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PREFERENTIAL TAXATION SENIOR CITIZENS LAW EXEMPTION FROM INCOME TAX
General Rule: Qualified SCs deriving income i ncome during the taxable year, whether from compensation or otherwi required to file income tax returns.
Exceptions:
(1) If the income of SC is i s compensation and he is a minimum wage earner (MWE), SC is exempt from income subject to existing rules on MWE
(2) If the aggregate amount of gross income during the t axable year does not exceed his/her personal exemptio (basic and additional), SC is exempt from tax and NOT required to file annual ITR TAX INCENTIVES TO QUALIFIED ESTABLISHMENTS
Kinds of discounts on qualified goods and services:
Promotional discount 20% discount 5% discount on water and electric consumption b y SCs 50% discount on electricity, water and telephone consumption by the Senior Citizen Center TREATMENT OF DISCOUNTS:
ordinary and necessary expenses deductible from the gross income of the seller falling under the category of itemized deductions can be only claimed if the seller does not opt for optional standard deduction during the taxable year. CONDITIONS FOR DEDUCTION
1. Only that portion of the gross sales exclusively used, consumed or enjoyed by the SC shall be eligible Master your semester with Scribd Read Free Foron 30this Days Sign up to vote title the deductible sales discount; The grossTimes selling price and the sales discount di scount must be separately indicated t he useful the official receipt or the & The New2. York Useful inNot Cancel anytime.
invoice issued by the establishment Special offer for students: Only $4.99/month. 3. Only the actual amount of the t he discount granted or a sales discount not less than the statutory rate (20%
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ADDITIONAL DEDUCTION DUE TO COMPENSATION PAID TO SENIOR CITIZENS
Private establishments employing SCs shall be entitled to additional deduction from their gross income equiva 15% of the total amount paid as salaries and wages to SCs subject to the provisions of Section 34 of the Tax C and its implementing rules and regulations CONDITIONS FOR ADDITIONAL DEDUCTION
1. 2.
The employment shall have to continue for a period of at least six months The annual taxable income of the SC does not exceed the poverty level as may be determined by the N thru the NSCB. For this purpose, the SC shall submit to his employer a sworn certification that his an taxable income does not exceed the poverty level.
MAGNA CARTA FOR DISABLED PERSONS PERSONS WITH DISABILITY (PWD)
“those suffering from restriction of di fferent abilities, as a result of a mental, physical or sensory impairment, t perform an activity in the manner or within t he range considered normal for a human being”. “includes those who have long term physical, mental, intellectual or sensory impairm ents which in interaction various barriers may hinder their full and effective participation in society in equal basis with others”
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QUALIFIED PWD - refers to an individual with disability who, with reasonable accommodations, can perfor Unlock fullsuch access with a free trial.or desires. However, consideration sh essential functions of the employment position that individual holds given to the employer’s requirement as to what functions of a job are essential, and if an employer has prepared written description before advertising or interviewing a nWith applicant the job, this description shall be conside Download Freefor Trial evidence of the essential functions of the job. INCENTIVES FOR EMPLOYERS
Additional deduction from their gross income equivalent to twenty-five percent (25%) of the total amount paid Master your with Scribd salaries andsemester wages to disabled persons. Read Free Foron 30this Days Sign up to vote title & The New York Times Useful Not useful Requirements: Cancel anytime.
Special offer for students: Only $4.99/month. 1. Entities must present proof as certified by the Department of Labor and Employment that disabled pe
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SPECIAL ECONOMIC ZONE ACT Coverage:
1. 2. 3.
Policy and the Philippine Economic Zone Authority Registration of investments Fiscal incentives to PEZA-registered economic zone enterprises References: R.A. Nos. 7916; 9593 (Touri Act), IRR of RA7916, Revenue Regulations Nos. 2-2005; 11-2005, 13-2005; 7-2016 (TIEZA)
DECLARATION OF POLICY It is the declared policy of the government to translate into practical realities the following State policies and mandates in the 1987 Constitution, namely: a)
The State recognizes the indispensable role of the pri vate sector, encourages private enterprise, and provides incentives to needed investments. (Sec. 20, Art II) b) The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods and adopt measures that help make them co mpetitive. (Sec. 12, Art XII) REGISTRATION OF INVESTMENTS
Registration of Business Enterprises. - Business enterprises within a designated ECOZONE shall register wi PEZA to avail of all incentives and benefits provided for in the PEZA law.
