The Tax Reform Act Of 1997

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There are only two things assured in this world: death and taxes. Whether you’re a corporate employee or an entrepreneur, you will have to pay your taxes. For every entrepreneur, taxation is a very crucial factor in their financial investment’s decision making process because the lower the tax burden the higher the revenue which equivalently paid out in forms of wages and salaries or dividends (Lynn, 2015).
The word tax comes from the latin word taxo which means I estimate. It varies from different countries and how they are paid. In the Philippines, taxes can be grouped to national taxes and local taxes. National taxes are those based on the Tax Reform Act of 1997 also known as the Republic Act No. 8424. The Tariff and Custom Code of the Philippines which levied the import and export tariffs (Republic Act No. 1937) may be considered as a national government tax.
Under this group, we have the capital gain tax, documentary stamp tax, donor’s tax, estate tax, income tax, percentage tax, value added tax and excise tax. A capital gain tax is a tax imposed on the earnings of a seller has gained from the sale of his/her capital assets (Castillo, 2015). In identifying the capital assets, we need to understand that the word capital assets mean property held by the taxpayer (Tax Code Section 39). Documentary stamp tax is an excise tax levied on documents, instruments, loan agreements and paper evidencing the acceptance, assignment, sale or transfer of an obligation, rights, or
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