WHEREAS,
the current economic crisis amounts to a grave emergency which affects
the stability of the nation and requires immediate action;chanroblesvirtualawlibrary
WHEREAS, there is an imperative need to simplify and restructure
certain provisions of the National Internal Revenue Code;chanroblesvirtualawlibrary
WHEREAS, the issuance of this Decree is an essential and necessary
component of the national economic recovery program promulgated to meet
and overcome the emergency; chanroblesvirtualawlibrary
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:cralaw:red
Section 1. Section 5 of the National Internal Revenue
Code is hereby amended to read as follows:cralaw:red
"Sec. 5. Forms, receipts, certificates, and
appliances. [a] Provision and distribution to proper officials. — It
shall be the duty of the Commissioner, among other things, to
prescribed, provide, and distribute to the proper officials the
requisite licenses, internal revenue stamps, labels, all other forms,
certificates, bonds, records, invoices, books, receipts, instruments,
appliances and apparatus used in administering the laws falling within
the jurisdiction of the Bureau. For this purpose, internal revenue
stamps, strip stamps and labels shall because by the Commissioner to be
printed with adequate security features.
"[b] Receipts for payments made. — It shall be the
duty of the Commissioner or his duly authorized representative to whom
any payment of any taxes is made under the provisions of this Code, to
issue to the person making such payment a receipt, expressing the
amount paid and the particular account for which such payment was made."
Section 2. Section 7 of the National Internal Revenue
Code is hereby amended to read as follows: chanroblesvirtualawlibrary
"Sec. 7. Power of the Commissioner to obtain
information, examine, summon and take testimony. — For the purpose of
ascertaining the correctness of any return making a return where none
has been made, determining the liability of any person for any internal
revenue tax, or collecting any such liability, the Commissioner is
authorized:cralaw:red
"(1) To examine any book, paper, record or other data
which may be relevant or material to such inquiry;chanroblesvirtualawlibrary
"(2) To obtain information from any office or officer
of the national and local governments, government agencies or its
instrumentalities, including the Central Bank of the Philippines and
government-owned or controlled corporations;.
"(3) To summon the person liable for tax or required
to file a return, or any officer or employee of such person, or any
person having possession, custody, or care of the books of accounts and
other accounting records containing entries relating to the business of
the person liable for tax, or any other person, to appear before the
Commissioner or his duly authorized representative at a time and places
specified in the summons and to produce such books, papers, records, or
other data, and to give testimony;chanroblesvirtualawlibrary
"(4) To take such testimony of the person concerned,
under oath, as may be relevant or material to such inquiry; and
"(5) To cause revenue officers and employees to make
a canvass from time to time of any revenue district or region and
inquire after and concerning all persons therein who may be liable to
pay any internal revenue tax, and all persons owning or having the
care, management or possession of any object with respect to which a
tax is imposed."
Section 3. Section 16 of the National Internal
Revenue Code is hereby amended to read as follows:cralaw:red
"Sec. 16. Power of the Commissioner to make
assessments. — (a) Examination of returns and determination of tax. —
After a return is filed as required under the provisions of this Code,
the Commissioner shall examine it and assess the correct amount of the
tax. The tax or deficiency tax so discovered shall be paid upon notice
and demand from the Commissioner. Any return, statement or declaration
filed by any person in any revenue office bearing or purportedly
bearing the official or receiving seal or stamp of a revenue office
wherein the same is filed shall not be withdrawn: Provided, however,
that the same may be modified or changed by filing another amended
return, statement or declaration.
"(b) Failure to submit required reports, statements,
etc. — When a report required by law as a basis for the assessment of
any national international revenue tax shall not be forthcoming within
the time fixed by law or regulation or when there is reason to believe
that any such report is false, incomplete or erroneous, the
Commissioner shall assess the proper tax on the best evidence
obtainable.
"In case a person fails to make and file a required return or list at
the time prescribed by law, or makes willfully or otherwise, a false or
fraudulent return or list, the Commissioner shall make the return from
his own knowledge and from such information as he can obtain through
testimony or otherwise. In any such case, the Commissioner may make a
return or amend any return and any return so made or amended shall be
prima facie good and sufficient for all legal purposes.
"(c) Authority to conduct inventory taking,
surveillance and to prescribe presumptive gross sales and receipts. —
The Commissioner may at anytime during the taxable year order inventory
taking of the stock-in-trade of any taxpayer as a basis for determining
his internal revenue tax liabilities or may place the business
operations of any person, natural or juridical, under observation or
surveillance if there are reasons to believe that such person is not
declaring his correct income and receipts for internal revenue tax
purposes. The findings may be used as a basis for assessing the taxes
for the other months or quarters of the same or different taxable years
and such assessment shall be deemed prima facie correct.
"When it is found that a person has failed to issue receipts and
invoices in violation of the requirements of Section 181, or when there
is reason to believe that the books of accounts or other records do not
correctly reflect the declarations made or to be made in a return
required to be filed under the provisions of this Code, the
Commissioner, after taking into account the sales, receipts, income or
other taxable base of other persons engaged in similar businesses under
similar situations or circumstances or after considering other relevant
information, may prescribe a minimum amount of such gross receipts,
sales, and taxable base, and such amount so prescribed shall be prima
facie correct for purposes of determining the correct internal revenue
tax liabilities of such person.
"(d) Authority to terminate taxable period. —When it
shall come to the knowledge of the Commissioner that a taxpayer is
retiring from the business subject to tax or intends to leave the
Philippines, or remove his property therefrom, or hide or conceal his
property, or perform any act tending to obstruct the proceedings for
the collection of the tax for the past or current quarter or year, or
render the same totally or partly ineffective unless such proceedings
are begun immediately, the Commissioner shall declare the tax period of
such taxpayer a notice of such decision, together with a request for
the immediate payment of the tax for the period so declared terminated
and the tax for the preceding year or quarter, or such portion thereof
as may be unpaid, and said taxes shall be due and payable immediately
and shall be subject to all the penalties hereafter prescribed, unless
paid within the time fixed in the demand made by the Commissioner.
"(e) Authority of the Commissioner to prescribe real
property values. — The Commissioner is hereby authorized to divide the
Philippines into different zones or areas and shall, upon consultation
with competent appraisers both from private and public sectors,
determine the fair market value and real properties located in each
zones or area. For purposes of computing any internal revenue tax the
value of the property shall be whichever is the higher of:cralaw:red
"(1) the fair market value as determined by the
Commissioner; or
"(2) the fair market value as shown in the schedule
of values of the Provincial and City Assessors. chanroblesvirtualawlibrary
"(f) Authority of the Commissioner to inquire into
bank deposit accounts. — The provisions of Republic Act No. 1405 to the
contrary notwithstanding, the Commissioner is hereby authorized to
inquire into the bank deposits of a decedent for the purpose of
determining the gross estate of such decedent. In case a taxpayer
offers to compromise the payment of his tax liabilities on the ground
that his financial position demonstrates a clear inability to pay the
tax assessed, his offer shall not be considered unless he waives his
privilege under the said law and such waiver shall serve as authority
of the Commissioner to inquire into the bank deposits of said taxpayer.
"(g) Authority of credit and register tax agents. —
The Commissioner may require prior accreditation and registration,
based on competence and moral fitness, of persons and general
professional partnerships or their representatives in the preparation
and filing of required tax returns, statements, reports, memoranda, or
in appearing or in filing protests or papers with the Bureau for
taxpayers. For this purpose, the Commissioner is empowered to create
national and regional accreditation boards and to designate from among
the ranks of senior officials of the Bureau, one chairman and two
members in each board and issue the necessary rules and regulations
subject to the approval of the Minister of Finance."
Section 4. Section 19 of the National Internal
Revenue Code is hereby amended to read as follows:cralaw:red
"Sec. 19. Sources of revenue. — The following taxes,
fees and charges are deemed to be national internal revenue
taxes: chanroblesvirtualawlibrary
"(a) Income tax;chanroblesvirtualawlibrary
"(b) Estate and gift taxes;chanroblesvirtualawlibrary
"(c) Excise taxes;chanroblesvirtualawlibrary
"(d) Taxes on business;chanroblesvirtualawlibrary
"(e) Documentary stamp taxes;chanroblesvirtualawlibrary
"(f) Mining taxes; and
"(g) Miscellaneous taxes, fees and charges, namely:
taxes on banks, finance companies, insurance companies, franchise
taxes, taxes on amusements, and charges on forest products, tobacco
inspection fees and such other taxes as are or hereafter may be imposed
and collected by the Bureau of Internal Revenue."
Section 5. Section 21 [d] of the National Internal
Revenue Code is hereby amended to read as follows:cralaw:red
"Sec. 21 [d] On interest from bank deposits and yield
or any other monetary benefit from deposit substitutes and from trust
fund and similar arrangements. —Interest from Philippine Currency Bank
deposits and yield or any other monetary benefit from deposit
substitutes from trust fund and similar arrangements whether received
by citizens of the Philippines or by resident alien individuals, shall
be subject to a 17-1/2% final tax and paid as provided in Sections 51
and 52 of this Code.
Section 6. Section 24 (b) (2) (ii) of the National
Internal Revenue Code is hereby amended to read as follows:cralaw:red
"(ii) Tax on branch profits remittances. — Any
profits remitted by a branch to its head office shall be subject to a
tax of 15% (except those registered with the Export Processing Zone
Authority): Provided, That any profit remitted by a branch to its head
office authorized to engage in petroleum operations in the Philippines
shall be subject to tax at 7-1/2%. In both cases, the tax shall be
collected and paid in the same manner as provided in Sections 51 and 52
of this Code: and Provided, further, That interests, dividends, rents,
royalties, including remunerations for technical services, salaries,
wages, premiums, annuities, emoluments or other fixed or determinable
annual, periodical or casual gains, profits, income and capital gains
received by a foreign corporation during taxable year from all sources
within the Philippines shall not be considered as branch profits unless
the same are effectively connected with the conduct of its business in
the Philippines.
Section 7. Section 24 (cc) of the National Internal
Revenue Code is hereby renumbered and amended as 24 (d) and a new
sub-paragraph denoted as 24 (e) is hereby added, both to read as
follows:cralaw:red
"(d) Rates of tax on interest from deposits and yield
or any other monetary benefit from deposit substitutes and from trust
fund and similar arrangements. — Interest on Philippine currency bank
deposits and yield or any other monetary benefit from deposit
substitutes and from trust fund and similar arrangements received shall
be subject to a 17-1/2% final tax to be collected and paid ad paid as
provided in Sections 51 of this Code, except income received by (1)
foreign governments, (2) financing institutions owned, controlled, or
enjoying refinancing from them, and (3) international or regional
financing institutions established by governments."
"(e) Tax on Royalties. — Royalties shall be subject
to 15% final tax, the return and payment of which shall be in
accordance with Sections 51 and 52 of this Code.
Section 8. A new subparagraph (E) is hereby added to
paragraph (c) (7) of Section 29 of the National Internal Revenue Code
to read as follows:cralaw:red
"(E) Prizes and award made primarily in recognition
of religious, charitable, scientific, educational, artistic, literary,
or civic achievement but only if:cralaw:red
"(1) the recipient was selected without any action on
his part to enter the contest or proceeding;chanroblesvirtualawlibrary
"(2) the recipient is not required to render
substantial future services as a condition to receiving the prize or
award."
Section 9. Paragraphs (a) (3); (b) (1); and (b) (2)
of Section 30 of the National Internal Revenue Code are hereby amended
and a new sub-paragraph to Section 30 (d) (1), denoted as 30 (d) (1)
(c) is hereby inserted, to read as follows:cralaw:red
"(a) (3) Expenses allowable to private educational
institutions. — In addition to the expenses allowable as deductions
under subparagraph (1) of this paragraph, a private educational
institution, whether stock or nonstock, may at its option, elect either
(a)to deduct expenditures otherwise considered as capital outlays of
depreciable assets incurred during the taxable year for the expansion
of school facilities or (b) to deduct allowances for depreciation
therefor under paragraph (f) of this Section." chanroblesvirtualawlibrary
"(b) (1) In general. — That amount of interest paid
or concurred within a taxable year on indebtedness in connection with
the taxpayer's profession, trade or business, except on indebtedness
incurred, or continued to purchase or carry obligation the interest
upon which is exempt from taxation as income under this Title. However,
no such deduction shall be allowed to a branch in the Philippines in
respect to the amount of interest paid or incurred abroad by a
non-resident parent lending institution, unless the indebtedness was
incurred to provide funds for investment in the said resident branch,
the income from which is taxable under this Title.
"The deduction shall be allowed to the branch if it submits an
authenticated copy of the investment agreement and such other
information as may be required for its determination.
"(b) (2) Interest allowable to non-resident aliens. —
In the case of a non-resident alien individual or a foreign
corporation, the amount of interest allowable is the amount of interest
paid within the year on indebtedness incurred in connection with his
profession, trade or business in the Philippines, except on
indebtedness incurred or continued to purchase or carry obligations,
the interest upon which is wholly exempt from taxation as income under
this Title, and a ratable part of any interest effectively connected
with the business or trade conducted exclusively within the Philippines
which cannot definitely be allocated to income from within the
Philippines; but this deduction shall be allowed only if such
non-resident alien individual or foreign corporation includes in the
return required by this Title all the information necessary for its
calculation."
