BUSINESS TAX
imposed upon onerous transfers; transfer with consideration.
Business Taxes
regular conduct or pursuit of commercial or an economic activity, including transaction incidental thereto.
Ordinary Course of trade of Business
on the sale itself.
Business Tax
on income derived from sale.
Income Tax
a non-resident foreign person shall be considered as being rendered in the course of trade or business even if the performance is not regular
Isolated Transaction
taxes on gratuitous transfer
Transfer Taxes
transfer without consideration; donation.
Gratuitous Transfer
Donor’s tax - transfer of property between two or more living individuals.
Inter Vivos Transfer
Estate tax - deceased person’s right to pass their estate on legal heirs.
Mortis Causa Transfer
mode of acquisition by virtue
Succession
person are transmitted through his death to another or other by his will.
Succession
general term to the person whose property are transmitted through succession, whether he left a
will or not.
Decedent
if he left a will
Testator
3 Types of Succession:
Testementary or Testate, Legal or Entestate, Mixed Succession
type of succession that results from the designation of an heir
- made in a will executed in the form prescribed by law
Testementary or Testate
effected by operation of law
Legal or intestate
effected by partly “will” and by the operation of law.
Mixed Succession
Art. 775 Civil Code
Decedent
Art. 776 Civil Code
Inheretance
person called to the succession either the provision of the will or by the operation of the law
Succesor
3 elements of Succession
Decedent, inheretance, Succesor
those who succeed by force of law to some portion of inheritance, in an amount
predetermined by law, known as the legitime.
Cumpulsory Heirs
those who have precedence over and exclude other compulsory heirs; legitimate children and
descendants.
Primary
succeed only in the absence of the primary compulsory heirs; legitimate parents and
ascendants.
Secondary
succeed together with the primary or secondary compulsory heirs; illegitimate children and
descendants and surviving spouse.
Concurring
instituted by the testator in his will to succeed to the inheritance of the portion.
Voluntary Heirs
portion or value left in the estate after deducting the legitime of the compulsory heirs.
Free Portion
succeed to the estate of the decedent by operation of law.
Legal or Instate Heirs
person is permitted, with formalities prescribed by law, to control a certain degree the disposition of
his estate to take effect after his will.
Will
executed in accordance with the formalities prescribed by Article 804 to
808 of the new civil code.
Notarial or Ordinary
written will must be entirely written, dated and signed by the hand of the testator himself.
Holographic
a testamentary disposition by which a compulsory heir is deprived, or excluded from the inheritance to which he has right.
Disinheretance
a person designated in the last will and testament to carry out the provision of the
decendent’s will.
Executor
a person appointed by the court and performs the same duty, in lieu of the executor.
Administrator