Amending Paragraphs (E), (F), And (G) Of Section 38 Of Presidential Decree No. 231, Otherwise Known As The Local Tax Code

Case Overview and Summary

Summary of Presidential Decree No. 1118

Consolidation of Basic and Additional Residence Taxes:
- The basic residence tax and additional residence tax are consolidated into a single residence tax.
- Only one residence certificate will be issued upon payment of both taxes. (Section 1(f))

Payment Deadline and Penalties:
- Liability for residence taxes accrues on January 1st of each year for existing residents. (Section 1(e))
- Residence taxes must be paid by the last day of February. (Section 1(e))
- For new residents arriving before June 30th or turning 18 before June 30th, taxes must be paid within 60 days. (Section 1(e))
- Residents arriving or turning 18 on or after July 1st are exempt for that year. (Section 1(e))
- Corporations established before June 30th must pay within 20 days of incorporation. (Section 1(e))
- Corporations established on or after July 1st are exempt for that year. (Section 1(e))
- If taxes are not paid on time, a 14% interest penalty will be added from the due date until payment. (Section 1(e))

Residence Certificate Requirements:
- A residence certificate will be issued upon payment of both taxes. (Section 1(f))
- Persons exempt from taxes can obtain a certificate by paying one peso. (Section 1(f))
- The residence certificate must be presented in certain situations, including:
    - Acknowledging documents before a notary public (Section 1(g))
    - Taking an oath of office for government positions (Section 1(g))
    - Receiving licenses, certificates, or permits from public authorities (Section 1(g))
    - Paying taxes or fees (Section 1(g))
    - Receiving money from public funds (Section 1(g))
    - Transacting other official business (Section 1(g))
    - Receiving salaries or wages (Section 1(g))
- The current year's certificate must be presented, except from January to February when the previous year's certificate is accepted. (Section 1(g))
- Corporations must present the certificate in similar situations. (Section 1(g))
- Presentation is not required for voter registration. (Section 1(g))