Taxation in The Philippines

TAXATION IN THE PHILIPPINES
HISTORY OF TAXATION
POWER OF TAXATION
LAW OF TAXATION
CODE OF BUREAU OF INTERNAL REVENUE
BUREAU OF INTERNAL REVENUE AND ITS PURPOSE
INCLUSIONS OF TAXATION LAW
IMPORTANCE OF TAXATION IN THE GOVERNMENT

TAXATION
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HISTORY OF
TAXATION
The taxation of the Philippines
started from the Ancient
Filipinos, where they pay their
taxes to their Datu or the Chiefs
for the protection they gave to
them, the tax was termed buwis.
HISTORY OF
TAXATION
Invasion of
Spaniards
The arrival or invasion of the
Spanish People from 1521 to 1898
gave the Filipinos modern
concepts of taxation, wherein 16
years old to 60 years old where
forced to pay tributes or tributo to
the King of Spain
HISTORY OF
TAXATION
Cedula
In 1884, the tribute was
abolished and was replaced
by the cedula or sedula, a
certificate identifying the tax
payer that needs to be
carried all the time. If
someone is not able to
present their cedula to a
guardia civil
HISTORY OF
TAXATION
1987 Constitution
It was followed by the

1987 Philippine
Constitution, stating that it
“sets limitations on the
exercise of the power to
tax.
HISTORY OF
TAXATION
TRAIN LAW
Lately the current President
of the Philippines, President
Rodrigo Duterte,
implemented the TRAIN Law
or Tax Reform for
Acceleration and Inclusion
which was signed last
January 01, 2018,
POWER OF TAXATION
POWER OF
TAXATION
The policy of taxation in the Philippines is governed chiefly by
the Constitution of the Philippines and three Republic Acts.
•Constitution: Article VI, Section 28 of the Constitution
•National law: National Internal Revenue Code—

enacted as Republic Act No. 8424
•Local laws: major sources of revenue for the local

government units (LGUs) are the taxes collected by
virtue of Republic Act No. 7160
LAW OF TAXATION
LAW OF TAXATION
The basic source of Philippine tax law is the National

Internal Revenue Law, which codifies all tax provisions,
the latest of which is embodied in Republic Act No.
8424 (“The Tax Reform Act of 1997”).
LAW OF TAXATION
National Tax Law
I.1987 Constitution
The 1987 Philippine Constitution sets limitations on the exercise of the power
to tax.
The rule of taxation shall be uniform and equitable.The Congress shall evolve a
progressive system of taxation.
II.Laws
The basic source of Philippine tax law is the National Internal Revenue Law,
which codifies all tax provisions, the latest of which is embodied in Republic
Act No. 8424 (“The Tax Reform Act of 1997”)
III.Treaties
The Philippines has entered into several tax treaties for the avoidance of
double taxation and prevention of fiscal evasion with respect to income taxes.
At present, there are 31 Philippine Tax Treaties in force
LAW OF TAXATION
National Tax Law
IV.Administrative Material
The Secretary of Finance, upon the recommendation of the Commissioner,

promulgates needful rules and regulations for the effective enforcement of the
provisions of the Tax Code (Section 244, Tax Code of 1997).
• Revenue Regulations (RRs)
are issuances signed by the Secretary of Finance, upon recommendation of the
Commissioner of Internal Revenue
• Revenue Memorandum Orders (RMOs)
are issuances that provide directives or instructions; prescribe guidelines; and
outline processes, operations, activities, workflows, methods and procedures
necessary in the implementation of stated policies, goals, objectives, plans and
programs of the Bureau in all areas of operations, except auditing.
• Revenue Memorandum Rulings (RMRs)
are rulings, opinions and interpretations of the Commissioner of Internal
Revenue with respect to the provisions of the Tax Code and other tax laws, as
applied to a specific set of facts, with or without established precedents
LAW OF TAXATION
National Tax Law
• Revenue Memorandum Circular (RMCs)
are issuances that publish pertinent and applicable portions, as well as
amplifications, of laws, rules, regulations and precedents issued by the BIR and
other agencies/offices.
V.Case Law
In the Philippines, Supreme Court decisions form part of the law of the land.
As such, decisions by the Supreme Court
VI.Treatises and other books

There are no Philippine treatises exclusively devoted to Philippine Tax law but
various Philippine authors have come up with annotated versions of the Tax
Code.
LAW OF TAXATION
National Tax Law
VII. Periodicals
(1) Philippine Revenue Service
(2) Philippine Revenue Journal
(3) the Tax Monthly
VIII. Local Government Tax Law

