ChanRobles Virtual law Library
PHILIPPINE LAWS, STATUTES & CODES
A collection of Philippine laws, statutes and codes not included or cited in the main indices of the Chan Robles Virtual Law Library.
REPUBLIC ACTS
AN ACT TO AMEND SECTIONS
TWENTY-ONE, TWENTY-TWO, TWENTY-THREE, TWENTY-FOUR, TWENTY-SEVEN,
TWENTY-NINE, THIRTY, THIRTY-FOUR, FIFTY-THREE, FIFTY-FOUR, AND TO
REPEAL SUBSECTION (u) OF SECTION EIGHTY-FOUR OF COMMONWEALTH ACT
NUMBERED FOUR HUNDRED AND SIXTY-SIX, AS AMENDED |
Section 1. Sec. twenty-one of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "Sec.
21. Rates of tax on citizens or residents. — There
shall be levied, assessed, collected, and paid annually upon the entire
net income received in the preceding taxable year from all sources by
every individual, a citizen or resident of the Philippines, a tax equal
to the sum of the following: Sec. 2. Sec. twenty-two (b) of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "Sec.
22 (b). Non-resident alien not engaged in trade or
business within the Philippines or not having an office or place of
business therein. — There shall be levied, assessed, collected and paid
for each taxable year upon the entire net income received from all
sources within the Philippines by every non-resident alien individual
not engaged in trade or business within the Philippines or not having
an office or place of business therein a tax equal to twelve per centum
thereof: Provided, That if the total net income of such non-resident
alien individual from all sources within the Philippines exceeds
sixteen thousand five hundred pesos, the rates established in Sec.
twenty-one shall apply: And provided, further, That in case such
non-resident alien individual files with the Collector of Internal
Revenue a true and accurate return of his income from all sources
within the Philippines on or before the date fixed under this Title for
the filing of returns, he shall be entitled to have the tax thereon
computed at the rates provided for in Sec. twenty-one, regardless of
the amount of income declared in such return." Sec. 3. The first paragraph of Sec. twenty-three of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "Sec. 23. Amount of personal exemptions allowable to individual. — For the purpose of the tax provided for in this Title, there shall be allowed in the nature of a deduction from the amount of net income the following personal exemptions." chan robles virtual law library Sec. 4. Sec. twenty-four of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "Sec.
24. Rate of tax on corporations. — There shall be
levied, assessed, collected, and paid annually upon the total net
income received in the preceding taxable year from all sources by every
corporation organized in, or existing under the laws of the
Philippines, no matter how created or organized, but not including duly
registered general co-partnerships (companias colectivas), a tax of
twelve per centum upon such income; and a like tax shall be levied,
assessed, collected, and paid annually upon the total net income
received in the preceding taxable year from all sources within the
Philippines by every corporation organized, authorized, or existing
under the laws of any foreign country: Provided, however, That Building
and Loan Associations operating as such in accordance with Sec.s one
hundred seventy-one to one hundred ninety of the Corporation Law, as
amended, shall pay a tax of six per centum on their total net income:
And provided, further, That in the case of dividends received by a
domestic or resident foreign corporation from a domestic corporation
liable to tax under this Chapter, only twenty-five per centum thereof
shall be returnable for purposes of the tax imposed by this Sec.." Sec. 5. Sec. twenty-seven of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "Sec.
27. Exemptions from tax on corporation. — The
following organizations shall not be taxed under this Title in respect
to income received by them as such — "(a)
Labor, agricultural, or horticultural organization not organized
principally for profit; Sec. 6. Paragraph (4) of subSec. (b) of Sec. twenty-nine of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "(4)
Interest on Government securities. — Interest upon the obligations of
the Government of the Republic of the Philippines or any political
subdivision thereof, but in the case of such obligations issued after
the approval of this Code, only to the extent provided in the act
authorizing the issue thereof." Sec. 7. Subparagraph (B) of paragraph (1) of subSec. (c), paragraph (3) of subSec. (e), and subSec. (h) of Sec. thirty of Commonwealth Act Numbered Four hundred and sixty-six are hereby amended to read as follows: "(B)
Income, war-profits, and excess-profits taxes imposed by the authority
of any foreign country; but this deduction shall be allowed in the case
of a taxpayer who does not signify in his return his desire to have to
any extent the benefits of paragraph (3) of this subSec. (relating to
credit for taxes of foreign countries); Sec. 8. Sec. thirty-four of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "Sec.
