proper computation of community tax certificate for business like meat vendor

Gud day, tanong ko lang po kung paano ang tamang computation sa community tax certificate, ito po kasing nabasa ko "Community Tax Certificate computed at P5.00 basic tax and additional P1.00 for every P1,000.00 gross receipts or earnings derived from business during the preceding year, additional P1.00 for every P1,000.00 salaries or gross receipt or earnings derived from exercise of profession or pursuit of any occupation and additional P1.00 for every P1,000.00 income from real property. Bear in mind that additional community tax shall not exceed P5,000.00."

Ang pagkakaintindi ko kc kapag involve ka sa selling of goods like sakin na meat vendor ang basis ng computation ay earnings not the gross sales, ang term na gross receipts ay para naman sa business na involved ay services. Kaya kung earnings ang basis (total sales less cost of sales ) muna bago idivide sa P1,000.00 para makuha ang babayaran.

Dito kc sa City Treasurer's Office namin kinukuha lang lahat ng sales namin at divide sya sa P1,000.00 at un na ang pinababayaran samin plus ung basic na P5.00 kaya naman ung maximum na P5,000.00 lagi ang binabayaran dahil malaki nga naman ang total sales for 1 year pero hindi naman ito mismo ang kita na namin. Dagdag pa dito ang local business tax na base talaga sa gross sales.

Good day!

Tama naman ang computation, Gross receipts talaga ang basis sa additional tax. Pag sinabing gross receipts, income derived from sale of goods or services excluding its cost.

Gross sales - cost of sales = NET SALES. Yun lang po

Thanks ran2x, so ibig sabihin mali ang practice ng city treasurer's office namin na hindi na ibinabawas ang cost of sales para sa computation ng additional tax para sa community tax certificate. Base na lang sila sa sales dahil meron naman silang information regarding sa sales namin dahil lahat ng baboy na kinakatay ay dumadaan sa slaughter house na owned ng local government.

what i mean, tama ang computation ng city treasurer's office. Gross sales ang basis hindi ang net sales. Yung cost of sales ay hindi na ibabawas.

sa article 6, kc ng loc. gov't code ang nakalagay ay ito
"SEC. 157. Individuals Liable to Community Tax. - Every inhabitant of the Philippines eighteen (18) years of age or over who has been regularly employed on a wage or salary basis for at least thirty (30) consecutive working days during any calendar year, or who is engaged in business or occupation, or who owns real property with an aggregate assessed value of One thousand pesos (P=1,000.00) or more, or who is required by law to file an income tax return shall pay an annual community tax of Five pesos (P=5.00) and an annual additional tax of One peso (P=1.00) for every One thousand pesos (P=1,000.00) of income regardless of whether from business, exercise of profession or from property which in no case shall exceed Five thousand pesos (P=5,000.00). In the case of husband and wife, the additional tax herein imposed shall be based upon the total property owned by them and the total gross receipts or earnings derived by them."

kapag term na income ang ginamit diba wala na dyan ang cost of sales. Hindi naman gross sales ang nakalagay kundi income, earnings at gross receipts. Income & Earnings lahat yan excluded ang cost kagaya nung unang sabi mo, whether from business, exercise of profession or from property.

Ang gross receipts naman ay para sa sales of services, oo gross sya pero iba ang gross receipts vs gross sales, gross sales para sya sa selling of goods na included ang cost of sales, ang gross receipts naman ay para nga sa services na wala namang cost of sales dahil services mo nga o ung skills mo ang ginagamit mo.

ran2x, di ba ang sabi mo excluded ang cost bakit gross pa rin ang gagamitin mo.

ang pagkakaintindi ko kasi, iba ang term na gross sales vs gross receipts, gross sales pertains to selling of goods while gross receipts pertains to selling of services.

At ang ginamit na term sa provision ng LGC ay income, earnings at gross receipts, hindi isinama dun ang gross sales.

ran ran is correct. pag gross, wala ho iyang deduction

Gross Sales - seller of goods
Gross Receipts - seller of services/ service providers

for tax purposes, gross sales for seller of goods is equal to gross sales less cost of sales. (sa accounting, eto yun net sales)

gross receipts for seller of services = gross receipts (as the term suggests)

hi bbyrth, now lang nakabasa uli nitong query ko noon, kaya pasensya na po kung may karugtong pa na explanation. Clear naman po sakin ang:

Gross Sales - seller of goods
Gross Receipts - seller of services/ service provider

Kapag balikan nyo po provision sa Local Government Code ang term na ginamit ay Gross Receipts or Earnings. Kaya kung ito ginamit since selling of goods ang activity ko, gross sales dapat pero ang nakalagay nga po ay Gross Receipts or Earnings, kaya para sa akin ang applicable sakin ay earning at hindi gross receipts

kapag binabasa ko kc Scope & Limitation of Power of taxation, palagi ko nababasa ang FAIR, UNIFORMITY & JUST. Kung yung mga nasa services ang cost nila sa pagprovide ng services ay ang talent nila at lahat ng receipts or nasingil nila sa client nila ay take home na nila since sila din naman na nagprovide ng services at wala naman ng cost sa kanila, ibig sabihin wala ng outflow ng pera on their part kaya sa kanila na iyon. Unlike sa selling of goods ang activity mo na meron ka pang cost of sales bago makuha ang net sales, hindi ba mukhang hindi na sya fair & just. Selling of Services na ang basis ay Gross Receipts. Selling of Goods na nagiging basis ay Gross Sales na pagtiningnan mo sa LGC ay hindi naman Gross Sales kundi Gross Receipts.