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    IM ACCO 20173 Business and Transfer Taxes Module 5 PDF

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    Makoy Bixenman
    The document discusses excise taxes under Philippine law. It begins by defining excise tax as a tax imposed on the production, sale, or consumption of specific goods and services, such as alcohol, tobacco, and fuel. Excise taxes are paid by the supplier or producer and included in the product's price. The document then outlines the types of excise taxes (specific and ad valorem), persons liable, time of payment, major taxable articles, and objectives of the module which is to understand excise tax provisions and computations.

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    IM ACCO 20173 Business and Transfer Taxes Module 5 PDF

    Uploaded by

    Makoy Bixenman
    110 views5 pages
    The document discusses excise taxes under Philippine law. It begins by defining excise tax as a tax imposed on the production, sale, or consumption of specific goods and services, such as alcohol, tobacco, and fuel. Excise taxes are paid by the supplier or producer and included in the product's price. The document then outlines the types of excise taxes (specific and ad valorem), persons liable, time of payment, major taxable articles, and objectives of the module which is to understand excise tax provisions and computations.

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    The document discusses excise taxes under Philippine law. It begins by defining excise tax as a tax imposed on the production, sale, or consumption of specific goods and services, such as alcohol, tobacco, and fuel. Excise taxes are paid by the supplier or producer and included in the product's price. The document then outlines the types of excise taxes (specific and ad valorem), persons liable, time of payment, major taxable articles, and objectives of the module which is to understand excise tax provisions and computations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    110 views5 pages

    IM ACCO 20173 Business and Transfer Taxes Module 5 PDF

    Uploaded by

    Makoy Bixenman
    The document discusses excise taxes under Philippine law. It begins by defining excise tax as a tax imposed on the production, sale, or consumption of specific goods and services, such as alcohol, tobacco, and fuel. Excise taxes are paid by the supplier or producer and included in the product's price. The document then outlines the types of excise taxes (specific and ad valorem), persons liable, time of payment, major taxable articles, and objectives of the module which is to understand excise tax provisions and computations.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 5

    Republic of the Philippines 

     
    ​P​OLYTECHNIC ​U​NIVERSITY OF THE P
    ​ ​HILIPPINES
    ​COLLEGE OF ACCOUNTANCY & FINANCE ​Taxation 2: LML / VGL / GSJ  

    MODULE 5: EXCISE TAXES

    OVERVIEW:

    Merchants or companies are subject to business taxes on their sales transactions


    or business transactions. The Government imposed business taxes under the provision of the
    Tax Code of the Philippines namely: Other Percentage Tax, Value Added Tax, Excise Tax and
    Documentary Tax. We have already discussed the OPT and VAT in the previous modules, and
    now, we will discuss the Excise tax.

    Excise taxes are internal taxes that are levied on the sale of specific goods and services,
    such as alcohol, fuel and tobacco. An excise tax is an indirect tax that is not paid by the
    customers directly — instead, the excise tax is imposed on the supplier or the producer, who
    then includes it in the product price.

    Excise taxes are imposed by the federal, state, and local governments. The taxes can
    either be applied as a percentage of the total cost of a product or service or as a fixed amount.
    For example, the excise tax on a vehicle is a percentage of the total cost while the excise tax on
    a tobacco and gasoline is a fixed amount.

    MODULE DURATION:
    • ​January 11-12, 2021 Synchronous Meeting and Asynchronous Learning. ​• ​For
    asynchronous learning inquiries, you may reach me through messenger
    group/personal message.

    MODULE OBJECTIVES:

    After successful Completion of this module, you should be able to:


    9. To understand the administrative provisions of Excise Taxes under the Tax Code
    10. Know the persons liable to file Excise tax returns
    11. Understand the classification and reasons for impositions of excise taxes.
    12. Enumerate the group / categories of articles / products subject to excise
    tax. 13. Computation of excise tax due.

    COURSE MATERIALS:

    DEFINITION:

    Excise Tax is a tax on the production, sale or consumption of a commodity in a


    country.

    APPLICABILITY:
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    ​P​OLYTECHNIC ​U​NIVERSITY OF THE P
    ​ ​HILIPPINES
    ​COLLEGE OF ACCOUNTANCY & FINANCE ​Taxation 2: LML / VGL / GSJ  

    • ​On goods manufactured or produced in the Philippines for domestic sale or


    consumption or for any other disposition; and
    • ​On goods imported.

