BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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12% value-added tax
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3% common carrier’s tax
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3% tax on VAT-exempt persons on gross receipts from transport of goods and cargoes and 3% common carrier’s tax on gross receipts from transport of passengers
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12% VAT on gross receipts from transport of goods and cargoes and 3% common carrier’s tax on gross receipts from transport of passengers
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Detailed explanation-1: -Business tax is a tax imposed on the gross sales or receipts of a VAT or NON-VAT taxpayer. The tax rate ranges from 3% to 12% depending on the tax type, such as VAT or NON-VAT.
Detailed explanation-2: -International carriers doing business in the Philippines are exempt from the value-added tax (VAT). Their sale, importation or lease of passenger or cargo vessels and aircraft, including engine, equipment and spare parts thereof for international transport operations is also exempt from the VAT under Sec.
Detailed explanation-3: -Non-VAT, also known as other percentage tax is a business tax. It is levied on person entities (companies), or transactions. It is a direct tax, solely shouldered by businesses and is not allowed to be transferred to customers.
Detailed explanation-4: -Value added tax and common carrier’s tax The transport of passengers and cargo by a domestic air carrier is subject to 12% value added tax on its gross sales. However, this excludes the transport of passengers and cargo by a domestic air carrier from the Philippines to a foreign country, which is subject to a 0% rate.