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

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