Bobby is engaged in the business of buying and selling of goods. He is not a VAT-registered taxpayer. His gross receipts in his first year of operation amount to P520,000. Exempt a. What is the business tax on his business? How much is the tax due? b. How about if he decides to voluntarily register under the VAT system on his second year of operation?

 

2. Tax on common carriers.

What taxes shall be imposed on the following?

a. Transport of passengers, goods or cargoes of domestic air carriers from one place in the Philippines to another place in the Philippines.

b. On-line international air carriers on their outbound fares and freight on carriage of cargo.

c. Domestic air carriers on services involving transport of passengers, goods and cargoes from the Philippines to a foreign country?

d. Domestic air carriers on services involving transport of passengers, goods, and cargoes from a foreign country to the Philippines. Domestic air carrier from domestic port to a foreign port but before

e. proceeding to the foreign port loads passengers and/or cargoes from a domestic port and unloads them in another domestic port.

f. International air carriers on their inbound international operations.

g. Domestic sales of goods, supplies, equipment, fuel and services to international air Transportation Company engaged in international air transport operations.

3. Tax on parking lot owners.

Ato owns a vacant lot measuring 750 square meters in Nueva St., Binondo, Manila. Faced by the reality that it will take years to raise enough money to finance the construction of an edifice therein, he decided to open the lot as a "garage for hire to the public" charging the customer P20.00 for the first two (2) hours, and P15 on every succeeding hour. The gross receipts during the quarter amounted to P600,000 (net of VAT). His expenses for the salaries and wages of his employees and other expenses during the month was P60,000. How much tax is to be paid by Ato?

4. Amusement tax.

Ong Seng operates a bowling alley in the city. The place is designed for people who want to entertain themselves, or their visitors to relax and enjoy the day; and, including those who are fond of this sport. Inter-club and inter-office sports tournaments are being held in this place. It is also being used as the venue of some Physical Education classes in some schools in the community. Is the bowling alley subject to amusement tax?

Answer rating: 100% (QA)

Answers to your Tax Questions 1 Bobbys Business Tax a Not VATregistered Since Bobbys annual gross receipts are below the threshold of P15 million he i... View the full answer