2021 tax law notes

This is based on Atty. Lumbera's lecture. It is strongly advised that only those who have heard her lecture should read these notes.

  1. Taxes in the Philippines may be national, local or tariff/customs duties.
  2. National taxes = mainly the Tax Code.
  3. Local taxes = mainly the Local Government Code.
  4. National taxes = income tax, value-added tax (VAT), donor's tax, percentage tax, excise tax, documentary stamp tax (DST), and estate tax.
  5. VAT and percentages taxes = business taxes.
  6. Estate and donor's taxes = transfer taxes.
  7. Excise tax = tax on manufacture and production; and importation.
  8. DST = execution or issuance of documents in view of transactions.
  9. Tax remedies = of the government and of the taxpayer.
  10. Ordinary local taxes = indicated in the Tax Code.
  11. Ordinary local taxes = passed by the Sanggunian.
  12. Real property tax = local tax = not included in the Tax Code but authorized to be levied.
  13. Local tax remedies = primarily governed by the Local Government Code.
  14. Tariff and customs duties = primarily government by the Customs Modernization and Tariff Act.
  15. Jurisprudence interprets tax laws.
  16. In case of doubt whether to impose, do not impose (per Atty. Lumbera).
  17. BIR regulations and issuances = revenue regulation, revenue memorandum circular, revenue memorandum order, etc.
  18. A natural person gets income from salary as employee = compensation earner;
  19. A natural person gets income from exercise of profession = self-employed professional.
  20. A natural persons gets income from trade or business = self-employed individual.
  21. Those earning from different sources of income = mixed-income earner.
  22. Corporations always source income from trade or business.
  23. A corporation is a corporate taxpayer.
  24. A natural person is an individual taxpayer.
  25. Mere conduct of activity may subject you to VAT or percentage tax (per Atty. Lumbera).
  26. Double taxation in the broad sense may occur due to the many different taxes.

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