Republic of the Philippines
CONGRESS OF THE PHILIPPINES
Metro ManilaEleventh Congress
Third Regular SessionBegun and held in Metro Manila, on Monday, the twenty-fourth day of July, two thousand.
REPUBLIC ACT NO. 9010 February 27, 2001
AN ACT TO FURTHER DEFER THE IMPOSITION OF THE VALUE-ADDED TAX ON CERTAIN SERVICES, AMENDING FOR THE PURPOSE SECTION 5 OF REPUBLIC ACT NO. 8424, AS AMENDED BY REPUBLIC ACT NO. 8761
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
Section 1. Section 5 of Republic Act No. 8424, as amended by Republic Act No. 8761, is hereby further amended to read as follows:
"Section 5. Transitory Provisions. - Effectivity of the Imposition of VAT on Certain Services. - The imposition of the value-added tax on the following services shall take effect on January 1,2003:
"(a) Services performed in the exercise of profession or calling subject to the professional tax as provided for under Republic Act No. 7160, otherwise known as the Local Government Code of 1991, and professional...
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Republic Acts
AN ACT TO FURTHER DEFER THE IMPOSITION OF THE VALUE-ADDED TAX ON CERTAIN SERVICES
Republic Act No. 9010
Summary of Republic Act No. 9010
Deferment of Value-Added Tax (VAT) on Certain Services
- Section 1 amends Section 5 of Republic Act No. 8424, as amended by Republic Act No. 8761, regarding the effectivity of VAT imposition on certain services.
Services Covered for VAT Deferment until January 1, 2003:
• Services performed in the exercise of profession or calling subject to the professional tax under Republic Act No. 7160 (Local Government Code of 1991), and professional services by registered general professional partnerships. (Section 5(a))
- This includes actors, actresses, talents, singers, emcees, radio and television broadcasters, choreographers, musical, radio, movie, television and stage directors, and professional athletes.
• Services rendered by banks, non-bank financial intermediaries, finance companies and other financial intermediaries not performing quasi-banking functions. (Section 5(b))
• Services rendered by stock, real estate, commercial, customs and immigration brokers. (Section 5(c))
- For the years 2001 and 2002, these brokers shall pay a tax equivalent to 7% based on gross receipts from brokering services, instead of VAT.
- Beginning January 1, 2003, these brokers shall be subject to VAT in lieu of the 7% tax.
Taxpayers rendering services under Sections 5(a) and 5(b) shall pay applicable taxes prescribed under the National Internal Revenue Code, as amended. (Section 5)
- Section 2 authorizes the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, to promulgate necessary rules and regulations for effective implementation.
- Section 3 repeals or modifies inconsistent laws, decrees, orders, issuances, rules and regulations.
- Section 4 states that the effectivity of this Act shall retroact to January 1, 2001.
Deferment of Value-Added Tax (VAT) on Certain Services
- Section 1 amends Section 5 of Republic Act No. 8424, as amended by Republic Act No. 8761, regarding the effectivity of VAT imposition on certain services.
Services Covered for VAT Deferment until January 1, 2003:
• Services performed in the exercise of profession or calling subject to the professional tax under Republic Act No. 7160 (Local Government Code of 1991), and professional services by registered general professional partnerships. (Section 5(a))
- This includes actors, actresses, talents, singers, emcees, radio and television broadcasters, choreographers, musical, radio, movie, television and stage directors, and professional athletes.
• Services rendered by banks, non-bank financial intermediaries, finance companies and other financial intermediaries not performing quasi-banking functions. (Section 5(b))
• Services rendered by stock, real estate, commercial, customs and immigration brokers. (Section 5(c))
- For the years 2001 and 2002, these brokers shall pay a tax equivalent to 7% based on gross receipts from brokering services, instead of VAT.
- Beginning January 1, 2003, these brokers shall be subject to VAT in lieu of the 7% tax.
Taxpayers rendering services under Sections 5(a) and 5(b) shall pay applicable taxes prescribed under the National Internal Revenue Code, as amended. (Section 5)
- Section 2 authorizes the Secretary of Finance, upon recommendation of the Commissioner of Internal Revenue, to promulgate necessary rules and regulations for effective implementation.
- Section 3 repeals or modifies inconsistent laws, decrees, orders, issuances, rules and regulations.
- Section 4 states that the effectivity of this Act shall retroact to January 1, 2001.