NON-TAX REVENUE

 isthe recurring
income earned by
the government
from sources
other than taxes
NON-TAX REVENUE

 Makes up a small
percentage of total
government revenue
(roughly less than
20%) and consists of
collections of fees and
licences, privatization
proceeds and income
from other state
enterprises
NON-TAX REVENUE

 the most important

receipts under this
head are interest
receipts and
dividends and
profits received from
public sector
companies
NON-TAX REVENUE

 various services
provided by the
government –
police and defense,
social and
community services
and economic
services also yield
revenue for the
government
NON-TAX REVENUE

though the
Railways are a
separate
department, all
their receipts and
expenditure are
routed department
through the
Consolidated Fund
The Bureau of Treasury

-manages the
finances of the
government, by
attempting to
maximize
revenue collected
and minimize
spending
The Bureau of Treasury

 The bulk of non-

tax revenues
comes from the
BTr’s income
under Executive
order No. 449
The Bureau of Treasury

 the BTr collects

revenue by
issuing, servicing
and redeeming
government
securities and by
controllong the
Securities
Stabilization Fund
The Bureau of Treasury

(which increases
the liquidity and
stabilizes the value
of government
securities through
the purchase and
sale of government
bills and bonds
Privatization

 occurred in three
waves
 1st wave in 1986 –
1987
 2nd wave during
1990
 3rd stage is
presently taking
place
Privatization

 ishandled by the
inter-agency
Privatization
Council and the
Privatization and
management Office,
a sub-branch of the
Department of
Finance
PAGCOR

 The Philippine
Amusement and
Gaming Corporation
is a government-
owned corporation
established in 1977
to stop illegal casino
operations
PAGCOR

 PAGCOR is
mandated to
regulate and license
gambling, generate
revenues for the
Philippine
government through
its own casinos and
promote tourism in
the country
SOURCES OF TAXATION

 Personal Income
Taxes
 Corporate Taxes

 Sales Taxes

 Excise Taxes

 Estate Taxes
Personal Income Taxes

 residentcitizens are
taxed on all their net
income derived from
sources within and
without the
Philippines
Personal Income Taxes

 for non resident,

whether an
individual or not of
the Philippines is
taxable only on
income derived from
sources within the
Philippines
Personal Income Taxes

Taxable Income (PhP) Tax Rate

Php 0 – 10, 000 5%

Php 10, 000 – 30, 000 10%

Php 30, 000 – 70, 000 15%

Php 70, 000 – 140, 000 20%

Php 140, 000 – 250, 000 25%

Php 250, 000 – 500, 000 30%

Php 500, 000 and above 32%

Personal Income Taxes

 Compensation
employment income
– the income is taxed
at progressive rates
on gross income
after deduction of
personal and
additional
exemptions but
without deductions
for expenses
Personal Income Taxes

 Business income and

professional income
is taxed at
progressive rates on
net business income
after deduction of
certain specified
expenses
Corporate Tax

 are both for domestic

and resident foreign
corporations is 30%
based on net taxable
income
Withholding Tax

Types of taxable Tax rate

income (for non-resident)

Dividend 15%

Interest 20%

Royalty 30%

Technical Fee 30%

Sales Tax/Value Added Tax

 12% value added tax

(VAT) of the gross
selling price is
imposed to all
importation, sale,
barter, exchange or
lease of goods or
properties and sale
of service
Sales Tax/Value Added Tax

 the term ‘Gross

selling price’ means
the total amount of
money or its
equivalent that the
purchaser pays or is
obligated to pay to
the seller in
consideration of the
sale,
Sales Tax/Value Added Tax

barter or exchange of
the goods or
properties, excluding
the value added tax
Sales Tax/Value Added Tax

 Dividends received
by non-resident
foreign corporations
from domestic
corporations are
subject to a final tax
of 30%
Constitution

 thepower of
taxation is merely
regulated by the
constitution
 Taxation can be
exercised even
without the
constitution
Constitution

 thepower of
taxation is merely
regulated by the
constitution
 Taxation can be
exercised even
without the
constitution
 The END

Discussant:
Annabel A. Palmarin

Instructor:
Dr. Josephine Raguini