Basic Competency on Local

Treasury Examination

Sample Problem Computations

 Problem 1
The following data taken from
the property of Mr. Assissimo: Compute the assessed
value of the land?
Real Property:
Residential Land
Location: Solution:
City
Assessed Value of
Collection Agent:
City Treasurer’s Office
Land
Fair Market Value: =Php 1,500,000 x 20%
Php 1,500,000
=Php 300,000
Improvements Value:
Php 200,000
Assessment Level:
20%
 Problem 2
The following data taken from
the property of Mr. Assissimo:
Compute the assessed value
of the improvements?
Real Property:
Residential Land
Location:
City
Collection Agent: Solution:
City Treasurer’s Office Assessed Value of
Fair Market Value: Improvements
Php 1,500,000
Improvements Value: = Php 200,000 x20%
Php 200,000 = Php 40,000
Assessment Level:
20%
 Problem 3 Compute the basic property tax and
The following data taken from SEF for land?
the property of Mr. Assissimo:

Real Property: Solution:

Residential Land Basic Tax
Location: =Php 300,000 x 2%
City = Php 6,000)
Collection Agent:
City Treasurer’s Office SEF
Fair Market Value: =Php 300,000 x 1%
Php 1,500,000 = Php 3,000
Improvements Value:
Php 200,000 Tax Due
Assessment Level: = Php 6,000+ Php 3,000
20% = Php 9,000
 Problem 4 Solution:

A real property of Mr. A. Basic Tax

Dolar with an assessed Php 500,000 x 2% =10,000
value cost Php 500,000 in
City like to pay its SEF Tax
quarterly installment for Php 500,000 x 1%= 5,000
real property tax.
Tax Due
What is the amount due, if =Php 15,000 x 20% discount
the owner pays his annual =Php 3,000 advancement payment
tax due in the preceding
year dated Dec. 25. Real Property Tax Due
=Php 15,000-3,000=
Php 12,000
 Solution:
Problem 6

Province:
Compute the General 200,000,000 x 23%
Allocation of Annual
=46,000,000
Internal Revenue due the
Local Government unit
among City:
200,000,000 x 23%
Provinces,
=46,000,000
Cities,
Municipalities
Municipality:
and Barangay worth 200,000,000 x 34%
=68,000,000
Php 200,000,000. Barangay:
200,000,000 x 20%
=40,000,000
 Problem 7

What is the local

development project Solution:
allocation for City, if
the amount is
150,000 x 20%
Php 150,000.
= Php 30,000
 Problem 8

What is the business

tax for printing and Solution:
publication if Mr. C. 50% of 1% of the annual
Dolar company has an gross receipts
annual gross receipts
of Php 400,000. Php 400,000 x 1%
= Php 4,000 x 50%
The business is located = Php 2,000
at the Province.
 Problem 9

What is the business

tax for printing and Solution:
publication if Mr. E. 75% of 1% of the annual
Dolar company has an gross receipts
annual gross receipts
of Php 400,000. Php 400,000 x 1%
= Php 4,000 x 75%
The business is located = Php 3,000
at the City.
 Problem 10

Credit card companies fall within the

purview of banks and other financial
institutions contemplated under Section
143 (f) of R. A. No. 716 or the Local
Government Code of 1991, and therefore Solution:
may be subject to business taxes at the rate
50% of 1% on the gross receipts upon
enactment of the appropriate ordinance by Php 13,7000.000 x 1%
the local government unit concerned .
= Php 137,000 x 50%
Based on the statement above related to = Php 68,500.00
credit card tax payable.

Using the tax rate, compute the tax due of

TD Credit Cards Supplier, Inc. having a gross
receipt from the preceding year amounted
to Php 13,700,000.00
 Problem 11
A province or city, or a municipality Solution:
within the MMA may levy an annual
tax on idle lands at a rate not Idle Land Tax
exceeding 5% of the assessed value of Php 300,000.00 x 0.05
the property which shall be in addition
= Php 15,000.00
to the basic RPT.