"(d) (7) (C) No loss shall be allowed as a deduction
under this paragraph if at the time of the filing of the return, such
loss has been claimed as a deduction for estate tax purposes in the
estate tax return."
Section 10. Paragraph (h) of Section 34 of the
National Internal Revenue Code is hereby amended to read as follows:cralaw:red
"(h) The provisions of the paragraph (b) of this
section to the contrary notwithstanding, sales, exchanges or other
dispositions of real property classified as capital assets, including
pacto-de-retro sales and other forms of conditional sale, by
individuals, including estates and trusts, shall be taxed at the rate
of 5% based on the gross selling price or the fair market value
prevailing at the time of sale, whichever is higher. chanroblesvirtualawlibrary
"Such tax shall be in lieu of the tax imposed under Section 21 of this
Code: Provided, however, That the tax liability, if any, on gains from
sales or other dispositions of real property to the government or any
of its political subdivisions or agencies or to government-owned or
controlled corporations shall be determined either under Section 21
thereof or under this section, at the option of the taxpayer: Provided,
further, That if the taxpayer elects to report such gains in accordance
with the provisions of Section 43(b), the amount of the tax which shall
be paid on each installment shall be the proportion of the tax herein
imposed, which the installment payment received bears to the total
selling price: Provided, finally, That failure on the part of the
seller to pay the tax imposed herein on any gains returnable under the
installment method will automatically disqualify the seller-taxpayer
from paying the tax on installments and the unpaid portion of the tax
shall immediately be due and demandable. The tax herein imposed shall
be returned and paid in accordance with Section 45 (c) and 50 (a) (4).
"No registration of any document transferring real property shall be
effected by the Register of Deeds unless the Commissioner or his duly
authorized representative had certified that such transfer has been
reported and tax herein imposed, if any, has been paid."
Section 11. Paragraph (b) of Section 35 of the
National Internal Revenue Code is hereby amended to read as follows:cralaw:red
"(b) In the case of property acquired on or after
March first, nineteen hundred and thirteen, the cost thereof if such
property was acquired by purchase or the fair market price or value as
of the date of the acquisition if the same was acquired by inheritance.
If the property was acquired by gift or transferred for less than
adequate and full consideration in money or money's worth, the basis to
the transferee shall be the same as it would be in the hands of the
donor or transferor.
Section 12. Section 37 (b) of the Tax Code is hereby
amended to read as follows: chanroblesvirtualawlibrary
"(b) Net income from sources in the Philippines. —
From the items of gross income specified in subsection (a) of this
section there shall be deducted the expenses, losses, and other
deductions properly allocated thereto, and a ratable part of any
expenses, interests, losses, and other deductions effectively connected
with the business or trade conducted exclusively within the Philippines
which cannot definitely be allocated to some items or class of gross
income: Provided, That such items of deductions shall be allowed only
if fully substantiated by all the information necessary for its
calculation. The remainder, if any, shall be treated in full as net
income from sources within the Philippines."
Section 13. Section 51 (a) (1) of the National
Internal Revenue Code is hereby renumbered and amended to read as
follows:cralaw:red
"Sec. 50. Payment and assessment of income tax. (a)
Payment of tax. — (1) In general. —The total amount of tax imposed by
this Title shall be paid by the person subject thereto at the time the
return is required to be filed.
"In the case of tramp vessels, the shipping agents and/or the
husbanding agents, and in their absence, the captains thereof are
required to file the return herein provided and pay the tax due thereon
before their departure. Upon failure of the said agents or captains to
file the return and pay the tax, the Bureau of Customs is hereby
authorized to hold the vessel and prevent its departure until proof of
payment of the tax is presented or, in meritorious cases, a sufficient
bond is filed to answer for the tax due."
Section 14. Section 53 (d) (1) of the National
Internal Revenue Code is hereby renumbered and amended to read as
follows:cralaw:red
"Sec. 51 (d) (1) Withholding final tax. — Every bank
or non-bank financial intermediary or commercial, industrial, financial
companies, and other non-financial companies authorized by the
Securities and Exchange Commission to issue deposit substitutes shall
deduct and withhold from the interest on bank deposits or yield or any
other monetary benefit from deposit substitutes a final tax equal to 17
½% of the interest on deposits or yield or any other monetary
benefit from deposit substitutes and from trust fund and similar
arrangements."
Section 15. Section 58 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 56 Exemption allowed to estates and trusts. —
For the purpose of the tax provided for in this Title, there shall be
allowed an exemption of Four Thousand Pesos from the estate or trust."
Section 16. Section 76 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 70. Collection of foreign payments. — All
persons, corporations, duly registered general copartnerships
(companies colectivas) undertaking for profit or otherwise the
collection of foreign payments of interest or dividends by means of
coupons, checks, or bills of exchange shall obtain a license from the
Commissioner, and shall be subject to such regulations enabling the
government to obtain the information required under this Title, as the
Minister of Finance shall prescribe."
Section 17. Paragraph (a) (1) (C) of Section 101,
renumbered as Section 89, of the National Internal Revenue Code is
hereby amended to read as follows: chanroblesvirtualawlibrary
"(C) For claims against the estate: Provided, That at
the time the indebtedness was incurred the debt instrument was duly
notarized and, if the loan was contracted within three years before the
death of the decedent, the administrator or executor shall submit a
statement showing the disposition of the proceeds of the loan."
Section 18. Section 103 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 91. Determination of value of the estate.— (a)
Usufruct. — To determine the value of the right of usufruct, use or
habitation, as well as that of annuity, there shall be taken into
account the probable life of the beneficiary in accordance with the
latest American Tropical Experience Table.
"(b) Properties. — The estate shall be appraised at
its fair market value as of the time of death. However, the appraised
value of real property as of the time of death shall be whichever is
the higher of —chanroblesvirtualawlibrary
"(1) the fair market value as determined by the
Commissioner, or
"(2) the fair market value as shown in the schedule
of values fixed by the Provincial and City Assessors."
Section 19. Section 105 of the National Internal
Revenue Code is hereby renumbered as Section 93 and paragraph (b)
thereof is hereby amended to read as follows:cralaw:red
"(b) Time for filing. — For the purpose of
determining the estate tax provided for in Section 87 of this Code, the
estate tax return required under the preceding subsection (a) shall be
filed within ninety days from the decedent's death. chanroblesvirtualawlibrary
"A certified copy of the schedule of partition and the order of the
court approving the same shall be furnished the Commissioner within
thirty days after the promulgation of such order."
Section 20. Title IV of the National Internal Revenue
Code is hereby amended to read as follows:cralaw:red
"TITLE IV. — EXCISE TAXES
"Chapter I — General Provisions
"Sec. 109. Article subject to excise taxes. —Excise
taxes apply to articles manufactured or produced in the Philippines for
domestic sale or consumption or for any other disposition and to things
imported, but not to anything locally produced or manufactured which
shall be removed for exportation and is actually exported without
returning to the Philippines, whether so exported in its original state
or as an ingredient or part of any manufactured articles or products.
In case of importations, excise taxes shall be in addition to the
customs duties, if any.
"For purposes of this Title, excise taxes herein imposed and based on
weight or volume capacity or any other physical unit of measurement
shall be referred to as "specific tax" and an excise tax herein imposed
and based on selling price or other specific value of the article be
referred to as "ad valorem tax." chanroblesvirtualawlibrary
"Sec. 110. Payment of excise taxes on domestic
products. — (a) Persons liable; time for payment. — Unless otherwise
especially allowed, excise taxes on domestic products shall be paid by
the manufactured or producer before removal from the place of
production; Provided, however, That excise tax on locally manufactured
petroleum products levied under Section 120 of this Title shall be paid
within fifteen (15) days from the date of removal thereof from the
place of production. Should domestic products be removed from the place
of production without the payment of the tax, the owner or person
having possession shall be liable for the tax due thereon.
"(b) Determination of gross selling price of articles
subject to ad valorem tax. — The price at which the articles are sold
at wholesale in the place of production or through their sales agents
to the public shall constitute the gross selling price. If the
manufacturer also sells or allows to be sold at wholesale in another
establishment of which he is the owner or in the profits of which he
has an interest, the wholesale price in such establishment shall
constitute the gross selling price. Should such price be less than the
cost of manufacture plus expenses incurred until the articles are
finally sold, then a proportionate margin of profits, not less than 10%
of such manufacturing costs and expenses, shall be added to constitute
the gross selling price.
"(c) Manufacturer's or producer's sworn statement. —
Every manufacturer or producer of articles of products subject to
excise taxes shall file with the Commissioner on the date or dates
designated by the latter, and as often as may be required, a sworn
statement showing among other information, the different articles or
products manufactured or produced and their corresponding gross selling
price or market value, together with the cost of manufacture or
production plus expenses incurred or to be incurred until the articles
or products are finally sold.
"Sec. 111. Payment of excise taxes on imported
articles. — (a) Persons liable. — Excise taxes on imported articles
shall be paid by the owner or importer to the customs officers,
conformably with the regulations of the Ministry of Finance and before
the release of such articles from the customhouse, or by the person who
is found in possession of articles which are exempt from the excise
taxes other than those legally entitled to exemption.
"In the case of tax-free articles brought or imported into the
Philippines by persons, entities, or agencies exempt from tax which are
subsequently sold, transferred or exchanged in the Philippines to
non-exempt persons or entities, the purchasers or recipients shall be
considered the importers thereof, and shall be liable for the duty and
internal revenue tax due on such importation. The tax due on such
article shall constitute a lien on the article itself, superior to all
other charges or liens, irrespective of the possessor thereof.
"(b) Rate and basis of the excise tax on imported
articles. — Unless otherwise specified, imported articles shall be
subject to the same rates and basis of excise taxes applicable to
locally manufactured articles.
"Sec. 112. Mode of computing contents of cash or
package. — Every fractional part of a proof liter equal to the greater
than a half liter in a cask or package containing more than one liter
shall be taxed as a liter, and any smaller fractional part shall be
exempt, but any package of spirits the total contents of which are less
than a proof liter shall be taxed as one liter.
"Chapter II — Exemption or Conditional Tax-Free Removal of Certain
Articles
"Sec. 113. Removal of wines and distilled spirits for
treatment of tobacco leaf — Upon permit from the Commissioner
and subject to the regulations of the Ministry of Finance,
manufacturers of cigars and cigarettes may withdraw from bond, free of
excise tax local and imported wines and distilled spirits in specific
quantities and grades for use in the treatment of tobacco leaf to be
used in the manufacture of cigars and cigarettes; but such wines and
distilled spirits must first be suitably denatured.
"Sec. 114. Domestic denatured alcohol. — Domestic
alcohol not less than one hundred eighty degrees proof (ninety percent
absolute alcohol) shall when suitably denatured and rendered unfit for
oral intake, be exempt from the specific tax prescribed in Section 121:
Provided, however, That such denatured alcohol shall be subject to tax
under Section 165 of this Code: Provided, further, That if such alcohol
is to be used for motive power, it shall be taxed under Section 128(a)
(4) of this Code.
"Sec. 115. Petroleum products sold to foreign
international carriers. — Petroleum products sold to an international
carrier for its use or consumption outside of the Philippines shall not
be subject to excise taxes; Provided, That the country of said carrier
exempts from similar taxes petroleum products sold to Philippine
carriers.
"Sec. 116. Denaturation, withdrawal and use of
denatured alcohol. — Any person who produces, withdraws, sells,
transports or knowingly uses, or is in possession of denatured alcohol,
or articles containing denatured alcohol in violation of laws or
regulations now hereafter in force pertaining thereto shall be required
to pay the corresponding tax, in addition to the penalties provided for
under Title XI of this Code.
"Sec. 117. Removal of spirits of cigars underbond. —
Spirits requiring rectification may be removed from the place of
production to some other establishment for the purpose of rectification
without the prepayment of the excise tax: Provided, the distiller
removing such spirits and the rectifier receiving them shall file with
the Commissioner their joint bond conditioned upon the payment by the
rectifier of the excise tax due on the finished products: Provided,
further, That in cases where alcohol has already been rectified either
by original and continuous distillation or by redistillation is further
re-rectified, no loss for rectification and handling shall be allowed
and the rectifier thereof shall pay the specific tax due on such
losses. Cigars may be removed by a manufacturer of tobacco products
owning and operating a branch factory separate from his principal
factory, from the branch factory to the principal factory, for
exportation, without the prepayment of the excise tax, provided that a
bond is filed with the Commissioner conditioned upon the payment of the
excise tax that may be due on the finished product. chanroblesvirtualawlibrary
"Sec. 118. Removal of fermented liquors to bonded
warehouse. — Any brewer may remove or transport from his brewery or
other place of manufacture to a bonded warehouse used by him
exclusively for the storage or sale in bulk of fermented liquors of his
own manufacture, any quantities of such fermented liquors, not less
than one thousand liters at one removal, without payment of the tax
thereon under a permit which shall be granted by the Commissioner. Such
permit shall be affixed to every package so removed and shall be
cancelled or destroyed in such manner as the Commissioner may
prescribe. Thereafter, the manufacturer of such fermented liquors shall
pay the tax in the same manner and under the same penalty and liability
as when paid at the brewery.
