAL GOODS
Twenty percent (20%) based on the wholesale price or the value of importation used by the Bureau of
Customs in determining Tariff and Customs Duties, net of Excise and Value-Added taxes
Withholding Tax on Compensation is the tax withheld from individuals receiving purely compensation income. This
tax is what employers withheld in their employees compensation income and remit to the government through the BIR
or authorized accrediting agent.
Expanded Withholding Tax is a kind of withholding tax which is prescribed only for certain payors and is creditable
against the income tax due of the payee for the taxable quarter year. Examples of the expanded withholding taxes are
those that are withheld on rental income and professional income.
Final Withholding Tax is a kind of withholding tax which is prescribed only for certain payors and is not creditable
against the income tax due of the payee for the taxable year. Income Tax withheld constitutes the full and final payment
of the Income Tax due from the payee on the said income. An example of final withholding tax is the tax withheld by
banks on the interest income earned on bank deposits.
Withholding Tax on Government Money Payments is the withholding tax withheld by government offices and
instrumentalities, including government-owned or -controlled corporations and local government units, before making
any payments to private individuals, corporations, partnerships and/or associations.
Tax Rates
REVISED WITHHOLDING TAX TABLES
Effective January 1, 2009
DAILY
1
2
3
4
5
6
7
8
Exemption
0.00
0.00
1.65
8.25
28.05
74.26
165.02
412.54
Status
(000P) +0% over +5% over +10% over +15% over +20% over +25% over +30% over +32% over
A. Table for employees without qualified dependent
1. Z
0.0
1
0
33
99
231
462
825
1,650
2. S/ME
50.0
1
165
198
264
396
627
990
1,815
B. Table for single/married employee with qualified dependent child(ren)
1. ME1 / S1
75.0
1
248
281
347
479
710
1,073
1,898
2. ME2 / S2
100.0
1
330
363
429
561
792
1,155
1,980
3. ME3 / S3
125.0
1
413
446
512
644
875
1,238
2,063
4. ME4 / S4
150.0
1
495
528
594
726
957
1,320
2,145
WEEKLY
1
2
3
4
5
6
7
8
Exemption
0.00
0.00
9.62
48.08
163.46
432.69
961.54
2,403.85
Status
+0% over +5% over +10% over +15% over +20% over +25% over +30% over +32% over
1. Z
0.0
1
0
192
577
1,346
2,692
4,808
9,615
2. S/ME
50.0
1
962
1,154
1,538
2,308
3,654
5,769
10,577
1. ME1 / S1
75.0
1
1,442
1,635
2,019
2,788
4,135
6,250
11,058
2. ME2 / S2
100.0
1
1,923
2,115
2,500
3,269
4,615
6,731
11,538
3. ME3 / S3
125.0
1
2,404
2,596
2,981
3,750
5,096
7,212
12,019
4. ME4 / S4
150.0
1
2,885
3,077
3,462
4,231
5,577
7,692
12,500
SEMI-MONTHLY
1
2
3
4
5
6
7
8
Exemption
0.00
0.00
20.83
104.17
354.17
937.50
2,083.33 5,208.33
Status
1. Z
0.0
1
0
417
1,250
2,917
5,833
10,417
20,833
2. S/ME
50.0
1
2,083
2,500
3,333
5,000
7,917
12,500
22,917
1. ME1 / S1
75.0
1
3,125
3,542
4,375
6,042
8,958
13,542
23,958
2. ME2 / S2
100.0
1
4,167
4,583
5,417
7,083
10,000
14,583
25,000
3. ME3 / S3
125.0
1
5,208
5,625
6,458
8,125
11,042
15,625
26,042
4. ME4 / S4
150.0
1
6,250
6,667
7,500
9,167
12,083
16,667
27,083
MONTHLY
1
2
3
4
5
6
7
8
Exemption
0.00
0.00
41.67
208.33
708.33
1,875.00 4,166.67 10,416.67
Status
1. Z
0.0
1
0
833
2,500
5,833
11,667
20,833
41,667
2. S/ME
50.0
1
4,167
5,000
6,667
10,000
15,833
25,000
45,833
1. ME1 / S1
75.0
1
6,250
7,083
8,750
12,083
17,917
27,083
47,917
2. ME2 / S2
100.0
1
8,333
9,167
10,833
14,167
20,000
29,167
50,000
3. ME3 / S3
125.0
1
10,417
11,250
12,917
16,250
22,083
31,250
52,083
4. ME4 / S4
150.0
1
12,500
13,333
15,000
18,333
24,167
33,333
54,167
Legend: Z-Zero exemption S-Single ME-Married Employee 1;2;3;4-Number of qualified dependent children
S/ME = P50,000 EACH WORKING EMPLOYEE Qualified Dependent Child = P25,000 each but not exceeding four (4)
children
USE TABLE A FOR SINGLE/MARRIED EMPLOYEES WITH NO QUALIFIED DEPENDENT
1. Married Employee (Husband or Wife) whose spouse is unemployed.
2. Married Employee (Husband or Wife) whose spouse is a non-resident citizen receiving income from foreign sources
3. Married Employee (Husband or Wife) whose spouse is engaged in business
4. Single
6. Zero Exemption for employees with multiple employers for their 2nd, 3rd..employers (main employer claims personal
& additional exemption
7. Zero Exemption for those who failed to file Application for Registration
USE TABLE B FOR THE FOLLOWING SINGLE/MARRIED EMPLOYEES WITH QUALIFIED DEPENDENT
1. Employed husband and husband claims exemptions of children
