REPUBLIC ACT No. 6110
AN ACT AMENDING CERTAIN PROVISIONS OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED.
Section 1. Section two of Commonwealth Act Numbered Four hundred and sixty-six, as amended, is hereby amended to read as follows:
"Sec. 2. Chief Officials of Bureau. The Bureau of Internal Revenue shall have a chief to be known as Commissioner of Internal Revenue, and two assistant chiefs, to be known as deputy commissioners."
Section 2. Section five of the same Act is hereby amended to read as follows:
"Sec. 5. Forms, certificates, and appliances supplied by the Commissioner of Internal Revenue. It shall be the duty of the Commissioner of Internal Revenue, among other things, to prescribe, provide, and distribute to the proper officials the requisite licenses, internal revenue stamps, and labels or tags used in sealing weights, and measures, and all other forms, certificates, bonds, records, invoice books, instruments, appliances, and apparatus used in administering the laws falling within the jurisdiction of the Bureau. For this purpose, internal revenue stamps, strip stamps, science stamps...
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Republic Acts
AN ACT AMENDING CERTAIN PROVISIONS OF THE NATIONAL INTERNAL REVENUE CODE
Republic Act No. 6110
REPUBLIC ACT No. 6110
Summary:
Officials and Administration:
- Establishes the Bureau of Internal Revenue with a Commissioner and two Deputy Commissioners. (Section 1)
- Empowers the Commissioner to obtain information on potential taxpayers from government offices. (Section 3)
Sources of Revenue and Tax Rates:
- Defines sources of national internal revenue taxes, including income tax, estate and gift taxes, specific taxes, privilege taxes, documentary stamp taxes, mining taxes, and miscellaneous taxes. (Section 4)
- Sets rates for income tax, including personal exemptions and deductions. (Sections 5-15)
- Sets rates for taxes on foreign corporations. (Section 6)
- Imposes additional tax on corporations improperly accumulating profits. (Section 7)
- Exempts development banks from certain taxes. (Section 8)
- Excludes income derived as rewards under Republic Act No. 2338 from gross income. (Section 9)
- Allows deduction of 25% of dividends received from domestic corporations. (Section 10)
- Sets limits on deductible entertainment expenses for individuals. (Section 11)
- Specifies deductible charitable contributions, including full deduction for certain donations. (Section 12)
- Allows optional standard deduction for individuals. (Section 13)
- Sets income tax filing requirements for individuals. (Section 14)
- Requires tax returns to be made under penalties of perjury. (Section 15)
Specific Taxes:
- Imposes specific taxes on cigarettes, cigars, and other tobacco products, with rates based on type, length, and manufacturing process. (Section 24)
- Imposes specific tax on saccharine and artificial sweeteners. (Section 25)
Privilege Taxes:
- Sets fixed annual taxes for various businesses and occupations, with rates based on gross sales or income. (Section 28)
- Exempts certain small businesses and occupations from privilege taxes. (Section 28)
- Imposes percentage taxes on sales of jewelry, automobiles, toilet preparations, and other luxury items. (Section 30)
- Imposes percentage taxes on sales of sporting goods, luggage, watches, firearms, and other items. (Sections 31-33)
- Imposes percentage taxes on sales of refrigerators, air conditioners, beverage coolers, and related items, with rates varying based on manufacturing process. (Section 32)
- Imposes percentage taxes on sales of phonographs, radios, televisions, and related items, with rates varying based on manufacturing process. (Section 33)
- Imposes percentage tax on sales of other articles not covered in previous sections. (Section 34)
- Imposes percentage taxes on processors of pineapple, rope factories, sugar centrals, coconut oil mills, cassava mills, and desiccated coconut factories. (Section 35)
- Imposes contractor's tax on various construction, demolition, installation, and repair services. (Sections 36-37)
- Imposes caterer's tax on restaurants, bars, and other eating establishments, with rates varying based on type of establishment. (Section 37)
- Imposes percentage tax on carriers, keepers of garages, and transportation services. (Sections 38-39)
- Imposes percentage tax on dealers in securities and lending investors. (Section 40)
Documentary Stamp Taxes:
- Imposes documentary stamp taxes on policies of insurance upon property. (Section 42)
- Imposes documentary stamp taxes on warehouse receipts, hotel receipts, bills of lading, and other documents. (Sections 43-45)
- Exempts certain documents and papers from documentary stamp taxes. (Section 45)
Mining Taxes:
- Imposes occupation fee on mining claim holders. (Section 46)
- Imposes rentals and royalties on mineral lands under lease. (Section 47)
- Imposes ad valorem taxes on output of mineral lands not covered by lease. (Section 48)
- Sets penalties for failure to pay mining taxes and royalties. (Sections 49-50)
Other Taxes:
- Imposes tax on finance companies based on gross receipts. (Section 50)
- Imposes taxes on insurance premiums collected. (Section 52)
- Imposes tax on franchises based on gross receipts. (Section 53)
- Imposes amusement taxes on theaters, cinemas, cabarets, race tracks, cockpits, and other amusement places. (Sections 54-55)
- Imposes tax on winnings from horse races and jai-alai. (Section 55)
- Imposes charges on firewood cut in public forests. (Section 57)
Bookkeeping and Tax Returns:
- Requires corporations, partnerships, and persons to keep books of accounts and have them audited by independent certified public accountants. (Section 58)
- Defines "Independent Certified Public Accountant" and sets penalties for falsifying reports or statements. (Section 58)
- Requires preservation of books of accounts and other accounting records for at least 5 years. (Section 59)
- Requires taxpayers to be supplied with or assigned a taxpayer account number. (Section 60)
- Provides for non-retroactivity of rulings, with exceptions. (Section 61)
