Taxation

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Interpretation and Construction of Tax Statues

Philippine Tax Laws and Taxes

- National Internal Revenue Code of 1997

- Income taxes (individual and corporate)

- Estate and donor’s taxes

- Other percentage taxes

- Excise tax

- Documentary stamp tax

- Tariff and Custom Code of 1978

- Import duties

- Export duties

- Local Government Code of 1991

- Real property tax

- Business taxes, fees, and charges

- Professional tax

- Community tax

- Tax on banks and other financial institutions

- Special Laws

- Motor Vehicle Law (RA 4136)

- Private Motor Vehicle Tax Law (PD 1958)

- Philippine Immigration Act of 1940

- Travel Tax Law (PD 1183)

Tax Laws versus GAAP and GAAS

Internal Revenue Laws

- History

The Bureau of Internal Revenue

- Tax Collection System

- BIR Issuances and Rulings Defined

- Revenue Regulations (RRs)

- Revenue Memorandum Circulars (RMCs)

- Revenue Memorandum Orders (RMOs)

- Revenue Memorandum Rulings (RMRs)

- BIR Rulings

- Revenue Bulletins (RBs)

Powers and Duties of the BIR

Powers of the Commissioner

Tax Incentives

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CHAPTER 2 (TAX-ACCOUNTING CONCEPTS)

ROLE OF ACCOUNTING IN TAXATION

METHOD OF ACCOUNTING TO BE EMPLOYED

TIMING OF INCOME AND DEDUCTIONS

ACCOUNTING METHODS RECOGNIZED BY THE TAX CODE

- Principal methods

- Cash basis

- Accrual basis

- Hybrid method

- Crop-year basis

- Deferred Payment Sales

- Installment basis

- Deferred payment basis

- Definition of Terms

- Initial payments

- Selling Price

- Contract Price

- Mortgage

- Percentage of completion basis (long-term contracts)

- Leasehold improvements

- Income over the term of the lease basis

- Income in the year of completion basis

- In general, any method of accounting that correctly reflects the income of the taxpayer for each taxable year.

ACCOUNTING PERIODS

ALLOCATION OF GROSS INCOME

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CHAPTER 3 (INCOME CONCEPTS AND EXCLUSIONS)

ROLE OF INCOME IN TAXATION

LEGAL CONCEPT OF INCOME

Statutory Concept of Income

Judicial Concept of Income

- Income

- Capital

INCOME TAX DEFINED, BASE AND NATURE

- Income Tax

General Procedures in Determining Income Tax

- Step 1

- Step 2

- Step 3

- Step 4

- Step 5

- Step 6

ITEMS OF GROSS INCOME

Compensation Income

- Definition of Terms

- Payroll period

- Employee

- Employer

- Statutory Minimum Wage (SMW)

- Minimum Wage Earner (MWE)

- Forms of Compensation

- Compensation paid in kind

- Living quarters and meals

- Facilities and privileges of a relatively small value

- Fringe Benefit Subject to Final Tax

- Fringe Benefit Not Subject to Final Tax

- Tips and gratuities

- Pensions, retirement, and separation pay

- Fixed or variable transportation, representation, and other allowances

- Vacation and leave allowances

- Deductions made by employer from compensation of employee

- Remuneration for services as employee of a non-resident alien individual or foreign entity

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