2. Employed wife whose husband is also employed or engaged in business; husband waived claim for dependent
children in favor of the employed wife
3. Single with qualified dependent children
Local Taxes in the Philippines
Tax on Transfer of Real Property Ownership tax imposed on the sale, donation, barter, or on any other mode of
transferring ownership or title of real property.
Tax on Business of Printing and Publication tax on the business of persons engaged in the printing and/or publication
of books, cards, posters, leaflets, handbills, certificates, receipts, pamphlets, and others of similar nature.
Franchise Tax tax on businesses enjoying a franchise, at the rate not exceeding fifty percent (50%) of one percent (1%)
of the gross annual receipts for the preceding calendar year based on the incoming receipt, or realized, within its
territorial jurisdiction.
Tax on Sand, Gravel and Other Quarry Resources tax imposed on ordinary stones, sand, gravel, earth, and other
quarry resources, as defined under the National Internal Revenue Code, as amended, extracted from public lands or
from the beds of seas, lakes, rivers, streams, creeks, and other public waters within its territorial jurisdiction.
Professional Tax an annual professional tax on each person engaged in the exercise or practice of his profession
requiring government examination.
Amusement Tax tax collected from the proprietors, lessees, or operators of theaters, cinemas, concert halls, circuses,
boxing stadia, and other places of amusement.
Annual Fixed Tax For Every Delivery Truck or Van of Manufacturers or Producers, Wholesalers of, Dealers, or Retailers
in, Certain Products an annual fixed tax for every truck, van or any vehicle used by manufacturers, producers,
wholesalers, dealers or retailers in the delivery or distribution of distilled spirits, fermented liquors, soft drinks, cigars
and cigarettes, and other products as may be determined by the sangguniang panlalawigan, to sales outlets, or
consumers, whether directly or indirectly, within the province.
Tax on Business taxes imposed by cities, municipalities on businesses before they will be issued a business license or
permit to start operations based on the schedule of rates prescribed by the local government code, as amended. Take
note that the rates may vary among cities and municipalities. This is usually what businesses pay to get their Business
Mayors Permit.
Fees for Sealing and Licensing of Weights and Measures fees for the sealing and licensing of weights and measures at
such reasonable rates as shall be prescribed by the sangguniang bayan of the municipality or city.
Fishery Rentals, Fees and Charges rentals, fees or charges imposed by the municipality/city to grantees of fishery
privileges in the municipal/city waters, e.g., fishery privileges to erect fish corrals, oysters, mussels or other aquatic beds
or bangus fry areas and others as mentioned in the local government code, as amended.
Community Tax tax levied by cities or municipalities to every inhabitant of the Philippines eighteen (18) years of age or
over who has been regularly employed on a wage or salary basis for at least thirty (30) consecutive working days during
any calendar year, or who is engaged in business or occupation, or who owns real property with an aggregate assessed
value of One thousand pesos (P1,000.00) or more, or who is required by law to file an income tax return. Community tax
is also imposed on every corporation no matter how created or organized, whether domestic or resident foreign,
engaged in or doing business in the Philippines.
Taxes that may be levied by the barangays on stores or retailers with fixed business establishments with gross sales of
receipts of the preceding calendar year of Fifty thousand pesos (P50,000.00) or less, in the case of cities and Thirty
thousand pesos (P30,000.00) or less, in the case of municipalities, at a rate not exceeding one percent (1%) on such
gross sales or receipts.
Service Fees or Charges fees or charges that may be collected by the barangays for services rendered in connection
with the regulations or the use of barangay-owned properties or service facilities, such as palay, copra, or tobacco
dryers.
Barangay Clearance a reasonable fee collected by barangays upon issuance of barangay clearance a document
required for many government transactions, such as when applying for business permit with the city or municipality.
Types Of Financial Institutions And Their Roles