34. Capital gains and losses: "(1)
Capital assets. — The term "capital assets" means property held by the
taxpayer (whether or not connected with his trade of business), but
does not include stock in trade of the taxpayer or other property of a
kind which would properly be included in the inventory of the taxpayer
if on hand at the close of the taxable year, or property held by the
taxpayer primarily for sale to customers in the ordinary course of his
trade or business, or property, used in the trade or business, of a
character which is subject to the allowance for depreciation provided
in subSec. (f) of Sec. thirty; or real property used in the trade or
business of the taxpayer. "(b) Percentage taken into account. — In the case of a taxpayer, other than a corporation, only the following percentages of the gain or loss recognized upon the sale or exchange of a capital asset shall be taken into account in computing net capital gain, net capital loss, and net income: "(1)
100 per centum if the capital asset has been held for not more than
twelve months; "(d) Net capital loss carry-over. — If any taxpayer, other than a corporation, sustains in any taxable year a net capital loss, such loss (in an amount not in excess of the net income for such year) shall be treated in the succeeding taxable year as a loss from the sale or exchange of a capital asset held for not more than twelve months. chan robles virtual law library "(e) Retirement of bonds, etc. — For the purposes of this Title amounts received by the holder upon the retirement of bonds, debentures, notes, or certificates or other evidences of indebtedness issued by any corporation (including those issued by a Government or political subdivision thereof) with the interest coupons or in registered form, shall be considered as amounts received in exchange therefor. "(f) Gains and losses from short sales, etc. — For the purpose of this Title — "(1)
Gains or losses from short sales of property shall be considered as
gains or losses from sales or exchanges of capital assets; and Sec. 9. SubSec.s (a) and (b) of Sec. fifty-three of Commonwealth Act Numbered Four hundred and sixty-six are hereby amended to read as follows: "Sec. 53. Withholding of tax at source. — (a) Tax-free covenant bonds — (1) Requirement of withholding. — In any case where bonds, mortgages, deeds of trust, or other similar obligations of domestic or resident foreign corporations, contain a contract or provision by which the obligor agrees to pay any portion of the tax imposed by this Title upon the obligee or to reimburse the obligee for any portion of the tax or to pay the interest without deduction for any tax which the obligor may be required or permitted to pay thereon or to retain therefrom under any law of the Philippines, or of any State or country, the obligor shall deduct and withhold a tax equal to the twelve per centum of the interest upon such bonds, mortgages, deeds of trust, or other obligations, whether such interest is payable annually or at shorter or longer periods, and whether such bonds, obligations, or securities had been heretofore or are hereafter issued or marketed, and the interest thereon paid, within or without the Philippines if such interest is payable to a non-resident alien individual or to a citizen or resident of the Philippines. chan robles virtual law library "(2)
Benefit of exemptions against net income. — Such deduction and
withholding shall not be required in the case of a citizen or resident
entitled to receive such interest if such person shall file with the
withholding agent, on or before February first, a signed notice in
writing claiming the benefit of the exemption provided in Sec.
twenty-three of this Title. Sec. 10. Sec. fifty-four of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows: "Sec.
54. Payment of corporation income tax at source. — In
the case of foreign corporations subject to taxation under this Title
not engaged in trade or business within the Philippines and not having
any office or place of business therein there shall be deducted and
withheld at the source in the same manner and upon the same items as is
provided in Sec. fifty-three a tax equal to twelve per centum thereof,
and such tax shall be returned and paid in the same manner and subject
to the same conditions as provided in that Sec.." Sec. 11. SubSec. (u) of Sec. eighty-four of Commonwealth Act Numbered Four hundred and sixty-six, as amended by Commonwealth Act Numbered Five hundred sixteen, is hereby repealed. Sec. 12. The provisions of this Act shall apply to income received from January first nineteen hundred and forty-six: Provided, however, That the repeal of provisions of Commonwealth Act Numbered Four hundred and sixty-six, as amended, having reference to the United States, its citizens and corporations, shall take effect as of July fourth, nineteen hundred and forty-six. Approved: October 29,
1946 |