What is specific tax Philippines?

Specific Tax – refers to the excise tax imposed which is based on weight or volume capacity or any other physical unit of measurement. Ad Valorem Tax – refers to the excise tax which is based on selling price or other specified value of the goods/articles.

Which is subject to the 20% Jewelry tax?

Under Section 150 of the National Internal Revenue Code, non-essential goods, such as jewelry, perfumes and toilet waters, and yachts and other vessels intended for pleasure or sport, are “levied, assessed and collected a tax equivalent of 20 percent based on the wholesale prices or the value of importation used by the …

What are taxes on specific goods?

Excise taxes are taxes required on specific goods or services like fuel, tobacco, and alcohol. Excise taxes are primarily taxes that must be paid by businesses, usually increasing prices for consumers indirectly. Excise taxes can be ad valorem (paid by percentage) or specific (cost charged by unit).

What is specific tax and ad valorem tax?

Specific and ad valorem taxes There are two types of indirect tax; specific and ad valorem. A unit tax is a set amount of tax per unit sold, such as a 10p tax on packets of cigarettes. In contrast, an ad valorem tax is a percentage tax based on the value added by the producer.

What is an example of specific tax?

A specific tax is effective at reducing demand. For example, cigarette tax has steadily contributed to reducing cigarette consumption in past few decades. A specific tax increases the price of all equally and has a bigger effect on reducing overall demand.

What is RA 10351 excise tax all about?

The passage of RA 10351 addressed the complaints of the European Union (EU) and the United States of America (USA) by abandoning the use of raw materials as basis for taxation and by imposing a compound tax of ad valorem based on NRP per proof and specific tax per proof liter (Table 4).

What are the advantages and disadvantages of specific tax?

Specific taxes have administrative advantages where measuring quantities is simple, for example in licensing cars or television sets. The disadvantage of specific taxes is that the real yield of specific taxes is eroded by inflation.

What is an excise tax in the Philippines?

Excise Tax is a tax on the production, sale or consumption of a commodity in a country. On goods manufactured or produced in the Philippines for domestic sale or consumption or for any other disposition; and

Are there any import taxes in the Philippines?

Changes in the Import Tax in the Philippines. Importing to the Philippines is now easier as the tariffs have been removed on approximately 99% of all goods from ASEAN trading partners due to the ASEAN Trade and Goods Agreement (ATIGA). The highest customs tariff rates apply to products derived from sugar and cereal products.

Are there any value added tax exemptions in the Philippines?

Value Added Tax Exemptions in the Philippines. As a rule, any person who, in the course of trade or business, sells barters, exchanges, leases goods or properties, renders services, and any person who imports goods shall be subject to the value-added tax.

When do you pay taxes on capital assets in the Philippines?

There are no holding period requirements for capital assets of corporations. A 6% final tax is imposed on the higher of the gross selling price or fair market value upon the sale, exchange, or disposition of land or buildings not actually used in the business of a corporation. The tax is withheld by the buyer at the time of sale.

What is specific tax Philippines? Specific Tax – refers to the excise tax imposed which is based on weight or volume capacity or any other physical unit of measurement. Ad Valorem Tax – refers to the excise tax which is based on selling price or other specified value of the goods/articles. Which is subject to…