A financial institution is an establishment that conducts financial transactions such as investments, loans and deposits.
Almost everyone deals with financial institutions on a regular basis. Everything from depositing money to taking out
loans and exchanging currencies must be done through financial institutions. Here is an overview of some of the major
categories of financial institutions and their roles in the financial system.
Commercial Banks
Commercial banks accept deposits and provide security and convenience to their customers. Part of the original purpose
of banks was to offer customers safe keeping for their money. By keeping physical cash at home or in a wallet, there are
risks of loss due to theft and accidents, not to mention the loss of possible income from interest. With banks, consumers
no longer need to keep large amounts of currency on hand; transactions can be handled with checks, debit cards or
credit cards, instead.
Commercial banks also make loans that individuals and businesses use to buy goods or expand business operations,
which in turn leads to more deposited funds that make their way to banks. If banks can lend money at a higher interest
rate than they have to pay for funds and operating costs, they make money.
Banks also serve often under-appreciated roles as payment agents within a country and between nations. Not only do
banks issue debit cards that allow account holders to pay for goods with the swipe of a card, they can also arrange wire
transfers with other institutions. Banks essentially underwrite financial transactions by lending their reputation and
credibility to the transaction; a check is basically just a promissory note between two people, but without a bank's name
and information on that note, no merchant would accept it. As payment agents, banks make commercial transactions
much more convenient; it is not necessary to carry around large amounts of physical currency when merchants will
accept the checks, debit cards or credit cards that banks provide.
Investment Banks
The stock market crash of 1929 and ensuing Great Depression caused the United States government to increase financial
market regulation. The Glass-Steagall Act of 1933 resulted in the separation of investment banking from commercial
banking.
While investment banks may be called "banks," their operations are far different than deposit-gathering commercial
banks. An investment bank is a financial intermediary that performs a variety of services for businesses and some
governments. These services include underwriting debt and equity offerings, acting as an intermediary between an
issuer of securities and the investing public, making markets, facilitating mergers and other corporate reorganizations,
and acting as a broker for institutional clients. They may also provide research and financial advisory services to
companies. As a general rule, investment banks focus on initial public offerings (IPOs) and large public and private share
offerings. Traditionally, investment banks do not deal with the general public. However, some of the big names in
investment banking, such as JP Morgan Chase, Bank of America and Citigroup, also operate commercial banks. Other
past and present investment banks you may have heard of include Morgan Stanley, Goldman Sachs, Lehman Brothers
and First Boston.
Generally speaking, investment banks are subject to less regulation than commercial banks. While investment banks
operate under the supervision of regulatory bodies, like the Securities and Exchange Commission, FINRA, and the U.S.
Treasury, there are typically fewer restrictions when it comes to maintaining capital ratios or introducing new products.
Insurance Companies
Insurance companies pool risk by collecting premiums from a large group of people who want to protect themselves
and/or their loved ones against a particular loss, such as a fire, car accident, illness, lawsuit, disability or death. Insurance
helps individuals and companies manage risk and preserve wealth. By insuring a large number of people, insurance
companies can operate profitably and at the same time pay for claims that may arise. Insurance companies use
statistical analysis to project what their actual losses will be within a given class. They know that not all insured
individuals will suffer losses at the same time or at all.
Brokerages
A brokerage acts as an intermediary between buyers and sellers to facilitate securities transactions. Brokerage
companies are compensated via commissionafter the transaction has been successfully completed. For example, when a
trade order for a stock is carried out, an individual often pays a transaction fee for the brokerage company's efforts to
execute the trade.
A brokerage can be either full service or discount. A full service brokerage provides investment advice, portfolio
management and trade execution. In exchange for this high level of service, customers pay significant commissions on
each trade. Discount brokers allow investors to perform their own investment research and make their own decisions.
The brokerage still executes the investor's trades, but since it doesn't provide the other services of a full-service
brokerage, its trade commissions are much smaller.
Investment Companies
An investment company is a corporation or a trust through which individuals invest in diversified, professionally
managed portfolios of securities by pooling their funds with those of other investors. Rather than purchasing
combinations of individual stocks and bonds for a portfolio, an investor can purchase securities indirectly through a
package product like a mutual fund.
There are three fundamental types of investment companies: unit investment trusts (UITs), face amount certificate
companies and managed investment companies. All three types have the following things in common:
An undivided interest in the fund proportional to the number of shares held

