Other Percentage Taxes (OPT) under R.A. 8424 – P2

Section Tax Base Tax Rate
123 Tax on life insurance premium, except purely cooperative companies or associations Insurance premiums collected 2%
124 l Owners of property who obtain insurance On premiums paid 5%
   directly with foreign companies
l Agents of foreign insurance companies Insurance premiums collected 10%
   (fire, marine or miscellaneous insurance
   agents)
127-A Tax on sale, barter or exchange of shares of stock listed and traded through the local stock exchange (LSE), other than sale by a dealer in securities – ½ of 1% of gross selling price or gross value in money of the shares of stock sold, bartered, exchanged or otherwise disposed of.
127-B Tax on shares of stock sold or exchanged through the LSE in an initial public offering of shares of stock of a closely held corporation in accordance with the proportion of shares of stock sold, bartered or exchanged or disposed of to the total outstanding shares of stock after the listing in the LSE:
Up to 25%                              4% of GSP
Over 25% to 33 1/3%                              2% of GSP
Over 33 1/3%                              1% of GSP
117 Percentage tax on domestic common carriers Monthly gross receipts 3%
by land for  the  transport of  passengers and
keepers of garages, except owners of bancas
and animal-drawn two-wheeled vehicles.
The following shall be considered per unit minimum quarterly gross receipts (for Sec. 117 only):
Manila and other Cities Provincial
l  Jeepney for hire P2,400 P1,200
l  Public utility bus:
Exceeding 30 but not exceeding 50 6,000 6,000
Exceeding 50 7,200 7,200
l Taxis 3,600 2,400
l Car for hire (with chauffeur) 3,000 3,000
l Car for hire (w/o chauffeur) 1,800 1,800
118 OPT on international carriers (air & shipping) for the transport of cargoes
(R.A.10378)                                          Monthly gross receipts 3%
120 Tax on overseas dispatch, message or Quarterly gross receipts from such services
conversation originating from the Philippines 10%
Exempted from Sec. 120 are: (DING)
l Diplomatic services
l International organizations
l News services
l Government
121 Tax on banks and non-bank financial Monthly gross receipts
intermediaries performing quasi-banking
functions:
a. On interests, commissions and discounts from lending activities as well as income from financial leasing, based on remaining maturities of the instruments, as follows:
Maturity period of more than 5 years 1%
Maturity period of 5 years or less 5%
Note: In case of pretermination, the maturity period shall be reckoned to end as of the date of pretermination for purposes of classifying the transaction and applying the correct rate of tax.
b. On royalties, rental of property (real or personal), profit from exchange and all other items treated as gross income under Section 32 of the tax code.
7%
c. On net trading gains within the taxable year on foreign currency, debt securities, derivatives and other similar financial instruments.
7%
d. On dividends and equity shares in the net income of subsidiaries.
0%
122 Tax on other non-bank financial intermediaries, Monthly gross receipts
including finance  companies, money changers
and pawnshops:
a. On interests, commissions and discounts from lending activities as well as income from financial leasing, based on remaining maturities of the instruments, as follows:
Maturity period of more than 5 years 1%
Maturity period of 5 years or less 5%
Note: In case of pretermination, the maturity period shall be reckoned to end as of the date of pretermination for purposes of classifying the transaction and applying the correct rate of tax.
b. On royalties, rental of property (real or personal), profit from exchange and all other  items treated as gross income under Section 32 of the tax code.
5%
c. On dividends and equity shares in the net income of subsidiaries.
0%

I would like to invite you to join my Facebook exclusive groups of aspiring CPAs for my upcoming project “CPA DREAM ACADEMY ” or sign up for flashcards free http://eepurl.com/coJBmf

CPA Mentor,

JONATHAN RUIZ CPA, MIB

 

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About PAM Academy Founder

Newbie Mentor and one of the influential author in the Philippines setting. His also the founder of PAM Academy and Developer of PAM PSE TRACKER application.
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