Article on Economics

Topics: Unemployment, Tax, Income tax Pages: 5 (1200 words) Published: October 2, 2013
Types of Taxation in the Philippines

Capital Gains Tax is a tax imposed on the gains presumed to have been realized by the seller from the sale, exchange, or other disposition of capital assets located in the Philippines, including pacto de retro sales and other forms of conditional sale.

Documentary Stamp Tax is a tax on documents, instruments, loan agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation, rights, or property incident thereto.

Donor's Tax is a tax on a donation or gift, and is imposed on the gratuitous transfer of property between two or more persons who are living at the time of the transfer.

Estate Tax is a tax on the right of the deceased person to transmit his/her estate to his/her lawful heirs and beneficiaries at the time of death and on certain transfers which are made by law as equivalent to testamentary disposition.

Income Tax is a tax on all yearly profits arising from property, profession, trades or offices or as a tax on a person’s income, emoluments, profits and the like.

Percentage Tax is a business tax imposed on persons or entities who sell or lease goods, properties or services in the course of trade or business whose gross annual sales or receipts do not exceed P550,000 and are not VAT-registered.

Value Added Tax is a business tax imposed and collected from the seller in the course of trade or business on every sale of properties (real or personal) lease of goods or properties (real or personal) or vendors of services. It is an indirect tax, thus, it can be passed on to the buyer.

Withholding Tax on Compensation is the tax withheld from individuals receiving purely compensation income.

Expanded Withholding Tax is a kind of withholding tax which is prescribed only for certain payors and is creditable against the income tax due of the payee for the taxable quarter year.

Final Withholding Tax is a kind of withholding tax which is prescribed only for certain payors and is not creditable against the income tax due of the payee for the taxable year. Income Tax withheld constitutes the full and final payment of the Income Tax due from the payee on the said income.

Withholding Tax on Government Money Payments is the withholding tax withheld by government offices and instrumentalities, including government-owned or -controlled corporations and local government units, before making any payments to private individuals, corporations, partnerships and/or associations.

Insights about the taxation in the Philippines:

Types of Employment

Full-time
Full-time employees work on a regular weekly basis and are expected to work a full week.

Part-time
Part-time employees usually work on a regular ongoing basis. They are paid on a pro rata basis. They are entitled to the following:

annual, personal, sick leave and carer's leave;
to be paid for public holidays falling on days on which they would otherwise be working; and •long service leave and bereavement leave.

Fixed term or contract
Fixed term or contract employees are hired for a fixed period of time, for example, for a specific project, or to replace an employee on sick leave or parental leave. You should provide the employee with an agreement in writing that sets out the length of the employment contract. Fixed term employees are entitled to the same annual, personal and other leave entitlements as full-time employees, but on a proportional basis for the period of their employment.

Apprenticeships and traineeships
Apprentices are generally training to be tradespeople, while trainees are generally learning the skills of a non-trade occupation. Both involve:

a registered training agreement;
practical work;
learning skills on and off the job
rates of pay covered by an award or agreement

Types of Unemployment

Frictional Unemployment
The easiest type of unemployment to explain is known as frictional unemployment. Frictional...
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