|
|
|
|
Chapter
6 -
Tax Issues
The
Philippine Taxation System | Applicable
Taxes
Retail Trade
|
Individual Taxation
| Computation
of Income Tax
Income
Tax
Income tax is levied on individuals on a sliding
scale and on corporations at a fixed rate
of 35%. A number of concessions apply to industries
locating in industrial zones or in one of
the special economic zones and for those industries
categorized as "pioneering" enterprises.
The table at the end of this chapter provides
a quick reference on the types of income taxes
levied on individuals and on companies although
in the case of the latter the formula for
determining taxable income is complex and
an area in which specialist advice is required.
Value Added Tax (VAT)
VAT is a 10% percent tax imposed on the importation
and sale of goods and services in the Philippines.
Certain types of goods and services are exempt
from VAT.
Companies can obtain tax credits in certain
circumstances and again your accountant can
advise you.
The value added tax is not levied on payments
from overseas customers or in situations where
the overseas purchaser of goods or services
can demonstrate an inward remittance of funds
to pay local accounts.
Local/Percentage Tax
This is a graduated levy on certain amounts
of sales/gross receipts imposed on manufacturers,
wholesalers, exporters, retailers and contractors.
Duties
Customs dues are imposed on the importation
of goods into the
country
Real Estate Tax
A real estate tax is levied on the ownership
of real estate or other fixed assets such
as land, building, plant and machinery.
Documentary Stamp Tax
This tax is imposed on documents, instruments
and related transactions such as issuance
of stock certificates and proofs of indebtedness.
Community Tax
This tax is levied on all corporations, whether
domestic or resident foreign, and on every
individual resident of the Philippines aged
18 and above. It is based on the corporation's
or the individual's real property owned in
the Philippines, gross receipts and earnings
from business and salaries (for individuals).
Tax Treaties
The Philippines has entered into tax treaties
with 25 other countries. Such tax treaties
are designed primarily to eliminate double
taxation on foreign investors who otherwise
have to pay taxes in the Philippines and in
their own countries on the same income.
|
Company
Profile
Fraser
Place Forbes Tower
Fraser
Place Serviced Residences Forbes
Tower, Manila recently opened
its doors to expatriate business
executives with its upscale facilities
and high end services.
Located in the heart of Makati's
dynamic financial district and
with easy walking distance of
Ayala Avenue, Paseo de Roxas and
Makati Avenue, Fraser Place provides
150 luxurious serviced residences
for long-term expatriates, business
travelers, families and even children.
Despite the global economic downturn
which has affected the Philippines
along with the other Asian economies,
Fraser Place has risen to the
challenge of the market by offering
superb value for its five-star
facilities.
Each unit boasts of full-height
glass picture windows that provide
views of the Makati skyline, fully
furnished with modern home furniture
and fixtures in separate living,
dining, kitchen, bedroom and en-suite
bathrooms. In keeping with the
demands of its international clientele,
Fraser Place Manila also provides
e-mail access, dual telephone
lines with voice mail, in-room
personal safe and video-intercom
system for added security.
Also provided for the indulgence
of guests is a fully equipped
gymnasium with sauna, an outdoor
swimming pool and jacuzzi, children's
pool, barbecue area, children's
playroom, nursery and day care
center as well as social programs
for spouses and children.
Aside from the convenience of
being in the midst of Makati's
world-class dining, entertainment
and business centers - and at
an affordable price - Fraser Place
Manila provides a real home to
relax and recharge amidst a cozy
ambience that is unique to the
Philippines.
For further information
www.fraserhospitality.com
|
|
Click here to download
the PDF Version of this Chapter.
|
|
|
|
are trademarks of MCA Limited.