Reading a Preview Developer / Operator, Domestic Market,You're Utilities, Facilities, Tourism or Service Enterprises Qualificatio
Unlock full accesscontrol with a free Applications shall comply with the applicable nationality, and trial. / or ownership requirements of the work capital thereof in accordance with the pertinent provisions of the Philippine Constitution, Foreign Investments of 1991 and other existing laws and regulations. Download With Free Trial
Domestic Enterprise Qualifications:
Applicants shall be limited to new or expanding business entities subject to the guidelines that shall be promul by the Board in addition to the nationality requirements under existing laws and regulations. Read Free Foron 30this Days Sign up to vote title INCENTIVES TO ECOZONE ENTERPRISES Not useful Useful Cancel anytime. New or expanding ECOZONE Developers / Operators, Export, Free Trade, Domestic Market, Utilities, Facilit Special offer for students: Only $4.99/month. and Tourism Enterprises, except ECOZONE Service Enterprises shall be entitled to the fiscal incentives provid
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percentage taxes on public and service utilities and enterprises. In lieu thereof, the ECOZONE Develo Operator Enterprise shall pay a five percent (5%) final tax o n gross income. b) Additional Deduction of 1/2 of the value of training expenses incurred in developing skilled or unskil labor or for managerial or other management development programs incurred by an ECOZONE De / Operator which may be deducted from the 5% final tax due from the ECOZONE Developer / Opera not to exceed the national governments share of three percent (3%) OTHER INCENTIVES UNDER THE CODE
1. 2. 3. 4. 5. 6.
Income Tax Holiday Tax Credit on Domestic Capital Equipment Importation of Breeding Stocks and Genetic Materials Tax Credit on Domestic Breeding Stock a nd Genetic Materials Additional Deduction for Labor Expense Unrestricted Use of Consigned Equipment
INCENTIVES TO DOMESTIC MARKET ENTERPRISE
1.
Exemption from national and local taxes in lieu thereof, payment of a special tax rate of five percent (5%) on gross income 2. Additional Deduction for Training Expenses 3. Other incentives available under the Code, as may be determined and subject to the condition may be prescribed by the Board
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INCENTIVES TO FACILITIES, UTILITIES AND TOURISM ENTERPRISE Unlock full access with a free trial. 1. Exemption from national and local taxes and lieu thereof payment of a special t ax rate of fiv percent (5%) on gross income Download With Free Trial 2. Additional Deduction for Training Expenses 3. Incentives provided under R.A. 6957 as amended by R.A. 7718, otherwise known as the Bui Operate and Transfer Law 4. Other incentives available under the Code, as may be determined by the Board
Master your semester NON-FISCAL INCENTIVE with Scribd Read Free Foron 30this Days Sign up to vote title & The New York Times Not Usefulshall not – Any investor within the ECOZONE whose initial investment beuseful less than One Hundr Immigration. Cancel anytime.
Thousand ($150,000.00), his/her spouse and dependent children under t wenty-one (21) years of a Special offer forFifty students: OnlyDollars $4.99/month. shall be granted permanent resident status within the ECOZONE. They shall have freedom of ingress and egre
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“Customs Territory” shall mean the national territory of the Philippines outside of the proclaimed boundarie the ECOZONES except those areas specifically declared by other laws and/or presidential proclamations to ha status of special economic zones and / or free ports.
“Negative List” shall refer to the list of industries drawn up and regularly updated by the P EZA under which ECOZONE Enterprises engaged in any industry listed therein shall not be allowed to sell their products or any portion thereof in the custom territory
“Certificate of Registration” shall mean the certificate issued by the PEZA to an ECOZONE Enterprise upo registration.
