BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An international air carrier doing business in the Philippines shall be subject to
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3% percentage tax on gross receipts from cargo operations originating in the Philippines only.
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2 1/2% income tax on Gross Philippine billings only.
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Both 3% percentage tax on gross receipts from cargo operations originating in the Philippines and 2 1/2% income tax on Gross Philippine billings.
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Neither the 3% percentage tax on gross receipts from cargo operations originating in the Philippines nor 21/2 income tax on Gross Philippine billings.
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Explanation:
Detailed explanation-1: –Income Tax International carriers doing business in the Philippine are subject to a tax of two and one-half percent (2 ½%) based on their Gross Philippine Billings (GPB) pursuant to Section 28(A)(3) of the National Internal Revenue Code (NIRC) of 1997, as amended or to the applicable tax treaty rate.
Detailed explanation-2: –An international carrier doing business in the Philippines shall pay a tax of two and one-half percent (21/2 %) on its ‘Gross Philippine Billings’ as defined hereunder: “(a) International Air Carrier.
Detailed explanation-3: -3% is the general base rate of Percentage Tax on gross sales and receipts for standard non-VAT registered businesses.
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