- Requires tax clearance certificate for issuance of passage tickets to foreign ports. (Section 62)
Disposition of Tax Proceeds:
- Allocates 1% of proceeds from percentage taxes to a special fund for implementation of the Code. (Section 63)
- Specifies disposition of proceeds from franchise taxes. (Section 64)
- Specifies disposition of proceeds from income, inheritance, and gift taxes between national, provincial, and municipal governments. (Section 65)
Repealing and Effectivity Clauses:
- Contains separability clause. (Section 66)
- Repeals inconsistent laws, orders, and regulations. (Section 67)
- Sets effective dates for various provisions. (Section 68)
Summary:
Officials and Administration:
- Establishes the Bureau of Internal Revenue with a Commissioner and two Deputy Commissioners. (Section 1)
- Empowers the Commissioner to obtain information on potential taxpayers from government offices. (Section 3)
Sources of Revenue and Tax Rates:
- Defines sources of national internal revenue taxes, including income tax, estate and gift taxes, specific taxes, privilege taxes, documentary stamp taxes, mining taxes, and miscellaneous taxes. (Section 4)
- Sets rates for income tax, including personal exemptions and deductions. (Sections 5-15)
- Sets rates for taxes on foreign corporations. (Section 6)
- Imposes additional tax on corporations improperly accumulating profits. (Section 7)
- Exempts development banks from certain taxes. (Section 8)
- Excludes income derived as rewards under Republic Act No. 2338 from gross income. (Section 9)
- Allows deduction of 25% of dividends received from domestic corporations. (Section 10)
- Sets limits on deductible entertainment expenses for individuals. (Section 11)
- Specifies deductible charitable contributions, including full deduction for certain donations. (Section 12)
- Allows optional standard deduction for individuals. (Section 13)
- Sets income tax filing requirements for individuals. (Section 14)
- Requires tax returns to be made under penalties of perjury. (Section 15)
Specific Taxes:
- Imposes specific taxes on cigarettes, cigars, and other tobacco products, with rates based on type, length, and manufacturing process. (Section 24)
- Imposes specific tax on saccharine and artificial sweeteners. (Section 25)
Privilege Taxes:
- Sets fixed annual taxes for various businesses and occupations, with rates based on gross sales or income. (Section 28)
- Exempts certain small businesses and occupations from privilege taxes. (Section 28)
- Imposes percentage taxes on sales of jewelry, automobiles, toilet preparations, and other luxury items. (Section 30)
- Imposes percentage taxes on sales of sporting goods, luggage, watches, firearms, and other items. (Sections 31-33)
- Imposes percentage taxes on sales of refrigerators, air conditioners, beverage coolers, and related items, with rates varying based on manufacturing process. (Section 32)
- Imposes percentage taxes on sales of phonographs, radios, televisions, and related items, with rates varying based on manufacturing process. (Section 33)
- Imposes percentage tax on sales of other articles not covered in previous sections. (Section 34)
- Imposes percentage taxes on processors of pineapple, rope factories, sugar centrals, coconut oil mills, cassava mills, and desiccated coconut factories. (Section 35)
- Imposes contractor's tax on various construction, demolition, installation, and repair services. (Sections 36-37)
- Imposes caterer's tax on restaurants, bars, and other eating establishments, with rates varying based on type of establishment. (Section 37)
- Imposes percentage tax on carriers, keepers of garages, and transportation services. (Sections 38-39)
- Imposes percentage tax on dealers in securities and lending investors. (Section 40)
Documentary Stamp Taxes:
- Imposes documentary stamp taxes on policies of insurance upon property. (Section 42)
- Imposes documentary stamp taxes on warehouse receipts, hotel receipts, bills of lading, and other documents. (Sections 43-45)
- Exempts certain documents and papers from documentary stamp taxes. (Section 45)
Mining Taxes:
- Imposes occupation fee on mining claim holders. (Section 46)
- Imposes rentals and royalties on mineral lands under lease. (Section 47)
- Imposes ad valorem taxes on output of mineral lands not covered by lease. (Section 48)
- Sets penalties for failure to pay mining taxes and royalties. (Sections 49-50)
Other Taxes:
- Imposes tax on finance companies based on gross receipts. (Section 50)
- Imposes taxes on insurance premiums collected. (Section 52)
- Imposes tax on franchises based on gross receipts. (Section 53)
- Imposes amusement taxes on theaters, cinemas, cabarets, race tracks, cockpits, and other amusement places. (Sections 54-55)
- Imposes tax on winnings from horse races and jai-alai. (Section 55)
- Imposes charges on firewood cut in public forests. (Section 57)
Bookkeeping and Tax Returns:
- Requires corporations, partnerships, and persons to keep books of accounts and have them audited by independent certified public accountants. (Section 58)
- Defines "Independent Certified Public Accountant" and sets penalties for falsifying reports or statements. (Section 58)
- Requires preservation of books of accounts and other accounting records for at least 5 years. (Section 59)
- Requires taxpayers to be supplied with or assigned a taxpayer account number. (Section 60)
- Provides for non-retroactivity of rulings, with exceptions. (Section 61)
- Requires tax clearance certificate for issuance of passage tickets to foreign ports. (Section 62)
Disposition of Tax Proceeds:
- Allocates 1% of proceeds from percentage taxes to a special fund for implementation of the Code. (Section 63)
- Specifies disposition of proceeds from franchise taxes. (Section 64)
- Specifies disposition of proceeds from income, inheritance, and gift taxes between national, provincial, and municipal governments. (Section 65)
Repealing and Effectivity Clauses:
- Contains separability clause. (Section 66)
- Repeals inconsistent laws, orders, and regulations. (Section 67)
- Sets effective dates for various provisions. (Section 68)