"Sec. 119. Removal of damaged liquor free of tax. —
When any fermented liquor has becomes our or otherwise damaged so as to
be unfit for use as such, brewers may sell and, after securing a
special permit from the Commissioner, under such conditions as may be
prescribed in the regulations of the Ministry of Finance, remove the
same without the payment of tax thereon, in cask or other packages,
distinct from those ordinarily used for fermented liquors, each
containing not less than one hundred seventy-five liters with a note of
their contents permanently affixed thereon.
"Sec. 120. Removal of tobacco products without
prepayment of tax. — Products of tobacco entirely unfit for chewing or
smoking may be removed free of tax for agricultural or industrial use,
under such conditions as may be prescribed in the regulations of the
Ministry of Finance. Steamed leaf tobacco, fine-cut shorts, the refuse
of fine-cut chewing tobacco, scraps, cuttings, clippings, stems
ormidribs, and sweepings of tobacco may be sold in bulk as raw
materials by one manufacturer directly to another, without payment of
the tax under such conditions as may be prescribed in the regulations
of the Ministry of Finance.
'Stemmed leaf tobacco', as herein means leaf tobacco which has had the
stem or midrib removed. The term does not include broken leaf tobacco.
"Chapter III — Excise Tax on Alcohol Products.
"Sec. 121. Distilled spirits. — On distilled spirits,
there shall be collected, subject to the provisions of Section 114 of
this Code, specific taxes as follows:cralaw:red
"(a) If produced from sap of nipa, coconut, cassava,
camote or buri palm or from the juice, syrup or sugar of the cane,
provided such materials are produced commercially in the country where
they are processed into distilled spirits, per proof liter, four pesos:
Provided, That if produced in a pot still or other similar primary
distilling apparatus, by a distiller producing not more than fifty per
centum of alcohol by volume, per proof liter, one peso and fifty six
centavos;chanroblesvirtualawlibrary
"(b) If produced from raw materials other than those
enumerated in the preceding paragraph, per proof liter, thirty five
pesos; and
"(c) Medicinal preparations, flavoring extracts, and
all other preparations, except toilet preparations, of which, excluding
water, distilled spirits from the chief ingredient, shall be subject to
the same tax as such chief ingredient.
"This tax shall be proportionally increased for any strength of the
spirits taxed over proof spirits, and the tax shall attach to this
substance as soon as it is in existence as such, whether it be
subsequently separated as pure or impure spirits, or transformed into
any other substance either in the process of original production or by
any subsequent process.
"'Spirit or distilled spirits' is the substance known as ethyl alcohol,
ethanol or spirits of wine, including all dilutions, purifications and
mixtures thereof, from whatever sources by whatever process produced
and shall include whisky, brandy, rum, gin and vodka, and other similar
products or mixtures, except compounded liquors taxed under Section 122
of this Code.
"'Proof spirits' is liquor containing one-half of its volume of alcohol
of a specific gravity of seven thousand nine hundred and thirty nine
ten thousandths (0.7939) at fifteen degrees centigrade. A proof liter
means a liter of proof spirits.
"Sec. 122. Compounded liquors. — There shall be
levied, assessed and collected an ad valorem tax of four percent of the
manufacturer's gross selling price or market value of locally
compounded liquors.
"For the purpose of this section, "compounded liquor, shall include any
intoxicating beverage whatever concocted by or resulting from the
mixture of or addition to distilled spirits, either before or after
rectification, of any coloring matter, flavoring extract or essence or
other kind of wine, liquor or other ingredient. Locally manufactured
imitation wines shall be considered as compounded liquor.
"Sec. 123. Wines. — On wines there shall be collected
per liter of volume capacity, the following taxes:cralaw:red
"(a) Sparkling wines regardless of proof, twenty six
pesos;chanroblesvirtualawlibrary
"(b) Still wines containing fourteen percent of
alcohol by volume or less, four pesos; and
"(c) Still wines containing more than fourteen
percent of alcohol by volume, eight pesos.
"Fortified wines containing more than twenty-five percent of alcohol by
volume shall be taxed as distilled spirits. Fortified wines shall mean
natural wines to which distilled spirits are added to increase their
alcoholic strength. chanroblesvirtualawlibrary
"Sec. 124. Specific and ad valorem tax on fermented
liquors. — (a) Specific tax. — On beer, lager beer, ale, porter
and other fermented liquors (except tuba, basi, tapuy and similar
domestic fermented liquors) there shall be collected on each liter of
volume capacity, one peso and eighty centavos.
"(b) Ad valorem tax. — In addition to the specific
tax herein imposed there shall be levied, assessed and collected an ad
valorem tax equivalent to five percent of the brewer's selling price,
net of specific tax, of the products enumerated under subsection (a)
hereof.
"Chapter IV — Excise Tax on Tobacco Products
"Sec. 125. Tobacco Products. — There shall be
collected a tax of seventy-five centavos on each kilogram of the
following products of tobacco:cralaw:red
"(a) tobacco twisted by hand or reduced into a
condition to be consumed in any manner other than the ordinary mode of
drying and curing;chanroblesvirtualawlibrary
"(b) tobacco prepared or partially prepared with or
without the use of any machine or instruments or without being pressed
or sweetened; and
"(c) fine-cut shorts and refused, scraps, clippings,
cuttings, stems and sweepings of tobacco.
"Fine-cut shorts and refuse, scraps, clippings, cuttings, stems and
sweepings of tobacco resulting from the handling or stripping of whole
leaf tobacco may be transferred, disposed of, or otherwise sold,
without prepayment of the specific tax herein provided for under such
conditions as may be prescribed in the regulations promulgated by the
Ministry of Finance upon recommendation of the Commissioner if the same
are to be exported or to be used in the manufacture of other tobacco
products on which the excise tax will eventually be paid on the
finished product.
"On tobacco specially prepared for chewing so as to the unsuitable for
use in any other manner, on each kilogram, sixty centavos.
"Sec. 126. Cigars and cigarettes. — There shall be
collected on cigars and cigarettes, the following taxes:cralaw:red
"(a) Cigars. —chanroblesvirtualawlibrary
"(1) When the manufacturer's or importer's wholesale
price, less the amount of the tax does not exceed thirty pesos per
thousand, on each thousand, two pesos and thirty centavos;chanroblesvirtualawlibrary
"(2) When the manufacturer's or importer's wholesale
price, less the amount of the tax exceeds thirty pesos but does not
exceed sixty pesos per thousand, on each thousand, four pesos and sixty
centavos; and
"(3) When the manufacturer's or importer's wholesale
price, less the amount of the tax, exceeds sixty pesos per thousand, on
each thousand, seven pesos.
"(b) Cigarettes packed in thirties. —chanroblesvirtualawlibrary
"(1) When the retail price per pack does not exceeded
two pesos, on each thousand, three pesos and fifty centavos; chanroblesvirtualawlibrary
"(2) When the retail price per pack exceeds two
pesos, but does not exceed two pesos and forty centavos, on each
thousand, six pesos; and
"(3) When the retail price per pack exceeds two pesos
and forty centavos, on each thousand, nine pesos.
"(c) Cigarettes packed in twenties. —chanroblesvirtualawlibrary
"(1) When the retail per pack does not exceed three
pesos and fifty centavos, on each thousand, twelve pesos;chanroblesvirtualawlibrary
"(2) When the retail price per pack exceeds three
pesos and fifty centavos, but does not exceed four pesos and fifty
centavos, on each thousand, twenty-five pesos;chanroblesvirtualawlibrary
"(3) When the retail price per pack exceeds four
pesos and fifty centavos, but does not exceed five pesos and sixty
centavos, on each thousand, thirty-five pesos;chanroblesvirtualawlibrary
"(4) When the retail price per pack exceeds five
pesos and sixty centavos, but does not exceed six pesos and eighty
centavos, on each thousand, forty pesos;chanroblesvirtualawlibrary
"(5) When the retail price per pack exceeds six pesos
and eighty centavos, but does not exceed seven pesos and fifty
centavos, on each thousand, fifty seven pesos and fifty centavos; chanroblesvirtualawlibrary
"(6) When the retail price per pack exceeds seven
pesos and fifty centavos, but does not exceed eight pesos, on each
thousand, eighty pesos;chanroblesvirtualawlibrary
"(7) When the retail price per pack exceeds eight
pesos, but does not exceed nine pesos, on each thousand, one hundred
fourteen pesos; and
"(8) When the retail price per pack exceeds nine
pesos, on each thousand, one hundred fifty-one pesos.
"(d) Imported cigarettes. — If the cigarettes are of
foreign manufacture, regardless of the retail price or contents per
pack, on each thousand, one hundred fifty-one pesos.
"(e) Ad valorem tax on cigarettes. — In addition to
the specific tax imposed herein, there shall be levied, assessed and
collected an ad valorem tax on cigarettes based on the gross selling
price, net of specific tax, as follows:cralaw:red
"(1) On cigarettes packed in 30's 2%
"(2) On cigarettes packed in 20's
and on imported cigarettes 4%
"(f) Effect of change of rates or classification. —
Whenever there is a change of tax rates or classification of cigars and
cigarettes, no downward reclassification for tax purposes of any
existing brand shall be allowed, and cigars and cigarettes subject to
tax at a lower rate before such change shall automatically be subject
to the corresponding higher rate or classification.
"In case a manufacturer introduces a new category of cigarettes using a
foreign brand or trademark under a licensing agreement, for tax
purposes, the maximum retail price of such cigarettes shall in no case
be lower than the prevailing maximum retail price of an existing
category of cigarettes using a foreign brand or trademark of comparable
quality, blend, cost of production and other relevant factors.
"Duly registered and/or existing brands of cigarettes packed in
twenties shall not be allowed to be packed in thirties.
"(g) Determination of rates applicable to cigars. —
The price at which the various classes of cigars are sold at wholesale
in the factory or in the establishment of the importer to the public
shall determine the rate of the tax applicable to such cigars. If the
manufacturer or importer also sells, or allows to be sold, his cigars
at wholesale in another establishment of which he is the owner or in
the profits of which he has an interest, the wholesale price in such
establishment shall determine the rate of the tax applicable to the
cigars therein sold. Should such price be less than the costs of
manufacturer or importation, such cost and expenses incurred until the
cigars are finally sold, plus 10% thereof shall constitute the
wholesale price. chanroblesvirtualawlibrary
"(h) Printing of rates of tax. — All packs of locally
manufactured cigarettes shall bear thereon, in print, the amount of
specific tax per pack except those used as samples. No cigarettes shall
be allowed to be removed from any factory unless this requirement has
been complied with.
"Chapter V — Excise Tax on Petroleum Products
"Sec. 128. Manufactured oils and other fuels. — There
shall be collected on refined and manufactured mineral oils and motor
fuels, the following excise taxes which shall attach to the articles
hereunder enumerated as soon as they are in existence as such:cralaw:red
"(a) For products subject to specific tax only:cralaw:red
"(1) Lubricating oils, per liter of volume capacity,
four pesos and fifty centavos;chanroblesvirtualawlibrary
"(2) Processed gas, per liter of volume capacity,
five centavos;chanroblesvirtualawlibrary
"(3) Greases, waves and petrolatum, per kilogram,
four pesos and fifty centavos; and
"(4) On denatured alcohol to be used for motive
power, per liter of volume capacity, five centavos: Provided, That
unless otherwise provided by special laws, if the denatured alcohol is
mixed with gasoline, the excise tax on which has already been paid,
only the alcohol content shall be subject to the tax herein prescribed.
For purposes of this subsection, the removal of denatured alcohol of
not less than one hundred eighty degrees proof (ninety percent absolute
alcohol) shall be deemed to have been removed for motive power, unless
shown otherwise.
"(b) For products subject to ad valorem tax only:cralaw:red
"(1) Kerosene, fourteen percent;chanroblesvirtualawlibrary
"(2) Asphalt, fourteen percent; and
"(3) Fuel oil commercially known as diesel fuel oil,
and on similar fuel oils, having more or less the same generating
capacity, and liquefied petrolatum gas used for motive power,
twenty-two percent.
"(c) For products subject to both specific and ad
valorem taxes:cralaw:red
"Specific "Ad
Valorem
"(1) Naptha, regular gasoline and
similar products of distillation
P1.575/liter 25%
"(2) Premium and aviation gasoline
P1.49/liter 25%
"(3) Thinner & solvents
P1.491/liter 25%
"(4) Liquified petroleum gas except
those used for motive power
P0.572/liter or
P1.029/kg 14%
"(5) Aviation turbo fuel
P1.509/liter 25%
"(6) Fuel oil commercially known
as bunker fuel oil and oils
having more or less the same
generating power
P0.443/liter 7%
"The ad valorem tax shall be based on the wholesale posted price, net
of specific and domestic as valorem taxes on the oil product as
approved by the Board of Energy.