Compute a real property in the

Province owned by TD being idle for Basic Tax
so many years. Php 300,000.00 x 0.01
= Php 3,000
Recent assessment on the said
property has an assessed value of Php Total RPT Due:
300,000.00.
Php 3,000+ 15,000
=Php 18,000
What is the idle land tax?
Problem 13

Mangoosteen Grand Hall had an

entertainment activity particularly a Solution:
Kpop Concert performed by Fanatics of
Kpop Filipino artists, 3,000 tickets were Php 3,000 x 200.00
sold out from all ticket booth, each = Php 600,000 x 10%
ticket costs Php 200.00.
= Php 60,000

Compute the amusement tax payable

Sharing:
and illustrate the sharing of proceeds.
50%= 30,000 City
50%= 30,000 Province
Problem 12

A province, city or municipality within the MMA

may impose a tax on the sale, donation, barter, or
any other mode of transferring ownership or title
Solution:
of real property at the rate of not more than
50% of 1% in the case of a province and
75% of 1% in the case of a city or a municipality Php 3,500,000 x 0.01
in MMA of the total consideration involved in the
acquisition of the property or of the FMV in case
= Php 35,000 x 0.75
the monetary consideration involved in the = Php 26,250.00
transfer is not substantial, whichever is higher.

ATD a real estate mogul bought a land property

for his housing project City , the land has a
purchased value of Php 3,500,000.00.

Compute the tax on transfer of real property

ownership of ATD.
Problem 14

Solution:
Mr. ATD, a private employee needs to
get his Community Tax Certificate as
requirements to his application for Php 15,000 x 12
loan; he receives a monthly salary of = Php 180,000/1,000
Php 15,000, annual salary of Php = 180.00
180,000 . plus Php 5.00 basic tax

Compute the amount of tax due of Mr. Php 180.00 plus 5.00
ATD, as he paid on February 27.
= Php 185.00
Problem 15
Solution:
Php 15,000 x 12
Mr. ATD, a private employee needs to = Php 180,000/1,000
get his Community Tax Certificate as = 180.00
requirements to his application for plus Php 5.00 basic tax
loan; he receives a monthly salary of
Php 15,000, annual salary of Php Php 180.00 plus 5.00
180,000 . = Php 185.00

Compute the amount of tax due of Mr.

A. Dolar, as he paid dated August 28. Php 185.00 x 16% penalty
= 29.60 (2 % per month
beginning January to August )
==Php 185.00 plus 29.60
= Php 214.60
Problem 16
Solution:

Aldro, Inc. likes to get its Community Php 2,800,000/5,000

Tax Certificate as requirements to his
= 560.00 x 2.00
application for business loan the
company receives annual gross receipts = 1,120.00 plus Php
of Php 2,800,000. 500.00 basic tax

Php 1,120 plus 500.00

Compute the amount of tax due for = Php 1,620.00
Aldro, Inc. dated January 18.
Problem 17
Solution:

Compute the tax payable for a store in

a barangay business establishment
Php 47,000.00 x 1%
located in the City.
= Php 470.00

The amount of gross sales from last

year’s gross income was Php 47,000.00
Problem 18
Solution:

Compute the tax payable for a retailer

in a barangay business establishment
Php 15,000.00 x 1%
located in the Municipality.
= Php 150.00

The amount of gross sales from last

year’s gross income was Php 15,000.00
Problem 19
Solution:
For Province area: The Tax on business
of printing and publication shall be
levied at a rate not exceeding 50% of Php 110,000.00 x 1%
1% of the gross annual receipts for the = Php 1,100.00 x 0.05
preceding calendar year.
= Php 55.00
In case of newly started business, the
tax shall not exceed 1/20 of 1% of the
capital investment.

Calculate the tax due payable of A.T.

Dolar Business Center amounted to
Php 110,000.00 as beginning capital.
Problem 20
Solution:
Tax on sand, gravel and other quarry
resources is a tax levied on ordinary
stones, sand, gravel, earth, and other 200.00x 50.00
quarry resources at a rate not = Php 10,000.00 x 10%
exceeding 10% of the fair market value
in the locality per cubic meter . = Php 1,000

Compute the tax on sand and gravel if

the fair market value of sand is 200.00
per cubic meter and 50 cubic meters
were extracted .
 Real Property: Lands Assessment Levels

Class : 20%
Residential
Agricultural 40%

Commercial, Industrial and 50%

Mineral

Timberland 20%