Diversification in a large number of securities
Professional management
Specific investment objectives
Let's take a closer look at each type of investment company.

Unit Investment Trusts (UITs)
A unit investment trust, or UIT, is a company established under an indenture or similar agreement. It has the following
characteristics:
The management of the trust is supervised by a trustee.

Unit investment trusts sell a fixed number of shares to unit holders, who receive a proportionate share of net
income from the underlying trust.
The UIT security is redeemable and represents an undivided interest in a specific portfolio of securities.
The portfolio is merely supervised, not managed, as it remains fixed for the life of the trust. In other words,
there is no day-to-day management of the portfolio.
Face Amount Certificates

A face amount certificate company issues debt certificates at a predetermined rate of interest. Additional characteristics
include:
Certificate holders may redeem their certificates for a fixed amount on a specified date, or for a specific
surrender value, before maturity.
Certificates can be purchased either in periodic installments or all at once with a lump-sum payment.
Face amount certificate companies are almost nonexistent today.
Management Investment Companies

The most common type of investment company is the management investment company, which actively manages a
portfolio of securities to achieve its investment objective. There are two types of management investment
company: closed-end and open-end. The primary differences between the two come down to where investors buy and
sell their shares - in the primary or secondary markets - and the type of securities the investment company sells.
Closed-End Investment Companies: A closed-end investment company issues shares in a one-time public
offering. It does not continually offer new shares, nor does it redeem its shares like an open-end investment
company. Once shares are issued, an investor may purchase them on the open market and sell them in the same
way. The market value of the closed-end fund's shares will be based on supply and demand, much like other
securities. Instead of selling at net asset value, the shares can sell at a premium or at a discount to the net asset
value.
Open-End Investment Companies: Open-end investment companies, also known as mutual funds, continuously
issue new shares. These shares may only be purchased from the investment company and sold back to the
investment company. Mutual funds are discussed in more detail in the Variable Contracts section.
Nonbank Financial Institutions

The following institutions are not technically banks but provide some of the same services as banks.
Savings and Loans
Savings and loan associations, also known as S&Ls or thrifts, resemble banks in many respects. Most consumers don't
know the differences between commercial banks and S&Ls. By law, savings and loan companies must have 65% or more
of their lending in residential mortgages, though other types of lending is allowed.
S&Ls emerged largely in response to the exclusivity of commercial banks. There was a time when banks would only
accept deposits from people of relatively high wealth, with references, and would not lend to ordinary workers. Savings
and loans typically offered lower borrowing rates than commercial banks and higher interest rates on deposits; the
narrower profit margin was a byproduct of the fact that such S&Ls were privately or mutually owned.
Credit Unions
Credit unions are another alternative to regular commercial banks. Credit unions are almost always organized as not-forprofit cooperatives. Like banks and S&Ls, credit unions can be chartered at the federal or state level. Like S&Ls, credit
unions typically offer higher rates on deposits and charge lower rates on loans in comparison to commercial banks.
In exchange for a little added freedom, there is one particular restriction on credit unions; membership is not open to
the public, but rather restricted to a particular membership group. In the past, this has meant that employees of certain
companies, members of certain churches, and so on, were the only ones allowed to join a credit union. In recent years,
though, these restrictions have been eased considerably, very much over the objections of banks.
Shadow Banks
The housing bubble and subsequent credit crisis brought attention to what is commonly called "the shadow banking
system." This is a collection of investment banks, hedge funds, insurers and other non-bank financial institutions that
replicate some of the activities of regulated banks, but do not operate in the same regulatory environment.
The shadow banking system funneled a great deal of money into the U.S. residential mortgage market during the
bubble. Insurance companies would buy mortgage bonds from investment banks, which would then use the proceeds to
buy more mortgages, so that they could issue more mortgage bonds. The banks would use the money obtained from
selling mortgages to write still more mortgages.
Many estimates of the size of the shadow banking system suggest that it had grown to match the size of the
traditional U.S. banking system by 2008.
Apart from the absence of regulation and reporting requirements, the nature of the operations within the shadow
banking system created several problems. Specifically, many of these institutions "borrowed short" to "lend long." In
other words, they financed long-term commitments with short-term debt. This left these institutions very vulnerable to
increases in short-term rates and when those rates rose, it forced many institutions to rush to liquidate investments and
make margin calls. Moreover, as these institutions were not part of the formal banking system, they did not have access
to the same emergency funding facilities.
Difference of Owning a House and Renting an Apartment

