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PRESIDENTIAL DECREE NO. 323
PRESIDENTIAL DECREE NO. 323
- AMENDING Section 21 AND Section 51 OF THE NATIONAL INTERNAL REVENUE
CODE, AS AMENDED
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WHEREAS, it
is the policy of the government to be responsive to legitimate claims
of its citizenry;chanroblesvirtualawlibrary
WHEREAS, the government is aware of the heavy tax burden of
non-resident Filipinos who have established their resident
abroad; chanroblesvirtualawlibrary
WHEREAS, consistent with reform under the New Society for a better tax
administration, it is envisioned that overseas Filipinos can better
meet their obligations of citizenship through voluntary compliance with
reasonable, just and fair tax laws;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972, and
General Order No. 1, dated September 22, 1972, as amended, do hereby
order and decree that —chanroblesvirtualawlibrary
1. Section 21 of the National Internal Revenue Code,
as amended, is further amended, to read as follows:cralaw:red
"Section 21. —.provided, further that on the income of
non-resident citizens from all sources without the Philippines, there
is hereby imposed a tax on the gross amount of such income after
deducting therefrom the following:cralaw:red
(a) An allowance for personal exemption in the amount
of two thousand dollars (U.S. $2,000.00), if the person making the
return is a single person or a married person legally separated from
his or her spouse; or four thousand dollars (U.S. $4,000.00), if the
person making the return is a married man or a head of the family, as
defined in section 23 of this Code; and chanroblesvirtualawlibrary
(b) The total amount of the national income tax
actually paid to the government of the foreign country of his
residence.
The Philippine income tax on the adjusted gross income shall be
computed in accordance with the following schedule:cralaw:red
If the amount subject to tax is:
Not over $6,000.00 1%
Over $6,000.00 but not over
$20,000.00 2%
Over $20.000.00 3%
provided, furthermore, that for purposes of this section, a non-
resident citizen is one who establishes to the satisfactory of the
Commissioner the fact of his physical presence abroad for an
uninterrupted period which includes an entire taxable year. chanroblesvirtualawlibrary
Every non-resident citizen availing of the special rates provided
herein is required to support his declaration of gross income,
exemptions and deductions claimed by attaching to his Philippine income
tax return a copy of the income tax return he has filed with the
government of the foreign country of his residence. chanroblesvirtualawlibrary
2. Section 51 of the National Internal Revenue Code
as amended, is further amended by adding sub-paragraph (3) to paragraph
(a) thereof to read as follows:cralaw:red
"(3) Installment payments for non-resident citizens.
— When the tax due from a non-resident citizen is in excess of two
hundred dollars (U.S. $200.00), the taxpayer may elect to pay the tax
in two equal installments, in which case, the first installment shall
be paid at the time the return is filed and the second installment, on
or before the fifteenth day of the seventh month following the close of
the fiscal year, as the case may be. If any installment is not paid on
or before the date fixed for its payment the whole amount of the tax
unpaid becomes due and payable together with the delinquency penalties.
3. The Secretary of Finance upon recommendation of
the Commissioner of Internal Revenue shall promulgate the rules and
regulations for the implementation of this Decree.
4. Effectivity. — This Decree shall take effect on
January 1, 1974, beginning with the income earned for the taxable year,
1973.
5. All laws, rules and regulations or parts thereof
inconsistent herewith are repealed and/or amended
accordingly. chanroblesvirtualawlibrary
Done in the City of Manila,
this 26th day of October, in the year of Our Lord, nineteen hundred and
seventy-three.
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