Summary of Percentage Taxes and Excise Taxes, Including Donor's Taxes

Rate| Description| 1/2 of 1% (0.005)| * PT /Final tax on shares sold in Local Stock Exchange| 0%| * Dividends/equity shares in Net Income of Subsidiaries| 1%| * IPO on share of stock over 33 1/3% * GR Tax on Banks, on interests, commissions and discounts with Maturity Period of More than 5 Years| 2%| * IPO on share of stock (25-33 1/3%) * Gas and water franchises| 3%| * PT on Domestic Carriers and Keepers of Garages (Quarterly) (Sec. 117) * International Air/Shipping Carriers (per quarter) (Sec. 118) * Radio/Television Broadcasting Company, not exceeding P10M (Sec. 119) * Non-VAT Taxpayer whose GR not exceeding P1.5M (Sec. 109I)| 4%|

* IPO on share of stock up to 25% * Winning in Horse races (double, forcastiquinella, trifecta)| 5%| * Insurance Premiums (except purely cooperative companies/org) doing life business in Phils. * Nonlife insurance (direct purchase by property owner)| 5%| * GR Tax on Banks, on interests, commissions and discounts with maturity period of 5 years or less| 7%| * Royalties, rentals of property, real or personal profit from exchange * On net trading gains within the taxable year on foreign currency, debt securities, derivatives and other similar fin. Instruments| 10%| * GR for Services Rendered by Overseas Dispatch, message, conversation originating from the Philippines * Boxing exhibitions * Amusement Tax on Horse race winnings * Nonlife insurance from foreign companies not authorized to transact business in the Philippines Through an authorized agent| 15%| * Professional Basketball games|

18%| * Cockpits| 30%| * Jai-alai and Race tracks| Notes: * Domestic Carriers taxed at 3% PT, but not lower than Minimum Quarterly GR | Areas of Business Operations| | Cities| Provinces| Jeepney for Hire| P65,700| P32,900| PUB| | | Lower than 30 passengers| P98,600| P98,600| 31-49 pass| P164,200| P164,200| 50 and up| P197,100| P197,200| Taxi| P98,600| P65,700| Car for hire (with chauffeur)| P82,100| P82,100| Car for hire (w/o chauffeur)| P49,300| P49,300| Based on Revenue Regulations 9-2007, BIR * Other Franchises-subject to 12% VAT * PT on life insurance exemption-refunded within 6mos; premiums collected from Phils. From non-resident persons * 12% VAT on Nonlife insurance if acquired from domestic/foreign companies authorized to transact business in the Phils. * 12% VAT on Night/Day clubs

* Pre-Termination, the maturity period shall be reckoned to end as of the date of pre-termination for purpose of classifying the transactions and applying the correct rate of tax * Closely-held corporations, any corporation at least 50% in value of the outstanding capital stock or at least 50% of the total combined voting power of all classes of stock entitled to vote is not more than 20 persons. * Overseas dispatch exemption on amounts paid by

* Gov’t of the Phils, pol. Subdivisions, instrumentalities * Embassies, consular offices (foreign gov’t) * Public Int’l org based in the Phils * Press, whether print, broadcast, e-media to other press assoc. which messages deal exclusively with collection of news items. Legend: VAT-Value-added Tax IPO-Initial Public offering GR- Gross receipts PT-Percentage Tax PUB-Public utility bus/es

Double- winning number for two consecutive races Forcastiquinella- winning numbers for 1st and 2nd in a race Trifecta- Winning numbers for 1st, 2nd and 3rd in a race

EXCISE TAXES -imposed on harmful or non-essential goods manufactured or produced in the Philippines for domestic sale, consumption, or for any other disposition including imported goods.

