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PRESIDENTIAL DECREE NO. 1351
PRESIDENTIAL DECREE NO. 1351 -
AMENDING SectionS 30 AND 53 OF THE NATIONAL INTERNAL REVENUE CODE OF
1977 TO AUTHORIZE THE SECRETARY OF FINANCE TO REQUIRE WITHHOLDING OF
CREDITABLE INCOME TAXES FROM CERTAIN INCOME TAXES FROM CERTAIN INCOME
PAYMENTS AND TO REQUIRE PROOF OF SUCH WITHHOLDING AS AN ADDITIONAL
CONDITION FOR DEDUCTIONS FROM GROSS INCOME
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WHEREAS,
the most convenient, effective and generally accepted method of
collecting income taxes is through the withholding system;chanroblesvirtualawlibrary
WHEREAS, in order to optimize the effectiveness of the present tax
collection system, it is necessary to expand the coverage of the
withholding system;chanroblesvirtualawlibrary
WHEREAS, certain ordinary and necessary expenses and other items
allowed as deductions constitute income to the recipients thereof and
therefor includible in their gross income;chanroblesvirtualawlibrary
WHEREAS, in order to insure the collection of the income tax on these
income payments, it is necessary to subject such payments to the
withholding of tax at source and to require proof of such withholding
and payment to the BIR as a requirement for the deductibility of such
payment.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby order and decree the following:cralaw:red
Section 1. Section 53(f) of the National Internal
Revenue Code of 1977 is hereby amended to read as follows: chanroblesvirtualawlibrary
"(f) The Secretary of Finance may, upon
recommendation of the Commissioner of Internal Revenue, require also
the withholding of a tax on the same items of income payable to persons
(natural or juridical) residing in the Philippines by the same persons
mentioned in paragraph (b) (1) of this Section at the rate of not less
than 2-1/2% but not more than 35% thereof which shall be credited
against the income tax liability of the taxpayer for the taxable year."
Section 2. Section 30 of the National Internal
Revenue Code of 1977 is hereby amended by adding a new paragraph to
read as follows:cralaw:red
"(m) Additional requirement for deductibility of
income payments. Any income payment which is otherwise deductible from
gross income under this Section shall be allowed as a deduction only if
it is shown that the been paid to the Bureau of Internal Revenue in
accordance with this Section, Section 54 and 93 of this Code."
Section 3. This decree shall take effect immediately.
DONE in the City of Manila,
this 17th day of April, in the year of Our Lord, nineteen hundred and
seventy-eight.
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