“Registration Agreement” shall refer to the final agreement executed by the PEZA and the ECOZONE Enter setting forth the terms and conditions for the latter's operation of business or engaged of economic activity with the ECOZONE. “Date of Registration” shall refer to the date appearing in the certificate of registration.
“Start of Commercial Operations” for purposes of the income tax holiday, SCO shall be the date specified in Registration Agreement or the date when the particular ECOZONE export enterprise actually begins productio the registered product for commercial purposes, whichever comes first, irrespective of phases or modules or schedule of development.
“Gross Income” refers to gross sales or gross revenues derived from business activity within the ECOZONE, sales discounts, sales return and allowances and minus cost s of sales or direct costs but before any deduction is You're Reading a Preview for administrative expenses or incidental losses during a given taxable period. The allowable deductions from “ Section 2,access Rule XX these Rules. income” are specifically enumerated underUnlock full withof a free trial. FISCAL INCENTIVES OUTSIDE TEZs
Download With Free Trial
Accommodation establishments 1. Income Tax Holiday – non-extendible 6 years for substantial expansion 2. Exemption from Taxes on Importation of Capital Investment and Equipment 3. Net Loss Carry Over – same with those inside Read Free Foron 30this Days Sign up to vote title TEZ AVAILMENT OF TAX INCENTIVES Useful Not useful
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Special offer forEnterprises students: Only $4.99/month. availing of incentives under RA No. 9593 are required to obtain from TIEZA, on an annual basis, a Certificate of Entitlement (CE) as proof of their entitlement to such incentives. In availing of incentives, the CE
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PAYMENT OF BACK TAXES
If the TIEZA registration is down-graded, suspended, revoked, the TIEZA shall order it to pay back taxes in a amount equivalent to the difference between the taxes that it should have paid had it not availed of incentives u RA 9593. The back taxes shall be computed up to three years directly preceding the date of promulgation of th decision or order finding that the enterprise violated the terms of its accreditation. The back taxes shall be distr in the same manner. BARANGAY MICRO BUSINESS ENTERPRISES ACT
Coverage: 1. 2.
Registration of BMBEs Fiscal Incentives to BMBEs
WHO CAN REGISTER? 1. 2. 3. 4.
Sole proprietorship Corporation Partnership Cooperative Association
OPERATIONS
You're Reading a Preview Engaged in the production, processing or manufacturing of product s or commodities, including agro-processin trading and services, and which activities are barangay-based and micro-business in nature and scope Unlock full access with a free trial.
“Services” shall exclude those rendered by:
1. 2.
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PRC Licensed professionals Juridical persons such as partnerships or corporations engaged in consultancy, advisory and similar services where the performance of such services are essentially carried out through licensed professio
BARANGAY-BASED Master your semester with Scribd A business enterprise shall be considered “barangay - based” if: & The New York Times
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MICRO-BUSINESS IN NATURE AND SCOPE
It shall be considered “micro- business in nature and scope” if:
its principal activity is primarily for livelihood, or determined by the SMED Council or DTI as a priority for development or government assistance; the enterprise is not a branch, subsidiary, di vision or office of a large scale enterprise; and its policies and business modus operandi are not determined by a large scale enterprise or by persons who not owners or employees of the enterprise. CERTIFICATE OF AUTHORITY (CA) Issuer : Office of the Cit y or Municipal Treasurer Effectivity: Period of two (2) years, and renewable for a period of two (2) years for every renewal. Required Form: BMBE Form 02
The Treasurer shall indicate in the C A the date when the registration of the BMBE commences. (CA) Cost of Registration:
1. 2.
Free of charge; or Fee not exceeding One Thousand Pesos (P1,000.00) is i mposed by the LGU concerned through a properly enacted ordinance. You're Reading a Preview
Requirement: Total assets, real or personal, inclusive of those from loans but exclusive of the land on Unlock full access witharising a free trial. which the particular business entity’s office, plant and equipment are situated, shall not be more than Three M Pesos (P3,000,000.00) Download With Free Trial CANCELLATION OF REGISTRATION
a. b.
