Classification of Taxes

A. As to subject matter of object
1) personal, poll, capitation tax –
(a) fixed amount
(b) individuals residing within specified territory
(c) without regard to their property,occupation or business Ex. Community Tax (Cedula)
2) property tax –
(a) imposed on property, real or personal
(b) in proportion to its value or other reasonable method of apportionment Ex. Real estate tax
3) excise, privilege tax - (different from the excise tax in Taxation II)
(a) imposed upon performance of an act, the enjoyment of a privilege or the engaging in an occupation, profession or business Ex. Income tax, VAT, estate tax, donor’s tax

B. As to who bears the burden
1) Direct – the tax is imposed on the person who also bears the burden thereof Ex. Income tax, community tax, estate tax
2) Indirect – imposed on the taxpayer who shifts the burden of the tax to another Ex. VAT, specific tax, percentage tax, customs duties

C. As to determination of amount
1) Specific – tax imposed and based on a physical unit of measurement, as by head, number, weight, length or volume Ex. Tax on distilled spirits, fermented liquors, cigars
2) Ad Valorem - tax of a fixed proportion of the value of property with respect to which the
tax is assessed; requires intervention of assessor. Ex. Real estate tax, excise tax on cars, nonessential
goods

D. As to purpose
1) General, fiscal or revenue - imposed for the general purpose of supporting the government
Ex. Income tax, percentage tax
2) Special or regulatory - imposed for a special purpose, to achieve some social or economic objectives
Ex. Protective tariffs or customs duties on imported goods intended to protect local industries

E. As to authority imposing the tax
1) National - imposed by the national government Ex. National internal revenue taxes, custom duties
2) Municipal or local - imposed by the municipal corporations or local governments Ex. Real estate tax, occupation tax

F. As to graduation of rate (Three systems of
taxation)
1) Proportional - based on a fixed percentage of the amount of the property, income or other basis to be taxed Ex. Real estate tax, VAT, percentage tax
2) Progressive or graduated - tax rate increases as the tax base or bracket increases
Ex. Income tax, estate tax, donor’s tax
3) Regressive - tax rate decreases as the tax base increases
4) Degressive - increase of rate is not proportionate to the increase of tax base