"Sec. 129. Indigenous petroleum. — There shall be
levied, assessed and controlled once only on the first taxable sale,
barter, exchange or similar transaction intended to transfer ownership
of, or title to, indigenous petroleum, a tax equivalent to twenty-two
percent of the fair international market price thereof, such tax to be
paid by the buyer or purchaser within fifteen days from the date of
actual or constructive delivery to the said buyer or purchaser. The
phrase "first taxable sale, barter, exchange or similar transaction"
means the transfer of the indigenous petroleum in its original state to
a first taxable transferee. The fair international market price shall
be determined in accordance with regulations to be promulgated by the
Minister of Finance upon recommendation of the Commissioner in
consultation with an appropriate government agency.
"For the purpose of this subsection, "indigenous petroleum" shall
include locally extracted mineral oil, hydrocarbon gas, bitumen, crude
asphalt, mineral gas and all other similar or naturally associated
substances with the exception of coal, peat, bituminous shale and/or
stratified mineral deposits. chanroblesvirtualawlibrary
"Chapter VI — Miscellaneous Articles.
"Sec. 130. Matches. — There shall be levied, assessed
and collected on matches, an ad valorem tax equivalent to ten percent
of the manufacturer's gross selling price.
"Sec. 131. Fireworks. — There shall be collected on
all fireworks, a tax of thirty pesos per kilogram. "Fireworks" as
herein used shall include firecrackers, sparklers, rockets and similar
devices which are exploded or burned to produced noises or brilliant
lighting effects.
"Sec. 132. Coal.— There shall be collected, on all
coal and coke a tax of fifty pesos per metric ton.
"Sec. 133. Cinematographic Films. — (a) Taxable
films. — There shall be collected, once only, on cinematographic film,
including television films or tapes in reels, regardless of width, a
tax of seventy centavos per linear meter.
"(b) Films not subject to tax. — (1) Educational
films or cinematographic films used for visual education, whether
manufactured in the Philippines or imported; and
"(2) Any tax-paid cinematographic film subsequent
returned to the Philippines or on any negative film or unprinted
positive film, and on any reversal film used in amateur photography of
sixteen millimeters or less.
"Sec. 134. Video Tapes. — There shall be collected on
each processed video-tape cassette, ready for playback, regardless of
length, an annual tax of five pesos: Provided, That locally
manufactured or imported blank video tape shall be subject to sales tax.
"Sec. 135. Saccharine. — There shall be collected on
saccharine, sodium saccharine and all its derivatives or salts of
saccharine and other artificial sweetening agents, a tax of seventy
five pesos per kilogram.
Section 21. Section 190 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 160. Time for payment of fixed taxes. — All
fixed taxes shall be payable annually, on or before the last day of the
first month of the taxable year adopted by the taxpayer for income tax
purposes. Any person beginning a business must first pay the tax before
engaging therein."
Section 22. Section of the National Internal Revenue
Code is hereby renumbered and paragraphs (1) and (3) (d), (i), (o),
(p), (q), and (r) thereof are amended, and new subparagraphs are added
after subparagraphs (qq), all to read as follows:cralaw:red
"Sec. 161. Fixed taxes. — (1) Persons subject to
percentage tax. — Unless otherwise provided, every person engaging in a
business on which the percentage tax is imposed shall pay a fixed
annual tax of two hundred pesos. chanroblesvirtualawlibrary
"(3) Other fixed taxes. —chanroblesvirtualawlibrary
"(d) Wholesale dealers of distilled spirits and wine:cralaw:red
"(1) In Metro Manila and other cities, two thousand
pesos.
"(2) In other places, five hundred pesos.
"(i) Retail vino dealers, one hundred pesos.
"(o) Retail leaf tobacco dealers, one hundred pesos.
"(p) Retail dealers of cigars, cigarettes and other
manufactured tobacco products, one hundred pesos.
"(q) Retail peddlers of cigars, cigarettes and other
manufactured tobacco products, one hundred pesos.
"(r) Importers of distilled spirits, wines and
fermented liquors; and manufacturers, importers or exporters of
manufactured tobacco products:cralaw:red
"(1) In Metro Manila, five thousand pesos.
"(2) In other places, one hundred pesos.
xxx
xxx
xxx
"(rr) Persons dealing in firearms or ammunition under
license issued in accordance with the provisions of Section 883 of the
Administrative Code, or in explosives as provided by Act Numbered
Twenty-two hundred and fifty-five, two thousand pesos.
"(ss) Wholesale dealers of petroleum products other
than liquified petroleum gas, two thousand pesos.
"(tt) Producer or processor of video-tape cassettes,
five hundred pesos. chanroblesvirtualawlibrary
"(uu) Lessor or distributor of video-tape cassettes,
three hundred pesos.
"(vv) Manufacturers or importers of automobiles, five
thousand pesos.
"(ww) Forest or logging operators or concessionaires,
five thousand pesos.
"(xx) Producers of minor forest products, two hundred
pesos.
"(yy) Producers of minerals and mineral products,
five thousand pesos.
"(zz) Producers of quarry resources, five hundred
pesos.
"(aaa) Manufacturers of non-essential articles, five
hundred pesos.
Section 23. Section 194 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 163. Percentage tax on sale of non-essential
articles. — There shall be levied, assessed and collected, once only on
every original sale, barter, exchange, or similar transaction for
nominal or valuable consideration intended to transfer ownership of, or
title to, the articles herein below enumerated a tax equivalent to 50%
of the gross value in money of the articles so sold, bartered,
exchanged or transferred, such tax to be paid by the manufacturer or
producer: chanroblesvirtualawlibrary
"(a) All articles commonly or commercially known as
jewelry, whether real or imitation, pearls, precious and semi-precious
stones, and imitations thereof; articles made of, or ornamented,
mounted or fitted with, precious metals or imitations thereof or ivory
(not including surgical and dental instruments, silver-plated wares,
frames or mounting for spectacles or eyeglasses, and dental gold or
gold alloys and other precious metal used in filling, mounting or
fitting of the teeth); opera glasses, and lorgnettes. The term
"precious metals" shall include platinum, gold, silver, and other
metals of similar or greater value. The term "imitations thereof" shall
include plantings and alloys of such metals.
"(b) Perfumes, essences, extracts, toilet waters,
cosmetics, hair dressings, hair dyes, hair restorations, aromatic
cachous, toilet powders, except tooth and mouth washes, dentifrice,
toothpaste, talcum and medicated toilet powders, hair oils and pomades.
"(c) Dice, mahjong sets and playing cards.
"(d) Jukeboxes.
"(e) Manufactured parts and accessories of
automobiles which are principally for ornamentation of embellishment.
"(f) Similar or analogous articles, substances or
preparations to those enumerated above as determined by the Minister of
Finance upon the recommendation of the Commissioner of Internal Revenue
based on the inherent essentiality of the product.
"Any material, part or accessory of the above-mentioned articles shall
be taxed under this section." chanroblesvirtualawlibrary
Section 24. Section 195 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 164. Percentage tax on sales of automobiles. —
There shall be levied, assessed and collected once only on every
original sale, barter, exchange or similar transaction for nominal or
valuable consideration intended to transfer ownership of or title to
automobiles, a percentage tax based on the suggested retail or list
price or actual retail price, whichever is higher, such tax to be paid
by the manufacturer or importer, determined in accordance with the
following schedule:cralaw:red
Tax Rate Engine Displacement Diesel
Gasoline
30% Up to 1200 cc Up to 1850 cc
35% 1201 to 1600 cc 1851 to 2050 cc
40% 1601 to 1800 cc 2051 to 2250 cc
50% 1801 cc or over 2251 cc or over
"Parts and accessories of automobiles imported as completely knocked
down parts by assemblers registered under the progressive car
manufacturing program of the Board of Investments, or their
replacements; and imported and locally manufactured spare parts and
accessories with which automobiles are usually equipped shall be
subject to the tax under Section 165(a) (2). chanroblesvirtualawlibrary
"For purposes of this section, the term "suggested retail or list
price" shall mean the price at which locally manufactured automobile
are offered for sale to the public, as fixed by the assemblers, which
shall in no case be less than 15% over and above the selling price of
the assemblers to the dealer; or not less than 30% over and above the
manufacturing cost, in case of direct sales to the public by the
assemblers.
"Automobile assemblers shall submit to the Commissioner of Internal
Revenue a sworn statement of the "suggested retail or list price" of
each particulars brand, make or model of their products before the same
is offered for sale; and periodically thereafter a notification of any
projected change thereof. The assemblers are also required to cause the
publication of their respective "suggested retail or list price" or any
change thereof in a newspaper of general publication.
"A sale of an automobile shall, for purposes of this section, be
considered to be a sale of the chassis and of the body together with
parts and accessories with which the same are usually equipped
including other parts and accessories permanently attached thereto at
the time of the original sale. The term "automobiles" used herein shall
not include motor vehicles classified as trucks, jeeps and utility
vehicles."
Section 25. Section 203 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 168. Percentages tax upon proprietors or
operators of rope factories, sugar centrals and mills, coconut oil
mills, palm oil mills, cassava mills, and desiccated coconut factories.
— Proprietors or operators of rope factories, sugar centrals and mills,
coconut oil mills, palm oil mills, cassava mills, and desiccated
coconut factories, shall pay a tax equivalent to three (3%) per cent of
the gross value of money of all the rope, sugar, coconut oil, palm oil,
cassava flour or starch, desiccated coconut, manufactured, processed or
milled by them, including the by-product of the raw materials, from
which said articles are produced, processed, or manufactured, such tax
to be based on the actual selling price or market value of these
articles at the time they leave the factory or mill warehouse:
Provided, however, That this tax shall not apply to rope, coconut oil,
palm oil and the by-product of copra from which it is produced or
manufactured, and desiccated coconuts, if such rope, coconut oil, palm
oil, copra by-products and desiccated coconuts, shall be removed for
exportation by the proprietor or operator of the factory or mill
himself, and are actually exported without returning to the
Philippines, whether in their original state or as an ingredient or
part of any manufactured article or products: Provided, further, That
where the planter or the owner of the raw materials is the exporter of
the aforementioned milled or manufactured products, he shall be
entitled to a tax credit equivalent to the proportion of the miller's
taxes withheld by the proprietor or operator of the factory or mill,
corresponding to the quantity exported, which may be used against any
internal revenue tax directly due from him: and Provided, finally, That
credit for any sales, miller's or excise taxes paid on raw materials or
supplies used in the milling process shall not be allowed against the
miller's tax due, except in the case of a proprietor or operator of a
refined sugar factory as provided hereunder.
"In case the raw materials are processed, manufactured or milled in
pursuance of a contract where the factory, central, or mill receives a
share of the finished products, the tax on the share pertaining to the
planter or owner of the raw materials shall be charged to the planters
or owner and withheld by the proprietor or operator of the factory,
central, or mill and paid by him to the Commissioner. chanroblesvirtualawlibrary
"A proprietor or operator of a refined sugar factory shall be subject
to the tax imposed by this section but any miller's tax paid under this
section on the raw sugar shall be credited against the tax due on the
refined sugar.
"Where articles subject to manufacturer's sales tax are manufactured
out of materials subject to tax under this section, the miller's tax
paid herein shall be credited against the sales tax due on the finished
products in the same manner as provided under Section 166 of this Code."
Section 26. Section 205 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 170. Contractor's, proprietors or operators of
dockyards, and others. — A contractor's tax of four percent of the
gross receipts is hereby imposed on proprietors or operators of the
following business establishments and/or engaged in the business of
selling or rendering the following services for a fee or compensation:cralaw:red
"(a) General engineering, general building and
specialty contractors, as defined in Republic Act No. 4566;chanroblesvirtualawlibrary
"(b) Filling, demolition and salvage work contractors
of mine drilling apparatus;chanroblesvirtualawlibrary
"(c) Dockyards;chanroblesvirtualawlibrary
"(d) Installation of water system, gas or electric,
heat or power;chanroblesvirtualawlibrary
"(e) Smelting plants, engraving plants, plating
establishments and plastic lamination establishments;chanroblesvirtualawlibrary
"(f) Upholstering, washing or greasing of motor
vehicles, vulcanizing, recapping and battery charging;chanroblesvirtualawlibrary
"(g) Planing or surfacing and recutting of lumber and
sawmills under contract to saw or cut logs belonging to others;chanroblesvirtualawlibrary
"(h) Dry-cleaning or dyeing establishments, steam
laundries and laundries using washing machines;chanroblesvirtualawlibrary
"(i) Repair of any kind of bicycles, mechanical and
electrical devices, instruments, apparatus, or furniture and shoe
repairing by machine or any mechanical contrivance;chanroblesvirtualawlibrary
"(j) Parking lots and parking spaces; chanroblesvirtualawlibrary
"(k) Tailor shops, dress shops, milliners and
hatters, beauty parlors, barber shops, massage clinics, sauna, turkish
and swedish baths, slendering and body building saloons and similar
establishments, photographic studios and funeral parlors;chanroblesvirtualawlibrary
"(l) Arrastre and stevedoring, warehousing, or
forwarding establishments;chanroblesvirtualawlibrary
"(m) Plumbers, smiths and house or sign painters;chanroblesvirtualawlibrary
"(n) Printers, bookbinders, lithographers and
publishers, except those engaged in the publication or printing and
publication of any newspaper, magazine, review, or bulletin which
appears at regular intervals, with fixed prices for subscription and
sale and which is not devoted principally to the publication of
advertisements;chanroblesvirtualawlibrary
"(o) Business agents and private detective or
watchman agencies;chanroblesvirtualawlibrary
"(p) Lessors of personal property, except video tape
cassettes and nonresident owners of property subject to the final tax
under Section 24(b) (vii) of this Code; and
"(q) Other independent contractors. The term
independent contractors includes persons (juridical or natural) not
enumerated above (but not including individuals subject to the
occupation tax under the Local Tax Code) whose activity consists
essentially of the sale of all kinds of services for a fee regardless
of whether or not the performance of the service calls for the exercise
or use of the physical or mental faculties of such contractors or their
employees. It does not include regional or areas headquarters
established in the Philippines by multinational corporations, including
their alien executives, and which headquarters do not earn or derive
income from the Philippines and which act as supervisory,
communications and according centers for their affiliates, subsidiaries
or branches in the Asia-Pacific Region.
