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Community Tax Certificate Orientation

A briefing on Community Tax Computation, Coverage and Exemptions
by

rhesababes gallego

on 8 November 2012

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Transcript of Community Tax Certificate Orientation

Community Tax Certificate There shall be imposed an annual community tax on the following persons Individual liable to community tax Section 57. Imposition of Tax. 1. Every inhabitant of the Philippines
- 18 years of age or over
- who has been regularly employed on a wage or salary basis for at least 30 consecutive working days during any calendar year.

2. An individual who is engaged in business or profession.

3. An individual who owns real property with an aggregate assessed value P1,000 or more.

4. An individual who is required by law to file an income tax return. Section 58. Rate of Community Tax A.) Individuals
* Basic Community tax of P5.00

* plus an additional community tax of P1.00 for every P1,000 of income derived regardless of whether from business, exercise of profession, or from property

* but which in no case shall exceed P5,000. Individuals In case of Husband and Wife, each of them shall be liable to pay the
* basic community tax of P5.00,

* plus an additional community tax of P1.00 for every P1,000 of income derived from the total property owned by them and/or total gross receipts or earnings. Example (individual) Individual income for the year is 525,000, how much is the community tax?
525,000/1000 = 525 x P1 = P525.00
Basic 5.00
Total community tax P530.00

If income is 6,000,000?
6,000,000/1000 = 6,000 x P1 = 6,000, however
maximum additional community tax is only 5,000, thus
Additional5,000.00
Basic 5.00
Total community tax5,005.00 For juridical persons * Basic community tax of P500.00

plus an additional community tax, which in no case, shall exceed P10,000 to be determined by the following schedule:
P2.00 for every P5,000 worth of
real property gross receipts or earning derived in the Philippines owned by the juridical entity during the preceding year based on the assessed value used for the payment of real property tax under existing Laws. Juridical Person P2.00 for every P5,000 worth of gross receipts or earning derived from business in the Philippines during the preceding year Juridical Person liable to community tax- every corporation no matter how created or organized, whether domestic or resident foreign, engaged in or doing business in the Philippines. The dividends received by a corporation from another corporation shall, for the purpose of the additional tax be considered as part of the gross receipts of earning of said corporation Sample Problem Gross earnings from real property derived in the Philippines = P500,000
Gross receipts derived from business in the Philippines = P3,000,000
Dividends received from other corporation = P100,000

How much is the gross receipts/earnings?
How much is the community tax due? Sample Problem How much is the gross receipts/earnings?
P500,000 + 3,000,000 + 100,000 = P3,600,000
How much is the community tax due?
Additional (3,600,000/5,000) x P2 = 1,440.00
Basic 500.00
Community Tax due 1,940.00

How much, if gross receipts is P30 million?
30,000,000/5000 x P2 = 12,000,
However maximum additional Community tax is only 10,000 thus,

Basic 500.00
Additional 10,000.00
Total Community Tax 10,500.00 Diplomatic and consular representative
Transient Visitors when their stay in the Philippines does not exceed three (3) months
Cooperative registered under RA6938; and
Full time students residing and studying in the city who are not otherwise doing business and own real property with an aggregate assessed value of not more than P10,000
Resident Filipino citizens who have reach the age of 70 years. Section 9. Exemptions

Accrue on the 1st day of January
Paid not later than the last day of February
Section 61. Time of payment
> 24% per annum from the due date until the tax is paid
Penalties for late payment:
Full transcript