Page 19 - Taxation (TAX 112 A & B, BA-203)
P. 19

Business, Transfer and Income Taxation

          TAX 112 A & B, BA 203

          Source: N. Aduana, Transfer and Business Taxation (2016)


              Introduction to Business Tax


                             Business Tax is a tax imposed on the “onerous transfer” of

              product, property, and service.




                             Onerous  Transfer  means  monetary  considerations  are

              involved in the transfer of goods or services between the owner and

              the buyer. Onerous Transfers are subject to Business Tax. However ,

              if the transfer of goods and services is without consideration (i.e. free,

              donation,  inheritance)  the  transfer  is  said  to  be  gratuitous.

              Gratuitous  Transfers  are  not  subject  to  business  or  income  taxes,

              they are subject to either Estate taxes or Donor’s Taxes.





              Kinds of Business Taxes:

              1. Value-added Taxes (VAT)


              2. Percentage Taxes

              3. Excise or Sales Taxes
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