AN ACT TO AMEND CERTAIN SECTIONS OF COMMONWEALTH ACT NUMBERED FOUR HUNDRED AND SIXTY-SIX

Case Overview and Summary

Summary of Republic Act No. 2376

Amendments to the National Internal Revenue Code

- Section 182(C) - Exceptions to the tax imposed:
• Persons with gross monthly sales or receipts not exceeding 200 pesos. (Section 1)
• Filipinos in public markets selling retail food products, meat, fruits, vegetables, game, poultry, fish, and other raw/cooked food products. (Section 1)
• Peddlers and sellers at fixed stands selling domestic meat, fruits, vegetables, game, poultry, fish, and similar food products with daily stock value not reaching 100 pesos retail value. (Section 1)
• Home-based producers of commodities working as a family with daily production value per person not exceeding 5 pesos. (Section 1)
• Owners of animal-drawn two-wheeled vehicles. (Section 1)
• Owners of bancas (small boats). (Section 1)
• Government employees and those providing services to religious, educational, charitable institutions, hospitals, or similar non-profit establishments. (Section 1)

- Section 188 - Transactions and persons not subject to percentage tax:
• Articles subject to tax under Title IV of the Code. (Section 2)
• Agricultural products, salt, fish, and by-products sold by producers or owners. (Section 2)
• Minerals and mineral products sold by lessees, concessionaires, or owners. (Section 2)
• Articles subject to tax under Section 189 of the Code. (Section 2)
• Articles exported by manufacturers or producers. (Section 2)
• Persons with gross monthly sales or receipts not exceeding 200 pesos. (Section 2)
• Filipinos in public markets selling retail food products. (Section 2)
• Peddlers and sellers at fixed stands selling domestic food products with daily stock value not reaching 100 pesos retail value. (Section 2)
• Home-based producers of commodities working as a family with daily production value per person not exceeding 5 pesos. (Section 2)
• Persons importing articles for exclusive use of the Armed Forces of the Philippines. (Section 2)

- Section 191 - Percentage tax on contractors, proprietors, and others:
• 3% tax on gross receipts for road, building, irrigation, artesian well, waterworks, and other construction work contractors, filling contractors, demolition and salvage work contractors, arrastre contractors, gas or electric installation, water/light/power sellers (except franchise tax payers), proprietors or operators of dockyards, mine drilling apparatus, smelting plants, engraving plants, plating establishments, plastic lamination establishments, vulcanizing and recapping establishments, motor vehicle washing/greasing, battery charging, lumber planing/surfacing/recutting, sawmills under contract, dry-cleaning or dyeing establishments, steam laundries, laundries using washing machines, photographic studios, telephone/telegraph lines or exchanges, broadcasting or wireless stations, funeral parlors, shops for construction or repair of bicycles/vehicles/mechanical devices/instruments/apparatus/furniture, shoe repairing by machine, tailor shops, beauty parlors, dressmakers, milliners, hatters, keepers of hotels/lodging houses, stevedores, warehousemen, plumbers, smiths, house or sign painters, lithographers, publishers (except newspapers/magazines/reviews/bulletins), printers and bookbinders, business agents and other independent contractors (except embroidery and apparel for export contractors and agents). (Section 3)
• 3% tax on gross receipts for keepers of restaurants, refreshment parlors, and other eating places (except those inside public markets), and caterers. (Section 3)
• 7% tax on gross receipts for keepers of bars and cafes serving wines or liquors. (Section 3)
• 20% tax on gross receipts for establishments within race tracks, jai-alai premises, or accessible to patrons. (Section 3)
• 10% tax on gross receipts for establishments within cabarets, night clubs, or accessible to patrons. (Section 3)

- Effective date and condonation of unpaid taxes:
• The Act takes effect upon approval on June 20, 1959. (Section 4)
• All unpaid or uncollected taxes from persons in public markets selling food products exempted under this Act are condoned. (Section 4)