"The term "gross receipts" means all amounts received by the prime or
principal contractor as the total contract price, administered by any
amount paid to the subcontractor under a subcontract arrangement. Any
portion of the total contract price which is paid to the subcontractor,
shall be excluded from the taxable gross receipts of the subcontractor."
Section 27. Section 205-A of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 171. Hotels, motels and others. —There is
hereby imposed on proprietors, operators or keepers of hotels, motels,
resthouses, pension houses, lodging houses and resorts, a tax
equivalent to twelve percent of their gross receipts derived from room
occupancy."
Section 28. Section 206 of the National Internal
Revenue Code is hereby renumbered as Section 172 and paragraph (3)
thereof is hereby amended to read as follows:cralaw:red
"(3) On proprietors or operators of restaurants,
refreshments parlors, bars, cafes, and other eating places which are
maintained within the premises or compound of a cockpit, cabaret, night
or day club, Jai Alai, race track, or which are accessible to patrons
of such cockpits, cabaret, night or day club, Jai-Alai, race track by
means of a connecting door or passage, 12% in the case of cockpit,
cabaret, night or day club, and 25% in the case of Jai-Alai and race
track, of their gross receipts."
Section 29. Section 208 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 174. Percentage tax on stock, real estate,
commercial, customs and immigration brokers cinematographic films
owners, producers, lessors or distributors. — Stock, real estate,
commercial, customs, and immigration brokers shall pay a percentage tax
equivalent to seven percent of the gross compensation received by them.
Cinematographic film lessors, or distributors shall pay a percentage
tax of three per cent of their gross receipts: Provided, however, That
the term "cinematographic films" shall not include video tape
cassettes."
Section 30. Section 209 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows: chanroblesvirtualawlibrary
"Sec. 175. Percentage tax on dealers insecurities,
lending investors. — Dealers in securities shall pay a tax equivalent
to six (6%) per cent of their gross income. Lending investors shall pay
a tax equivalent to five (5%) per cent of their gross income."
Section 31. Section 215 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 180. Registration of name or style with the
revenue district officer or collection agent. — Every person engaged in
any business shall, on or before the commencement of this business, or
whenever he transfers to another revenue district, register with the
revenue district officer concerned within ten days from commencement of
business or transfer. In cities or municipalities where no revenue
district officer is stationed, such person shall register with the
collection agent within ten days after securing his privilege tax
receipt. The registration shall contain his name or style, place of
residence, business, the place where such business is carried on, and
such other information as may be required by the Commissioner in the
form prescribed therefor. In case of a firm, the names and residences
of the various person constituting the same shall also be registered.
The Commissioner, after taking into consideration the volume of sales,
financial condition and other relevant factors, may require the
registrant to guarantee the payment of his sales taxes by way of
advance payment, or the posting or filing of a security, guarantee or
collateral acceptable to the Commissioner.
Manufacturers, producers, importers and millers liable to pay sales,
percentages or excise taxes, who are already registered in accordance
with the existing provisions of the Tax Code, shall register anew
within 30 days from the date of effectivity of the decree, and shall be
subject to the requirements provided in this section.
Section 32. Section 222 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 186. Stamp taxes upon documents, instruments,
and papers. — Upon documents, instruments, and papers, and upon
acceptance, assignments, sales, and transfers of the obligation, right,
or property incident thereto, there shall be levied, collected and paid
for, and in respect of the transaction so had or accomplished, the
corresponding documentary stamp taxes prescribed in the following
sections of this Title, by the person making, signing, issuing,
accepting, or transferring the same, and at the same time such act is
done or transaction had: Provided, That whenever one party to the
taxable document enjoys exemption from the tax herein imposed, the
other party thereto who is not exempt shall be the one directly liable
for the tax."
Section 33. Section 238 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 192. Stamp tax on warehouse receipts. — On each
warehouse receipt for property held in storage in the public or private
warehouse or yard for any person other than the proprietor of such
warehouse or yard, there shall be collected a documentary stamp tax of
one peso and fifty centavos: Provided, That no tax shall be collected
on each warehouse receipt issued to any one person in any one calendar
month covering property the value of which does not exceed two hundred
pesos."
Section 34. Section 248 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows: chanroblesvirtualawlibrary
"Sec. 212. Documents and papers not subject to stamp
tax. — The provisions of Section 186 to the contrary notwithstanding,
the following instruments, documents, and papers shall be exempt from
the documentary stamp tax:cralaw:red
"(1) Policies of insurance of annuities made or
granted by a fraternal or beneficiary society, order, association, or
cooperative company, operated on the lodge system or local cooperation
plan and organized and conducted solely by the members thereof for the
exclusive benefit of each member and not for profit.
"(2) Certificates of oaths administered to any
government official in his official capacity or of acknowledgment by
any government official in the performance of his official duties,
written appearance in an court by any government official, in his
official capacity; certificates of the administration of oaths to any
person as to the authenticity of any paper required to be filed in
court by any person or party thereto, whether the proceedings be civil
or criminal: papers and documents filed in courts by or for the
national, provincial, city, or municipal governments, affidavits of
poor persons for the purpose of proving poverty; statements and other
compulsory information required of persons or corporations by the rules
and regulations of the national, provincial, city, or municipal
governments exclusively for statistical purposes and which are wholly
for the use of the bureau or office in which they are filed, and not at
the instance or for the use or benefit of the person filing them;
certified copies and other certificates placed upon documents,
instruments, and papers for the national, provincial, city or municipal
governments, made at the instance and for the sole use of some other
branch of the national, provincial, city or municipal governments; and
certificates of the assessed value of lands, not exceeding two hundred
pesos in value assessed, furnished by provincial, city, or municipal
treasurer to applicants for registration of title to land."
Section 35. Section 262 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 222. Time for payment of tax. — The tax imposed
in Sections 220, and 221 shall be due every calendar quarter. It shall
be the duty of every bank or finance company, within twenty days after
the end of each calendar quarter, to make a true and complete return of
the amount of gross income derived during the preceding calendar
quarter and pay the tax due thereon."
Section 36. Section 263 of the National Internal
Revenue Code is hereby and amended to read as follows:cralaw:red
"Sec. 223. Tax on insurance premium. — There shall be
collected from every person, company or corporation (except purely
cooperative companies or associations) doing insurance business of any
sort in the Philippines a tax of five (5%) per cent of the gross
premium collected whether such premiums are paid in money, notes,
credits or any substitute for money; but premiums refunded within six
months after payment on account of rejection of risk or returned for
other reason to a person insured shall not be included in the taxable
receipt; nor shall any tax be paid upon reinsurance by a company that
has already paid the tax; nor upon premiums collected or received by
any branch of a domestic corporation, firm or association doing
business outside the Philippines on account of any life insurance of
the insured who is a non-resident. if any tax on such premium is
imposed by the foreign country where the branch is established nor upon
premiums collected or received on account of any reinsurance, if the
risk insured against covers property located outside the Philippines,
or the insured, in the case of personal insurance, resides outside the
Philippines, if any tax on such premiums is imposed by the foreign
country where the original insurance has been issued or perfected; nor
upon the portion of the premiums collected or received by the insurance
companies on variable contracts (as defined in Section 232(2) of
Presidential Decree No. 612), in excess of the amounts necessary to
insure the lives of the variable contract owners.
"Cooperative companies or associations are such as are conducted by the
members thereof with the money collected from among themselves and
solely for their protection and not for profit."
Section 37. Time for payment of tax. — The tax on
issuance premiums shall be due every calendar quarter. It shall be the
duty of every insurance company within twenty days after the end of
each calendar quarter, to make a true and complete return of the amount
of gross premiums derived during the calendar quarter and pay the tax
due thereon."
Section 38. Section 267 of the National Internal
Revenue Code is hereby renumbered and amended to read as follows:cralaw:red
"Sec. 227. Tax on franchises. — (a) In general. —
There shall be collected to all franchises, upon the gross receipts
from the business covered by the law granting the franchise, a tax of
five percent on such taxes, charges, and percentages as are specified
in the special quarters of the grantees upon whom such franchise are
conferred, whichever is higher, unless the provisions thereof preclude
the imposition of a higher tax. For the purpose of facilitating the
assessment of this tax, reports shall be made by the respective holders
of the franchises in such form and at such times, as shall be required
by regulations.
"The taxes, charges, and percentages on franchises, shall be assessed,
collected by and paid to the Commissioner or any of his collection
agents, any provision in the franchise to the contrary notwithstanding,
and shall be due and payable as specified in the particular franchise,
or, in case no time limit is specified therein, the provisions of
Section 162 shall apply."
"(b) Tax on electric franchise holders. — Any
provision of new or local ordinance to the contrary notwithstanding,
the franchise tax payable by all grantees of franchise to generate,
distribute and sell electric current for light, heat and power and for
the manufacture, distribution and sale of city gas shall be 2% of their
gross receipts received from the sale of electric current and from
transactions incident to the generation, distribution and sale of
electric current and of manufactured city gas.
"Such franchise tax be payable to the Commission of Internal Revenue,
or his duly authorized representative, on or before the twentieth day
of the month following the end of each calendar quarter or month, as
may be provided in the respective franchise or pertinent municipal
regulation and shall, any provision of the Local Tax Code or any other
law to the contrary notwithstanding, be in lieu of all taxes and
assessments of whatever nature imposed by any local authority on
earning, receipt, income and privilege or generation, distribution and
sale of electric current and of manufactured city gas. chanroblesvirtualawlibrary
"(c) Filing of returns and verification thereof—
The returns of all franchise grantees subject to tax under this section
or under their respective franchises shall be filed with and subject to
audit by the Bureau of Internal Revenue, any provision of existing law
to the contrary notwithstanding."
Section 39. Section 268 is hereby renumbered to
Section 228 and the second paragraph is amended to read as follows:cralaw:red
"The taxes imposed herein shall be payable at the end of each quarter
or month and it shall be the duty of the proprietor, lessee, or
operator concerned, as well as any party liable, within twenty days
after the end of each quarter or month, to make a true and complete
return of the amount of gross receipts derived during the preceding
quarter or month and pay the tax due thereon."
Section 40. Title XI of the National Internal Revenue
Code is hereby amended to read as follows:cralaw:red
TITLE XI — Additions to the Tax and General Penal Provisions
CHAPTER I
Additions to the Tax
"Sec. 281. General provisions. — (a) The additions to
the tax or deficiency tax prescribed in this Chapter shall apply to all
taxes, fees and charges imposed in this Code. The amount so added to
the tax shall be collected at the time, in the same manner and as part
of the tax.
"(b) If the withholding agent is the Government or
any its agencies, political subdivisions or instrumentalities, or a
government-owned or controlled corporation, the employee thereof
responsible for the withholding and remittance of the tax shall be
personally liable for the additions to the tax prescribed herein.
"(c) The term "person" as used in this Chapter,
includes an officer or employee of a corporation who as such officer,
employee, or member is under a duty to perform the act in respect of
which the violation occurs.
"Sec. 282. Civil Penalties. — (a) There shall be
imposed, in addition to the tax required to be paid, a penalty
equivalent to twenty-five percent (25%) of the amount due, in the
following cases:cralaw:red
"(1) Failure to file any return required under the
provisions of this Code or regulations on the date prescribed; or chanroblesvirtualawlibrary
"(2) Filing a return with an internal revenue officer
other than those with whom the return is required to be filed; or
"(3) Failure to pay the tax within the time
prescribed for its payment; or
"(4) Failure to pay the full amount of tax shown on
any return required to be filed under the provisions of this Code or
regulations, or the full amount of tax due for which no return is
required to be filed, on or before the date prescribed for its payment.