Owning A House Vs. Renting An Apartment: A Cost Analysis
There are pros and cons to owning a house versus renting an apartment. Each property has expenses associated with it.
Listed below, we have tried to outline the costs for each of these situations.
Monthly Cost of Owning a House:
The monthly principal and interest on a house mortgage for 30 years is a large commitment and responsibility. Adding
the expenses of maintaining a house to the monthly price tag can be shocking.
Prepared, the cost of home ownership is bearable. Repairs, taxes, insurance, maintenance will not overwhelm your
pocket book as long as you know what's coming. After reviewing all the costs in addition to the principal, interest, taxes,
and insurance of your house, you may decide to scale back the size of the home you're looking for in order to live the life
style you want with in the income you have to work with.
Below is a list of the most common monthly expenses of owning a house.
Insurance. They won't let you complete the home buying deal without it, so shop wisely. Homeowner's insurance, also
referred to sometimes as hazard insurance, on mortgage documents, provides basic protection against fire and theft. It
does not generally cover flood damage: flood insurance is an entirely separate entity that you will be required to
purchase if you live in a flood-prone area. HINT; consider bundling your homeowner's insurance with your auto
insurance to get a bargain price.
Price: $60 to $110 a month owner occupied.
Property Taxes. You can't avoid these either, but consider them a good thing, pay them and the fire department will
come when you call. Depending on where you live, you may be responsible for both city and county property taxes, call
your county property assessor's office to be sure. Local tax rates vary, but your home is typically taxed on its assessed
value, an amount equal to half of its appraised value, which is the number you're probably familiar with from the loan
securing process. Taxes can add hundreds of dollars to your monthly payment, and the figures on your good faith
estimate may not be accurate, so find out the final number before you sign the dotted line.
Price: $80 to $150 a month for owner occupied homes.
Private mortgage Insurance (PMI). If your down payment is less than 20 percent of the mortgage value, you may have
to foot the bill for PMI, which protects the lender against your defaulting on the loan. This can tack on as much as a
couple hundred dollars per month, depending on the size of your loan.
Price: $20 to $60 dollars a month
Association fees. If you're buying into a subdivision or a condominium community, you may have to pay for the monthly
upkeep on common areas and other shared expenses. Some HOA fees are paid yearly and are quite inexpensive; on the
other hand some Manhattan co-op fees run to the four figures per month. Some states allow associations to foreclose
on homes with unpaid fees, so don't treat them as optional. Find out if your state imposes limits on HOA power,
including how much fees can increase per year.
Price: $40 to $100 and up.
Utilities. If you're moving from an apartment to a house for the first time, know that the increase in square footage (not
to mention water for a yard) can pack a real punch in the form of a huge utility bill. Plan to implement some energy
conservation measures, like light blocking blinds and compact fluorescent light bulbs, to offset the tab.
Price: difficult to estimate ask to see past bills.
Maintenance. Roofs need replaced every 15 to 25 years, appliances every 8 to 10 years, furnace and air conditioner 15
to 25 years, faucets 5 to 20 years, lawn mower 5 to 10 years, bathrooms 10 to 30 years, carpet 5 years, paint 5 to 20
years, snow removal, grass mowing, These don't show up in your mortgage payment, but are real an expenses. Be sure
you have some monthly budget set aside for repairs and upkeep, whether for small do it yourself things like replacing
floodlight bulbs or the inevitably serious issues that crop up from time to time.
Price: for all maintenance averaged for a 10 year period $100 to $200 a month.
Now that we discussed basic monthly expenses of owning a house we will compare that with the expenses of renting.
Monthly Cost of Renting an Apartment:
Rent. Insurance and property taxes are zero unless of coarse you are living in an up scale complex that may charge fees
for the use of the clubhouse and its amenities. Rent is stated clearly in the lease and is usually paid at the rate stated for
the length of the lease. But remember that when a lease comes due, you will be subjected to any changes in the
complex rent for your apartment.
Price: $550 to sky is the limit
Utilities. Utilities vary from house to apartment size; some include all utilities except for phone cable and internet. For
those that include certain utilities the make up for the complex is usually reflected in the price of the rent. Apartment
utilities are always lower then for a private home especially when you consider the square footage of the apartment in
comparison to the square footage of a home including the extra space in the basement and the cost of heating and
cooling the upper stories of the home.
Price: $30 to $300.
Maintenance. Maintenance is a large player in the difference between home and apartment. Maintenance is generally
provided and paid for by the complex saving in some cases thousands of dollars for instance to replace furnaces or air
conditioners or major appliances that come with the apartment.
Cost: $0 to ?
Renters Insurance. This type of insurance is many times required by the apartment complex you will be living in this
covers all damages do to fire and is based on your estimated value of your belongings. The higher the value estimated
the higher the renters insurance premiums will be. These premiums are generally paid on a basis of every three months.
Cost: 33 to 45 dollars a month.
Based on the analysis above, renting an apartment has less associated costs than buying a house. The expense of renting
a house will be a little more expensive than renting an apartment but is still usually a little cheaper then actually
purchasing the home. Most people get a thousand to two thousand dollars in federal tax breaks based on the mortgage
and property taxes paid. This reduces the cost of home ownership by a hundred or two dollars a month. Also, during a
10 to 20 year span most property values increase in price. When factored in and averaged out, this reduces the actual
monthly cost of home ownership over an extended period of time.
In determining whether owning a house or renting an apartment is right for you, it will be helpful to figure out your daily
living expenses and create a budget. For more information please refer to our Getting My Own Address Guide