    TYPES OF EXCISE TAX:

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

    MANNER OF COMPUTATION:

    1. Specific Tax = No. of Units/other measurements x Specific Tax Rate


    2. Ad Valorem Tax = No. of Units/other measurements x Selling Price of any specific
    value per unit x Ad Valorem Tax Rate

    MAJOR CLASSIFICATION OF EXCISABLE ARTICLES AND RELATED CODAL

    SECTION:​ 1. Alcohol Products (Sections 141-143)

    a. Distilled Spirits (Section 141)


    b. Wines (Section 142)
    c. Fermented Liquors (Section 143)

    2. Tobacco Products (Sections 144-146)

    a. Tobacco Products (Section 144)


    b. Cigars & Cigarettes (Section 145)
    c. Inspection Fee (Section 146)

    3. Petroleum Products (Section 148)

    4. Miscellaneous Articles (Section 149-150)

    a. Automobiles (Section 149)


    b. Non-essential Goods (Section 150)
    c. Non-essential Service (Section 150-A) - RA 10963 [TRAIN Law))
    d. Sweetened Beverages (Section 150-B)-(RA 10963 [TRAIN Law])

    214  

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    ​P​OLYTECHNIC ​U​NIVERSITY OF THE P
    ​ ​HILIPPINES
    ​COLLEGE OF ACCOUNTANCY & FINANCE ​Taxation 2: LML / VGL / GSJ  
    5. Mineral Products (Sections 151)

    PERSONS LIABLE TO EXCISE TAX:

    In General:

    a. On Domestic or Local Articles

    • ​Manufacturer
    • ​Producer
    • ​Owner or person having possession of articles removed from the place of
    production without the payment of the tax
    b. On Imported Articles

    • ​Importer
    • ​Owner
    • ​Person who is found in possession of articles which are exempt from excise taxes
    other than those legally entitled to exemption

    c. Others:

    On Indigenous Petroleum

    • ​Local Sale, Barter or Transfer


    ➢ ​First buyer, purchaser or transferee
    • ​Exportation
    ➢ ​Owner, lessee, concessionaire or operator of the mining claim

    TIME OF PAYMENT:

    In General

    A. On domestic products
    ➢ ​Before removal from the place of production
    B. On imported products
    ➢ ​Before release from the customs' custody

    Watch:
    https://www.youtube.com/watch?v=o-BWpkEdNPo
    https://www.youtube.com/watch?v=fDKbP15Xo5A

    215  

    Republic of the Philippines  


    ​P​OLYTECHNIC ​U​NIVERSITY OF THE P
    ​ ​HILIPPINES
    ​COLLEGE OF ACCOUNTANCY & FINANCE ​Taxation 2: LML / VGL / GSJ  

    REFERENCES:

    Book/E-book:
    ✓ ​Philippine Laws on Transfer and Business Taxes; 2018 edition by Dean Lilian M,
    Litonjua, CPA and Prof Virgilio G. Litonjua, CPA.

    Laws:
    ✓ ​Civil Code of the Philippines
    ✓ ​RA 10963 / New Tax Code of the Philippines
    ✓ ​RA 8424 National Internal Revenue Code

    Online resources:
    ✓ ​https://www.slideshare.net/flabert1/05-chapter-6-donors-tax  
    ✓ ​https://www.youtube.com/watch?v=aHoKhXo0spk&t=168s  
    ✓ ​https://www.slideshare.net/flabert1/05-chapter-6-donors-tax  
    ✓ ​https://www.youtube.com/watch?v=e6ZxIL_Mqj4  
    ✓ ​https://www.youtube.com/watch?v=EvlMZ3er4aQ  
    ✓ ​https://www.slideshare.net/flabert1  
    ✓ ​https://www.bir.gov.ph/index.php/tax-information/estate-tax.html 
    ✓ ​https://www.youtube.com/watch?v=NDBsp8cGl_8  
    ✓ ​https://www.youtube.com/watch?v=JT5gsGyPZqw  
    ✓ ​https://www.bir.gov.ph/index.php/tax-information/percentage-tax.html 
    ✓ ​www.bir.gov.ph  
    ✓ ​https://www.youtube.com/watch?v=o-BWpkEdNPo  
    ✓ ​https://www.youtube.com/watch?v=fDKbP15Xo5A 
    216  

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