When the BMBE transfers its place of business to another locality; When the value of its total assets as determined pursuant to this Order exceeds Three Million Pesos (P3, 000,000.00); Read Free Foron 30 Days Signofup to vote When the BMBE voluntarily surrenders its Certificate Authority tothis the title Office of t he City Useful Not useful Municipal Treasurer;
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d. $4.99/month. In case of death of the registered individual owner of the BMBE, if it is a sole proprietorship Special offer for students: Only e. In case of violation or non-compliance with the provisions of R.A. 9178, the Implementing R
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FILING OF CRIMINAL COMPLAINT
In cases of: a. b. c.
violation or non-compliance with the provisions of RA 9178, submission of fake or falsified documents, and/or making false or omitting required declarations or statements the City or Municipa Treasurer should initiate the filing of appropriate criminal complaints before the O of the Public Prosecutor.
FISCAL INCENTIVES
Exemption from Income Tax - A duly registered BMBE shall be exempt from income tax on income arising p from its operations as BMBE NOT COVERED BY EXEMPTION
a. b. c. d. e. f. g. h. i. j.
Interest, including those from any currency bank deposit and yield or any other monetary be from deposit substitutes and from trust funds and similar arrangements; Royalties; Prizes and other winnings: Cash and/or property dividends; Capital gains from the sale of shares of stock not traded through the stock e xchange; Capital gains from the sale or other disposition of real property; You're Reading a Preview The share of an individual in the net income after tax of an association, a joint account, or a venture or consortium; Unlock full access with a free trial. The share of an individual in the distributable net income after tax of a taxable partnership o which he is a partner; Download With Free Trial Income from the practice of profession received directly from the clients or from the profess partnership of which the individual is a partner; Compensation; and k. All ot her forms of passive income and income from revenues not effectively connected with or arising from operations of t he BMBEs as such.
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Exclude land on which the particular business entity’s office, plant and equipment are situated
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3. Sworn Statement of the values of assets owned and/or used/to be used by t he BMBE and/or its affiliates reflecting the current values thereof. The Sworn Statement shall be supported by pertinent information and documents such as: a. Acquisition cost, date of acquisition and depreciated value for existing assets b. Invoice and/or official receipts for newly-acquired assets not yet depreciated; c. Duly-notarized copy of Contract of Le for assets used in the conduct of business covered by lease a greement; and d. Copy of Loan Contract/s, if any Duly-Notarized Certification of Amortization Payments on the Loan
4. Certified list of branches, sales outlets, places of production, warehouse and storage places, or such other fa owned and/or operated by the BMBE indicating t heir respective addresses, whether located in the same municipality or city where the principal place of business is located, or elsewhere. 5. Certified list of affiliates, indicating addresses, line of business and responsible officers thereof; OTHER IMPORTANT CONSIDERATIONS
For purposes of exemption from the creditable withholding t ax on income payments, the BMBE shall furnish customers with a certified true copy of i ts amended BIR registration certificate.
If a BMBE is also entitled to exemption from income tax under other law, it shall so state this fact in registration form and indicate whether it shall avail itself thereof or the privilege under the BMBE. The choice so made shall bind the BMBE for the entire period of validity of its registration with the B No BMBE shall be allowed double or multiple availment of income tax exemption privileges. An annual registration fee in the a mount of Five Hundred Pesos (P500.00) shall be paid by a BMBE u its registration as such, and every You're year thereafter on or the last day of January: Reading a before Preview BMBE which is in the form of a cooperative or a marginal income earner shall be exempt from paym Unlock full access with a free trial. registration fee.
Exemption from Gross Receipts Tax - Interests, commissions and discounts derived from the loans granted b Download With Free Trial LBP, DBP, PCFC and SBGFC to dulyregistered BMBEs, as well as loans extended by the GSIS and SSS to th respective member-employees for the purpose of establishing BMBEs, shall be exempt from gross receipts tax (GRT).
Disqualification from GRT Exemption. In case the amount of loan extended by the abovementioned credit Master your semester with Scribd institution/s to a BMBE borrower resulted to the BMBE’s total assets exceeding the P3 million asset threshold Read Free Foron 30this Days Sign up to vote title said credit institution/s is/are disqualified to enjoy exemption from GRT. & The New York Times Useful Not useful
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