NATURE AND

CONCEPT OF
BUSINESS TAXES
 TO ENGAGE IN BUSINESS MEANS TO
EMPLOY OR INVOLVE ONESELF IN
EMPLOYMENT, OCCUPATION,
PROFESSION, OR COMMERCIAL
ACTIVITY FOR GAIN OR LIVELIHOOD.
 ENGAGED
• CONNOTES MORE THAN A
SINGLE ACT OR ISOLATED
TRANSACTION.
• IT INVOLVES SOME CONTINUITY
OF ACTION.
 BUSINESS
• HABITUALLY BUSIES OR
OCCUPIES OR ENGAGES THE
TIME, ATTENTION, LABOR
AND EFFORT OF PERSONS AS
A PRINCIPAL SERIOUS
CONCERN OR INTEREST OR
FOR LIVELIHOOD OR PROFIT.
3 MAJOR BUSINESS INTERNAL
REVENUE TAXES
 BUSINESS TAXES
• Imposed upon onerous transfers such as sale,
barter or exchange.

VALUE-ADDED TAX
• Tax on consumption levied on the sale,
exchange or lease of goods or properties and
services in the Philippines and on
importation of goods into the Philippines.
 SELLER
• Is the one statutorily liable for the
payment of the tax but the amount
of the tax may be shifted or passed
on to the buyer, transferee or lessee
of the goods, properties or services.
 VALUE-ADDED TAX AND EXCISE TAX
- may be imposed simultaneously
on the manufacture and importation
of products.

VALUE-ADDED TAX AND PERCENTAGE

TAX
- cannot be imposed at the same time.