Siargao Property Owners or Sellers

Welcome, Guest
Username: Password: Remember me

TOPIC: Is barter covered by income taxation?

Is barter covered by income taxation? 4 years 3 months ago #230

  • mssiargao
  • mssiargao's Avatar
  • OFFLINE
  • Administrator
  • Posts: 461
  • Karma: 0
Taxation Lesson 101

Is barter covered by income taxation?

Definitely.

Will there be an income tax due and payable?

It depends. Let me prove my point through this illustration: A has a book worth Php150 and B has a toy worth Php100. They entered into a barter transaction. There are two values to consider: VALUE RECEIVED (Amount realized) and VALUE PARTED WITH (adjusted basis).

On the part of A, the value received is Php 100 and the value parted with is Php150. Thus, A incurred a loss of Php50. Consequently, there will be no income tax liability.

On the part of B, the value received is Php150 and the value parted with is Php100. Thus, B earned a gain of Php50. This gain, however, will not result to any tax payable because the TRAIN Law exempts net income in the amount of Php250,000 or less from income tax.

Business tax imposition and registration are other issues.

Now, let us discuss these more interesting topics through these questions: (1) Are individuals who entered into a barter agreement required to register with the DTI and pay business taxes (Other Percentage Tax or Value-added Tax) to the BIR? (2) Are they required to secure business permits from the local government unit?

If these individuals are not habitually engaged in barter or sale transactions, then it is undeniable that they are not required to secure business permits and to register with the DTI and the BIR. Resultantly, they are not required to pay business taxes (OPT or VAT) to the BIR and local business taxes to the local government unit. After all, the word "business" is defined under the law as "trade or commercial activity regularly engaged in as a means of livelihood or with a view to profit."

This opinion is based on the general facts presented above. If your case is different from the facts presented in this opinion, I suggest you consult a lawyer.


barter-siargao-philippines.png



source: www.facebook.com/celvenacarantes/posts/3671930809501881
The administrator has disabled public write access.
Time to create page: 0.090 seconds
Powered by Kunena Forum

LATEST BUY & SELL

Siargao Road Bike For Sale
(HOBBIES AND CRAFTS / Sports and Hobbies)

Siargao Road Bike For Sale

Siargao LED WALL For Rent
( / ELECTRONICS)

Siargao LED WALL For Rent

350 SQM House and Lot Near Beach And Tourism Road GL Siargao
(SERVICES / Real Estate Services)

350 SQM House and Lot Near Beach And Tourism Road GL Siargao

Surigao Web Developers and Mobile Android App
(SERVICES / Information Technology and Computer Service)

Surigao Web Developers and Mobile Android App

COMING TO SIARGAO

 siargao island tours and properties for sale
Updated TRAVEL REQUIREMENTS in the Province of Surigao del norte  / Siargao Island
NO S-PASS NEEDED
Just present any of the Following
- Vaccination Card
- Negative RT-PCR  Test Result
- Negative ANTIGEN Test Result

FACEBOOK