.png "Philippines Other taxes payable by businesses (% of commercial profits)")
| Data: | Other taxes payable by businesses (% of commercial profits) | ||||||||
| Year: | 1960 - 2013 | ||||||||
| Country: | Philippines | ||||||||
| Source: | World Bank (the information in this section is direct quotation from World Bank development data) | ||||||||
| Series Code: | IC.TAX.OTHR.CP.ZS | ||||||||
| Topic: | Private Sector & Trade: Business environment | ||||||||
| Short Definition: | 0 | ||||||||
| Long Definition: | Other taxes payable by businesses include the amounts paid for property taxes, turnover taxes, and other small taxes such as municipal fees and vehicle and fuel taxes. | ||||||||
| Unit of Measurement: | 0 | ||||||||
| Periodicity: | Annual | ||||||||
| Base Period: | 0 | ||||||||
| Reference Period: | 0 | ||||||||
| Aggregation method: | Unweighted average | ||||||||
| Limitations and exceptions: | To make the
data comparable across countries, several assumptions are made about
businesses. The main assumptions are that they are limited liability
companies, they operate in the country's most populous city, they are
domestically owned, they perform general industrial or commercial activities,
and they have certain levels of start-up capital, employees, and
turnover. The Doing Business methodology on business taxes is consistent with the Total Tax Contribution framework developed by PricewaterhouseCoopers (now PwC), which measures the taxes that are borne by companies and that affect their income statements. However, PwC bases its calculation on data from the largest companies in the economy, while Doing Business focuses on a standardized medium-size company. |
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| Notes from original source: | 0 | ||||||||
| General Comments: | 0 | ||||||||
| Original Source: | World Bank, Doing Business project (http://www.doingbusiness.org/). | ||||||||
| Statistical concept and methodology: | The data
covering taxes payable by businesses, measure all taxes and contributions
that are government mandated (at any level - federal, state, or local), apply
to standardized businesses, and have an impact in their income statements.
The taxes covered go beyond the definition of a tax for government national
accounts (compulsory, unrequited payments to general government) and also
measure any imposts that affect business accounts. The main differences are
in labor contributions and value added taxes. The data account for government-mandated contributions paid by the employer to a requited private pension fund or workers insurance fund but exclude value added taxes because they do not affect the accounting profits of the business - that is, they are not reflected in the income statement. |
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| Development relevance: | Low ratios
of tax revenue to GDP may reflect weak administration and large-scale tax
avoidance or evasion. Low ratios may also reflect a sizable parallel economy
with unrecorded and undisclosed incomes. Tax revenue ratios tend to rise with
income, with higher income countries relying on taxes to finance a much
broader range of social services and social security than lower income
countries are able to. The total tax rate payable by businesses provides a
comprehensive measure of the cost of all the taxes a business bears. It
differs from the statutory tax rate, which is the factor applied to the tax
base. In computing business tax rates, actual tax payable is divided by
commercial profit. Taxes are the main source of revenue for most governments. The sources of tax revenue and their relative contributions are determined by government policy choices about where and how to impose taxes and by changes in the structure of the economy. Tax policy may reflect concerns about distributional effects, economic efficiency (including corrections for externalities), and the practical problems of administering a tax system. There is no ideal level of taxation. But taxes influence incentives and thus the behavior of economic actors and the economy's competitiveness. |
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