Amending Certain Sections Of The National Internal Revenue Code, As Amended
Download as PDF
Download as Word
Collections
Create new Collection
Overview
Full Text
Details
Case
Agency Issuance Number
Published Date
Amending Certain Sections Of The National Internal Revenue Code, As Amended
Presidential Decree No. 778
August 24, 1975
Case Overview and Summary
Summary of Presidential Decree No. 778Tax Rates for Corporations (Section 1):
- Domestic corporations and partnerships (except general professional partnerships):
- 25% on taxable net income up to ₱100,000
- 35% on taxable net income exceeding ₱100,000
- Private educational institutions:
- 10% on taxable income from school operations and passive investment income
- Dividends received from domestic or resident foreign corporations are subject to 10% intercorporate dividends tax (Section 1(a))
- Non-resident foreign corporations:
- 35% on gross income from Philippine sources, except:
- 15% on interest from foreign loans
- 15% on cinematographic film rentals and income
- 15% on dividends from domestic corporations, subject to conditions (Section 1(b)(1))
- Regional headquarters of multinational corporations are exempt (Section 1(b)(1))
- Resident foreign corporations engaged in trade or business in the Philippines:
- Taxed as domestic corporations on total net income (Section 1(b)(2))
- International carriers pay 2.5% on gross Philippine billings (Section 1(b)(2))
- Profit remitted abroad by branch offices is subject to 20% tax, except those registered with the Export Processing Zone Authority (Section 1(b)(2))
- 10% final tax on dividends received by domestic or resident foreign corporations from domestic corporations (Section 1(c))
- Government-owned or controlled corporations, agencies, and instrumentalities (except educational institutions) are subject to the same tax rates as similar private businesses (Section 1(d))
Tax Liability of General Professional Partnerships (Section 2):
- Partners are taxed individually on their share of profits from the partnership (Section 2)
Filing of Tax Returns (Section 3):
- Residents deriving income solely from salaries, wages, interest, dividends, allowances, commissions, bonuses, fees, or pensions:
- File by March 15 of each year for the preceding taxable year
- Residents with no income or income below ₱1,800 and no business transactions file by February 15 (Section 3)
- All other individuals, including non-resident citizens, file by April 15 of each year for the preceding taxable year (Section 3)
Payment of Income Tax (Section 4):
- Tax is due at the time of filing the return (Section 4(a)(1))
- If filed late, tax due plus interest at 14% per annum from the original due date must be paid (Section 4(a)(1))
- For tramp vessels, shipping or husbanding agents, or captains must file the return and pay tax before departure (Section 4(a)(1))
- Taxpayers (except corporations and withholding agents) with tax due over ₱1,000 may pay in two equal installments:
- First installment at filing
- Second installment by July 15 (Section 4(a)(2))
- Non-resident citizens with tax due over $200 may pay in two equal installments:
- First installment at filing
- Second installment by July 15 (Section 4(a)(3))
Interest and Surcharge on Deficiencies (Section 5):
- Interest at 14% per annum on unpaid deficiencies, up to a maximum of 3 years (Section 5(b)(1))
- Interest at 14% per annum on unpaid deficiencies with extended payment period (Section 5(b)(2))
- 5% surcharge on unpaid amounts after 30 days from notice and demand (Section 5(c))
Amends
n/a
Amended by
n/a
Tags
Executive Issuances
Presidential Decrees
tax rates
corporations
foreign corporations
dividends
partnerships
tax returns
tax payments
interest
surcharge
deficiency
installments
due dates
delinquency penalties
prescription
tramp vessels
non-resident citizens
private educational institutions
cinematographic film owners
regional headquarters
international carriers
government corporations
tax exemptions
Law
Amending Certain Sections Of The National Internal Revenue Code, As Amended
Presidential Decree No. 778
•August 24, 1975
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 778 August 24, 1975
AMENDING CERTAIN SECTIONS OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED
WHEREAS, there is a need to update, simplify, reduce the number of special tax classifications, and equalize taxation of similar business activities;
WHEREAS, there is need to improve the administrative provisions of the National Internal Revenue Code.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby order and decree the following:
Section 1. Section 24 of the National Internal Revenue Code is hereby amended to read as follows:
"Sec. 24. Rates of tax on corporations. (a) Tax on domestic corporations. A tax is hereby imposed upon the taxable net income received during each taxable year from all sources by every corporation organized in, or existing under the laws of the Philippines, and partnerships, no matter how created or organized, but not including general professional partnerships, in accordance with the following:
"Twenty-five per cent upon the amount by...
Login to see full content
Amends
n/a
Amended by
n/a