Local Tax 3

It's up to the LGU...but they are empowered to impose the following taxes. Many of the taxes are based on Gross Receipts...Means, even though you lose money, you still pay those taxes.

Province Taxes
1. Tax on business of printing and publication at a rate not exceeding 50% of 1% of the gross annual receipts for the preceding calendar year. In case of newly started business, the tax shall not exceed 1/20 of 1% of the capital investment.

2. Tax on a business enjoying franchise at a rate not exceeding 50% of 1% of the gross annual receipts for the preceding calendar year. In case of a newly started business, the tax shall not exceed 1/20 of 1% of the capital investment.

3. Tax on sand, gravel and other quarry resources at a rate not exceeding 10% of the fair market value in the locality per cubic meter of ordinary stones, sand, gravel, earth, and other quarry resources, as defined under the National Internal Revenue Code (NIRC), as amended, extracted from public lands or from the beds of seas, lakes, rivers, streams, creeks, and other public waters within its territorial
jurisdiction.



4. Professional tax on each person engaged in the exercise or practice of his/her profession requiring government examination at a rate not exceeding PhP300.

5. Amusement tax payable by proprietors, lessees, or operators of theaters, cinemas, concert halls, circuses, boxing stadia, and other places of amusement at a rate of not more than 10% of the gross receipts from admission fees.

6. Annual fixed tax not exceeding PhP500.00 for every delivery truck or van used by manufacturers, producers, wholesalers, dealers or retailers in the delivery or distribution of distilled spirits, fermented liquors, soft drinks, cigars and cigarettes, to sales outlets, or consumers, whether directly
or indirectly, within the province.

Municipal Taxes
When you renew business permit every year, you might be surprised seeing the amount.

1. Business Taxes
(1) Manufacturers, assemblers, repackers, processors, brewers, distillers, rectifiers, and compounders of liquors, distilled spirits, and wines or manufacturers of any article of commerce of whatever kind or nature at rates ranging from PhP165.00 for gross receipts of less than PhP10,000.00 to  PhP24,375.00 for gross receipts of PhP5 million to PhP6,499,999.00. Those with gross receipts of PhP6,500,000.00 or more are taxed at a rate of not exceeding 37 1/2% of 1% of the gross receipts.

(2) Wholesalers, distributors, or dealers in any article of commerce of whatever kind or nature at rates ranging from PhP18.00 for gross receipts of less than PhP1,000.00 to PhP10,000.00 for gross receipts of PhP1 million to PhP1,999,999.00. Those with gross receipts of PhP2 million or more are taxed at a rate of not exceeding 50% of 1% of the gross receipts.

(3) Exporters, and manufacturers, millers, producers, wholesalers, distributors, dealers or retailers of essential commodities are subject to not more than one-half (1/2) of the rates prescribed for manufacturers wholesalers and retailers of other products.

(4) Contractors and other independent contractors at rates ranging from PhP27.50 for gross receipts of less than PhP5,000.00 to PhP11,500.00 for gross receipts of PhP1 million to PhP1,999,999.00. Those with gross receipts of PhP2 million or more are taxed at a rate of not exceeding 50% of 1% of the gross receipts.

(5) Retailers, at rates of 2% for gross receipts of PhP400,000.00 or less and 1% for gross receipts over PhP400,000.00.

(6) Banks and other financial institutions at a rate not exceeding 50% of 1% of the gross receipts of the preceding calendar year derived from interest, commissions and discounts from lending activities, income from financial leasing, dividends, rentals, on property and profit from exchange or sale of property, insurance premium.

(7) Any business, not otherwise specified in the preceding paragraph at a rate to be determined by the local Sanggunian. If the business is subject to the excise, VAT or percentage tax under the NIRC, the rate shall not exceed 2% of the gross sales or receipts of the preceding calendar year.

Barangay Tax
The barangay may impose a tax on stores or retailers with fixed business establishments with annual gross sales or receipts of PhP50,000.00 or less in the case of cities; and PhP30,000.00 or less, in the case of municipalities, at a rate not exceeding 1% of gross sales or receipts.