What is the basis of taxation in the Philippines?

What is the basis of taxation in the Philippines?

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”). It amended previous national internal revenue codes, which was approved on December 11, 1997.

What is the theory and basis of taxation?

Theory and basis of taxation • Basis – Taxation is based on the reciprocal duties of protection and support between the government and its people. – Government receives taxes from the people which is used to perform functions of government and other benefits. – Benefit-received theory.

What is purpose and basis of taxation?

Purposes of taxation Revenue or fiscal: The primary purpose of taxation on the part of the government is to provide funds or property with which to promote the general welfare and the protection of its citizens and to enable it to finance its multifarious activities. 2.

What is the basis of taxation quizlet?

Taxation. it is the inherent power by which the sovereign through its law-making body raises revenue to defray the necessary expenses of government.

Does foreigner need to pay income tax?

A nonresident alien (for tax purposes) must pay taxes on any income earned in the U.S. to the Internal Revenue Service, unless the person can claim a tax treaty benefit. Any tax amount, fines and penalties determined to be owed by the IRS will be charged to the department responsible for the foreign national.

What are the two theories of taxation?

In modern public-finance literature, there have been two main issues: who can pay and who can benefit (Benefit principle). Influential theories have been the ability theory presented by Arthur Cecil Pigou and the benefit theory developed by Erik Lindahl.

What is taxation and its types?

There are two types of taxes namely, direct taxes and indirect taxes. You pay some of them directly, like the cringed income tax, corporate tax, and wealth tax etc while you pay some of the taxes indirectly, like sales tax, service tax, and value added tax etc.

What is the theory of taxation *?

The most popular and commonly accepted principle of equity or justice in taxation is that citizens of a country should pay taxes to the government in accordance with their ability to pay. It appears very reasonable and just that taxes should be levied on the basis of the taxable capacity of an individual.

What is the purpose of taxation quizlet?

The principal purpose of taxes is to control economic conditions. generate revenue for funding government programs. Money received in the form of dividends or interest is commonly called “earned income.”

What does income tax basis mean?

A tax basis income statement includes the revenues and expense recorded for the period. The revenues minus the expense equal the company’s taxable income. Revenues that appear on the tax basis income statement only include payments received from customers.

What is the basis for depreciation?

Depreciation basis. Depreciation basis is the amount of a fixed asset’s cost that can be depreciated over time. This amount is the acquisition cost of an asset, minus its estimated salvage value at the end of its useful life.

What is tax basis?

Tax Basis. Tax basis, in the context of commercial real estate, is the original purchase price or cost of an investment property plus any out-of-pocket expenses or closing costs related to the acquisition of the property. Also known as “cost basis”.

What is a tax base?

A tax base is a total amount of assets or income that can be taxed by a taxing authority, usually by the government. It is used to calculate tax liabilities. This can be in different forms,…