Section
1. Sec. 5 of Republic Act No. 8424
is hereby amended to read as follows:
"Sec.
5. Transitory Provisions. — Effectivity
of the Imposition of VAT on Certain Services. — The imposition of
the
value-added tax on the following services shall take effect on January
1, 2001:chanroblesvirtualawlibrary"(a) Services
performed in the exercise of profession or calling subject to the
professional
tax as provided for under Republic Act No. 7160, otherwise known as the
Local
Government Code of 1991, and professional services performed by
registered
general professional partnerships; actors, actresses, talents, singers
and emcees; radio and television broadcasters, choreographers; musical,
radio, movie, television and stage directors; and professional athletes;
"(b) Services
rendered by banks, non-bank financial intermediaries, finance
companies,
and other financial intermediaries not performing quasi-banking
functions;
and
"(c) Services
rendered by stock, real estate, commercial, customs and immigration
brokers: Provided,
That, for the year beginning January 1 up to December 31, 2000, the
aforementioned
brokers shall, in lieu of the value-added tax prescribed under Title IV
of the National
Internal Revenue Code of 1997, be subject to a tax equivalent to
seven
percent (7%) based on gross receipts from brokering services which
shall
be paid in the manner and in accordance with the provisions of Title V
of the said Code:
Provided,
further, That beginning January 1, 2001, the aforementioned brokers
shall be subject to the value-added tax, in lieu of the seven percent
(7%)
tax. "The
taxpayers rendering services mentioned under paragraphs (a) and (b)
hereof,
shall pay the applicable taxes prescribed under the pertinent
provisions
of the National
Internal Revenue Code, as amended."
Sec.
2. Implementing Rules and Regulations.
— The Secretary of Finance shall, upon the recommendation of the
Commissioner
of Internal Revenue, promulgate the necessary rules and regulations for
the effective implementation of this Act.
chanrobles virtuallaw libraryred
Sec.
3. Repealing Clause. — All
laws, decrees, orders, issuances, rules and regulations and other
issuances
or parts thereof inconsistent with this Act are hereby repealed or
modified
accordingly.chanrobles virtuallaw libraryred
Sec.
4. Effectivity. — This
Act shall take effect on January 1, 2000.chan
robles virtual law library
Approved:
February
15, 2000
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