The TNC may or may not have been granted a Certificate of Public Convenience (CPC). If it is a holder of a valid and current CPC, it is known as a common carrier and its gross receipts are subject to 3% common carriers tax under Section 117 of the National Internal Revenue Code of 1997. Otherwise, it is classified as a land transportation service contractor and is subject to 12% VAT under the NIRC.
Discover more: Tax treatment of land transportation businesses
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Multinationals operating in the land transportation sector in the Philippines should take note of this circular in order to remain compliant.