Tax in The Philippines

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Tax in The Philippines

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Ma. Michelle Nica D.

Tax Due Per Unit

Original Issue of Shares of

P200.00 or fraction thereof 1.00

Original Issue of Shares of

P200.00 or fraction thereof

Par value of shares of

Sales, Agreements to Sell,

P200.00 or fraction thereof

3.75% Par value of such stock

Stock without par value

Bonds, Debentures, Certificate P200.00 or fraction

P200.00 or fraction thereof .50

Bank Checks, Drafts,

All Debt Instruments

All Bills of Exchange or Drafts

DST paid upon the

3.75% Par value of such

Face value of such

P200.00 or fraction thereof 1.00

Issue price of any such

P200.00 or fraction thereof .30

Face value of any such

Face value of such bill

Foreign Bills of Exchange and

P200.00 or fraction thereof .30

Face value of such bill

Life Insurance Policies

If the amount of insurance exempt

If the amount of insurance

If the amount of insurance

If the amount of insurance

If the amount of insurance

Policies Of Insurance upon

P4.00 premium or fraction .50

12.5% Premium charged

Fidelity Bonds and other

P4.00 premium or fraction .50

12.5% Premium charged

Policies of Annuities or other

P200.00 or fraction thereof .50

P200.00 or fraction thereof

P4.00 or fraction thereof

Warehouse Receipts (except if Each Receipt

Jai-alai, Horse Race Tickets,

P1.00 cost of ticket

Cost of the ticket

Additional P0.10 on every

Value of such goods

If the value exceeds

Proxies(except proxies issued Each proxy

Lease and other Hiring

First 2,000 or fractional

For every P1,000 or

Mortgages Pledges of lands,

fractional part thereof in

Deed of Sale, instrument or

For each additional P1,000 15.00

Charter parties and Similar

1,000 tons and below

1,001 to 10,000 tons

Over 10,000 tons

Stamp Tax on Assignments