Terms and their meaning Distilled Spirits- refers to substances known as ethanol or spirits of wine, including all dilutions, purification and mixtures thereof, from whatever source and process. Proof Spirits- liquors containing ½ of its volume of alcohol for a specific gravity of 0.7939 at 150C. Proof Liter- liter of Proof Spirits

Fermented Liquor- Alcoholic Beverages produced by fermentation without distillation of grains or malt, which include beer, lager, ale porter or other similar products, excluding tuba, basi, tampoy and or other domestic fermented liquor. Cigars- all rolls of tobacco or any substitute thereof, wrapped in leaf tobacco. Cigarettes-

Retail Price- is amount which an ultimate consumer or end user pays for the product. Automobiles- any four-wheeled vehicle regardless of seating capacity. Minerals- all naturally-occurring inorganic substances, whether solid, liquid, and gaseous or any intermediate state. Mineral Products- things produced and prepared in a marketable state by simple treatment process as washing and drying, without chemical change. Quarry resources-any common stone or other common mineral resources declared by the director of the Mines and Geosciences Bureau, like, marble, granite, volcanic cinders, basalt, tuff and rock phosphate.

EXCISE TAX RATES Amount| Description| 1 1/2%| Copper on the 4th and 5th year of removal| 1%| Copper on the first 3 years upon effectivity of RA 7729| 2%| * Copper at the 6th year of removal and after * Gold and Chromite| 2% on actual MV of Gross Output at the removal time| Nonmetallic/quarry resources| 3%| Fair International market price on indigenous petroleum| 10% | Excise tax on CigarsNRP: P500 or less|

20%| Non-essential Goods[4]| P0.05/L| * Processed gas * Denatured Alcohol used for motive power| P0.56/kg| Asphalt| P10/Metric Ton| Coal and Coke| P126 Per proof liter| EXCISE TAX if produced from raw materials.NRP- Less than P250 per bottle of 750 ml[1]| P252 Per proof liter| EXCISE TAXNRP- P250 to P675 per 750ml[1]| P3.50/kl| Waxes and Petrolatum|

P3.67/L| Aviation Turbo Jet Fuel| P4.35/L| Naptha, regular gasoline and other similar products of distillation| P4.50/L or P4.50/kl| Lubricating oil and greases[3]| P5.35/L| Leaded Premium Gasoline| P50 + 15% in excess of P500| Excise tax on CigarsNRP: P500 and above| P504 Per proof liter| EXCISE TAX Per proof liter more than P675 per 750ml[1]| P1.00| Tobacco per kilo[2]| P2.00 per pack| Jan. 1, 2005 Cigarettes packed by hand| P2.23 per pack| Jan. 1, 2007 Cigarettes packed by hand| P8.27| Fermented liquorRetail Price: Less than P14.50/L| P12.30| Fermented liquorRP: P14.50-P22.00/L| P16.33| Fermented liquorRP: P22.00 and above/L| P17.47| Still wine containing 14% Alcohol or less| P2.47 per pack| Jan. 1, 2009 Cigarettes packed by hand| P145.60 Per proof liter| Sparkling wine/champagne Price- P500 and less| P11.65 Per proof liter| EXCISE TAX produced from nipa sap, coconut, cassava, camote, buri palm, or from juice or syrup of sugar cane.| P2.72 per pack| Jan. 1, 2011 Cigarettes packed by hand|

P0.79| Tobacco per kilo specially prepared for chewing only| P436.80 Per proof liter| Sparkling wine/champagne Price- P501 and above| P34.94| Still wine containing 14%-25% alcohol per volume| TAXES ON AUTOMOBILES Table

Manufacturer’s/Importer’s Selling Price, Net of Excise and VAT| Tax Rate| Up to P600,000| 2%| Over P600,000 to P1,100,000| P12,000 + 20% of the value of the excess of P600,000| Over P1,100,000 to P2,100,000| P112,000 + 40% of value of the excess of P1,100,000| Over P2,100,000| P512,000 + 60% of the value in excess of P2,100,000| Note:

[1] If produced from raw materials other than nipa sap, coconut, cassava, camote, buri palm, or from juice or syrup of sugar cane, the excise tax shall be in accordance with the net retail price per bottle of 750 mL. [2]The following shall be considered:

1. Tobacco twisted by hand, reduced into a condition to be consumed other than drying and curing 2. Tobacco prepared or partially prepared with/without the use of any machine or instrument or without being pressed or sweetened 3. Fine-cut shorts and refuse, scraps, clippings, cuttings, stems and sweepings of tobacco. CIGARETTES PACKED BY MACHINE

Retail Price per pack(excluding VAT & Excise Tax)| Excise tax Per pack| | 2005| 2007| 2009| 2011| Below P5.00| P2.00| P2.23| P2.27| P2.52| P5.00 up to P6.50| P6.35| P6.74| P7.14| P7.56| Over P6.50 to P10.00| P10.35| P10.88| P11.43| P12.00| Over P10.00| P25.00| P26.06| P27.16| P28.30|