Local government taxation in the Philippines is based on the constitutional
grant of the power to tax to the local governments
LAW OF TAXATION
National Tax Law

IX. National Tax Research Center (NTRC)
Constituted under Presidential Decree 74, the NTRC is mandated to conduct
continuing research in taxation to restructure the tax system and raise the level
of tax consciousness among the Filipinos
1. Undertake comprehensive studies
2. Re-examine the existing tax system and tax policy structure;
3. Conduct researches on taxation
4. Pass upon all tax measures and revenue proposal;
5. Recommend of such reforms and revisions
BIR Bureau of Internal Revenue
History of BIR (Bureau of international
Revenue)

Following the period of the American regime in
the Philippines from 1899 to 1901, the first civil
government was created under William H. Taft,
General Governador of the Philippines in 1902
BIR roles
The Bureau of Internal Revenue (Filipino: Kawanihan
ng Rentas Internas) is an attached agency of
Department of Finance. BIR collects more than one-
half of the total revenues of the government.
THANK YOU
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CODE OF BIR
BIR RDO CODES
The BIR (Bureau of Internal Revenue) has a list of RDO Codes in the
Philippines to help in monitoring, processing and auditing of tax
payments, tax returns, withholding taxes, and other tax accounts.
Taxation is a big power of the government so generating the
government revenue from taxes is important. Using RDO codes is
significant in the computation of taxes collected across the Philippines.
BIR Form 2316 to the BIR
At this point in time, we know you are about to give the copy of BIR
2316 (Certificate of Compensation Payment/Taxes Withheld) to each of
your employees and afterwards submit the same to the Bureau of
Internal Revenue (BIR). But before you finally hand the forms to them,
here are just a few final reminders which we think you should have
ensured.
WHAT IS BIR?
BIR form 2303
The certificate of registration is given to you by the BIR. It is an

official document that gives the holder the legal rights to operate a
business in the Philippines. It is proof that a business is registered as
a taxpayer with the Bureau of Internal Revenue (BIR).
BIR form 2307
Commonly referred to as the Certificate of Creditable Tax Withheld at

Source, the BIR Form 2307 presents the income that's subjected to
Expanded Withholding Tax (EWT) paid by the withholding agent.
BIR Form 2306
the Certificate of Final Income Tax Withheld is accomplished and

issued by the withholding agent, usually the employer, to reflect the
income subjected to final tax. It should indicate the total amount paid,
as well as the total taxes withheld and remitted during the period.
Currently, more than half of the Philippine government’s
revenues originate from the BIR’s collections. This
responsibility of collecting taxes through the just enforcement
of tax laws is ultimately carried out by the bureau for the
noble purpose of nation-building and elevating the lives of
Filipinos.
The Bureau of Internal Revenue is a Philippine agency of
Department of Finance. Our mission is to raise revenues for
the government through effective and efficient collection of
taxes, quality service to taxpayers, and impartial and uniform
enforcement of tax laws.
Who pays taxes?
The taxes imposed by the Income Tax
national government of the Phili Estate Tax
ppines Donor’s Tax
include, but are not limited to:
Value-added Tax
Percentage Tax
Excise Tax
Documentary Stamp Tax
Why are taxes important
to the government?
The money that we pay in taxes goes to many places. In addition to
paying the salaries of government workers, our taxes also help to
support common resources, such as police and firefighters. Tax money
helps to ensure the roads we travel on are safe and well-maintained.
Taxes fund public libraries and parks. Taxation, imposition of
compulsory levies on individuals or entities by governments. Taxes are
levied in almost every country of the world, primarily to raise revenue
for government expenditures, although they serve other purposes as
well.

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TAXATION IN THE PHILIPPINES

TAXATION IN THE PHILIPPINES

CODE OF BUREAU OF INTERNAL REVENUE

BUREAU OF INTERNAL REVENUE AND ITS PURPOSE

INCLUSIONS OF TAXATION LAW

IMPORTANCE OF TAXATION IN THE GOVERNMENT

It was followed by the

•Constitution: Article VI, Section 28 of the Constitution

•National law: National Internal Revenue Code—

•Local laws: major sources of revenue for the local

The basic source of Philippine tax law is the National

The Secretary of Finance, upon the recommendation of the Commissioner,

VI.Treatises and other books

VIII. Local Government Tax Law

The certificate of registration is given to you by the BIR. It is an

Commonly referred to as the Certificate of Creditable Tax Withheld at

the Certificate of Final Income Tax Withheld is accomplished and

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