"(b) In case of willful neglect to file the return
within the period prescribed by this Code or regulations, or in case a
false or fraudulent return is willfully made, the penalty to be imposed
shall be fifty percent (50%) of the tax or of the deficiency tax, in
case any payment has been made on the basis of such return before the
discovery of the falsity or fraud.
"(c) The penalties imposed hereunder shall from part
of the tax and the entire amount shall be subject to the interest
prescribed in Section 283.
"(d) In the case of failure to affix the proper
documentary stamps to a document or instrument, there shall, for every
violation, be impose, in addition to the amount equivalent to
twenty-five percent of such unpaid amount which shall be in lieu of the
interest prescribed in Section 283, Provided, That when the amount is
not paid within the time prescribed in the notice and demand, there
shall be collected on the total unpaid amount, including the surcharge,
the interest prescribed in Section 283(a) from the due date prescribed
in the notice and demand until the amount is fully paid, which interest
shall form part of the tax.
"Sec. 283. Interest. — (a) In general. —There shall
be assessed and collected on any unpaid amount of tax, interest at the
rate of twenty percent (20%) per annum, or such higher rate as may be
prescribed by regulations, from the date prescribed for payment until
the amount is fully paid.
"(b) Deficiency interest. — Any deficiency in the tax
due, as the term is defined in this Code, shall be subject to the
interest prescribed in paragraph (a)hereof, which interest shall be
assessed and collected from the date prescribed for its payment until
the full payment thereof. chanroblesvirtualawlibrary
"(c) Delinquency interest. — In case of failure to
pay:cralaw:red
"(1) The amount of the tax due on any return required
to be filed, or
"(2) the amount of the tax due for which no return is
required, or
"(3) a deficiency tax, or any surcharge or interest
thereon, on the due date appearing in the notice and demand of the
Commissioner.
there shall be assessed collected, on the unpaid amount, interest at
the rate prescribed in paragraph(a) hereof until the amount is fully
paid, which interest shall form part of the tax.
"(d) Interest on extended payment. — If any person
required to pay the tax is qualified and elects to pay the tax on
installment under the provisions of this Code, but fails to pay the tax
or any installment thereof, or any part of such amount or installment
on or before the date prescribed for its payment, or where the
Commissioner has authorized an extension of time within which to pay a
tax or a deficiency tax or any part thereof, there shall be assessed
and collected interest at the rate hereinabove prescribed on the tax or
deficiency tax or any part thereof unpaid from the date of notice and
demand until it is paid.
"Sec. 284. Failure to file certain information
returns. — In the case of each failure to file an information return,
statement or list, or keep any record, or supply any information
required by this Code or by the Commissioner on the date prescribed
therefor, unless it is shown that such failure is due to reasonable
cause and not to willful neglect, there shall, upon notice and demand
by the Commissioner, be paid by the person failing to file, keep or
supply the same, one thousand pesos for each such failure: Provided,
however, That the aggregate amount to be imposed for all such failure
during a calendar year shall not exceed twenty-five thousand pesos.
"Sec. 285. Failure of a withholding agent to collect
and remit tax. — Any person required to collect, amount for, and remit
any tax imposed by this Code or who willfully fails to collect such
tax, or account for and remit such tax, or willfully assists in any
manner of evade any such tax or the payment thereof, shall, in addition
to other penalties provided for under this Chapter, be liable to a
penalty equal to the total amount of the tax not collected, or not
accounted for and remitted. chanroblesvirtualawlibrary
"Chapter II — Crimes, Other Offenses and Forfeitures
"Sec. 286. General provisions. — (a) Any person
convicted of a crime penalized by this Code shall, in addition to being
liable for the payment of the tax, be subject to the penalties imposed
herein: Provided, That payment of the tax due after apprehension shall
not constitute a valid defense in any prosecution for violation of any
provision of this Code or in any action for the forfeiture of untaxed
articles.
"(b) Any person who willfullyds or abets in the
commission of a crime penalized herein or who causes the commission of
any such offense by another, shall be liable the same manner as the
principal.
"(c) If the offender is not citizen of the
Philippines, he shall be adopted immediately after serving the sentence
without further proceedings for deportation. If he is a public officer
or employee, the maximum penalty prescribed for the offense shall be
imposed and, in addition, he shall be dismissed from the public service
and perpetually disqualified from holding any public office, to vote
and to participate in any election. If the offender is a certified
public accountant, his certificate as a certified public account shall,
upon conviction, be automatically revoked or cancelled.
"(d) In the case of associations, partnerships, or
corporations, the penalty shall be imposed on the partner, president,
general manager, branch manager, treasurer, officer-in-charge, and
employees responsible for the violation.
"Sec. 287. Attempt to evade or defeat tax. —Any
person who willfully attempts in any manner to evade or defeat any tax
imposed under this Code or the payment thereof shall, in addition to
other penalties provided by law, upon conviction thereof, be fined not
more than ten thousand pesos or imprisoned for not more than two years,
or both.
"Sec. 288. Failure to file return, supply
information, pay tax, withhold and remit tax. — Any person required
under this Code or by regulations promulgated thereunder to pay any
tax, make a return, keep any records, or supply any information, who
willfully fails to pay such tax, make such return, keep such
records, or supply such information, or withhold or remit taxes
withheld, at the time or times required by law or regulations, shall,
in addition to other penalties provided by law, upon conviction
thereof, be fined not less than five thousand pesos nor more than fifty
thousand pesos, or imprisoned for not less than six months and one day
but not more than five years, or both. chanroblesvirtualawlibrary
"Any person who attempts to make it appear for any reason that he or
another has in fact filed are turn or statement, or actually files a
return or statement and subsequently withdraws the same return or
statement after securing the official receiving seal or stamp of
receipt of an internal revenue office wherein the same was actually
filed shall, upon conviction therefor be fined not less than three
thousand pesos or imprisoned for not more than one year, or both.
"Sec. 289. Penal liability of corporations. —Any
corporation, association or general co-partnership liable for any of
the act or omissions penalized, under this Code, in addition to the
penalties imposed herein upon the responsible corporate officers,
partners or employees, shall, upon conviction, for each act or omission
be fined for not less than ten thousand pesos but not more than one
hundred thousand pesos.
"Sec. 290. Penal liability for making false entries,
records or reports. — (a) Any independent certified public accountant
engaged to examine and audit books of accounts of taxpayers under
subparagraph (a) of Section 272 and pay person under his direction who:cralaw:red
"(1) willfully falsifies any report or statement
bearing on any examination or audit, or renders a report, including
exhibits, statements, schedules or other forms of accountancy work
which has not been verified by him personally or under his supervision
on by a member of his firm or by a member of his staff in accordance
with sound auditing practices, or
"(2) certifies financial statements of a business
enterprise containing an essential misstatement of facts or omission in
respect of the transactions, taxable income, deduction and exemption of
his client, or chanroblesvirtualawlibrary
"(b) Any person who:cralaw:red
"(1) not being an Independent Certified Public
Accountant according to subparagraph (b) of Section 272, examines and
audits books of accounts of taxpayers, or
"(2) offers to sign and certify financial statements
without audits, or
"(3) offers any taxpayer the use of accounting
bookkeeping records for internal revenue purposes not in conformity
with the requirement prescribed in this Code or regulations promulgated
thereunder, or
"(4) knowingly makes any false entry or enters any
false or fictitious name in the books of accounts or records mentioned
in the preceding paragraphs, or
"(5) keeps two or more sets of such records or books
of accounts, or
"(6) in any way commits an act or omission, in
violation of the provisions of this Section, or
"(7) fails to keep the books of account or records
mentioned in Section 272 in a native language, English, or Spanish, or
to make a true and complete transaction as required in Section 274 of
this Code, or whose books of accounts or records kept in a native
language, English, or Spanish and found to be at material variance with
books or records kept by him in another language.
shall, upon conviction for each act or omission, be punished by a fine
of not less than ten thousand pesos but not more than fifty thousand
pesos or by imprisonment of not less than four years and one day but
not more than six years, or both.
"Sec. 291. Unlawful pursuit of business. —Any person
who carries on any business for which a privilege tax is imposed
without having the tax as required by law shall, upon conviction for
each act or omission, be fined not less than one thousand pesos but not
more than five thousand pesos or imprisoned for not less than one month
but not more than six months, or both: Provided, That in the case of a
person engaged in the business of distilling, rectifying, repacking,
compounding or manufacturing any article subject to excise tax, he
shall, upon conviction for each act or omission, be fined for not less
than five thousand pesos but not more than twenty-five thousand pesos
or imprisoned for a term of not less than six months but not more than
three years, or both.
"Sec. 292. Illegal collection of foreign payments. —
Any person who knowingly undertakes the collection of foreign payment
as provided under Section 70 of this Code without having obtained a
license therefor, or without complying with its implementing
regulations, shall, upon conviction for each act or omission, be fined
for not less that five thousand pesos nor more than twenty-five
thousand pesos, or imprisoned for not less than six months but not more
than three years, or both.
"Sec. 293. Unlawful possession of cigarette paper in
bobbins, etc. — It shall be unlawful for any person to have in his
possession cigarette paper in bobbins or rolls, cigarette tipping paper
or cigarette filter tips, without the corresponding authority therefor
issued by the Commissioner. Any person, importer, manufacturer of cigar
and cigarettes, who has been found guilty under this Section, shall,
upon conviction of each act or omission, be fined a sum not less than
twenty thousand pesos but not more than one hundred thousand pesos and
imprisoned for a term of not less than six years and one day but not
more than twelve years. chanroblesvirtualawlibrary
"Sec. 294. Unlawful use of denatured alcohol. — Any
person who, for the purpose of manufacturing any beverage, uses
denatured alcohol or alcohol specially denatured to be used for motive
power or withdrawn under bond for industrial uses or alcohol knowingly
misrepresented to be denatured to be unfit for oral intake, or who
knowingly sells or offers for sale any beverages made in whole or in
part from such alcohol, or who uses such alcohol for the manufacture of
liquid medicinal preparations taken internally, or knowingly sells or
offers for sale such preparations containing as an ingredient such
alcohol, shall, upon conviction for each act or omission, be fined for
not less than twenty thousand pesos, but not more than one hundred
thousand pesos, and imprisoned for a term of not less than six years
and one day but not more than twenty years.
"Any person who shall unlawfully recover, or attempt to recover by
distillation or other process any denatured alcohol or who knowingly
sells or offers for sale, conceals or otherwise disposes of alcohol so
recovered or redistilled shall be subject to the same penalties imposed
under this Section.
"Sec. 295. Shipment of removal of liquor or tobacco
products under false name or brand or as an imitation of any existing
or otherwise known products name or brand. — Any person who ships,
transport or removes spirituous, compounded or fermented liquors, wines
or any manufactured products of tobacco under any other than the proper
name or brand known to the trade as designating the kind and quality of
the contents of the cask, bottle, or package containing the same or as
an imitation, of any existing or otherwise known product name or brand,
or causes such act to be done, shall, upon conviction for each act or
omission, be fined for not less than twenty thousand pesos but not more
than one hundred thousand pesos and imprisoned for not less than six
years and one day but not more than twelve years.
"Sec. 296. Unlawful possession or removal of articles
subject to excise tax without payment of the tax. — Any person who owns
and/or is found in possession of imported articles subject to excise
tax, the tax on which has not been paid in accordance with law or any
person who owns and/or is found in possession of imported tax-exempt
articles other than those to whom they are legally issued shall be
punished by:cralaw:red
"1. A fine of not less than one hundred pesos nor
more than five hundred pesos and imprisonment of not less than fifteen
days nor more than thirty days, if the appraised value, to be
determined in the manner prescribed in the Tariff and Customs Code,
including duties and taxes, of the articles does not exceed five
hundred pesos.
"2. A fine of not less that one thousand pesos nor
more than five thousand pesos and imprisonment of not less than six
months and one day nor more than four years, if the appraised value, to
be determined in the manner prescribed in the Tariff and Customs Code,
including duties and taxes, of the articles exceed five hundred pesos
but does not exceed one hundred fifty thousand pesos.
"3. A fine of not less than ten thousand pesos nor
more than twenty-five thousand pesos and imprisonment of not less than
four years and one day nor more than eight years, if the appraised
value, to be determined in the manner prescribed in the Tariff and
Customs Code, including taxes and duties, of the articles is more than
fifty thousand pesos but does not exceed one hundred fifty thousand
pesos. chanroblesvirtualawlibrary
"4. A fine of not less than twenty thousand pesos nor
more than fifty thousand pesos and imprisonment of not less than ten
years and one day nor more than fourteen years, if the appraised value,
to be determined in the manner prescribed in the Tariff and Customs
Code, including taxes and duties, of the articles exceeds one hundred
fifty thousand pesos.
"Any person who is found in possession of locally manufactured articles
subject to excise tax, the tax on which has not been paid in accordance
with law, or any person who is found in possession of such articles
which are exempt from excise tax other than those to whom the same is
lawfully issued shall be punished with a fine of not less than ten time
the amount of excise tax due on the articles found but not less than
five hundred pesos nor more than ten thousand pesos and imprisonment of
from six months and one day to four years.
