Statement 1:International air carriers and international shipping carriers shall not be subject 12% value added tax but 3% common carriers tax based on gross receipts derived from their transport of passengers and goods from the Philippines to other countries.Statement 2:In cases when the Gross Philippines Billings Tax of 2.5% for international carriers is not applicable (i.e taz exempt based on reciprocity or treaty) the common carriers tax under section 118 of the NIRC, as amended shall still apply.

TAXES

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Statement 1:International air carriers and international shipping carriers shall not be subject 12% value added tax but 3% common carrier’s tax based on gross receipts derived from their transport of passengers and goods from the Philippines to other countries.Statement 2:In cases when the Gross Philippines Billings Tax of 2.5% for international carriers is not applicable (i.e taz exempt based on reciprocity or treaty) the common carrier’s tax under section 118 of the NIRC, as amended shall still apply.

A	Statement 1-True Statement 2-True
B	Statement 1-True Statement 2-False
C	Statement 1-False Statement 2-True
D	Statement 1-False Statement 2-False

Explanation:

Detailed explanation-1: -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.

Detailed explanation-2: -– Any person who, in the course of trade or business, sells, barters, exchanges, leases goods or properties, renders services, and any person who imports goods shall be subject to the value-added tax (VAT) imposed in Sections 106 to 108 of this Code.

Detailed explanation-3: -1. International carriers doing business in the Philippine are subject to a tax of two and one-half percent (22%) 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. 6 2.

Detailed explanation-4: -"(A) International air carriers doing business in the Philippines shall pay a tax of three percent (3%) of their quarterly gross receipts.

There is 1 question to complete.

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TAXES