Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 25 views

    Importance of Taxation

    Uploaded by

    Ivan Delos Reyes
    Taxes are essential for governments to function and provide services. Tax revenue funds government projects and programs, promotes economic growth, and is used for development activities. Different types of taxes exist at the national level in the Philippines, including income tax, value-added tax, capital gains tax, estate tax, and various withholding taxes. These national taxes are collected by the Bureau of Internal Revenue based on the country's Tax Reform Act.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Importance of Taxation

    Uploaded by

    Ivan Delos Reyes
    25 views2 pages
    Taxes are essential for governments to function and provide services. Tax revenue funds government projects and programs, promotes economic growth, and is used for development activities. Different types of taxes exist at the national level in the Philippines, including income tax, value-added tax, capital gains tax, estate tax, and various withholding taxes. These national taxes are collected by the Bureau of Internal Revenue based on the country's Tax Reform Act.

    Original Title

    IMPORTANCE OF TAXATION

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Taxes are essential for governments to function and provide services. Tax revenue funds government projects and programs, promotes economic growth, and is used for development activities. Different types of taxes exist at the national level in the Philippines, including income tax, value-added tax, capital gains tax, estate tax, and various withholding taxes. These national taxes are collected by the Bureau of Internal Revenue based on the country's Tax Reform Act.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    25 views2 pages

    Importance of Taxation

    Uploaded by

    Ivan Delos Reyes
    Taxes are essential for governments to function and provide services. Tax revenue funds government projects and programs, promotes economic growth, and is used for development activities. Different types of taxes exist at the national level in the Philippines, including income tax, value-added tax, capital gains tax, estate tax, and various withholding taxes. These national taxes are collected by the Bureau of Internal Revenue based on the country's Tax Reform Act.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    IMPORTANCE OF TAXATION

    • Taxes are known to be the lifeblood of the government. Without it, the government is paralyzed
    and useless.

    • Sovereign State is subsidized by the government through taxation Tax revenue is the money that
    our governments collect to provide services and to pay for public expenses.

    • Taxes are used to fund government projects and programs

    • It is necessary for economic security

    • It plays a key role in promoting economic growth it spawns the revenue needed to fund
    governments' economic growth policies

    • The imposition of tax leads to diversion of resources from the taxed to the nontaxed sectors Tax
    revenue may be used to encourage development activities in the less development areas of the
    country where normal investors are not willing to invest.

    • Tax policy is also used as a control mechanism to check inflation, consumption of liquor and luxury
    goods, and to protect the local poor industries from the uneven competition.

    NATIONAL TAXES -paid to the government through the Bureau of Internal Revenue Taxes imposed at
    the national level are collected by the Bureau of Internal Revenue (BIR) - The national taxation
    system is based on the National Internal Revenue Code of 1997 or the Republic Act No. 8424
    otherwise known as the Tax Reform Act of 1997, as amended Types of national taxes:

    • Capital Gains Tax - a rax imposed on gains that may have been realized by a seller from the sale,
    exchange, or other disposition of capital assets located in the Philippines

    • Documentary Stamp Tax - tax on documents, instruments, loan agreements, and papers
    evidencing the acceptance, assignment, sale, or transfer of an obligation, rights, or property incident
    thereto.

    • Donor's Tax - a tax on a donation or gift. example:

    • Estate Tax - tax on the right of the deceased person to transmit his/her estate to lawful heirs and
    beneficiaries. It is not a tax on property. It is a tax imposed on the privilege of transmitting property
    upon the death of the owner.

    • Income Tax - a tax on all annual profits made from property ownership, profession, trades or
    offices. It is also a tax on a person's income, emoluments, profits and the like.

    • Percentage Tax - 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 the
    amount required to register as VAT-registered taxpayers.

    • Value-added Tax - a business tax imposed and collected from the seller in the course of trade or
    business on every sale of properties, lease of goods or properties, or vendors of services. It is an
    indirect tax, thus it can be passes on to the buyer, causing the increase of prices of most goods and
    services bought and paid by consumers.
    • Excise Tax - a tax imposed on goods manufactured or produced in the Philippines for domestic sale
    or consumption. It is also imposed on things that are imported.

    • Withholding Tax on Compensation - a tax withheld from individuals receiving purely compensation
    income arising from an employer-employee relationship. This tax is what employers withheld in their
    employees' compensation income and remit to the government through the BIR authorized
    accrediting agent.

    • Expanded Withholding - a tax prescribed only for certain payors like those withheld on rental
    income and professional income.

    • Final Withholding Tax -a tax prescribed only for certain payors - An example of final withholding
    tax is the tax withheld by banks on the interest income earned on bank deposits.

    • Withholding Tax on Government Money Payments - withholding tax withheld by government


    offices including government-owned or controlled corporations and local government units, before
    making any payments to private individuals, corporation, partnerships and/or associations.

    You might also like