"Any manufacturer, owner, or person in charge of any article subject to
excise tax who removes or allows or causes the unlawful removal of any
such articles from the place of production or bonded warehouse, upon
which the articles subject to excise tax has not been paid at the time
and in manner required, and any person who knowinglyds or abets in the
removal of such articles as aforesaid, or conceals the same after
illegal removal shall, for the first offense, be furnished with a fine
of not less than ten times the amount of excise tax due on the
articles, but not less than one thousand pesos nor more than one
hundred thousand pesos and imprisonment of not less than six months and
one day but not more than six years.
"The mere unexplained possession of articles subject to excise tax, the
tax on which has not been paid in accordance with law, shall be
punished under this Section. chanroblesvirtualawlibrary
"Sec. 297. Illegal cutting and removal of forest
products. — (a) Any person who unlawfully cuts or gathers forest
products in any forest lands without license or if under license, in
violation of the terms hereof, shall, upon conviction for each act or
omission, be fined for not less than ten thousand pesos but not more
than one hundred thousand pesos or imprisoned for a term of not less
than four years and one day but not more than six years, or both.
"(b) If forest products shall be removed without
invoice, or upon removal shall, without permit, be discharged from the
boat, car, cart, or other means of transportation, he shall, upon
conviction for each act or omission, be fined in a sum of not less than
five thousand pesos but not more than fifty thousand pesos or
imprisoned for not less than six months and one day but not more than
two years, or both.
"Sec. 298. Failure or refusal to issue receipts or
sales or commercial invoices, violations related to the printing of
such receipts or invoices and other violation. — (a) Any person who,
being required under Section 181 to issue receipts or sales or
commercial invoices, fails or refuses to issue such receipts or
invoices, issues receipts or invoices that do not truly reflect and/or
contain all the information required to be sworn therein or uses
multiple or double receipts or invoices, shall, upon conviction, for
each act or omission be fined not less than one thousand pesos but not
more than fifty thousand pesos or imprisoned for a term of not less
than six months and one day but not more than two years, or both.
"(b) Any person who commits any of the acts
enumerated hereunder shall be penalized in the same manner and to the
same extent as provided for in this Section: chanroblesvirtualawlibrary
"1. Prints receipts or sales of commercial invoices
without authority from the Bureau of Internal Revenue;chanroblesvirtualawlibrary
"2. Prints double or multiple sets or invoices or
receipts;chanroblesvirtualawlibrary
"3. Prints unnumbered receipts or sales or commercial
invoices, not bearing the name, business style, taxpayer account
number, and business address of the person or entity; or
"4. Fails to submit the quarterly report required in
Section 182."
"Sec. 299. Offenses relating to stamps. —Any person
who commits any of the acts enumerated hereunder shall, upon conviction
thereof, be fined not more than ten thousand pesos or imprisoned for
not more than five years, or both:cralaw:red
"(1) Makes, imports, sells, uses or possesses without
express authority from the Commissioner, any dye for printing or making
stamps, labels, tags or playing cards.
"(2) Erases the cancellation marks of any stamps
previously used alters written figures or letters or cancellation marks
on internal revenue stamps.
"(3) Possesses false, counterfeit, restored or
altered stamps, labels or tags or causes the commission of any such
offense by another. chanroblesvirtualawlibrary
"(4) Sells or offers for sale any box or package
containing articles subject to excise tax with false, spurious or
counterfeit stamps or labels or sells from any such fraudulent box,
packages or container as aforesaid.
"(5) Gives away or accepts from another or sells,
buys or uses containers on which the stamps are not completely
destroyed.
"Sec. 300. Failure to obey summons. — Any person who,
being duly summoned to appear to testify, or to appear and produce
books of accounts, records, memoranda, or other papers, or to furnish
information as required under the pertinent provisions of this Code,
neglects to appear or to produce such books of accounts, records,
memoranda, or other papers, or to furnish such information, shall, upon
conviction, be fined not less than one thousand pesos or imprisoned for
not more than one year, or both.
"Sec. 301. Declaration under penalties of perjury. —
Any declaration, return and other statements required under this Code,
shall, in lieu of an oath, contain a written statement that they are
made under the penalties of perjury. Any person who willfully files a
declaration, return or statement containing information which is not
true and correct as to every material matter shall, upon conviction, be
subject to the penalties prescribed for perjury under the Revised Penal
Code.
"Sec. 302. Other crimes and offenses. (a)
Misdeclaration or misrepresentation of manufacturers subject to excise
tax. — Any manufacturer who, in violation of the provisions of Title IV
of this Code, misdeclares in the sworn statement required therein or in
the sales invoice, any pertinent data or information shall be punished
by a summary cancellation or withdrawal of the permit to engage in
business as a manufacturer of articles subject to excise tax. chanroblesvirtualawlibrary
"(b) Forfeiture of property used in unlicensed
business or of dyes used for printing false stamps, etc. — All
chattels, machinery, and removable fixtures of any sort used in the
unlicensed production of articles subject to excise tax shall be
forfeited.
"Dies and other equipment used for the printing or making of any
internal revenue stamp, label, or tag which is in imitation of or
purports to be a lawful stamps, label, or tag shall also be forfeited.
"(c) Forfeiture of goods illegally stored or removed.
— Unless otherwise specifically authorized by the Commissioner, all
articles subject to excise tax should not be stored or allowed to
remain in a distillery, distillery warehouse, bonded warehouse, or
other place where made, after the tax thereon has been paid, otherwise
all such articles shall be forfeited. Articles withdrawn from any such
place or from customs custody of imported into the country without the
payment of the required tax shall likewise be forfeited.
"Chapter III. — Penalties Imposed on Public Officers
"Sec. 303. Violations committed by government
enforcement officers. — Every official, agent or employee of the Bureau
of Internal Revenue or any other agency of the government charged with
the enforcement of the provisions of this Code, who is guilty of any of
the offenses herein below specified, shall, upon conviction for each
act or omission, be fined in a sum of not less than five thousand pesos
but not more than fifty thousand pesos or imprisoned for a term of not
less than one year but not more than ten years, or both: chanroblesvirtualawlibrary
"1. Those guilty of extortion or willful oppression
through the use of his office;chanroblesvirtualawlibrary
"2. Those who knowingly demand other or greater sums
than are authorized by law or receive any fees, compensation or reward,
except as by law prescribed, for the performance of any duty;chanroblesvirtualawlibrary
"3. Those who willfully neglect to give receipts, as
by law required, for any sums collected in the performance of duty or
who willfully neglect to perform any other duties enjoined by law;chanroblesvirtualawlibrary
"4. Those who conspire or collude with another or
others to defraud the revenues or otherwise violate the provisions of
this Code;chanroblesvirtualawlibrary
"5. Those who by neglect or design permit the
violation of the law by any other person;chanroblesvirtualawlibrary
"6. Those who make or sign any false entry or entries
in any books, or make or sign any false certificate or return;chanroblesvirtualawlibrary
"7. Those who allow, or conspire or collude with
another to allow the unauthorized retrieval, withdrawal or recall of
any return, statement or declaration after the same has been officially
received by the Bureau of Internal Revenue;chanroblesvirtualawlibrary
"8. Those who, having knowledge or information of a
violation of this Code or of any fraud committed on the revenues
collectible by the Bureau of Internal Revenue, fail to report such
knowledge or information to their superior officer or to report as
otherwise required by law; and chanroblesvirtualawlibrary
"9. Those who, without the authority of law, demand
or accept or attempt to collect, directly or indirectly, as payment or
otherwise any sum of money or other thing of value for the compromise,
adjustment, or settlement of any charge or complaint for any violation
of alleged violation of this Code.
"Sec. 304. Unlawful divulgence of trade secrets. —
Except as provided in Section 74 of this Code and Section 26 of the
Republic Act Numbered 6388, any officer or employee of the Bureau of
Internal Revenue who divulges to any person or makes known in any other
manner than may be provided bylaw information regarding the business,
income, or estate of any taxpayer, the secrets, operation, style or
work, or apparatus of any manufacturer or producer, or confidential
information regarding the business of any taxpayer, knowledge of which
was acquired by him in the discharge of his official duties, shall,
upon conviction for each act or omission, be fined in a sum of not less
than five thousand pesos but not more than ten thousand pesos, or
imprisoned for a term of not less than six months but not more than
five years, or both.
"Sec. 305. Unlawful interest of revenue law enforcers
in business. — Any internal revenue officer who is or shall become
interested, directly or indirectly, in the manufacture, sale, or
importation of any article subject to tax under Title IV of this Code
or in the manufacture or repair or sale, of any dye for the printing,
or making of stamps, or labels shall, upon conviction for each act or
omission, be fined in a sum of not less than five thousand pesos but
not more than ten thousand pesos, or imprisoned for a term of not less
than two years and one day but not more than four years, or both.
"Sec. 306. Violation of withholding tax provision. —
Every officer or employee of the government of the Republic of the
Philippines or any of its agencies and instrumentalities, its political
subdivisions, as well as government-owned or controlled corporations
including the Central Bank who, under the provisions of this Code or
regulations promulgated thereunder, is charged with the duty to deduct
and withhold any internal revenue tax and to remit the same in
accordance with the provisions of this Code and other laws is guilty of
any offense hereinbelow specified shall, upon conviction for each act
or omission, be fined in a sum of not less than five thousand pesos but
not more than fifty thousand pesos or imprisoned for a term of not less
than six months and one day but not more than two years, or both:cralaw:red
"1. Those who fail or cause the failure to deduct and
withhold any internal revenue tax under any of the withholding tax laws
and implementing regulations;chanroblesvirtualawlibrary
"2. Those who fail or cause the failure to remit
taxes deducted and withheld within the time prescribed by law and
implementing regulations; and
"3. Those who fail or cause the failure to file
return or statement within the time prescribed, or render or furnish a
false or fraudulent return or statement required under the withholding
tax laws and regulations.
"Sec. 307. Penalty for failure to issue and execute
warrant. — Any official who fails to issue or execute the warrant of
distraint or levy within thirty days after the expiration of the time
prescribed in Sections 255 and 261 on who is found guilty of abusing
the exercise thereof by competent authority shall be automatically
dismissed form the service after due notice and
hearing. chanroblesvirtualawlibrary
"Chapter IV. — Other Penal Provisions
"Sec. 308. Penalty for second and subsequent
offenses. — In the case of reincidence, the maximum of the penalty
prescribed for the offense shall be imposed.
"Sec. 309. Violation of other provisions of this Code
or regulations in general. — A person who violates any provision of
this Code or any regulation of the Ministry of Finance promulgated
thereunder, for which no specific penalty is provided by law shall,
upon conviction for each act or omission, be fined in a sum of not more
than one thousand pesos or imprisoned for a term of not more than six
months, or both.
"Sec. 310. Penalty for selling, transferring,
encumbering, or in any way disposing of property placed under
constructive distraint. — Any tax payer whose property has been placed
under constructive distraint who sells, transfers, encumbers, or in
anyway disposes of said property, or any part thereof, without the
knowledge and consent of the Commissioner, shall, upon conviction for
each act or omission be fined in a sum of not less than twice the value
of the property so sold, encumbered or disposed of, but not less than
five thousand pesos, or imprisoned for a term of not less than two
years and one day but not more than four years, or both. chanroblesvirtualawlibrary
"Sec. 311. Failure to surrender property placed under
distraint and levy. — Any person having in his possession or under his
control any property or rights to property, upon which a warrant of
constructive distraint or of actual distraint and levy has been issued
shall, upon demand by the Commissioner or any of his deputies executing
such warrant, surrender such property or right to property to the
Commissioner or any of his deputies, unless such property or right is,
at the time of such demand, subject to an attachment or execution under
any judicial process. Any person who fails or refuses to surrender any
of such property or right shall be liable in his own person and estate
to the Government in a sum equal to the value of the property or rights
not so surrendered but not exceeding the amount of the taxes (including
penalties and interest) for the collection of which such warrant had
been issued, together with costs and interest, if any, from the date of
such warrant. In addition, such person shall, upon conviction for each
act or omission, be fined in a sum of not less than five thousand pesos
or imprisoned for a term of not less than six months and one day but
not more than two years, or both."
"Sec. 312. Procuring unlawful divulgence of trade
secrets. — Any person who causes or procures an officer or employee of
the Bureau of internal revenue to divulge any confidential information
regarding the business, income, or inheritance of any taxpayer,
knowledge of which was acquired by him in the discharge of his official
duties, and which it is unlawful for him to reveal, and any person who
publishes or prints in any manner whatever, not provided by law, any
income, profits, losses, or expenditures appearing in any income tax
return shall be fined in a sum of not more than two thousand pesos or
imprisoned for a term of not less than six months nor more than five
years, or both."
