The 3 Common Taxes that YOU need to KNOW.

The common Taxes, applicable to taxpayer, that you need to know are (1) Value Added Tax (VAT) or Percentage Tax (PT), (2) Expanded Withholding Tax (EWT), and (3) Income Tax.

However, additional taxes may apply if there are related transactions such as the following:

(1) Withholding Tax on Compensation (WTC) or most commonly know as BIR 1601C);

(2) Final Withholding Tax (FWT). This tax is applicable, for example, payments to foreign countries, dividends, royalties and other transactions subject to final tax;

(3) Fringe Benefits Tax (FBT). This tax is applicable to fringe benefits given to officers of the company.

(4) Documentary Stamp Tax (DST) that are imposed for contracts, etc.

The following table will guide you in determining the type of taxes applicable to specific taxpayers.

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