What would be the franchise tax for a newly started business with a capital investment of P3,500,000.00?

To determine the franchise tax for a newly started business, particularly one with a capital investment of P3,500,000.00, it is essential to refer to the specific tax rates laid out by local regulations as they can vary based on the investment amount.

Franchise taxes are often calculated based on the capital investment or gross receipts of a business. Given that the selected answer is P1,750.00, it aligns with typical tax structures for businesses of this size and investment level. This amount likely represents a standard rate applied to businesses with a capital investment that falls within specific thresholds set by local tax authorities.

For a capital investment of P3,500,000.00, there would be a corresponding rate that results in a franchise tax of P1,750.00, which might be derived from a percentage calculation relevant to the investment bracket. This understanding assumes proper adherence to any local tax regulations, which dictate the tax schedules applicable to different levels of capital.

In contrast, the other amounts listed, such as P5,000.00, P1,500.00, and P12,000.00, would either exceed expectations based on typical calculations for such an investment or fall short of the reasonable tax obligation that a business of