Section 41. Section 290-B is hereby renumbered and
amended to read as follows:cralaw:red
"Sec. 241. Flexibility clause. — (1) In general. — In
the interest of the national economy and general welfare and subject to
the limitations herein prescribed, the President, upon recommendation
of the Minister of Finance, is hereby empowered to make adjustments on
all internal revenue taxes where such adjustments refer to the
following:cralaw:red
"(a) Revision of rates;chanroblesvirtualawlibrary
"(b) Change in the classification of articles;chanroblesvirtualawlibrary
"(c) Revision of taxable base including modification
or change of the manner and method of computing the tax such as, but
not limited to, the change in deduction scheme for tax credit to cost
deduction;chanroblesvirtualawlibrary
"(d) Revision of deadlines for the filing of tax
returns, payment of tax, and compliance with other tax requirements;
and chanroblesvirtualawlibrary
"(e) Modification or integration of safeguards to
ensure the collection of the correct tax;chanroblesvirtualawlibrary
"The above authority may be exercised by the President if any of the
following conditions exists;chanroblesvirtualawlibrary
"(a) When there is a need to obviate unemployment and
economic and social dislocation;chanroblesvirtualawlibrary
"(b) Where, due to adverse economic conditions, it
becomes imperative to revise tax rates and/or taxable bases;chanroblesvirtualawlibrary
"(c) Where, in the interest of economic development,
it is necessary to redirect expenditure or consumption patterns;chanroblesvirtualawlibrary
"(d) Where, in the light of technological and social
changes, it is necessary to change the classification of certain
articles on the bases of the concepts of essentiality or the degree of
manufacturing done;chanroblesvirtualawlibrary
"(e) Whenever by reason of fluctuation or currency
values and/or inflation or deflation, the existing base and/or price
levels are no longer realistic or consistent with the current price
levels;chanroblesvirtualawlibrary
"(f) Where, it is necessary to counter adverse
economic action on the part of another country;chanroblesvirtualawlibrary
"(g) Where such revision is necessary to simplify and
systematize the various tax deadlines; and
"(h) Where such adjustments are necessary pursuant to
ASEAN international commitments in respect of trade, tariff and other
similar arrangements. chanroblesvirtualawlibrary
"(2) Specific limitations on the exercise of
authority to make adjustment in all internal revenue taxes:cralaw:red
"(a) The existing tax rates may be increased or
decreased by not more than 50%, Provided, That the rates as last
revised shall be the basis for this limitation. Provided, further, That
in the case of the sales on second sale of agricultural food products
sold in their original state or where such agricultural food products
merely have undergone the simple processes, the existing rate may be
increased do not more than 3%.
"(b) Before any recommendation is submitted to the
President by the Minister of Finance pursuant to the provisions of this
Section, a public hearing shall, whenever practicable, be held and
interested parties afforded a reasonable opportunity to be heard.
"(3) (a) Counter-measure against discriminatory tax
treatment of Philippine taxpayers. —Whenever it is established by the
Philippine Government that —chanroblesvirtualawlibrary
"(1) the law of any foreign country discriminates
against Philippine citizens or domestic corporations with respect to
the effective tax rate on their income in that country or on articles
coming from the Philippines and brought into that country, and
"(2) such foreign country, inspite of appropriate
request by the Philippine Government, refuses or fails to abate or
otherwise remedy such discriminatory and adverse tax treatment of
Philippine citizens, corporations or products,
the President may, upon recommendation of the Commissioner of Internal
Revenue, through the Minister of Finance, and as a counter-measure
against such discrimination, adjust the effective rate of tax to be
applied on income in the Philippines of nationals, residents or
corporations of such foreign country or on articles produced or
manufactured thereat and imported into the Philippines.
"The tax rate adjustment, which shall bemed at alleviating the effect
of such discrimination by placing the reciprocal tax treatment of
citizens, corporations and products of the Philippines and those of the
foreign countries on a parity basis or on substantially equivalent
terms, may consist of:cralaw:red
"(i) disallowance in whole or part of any deduction
credit exemption, or
"(ii) increase in the rate of tax.
"(b) Rescission of retaliatory tax rate adjustment.
—Upon being advised that the foreign country has so amended its law as
to removed the cause of discrimination against Philippine citizens,
corporations, or products, the President, at the instance of the
Minister of Finance and the Commissioner of Internal Revenue, shall
rescind the retaliatory tax rate adjustment, whereupon the citizens,
corporations or products of the foreign country shall again be subject
to tax in accordance with the applicable provisions of this Code.
"(4) Rules and regulations. — The Minister of
Finance, upon recommendation of the Commissioner of Internal Revenue,
shall promulgate the necessary rules and regulations to implement the
provisions of this section." chanroblesvirtualawlibrary
Section 42. The amendments effected by the "sales tax
Reform Decree of 1985", together with the amendments contained herein
and other amendments to the National Internal Revenue Code shall be
codified to be known as the "National Internal Revenue Code of 1985".
Section 43. The following provisions of the National
Internal Revenue Code are hereby renumbered and transferred to as part
of Chapter IV, Title XI thereof:cralaw:red
Present Number New Number
Section 338 Section 313
Section 339 Section 314
Section 340 Section 315
Section 341 Section 316
Section 44. In accordance with the preceding
amendatory provisions of this Decree the following sections or
provisions under certain sections of the National Internal Revenue Code
are hereby deleted and/or merged with other provisions under
appropriate Titles and corresponding Chapters and the numerical or
alphabetical designations and sequence of their respective paragraphs,
subparagraphs and subparts, as well as references to such provisions
appearing in any section of the said Code, are also hereby
consecutively adjusted accordingly:cralaw:red
Last paragraph, Section 7
Second paragraph, Section 51
Paragraph (b), (d) and (e), Section 51
Section 52
Section 72 to 75, inclusive
Section 78
Section 88
Section 89
Section 96 to 98, inclusive
Section 106
Section 108
Section 111 to 114, inclusive
Section 119
Section 127 to 132, inclusive
Second paragraph, Section 136
Second paragraph, Section 190
Section 155 and 156
Last sentence, Section 160
Paragraph (a) (5), Section 196
Second Paragraph, Section 171
Sections 180 to 186, inclusive
Section 191
Sections 220, 220-A and 221
Sections 251 and 252
Section 259
Section 260-A
Last paragraph, Section 268
Last paragraph, Section 269
Sections 282 to 287, inclusive
Sections 289 and 290
Section 45. Subject to the preceding provisions of
this Decree which have already renumbered and amended certain sections
of the National Internal Revenue Code, the following provisions of the
said Code are hereby renumbered and the numerical or alphabetical
designations and sequence of their respective paragraphs and
subparagraphs, as well as references thereto in any provision of the
said Code, are also hereby consecutively adjusted accordingly: chanroblesvirtualawlibrary
Present Number New Number
Section 53 Section 51
Section 54 Section 52
Section 55 Section 53
Section 56 Section 54
Section 57 Section 55
Section 58 Section 56
Section 59 Section 57
Section 60 Section 58
Section 61 Section 59
Section 62 Section 60
Section 63 Section 61
Section 64 Section 62
Section 65 Section 63
Section 66 Section 64
Section 67 Section 65
Section 68 Section 66
Section 69 Section 67
Section 70 Section 68
Section 71 Section 69
Section 76 Section 70
Section 77 Section 71
Section 78 Section 46 (c)
Section 79 Section 72
Section 80 Section 73
Section 81 Section 74
Section 82 Section 75
Section 83 Section 76
Section 84 Section 77
Section 85 Section 78
Section 86 Section 79
Section 87 Section 80
Section 90 Section 81
Section 91 Section 82
Section 92 Section 83
Section 93 Section 84
Section 94 Section 85
Section 95 Section 86
Section 99 Section 87
Section 100 Section 88
Section 101 Section 89
Section 102 Section 90
Section 103 Section 91
Section 104 Section 92
Section 105 Section 93
Section 107 Section 94
Section 109 Section 95
Section 110 Section 96
Section 115 Section 97
Section 116 Section 98
Section 117 Section 99
Section 118 Section 100
Section 120 Section 101
Section 121 Section 102
Section 122 Section 103
Section 123 Section 104
Section 124 Section 105
Section 125 Section 106
Section 126 Section 107
Section 133 Section 118
Section 134 Section 119
Section 135 Section 110
Section 136 Section 111
Section 137 Section 112
Section 138 Section 113
Section 139 Section 114 & 115
Section 140 Section 116
Section 141 Section 117
Section 142 Section 118
Section 143 Section 119
Section 144 Section 120
Section 145 Section 121
Section 146 Section 122 & 123.
Section 147 Section 124
Section 148 Section 125
Section 149 Section 126
Section 150 Section 127
Section 151 Section 130
Section 152 Section 131
Section 153, 155, 156 Section 128
Section 154 Section 132
Section 157 Section 133
Section 158 Section 135
Section 187 Section 157
Section 188 Section 158
Section 189 Section 159
Section 190 Section 160
Section 192 Section 161
Section 19 Section 162
Section 194 Section 163
Section 195 Section 164
Section 196)
Section 197)
Section 198)
Section 199[a]
Section 201)
Section 201) Section 165
Section 200) Section 166
Section 202 Section 167
Section 203 Section 168
Section 199[b] Section 129
Section 204 Section 169
Section 205 Section 170
Section 205-A Section 171
Section 206 Section 172
Section 207 Section 173
Section 208 Section 174
Section 209 Section 175
Section 211 Section 176
Section 212 Section 177
Section 213 Section 178
Section 214 Section 179
Section 215 Section 180
Section 216 Section 181
Section 216-A Section 182
Section 217 Section 183
Section 218 Section 184
Section 219 Section 185
Section 222 Section 186
Section 223 Section 187
Section 224 Section 188
Section 225 Section 189
Section 226 Section 190
Section 227 Section 191
Section 228 Section 192
Section 229 Section 193
Section 230 Section 194
Section 231 Section 195
Section 232 Section 196
Section 233 Section 197
Section 234 Section 198
Section 235 Section 199
Section 236 Section 200
Section 237 Section 201
Section 238 Section 202
Section 239 Section 203
Section 240 Section 204
Section 241 Section 205
Section 242 Section 206
Section 243 Section 207
Section 244 Section 208
Section 245 Section 209
Section 246 Section 210
Section 247 Section 211
Section 248 Section 212
Section 249 Section 213
Section 250 Section 214
Section 253 Section 215
Section 254 Section 216
Section 255 Section 217
Section 256 Section 218
Section 257 Section 219
Section 260 Section 220
Section 261 Section 221
Section 262 Section 222
Section 263 Section 223
Section 264 Section 224
Section 265 Section 225
Section 266 Section 226
Section 267 Section 227
Section 268 Section 228
Section 269 Section 229
Section 270 Section 230
Section 271 Section 231
Section 272 Section 232
Section 273 Section 233
Section 276 Section 234
Section 277 Section 235
Section 279 Section 236
Section 280 Section 237
Section 281 Section 238
Section 288 Section 239
Section 290-A Section 240
Section 290-B Section 241
Section 291 Section 242
Section 292 Section 243
Section 293 Section 244
Section 294 Section 245
Section 295 Section 246
Section 296 Section 247
Section 297 Section 248
Section 298 Section 249
Section 299 Section 250
Section 300 Section 251
Section 301 Section 252
Section 302 Section 253
Section 303 Section 254
Section 304 Section 255
Section 305 Section 256
Section 306 Section 257
Section 307 Section 258
Section 308 Section 259
Section 309 Section 260
Section 310 Section 261
Section 312 Section 262
Section 313 Section 263
Section 314 Section 264
Section 315 Section 265
Section 316 Section 266
Section 317 Section 267
Section 318 Section 268
Section 319 Section 269
Section 319-A Section 270
Section 320 Section 271
Section 321 Section 272
Section 322 Section 273
Section 323 Section 274
Section 324 Section 275
Section 325 Section 276
Section 326 Section 277
Section 327 Section 278
Section 328 Section 279
Section 329 Section 280
Section 330 Section 303
Section 331 Section 316
Section 346 Section 322
Section 347 Section 323
Section 348 Section 324
Section 46. Chapter II of Title of the National
Internal Revenue Code is hereby renumbered as Chapter VII and Sections
159 to 179 are likewise correspondingly renumbered as indicated
hereunder. The penal provisions under Sections 160 and 171 are
transferred to Title XI of this Code. chanroblesvirtualawlibrary
Present Number New Number
Section 159 Section 136
Section 160 Section 137
Section 161 Section 138
Section 162 Section 139
Section 163 Section 140
Section 164 Section 141
Section 165 Section 142
Section 166 Section 143
Section 167 Section 144
Section 168 Section 145
Section 169 Section 146
Section 170 Section 147
Section 171 Section 148
Section 172 Section 149
Section 173 Section 150
Section 174 Section 151
Section 175 Section 152
Section 176 Section 153
Section 177 Section 154
Section 178 Section 155
Section 179 Section 156
Section 47. The Minister of Finance, upon
recommendation of the Commissioner of Internal Revenue, shall
promulgate the necessary rules and regulations for the transitory and
full implementation of this Presidential Decree.
Section 48. All laws, decrees, executive orders, and
regulations and other issuances or parts thereof which are inconsistent
with this decree are hereby repealed, amended or modified accordingly.
Section 49. Effectivity. This Decree shall take
effect on January 1, 1986.
Done in the City of Manila, on
this 5th day of November, in the Year of Our Lord, Nineteen Hundred and
Eighty-Five.
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