[3] Provided that any excise tax paid on feedstock/bunker used in the manufacture of excisable article and forming part thereof shall be creditable against the excise tax due therefrom; Lubricating oil and greases produced from base stocks and additives on which the excise tax has already been paid shall no longer be paid; Locally produced or imported oils previously taxed as such but subsequently reprocessed, refined or recycled shall likewise be subject to excise tax. [4] Non-essential goods includes the following:

1. Jewelry (real/imitation), pearls, precious/semi-precious stone and imitations, ivory (except surgical/dental instruments, silverwares, frames, or mountings for eyeglasses, and dental gold/gold alloys and other precious metals used for filling, mounting or fitting of teeth) opera glasses and lorgnettes. 2. Perfumes and toilet waters

3. Yachts and other vessels intended for pleasure or sports

donor’s Tax

Donation- act by gratuitously transferring property or rights motivated by the liberality of the giver (donor) in favor of the receiver (donee) who accepts it. Donation Mortis causa- Death of the donor

Donation Inter-vivos- lifetime of the donor Essentials of Donation 1. Capacity of the Donor 2. Donative intent 3. Delivery of the gift 4. Acceptance of the donee Gross gift: GROUP OF DONOR’S AND TAXABLE DONATIONS Donor| Gross Gifts Location| | Within| Outside| A. Citizen or resident| | | * Real Property| Taxable| Taxable| * Tangible Personal Property| Taxable| Taxable| * Intangible Personal Property| Taxable| Taxable| B. Nonresident Alien| | | * Real Property| Taxable| None| * Tangible Personal Property| Taxable| None| * Intangible Personal Property| Taxable| None| Reciprocity-applicable only on intangible personal property within the Philippines and is owned by a nonresident alien Conjugal donation- husband/wife cannot transfer by virtue of sale or donation any conjugal or community property without the consent of the other. Donations made during the marriage are void, and not subject to donor’s tax VALUATION:

Cash gifts- face amount Personal Property- FMV Real Property- (Assessed MV vs. FMV determined by BIR), higher Deductions from gross gift Deductible items| Classification of Donors| | Citizen or Resident| Nonresident Alien| 1. Dowries, P10,000 deduction| Deductible| Not| 2. Encumberances| Deductible| Deductible| 3. Diminution| Deductible| Deductible| 4. to Government| Deductible| Deductible| 5. to NGO| Deductible| Deductible| Dowries- gift to the children of conjugal property Encumberances- claim/liability attached to a property Diminution- decrease in value of property donated as a result of a condition made by the donor to the donee Donation to the Government- exempted from donor’s tax Donation to NGO- exempted, provided that not more than 30% of the said donation shall be used for administrative purposes. Destroyed donations- donor is still liable to pay the donor’s tax. Donations exempted from Donor’s Tax

I. First P100,000 of the net gift for every year II. Donations given to the following organizations a. Ramon Magsaysay Award Foundation b. Philippine Inventor’s Commission c. Phil-American Cultural Foundation d. International Rice research Institute e. Integrated Bar of the Philippines f. Development Academy of the Philippines g. National Museum, National Library, archives of National Historical Institute h. National Social Action Council i. Southern Philippines Development Administration j. Task force on Human Settlement k. Intramuros Administration l. Irrevocable donations acquired under the Laurel-Langley Agreement; charitable/scientific organizations like PNRC, Community Chest, BSP, Philippine Heart Foundation m. Aquaculture Department of the Southern Asian Fisheries Development Center of the Philippines n. Museums of Phillippine Costumes

o. Donations of foreign origin to international civic organizations, or institutions for civic, religious, or charitable purposes p. Gratuitous transfers by a religious corporation to its local branch. Gift to a parish priest- not exempt from gift tax.

Computation of the Donor’s Tax | RELATIVE| STRANGER| 1ST GIFT| | | Gross Gift| | | Less: Deductions| | | Net Taxable Gift| | | Donor’s Tax rate| | X 30%| Tax Due| P| P|

SUBSEQUENT GIFT

Donor’s Tax on aggregate Net Gift