Taxation

Taxation in the Philippines


Taxation is a form of revenue generating system of the government in order to sustain the financial needs of the country. The Bureau of Internal Revenue (BIR) is the agency responsible for the collection of taxes from the various sectors of the society and individuals or groups who engage in income-generating businesses. 

These taxes are imposed by the government for the earning individuals, companies engage in business, transactions involving transfer of real properties and taxes of certain goods and services:
  • Income Tax - for earning individuals and companies
  • Value-Added Tax - for sale of goods and services
  • Percentage Tax - for sale of goods and services below three million pesos
  • Estate Tax - tax for the real properties
  • Donor's Tax - tax for the donations of goods and properties
  • Excise Tax - taxes for certain products, goods and services
  • Documentary Stamp Tax - for the processing of public documents
These taxes can be withheld in advance (a.k.a. Withholding Taxes) in order to ensure the effective collection of the taxes.


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