Amending Sections 30 And 53 Of The National Internal Revenue Code Of 1977 To Authorize The Secretary Of Finance To Require Withholding Of Creditable Income Taxes From Certain Income Taxes F
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Amending Sections 30 And 53 Of The National Internal Revenue Code Of 1977 To Authorize The Secretary Of Finance To Require Withholding Of Creditable Income Taxes From Certain Income Taxes F
Presidential Decree No. 1351
April 17, 1978
Case Overview and Summary
Summary of Presidential Decree No. 1351Expansion of Withholding Tax System
- Authorizes the Secretary of Finance to require withholding of creditable income taxes from certain income payments (Section 1, amending Section 53(f)):
- Withholding rate: Not less than 2.5% but not more than 35%
- Applies to income payments made to persons (natural or juridical) residing in the Philippines
- Withheld tax shall be credited against the income tax liability of the taxpayer for the taxable year
Additional Requirement for Deductibility of Income Payments
- Any income payment that is otherwise deductible from gross income shall be allowed as a deduction only if it is shown that the tax required to be withheld has been paid to the Bureau of Internal Revenue (Section 2, adding Section 30(m))
- Applies to income payments subject to withholding under Sections 53, 54, and 93 of the National Internal Revenue Code of 1977
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Executive Issuances
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withholding tax
income tax
deductibility
income payments
creditable tax
tax collection
Bureau of Internal Revenue
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National Internal Revenue Code
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Amending Sections 30 And 53 Of The National Internal Revenue Code Of 1977 To Authorize The Secretary Of Finance To Require Withholding Of Creditable Income Taxes From Certain Income Taxes F
Presidential Decree No. 1351
•April 17, 1978
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1351
AMENDING SECTIONS 30 AND 53 OF THE NATIONAL INTERNAL REVENUE CODE OF 1977 TO AUTHORIZE THE SECRETARY OF FINANCE TO REQUIRE WITHHOLDING OF CREDITABLE INCOME TAXES FROM CERTAIN INCOME TAXES FROM CERTAIN INCOME PAYMENTS AND TO REQUIRE PROOF OF SUCH WITHHOLDING AS AN ADDITIONAL CONDITION FOR DEDUCTIONS FROM GROSS INCOME
WHEREAS, the most convenient, effective and generally accepted method of collecting income taxes is through the withholding system;
WHEREAS, in order to optimize the effectiveness of the present tax collection system, it is necessary to expand the coverage of the withholding system;
WHEREAS, certain ordinary and necessary expenses and other items allowed as deductions constitute income to the recipients thereof and therefor includible in their gross income;
WHEREAS, in order to insure the collection of the income tax on these income payments, it is necessary to subject such payments to the withholding of tax at source and to require proof of such withholding and payment to the BIR as a requirement for the deductibility of...
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