BUISENESS MANAGEMENT
TAXES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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It is a business tax
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It is a transfer tax
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It is an ad valorem tax
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It is not a progressive tax
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Detailed explanation-1: -Statement 1: Other percentage taxes are indirect taxes that can be passed on by one person required to pay to another person who shall bear the burden of paying the tax.
Detailed explanation-2: -VAT is considered indirect tax while Percentage Tax is direct tax. On the other hand, as a direct tax, Percentage Tax (NON-VAT) is shouldered by the taxypayer and cannot be passed on to customers. Selling Price or Service will equal the Total Amount Collected.
Detailed explanation-3: -Percentage Tax is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales or receipts do not exceed P550, 000 and are not VAT-registered.
Detailed explanation-4: -3% is the general base rate of Percentage Tax on gross sales and receipts for standard non-VAT registered businesses.