Tax on capital, deposits, and circulation of banks.
SEC. 249. Tax on capital, deposits, and circulation of banks. — Subject to the exemptions herein made, there shall be collected from banks the following taxes on capital, deposits, and circulation.
(a) Upon the capital employed by the bank, for each month, one twenty-fourth of one per centum.
(b) Upon the average amount of deposits of money, subject to payment by check or draft, or represented by certificates of deposit or otherwise, whether payable on demand or at some future day, for each month, one eighteenth of one per centum.
(c) Upon the average amount of circulation issued by the bank, including as circulation all notes and other obligations calculated or intended to circulate or be used as money, but not including such as may be retained in the vault of the bank or redeemed and on deposit for said bank, for each month, one-twelfth of one per centum.
(d) Upon the amount of reserve deficiencies incurred by the bank, and for the periods of their duration, as provided in section 126 of Act Numbered one thousand four hundred and fifty-nine, as amended by Act Numbered Three Thousand six hundred and ten, one per centum per month.
"Bank," as herein used, includes every incorporated or other bank, and every person, association, or company having a place of business where credits are opened by the deposit or collection of money or currency subject to be paid or remitted upon draft, check, or order, or where money is advanced or loaned on stocks, bonds, bullion, bills of exchange, or promissory notes, are received for discount or for sale.
"Capital employed" does not include money borrowed or received from time to time in the usual course of business from any person whose sole business is lending money on real estate security.
Times for payment of tax.
SEC. 250. Times for payment of tax. — Increase of tax in case of delinquency. — These taxes shall be due at intervals of six months-namely, on the first of January and July for the respective preceding half-year periods; and if any such tax remains unpaid for four months thereafter, the amount of the tax shall be increased by twenty-five per centum, the increment to be a part of the tax.
Banker's semi-annual report of business done.
SEC. 251. Banker's semi-annual report of business done. — A report of the monthly amount of capital, deposits, and circulation shall be rendered on or before the first of May and first of November of each year by each bank subject to the tax above prescribed, with a declaration annexed thereto under oath of the president, cashier, manager, or proprietor to the effect that such report contains a true, faithful, and correct statement of the amounts subject to tax as aforesaid for the period therein covered.
Computing resources of bank incorporated abroad.
SEC. 252. Computing resources of bank incorporated abroad. — The amount of capital used by a bank within the Philippines, when such bank is a branch of a bank incorporated under the laws of the United States or a foreign country, shall, for the purposes of assessment hereunder be determined in the following manner: The total amount of the capital of the bank shall be ascertained, and, likewise the total amount of the net earnings of the bank accruing during the preceding six months, and also the total amount of the net earnings accruing from the bank's business conducted in the Philippines, and such a proportion of the total capital of the bank shall be deemed to have been employed in the Philippines as the net earnings in the Philippines bear to the total net earnings of the bank: Provided, however, That the amount of capital deemed to have been employed by a foreign banking corporation in this country shall, in no case, be less than the minimum capital required of a bank organized under the laws of the Philippines.
Exemption of savings institutions.
SEC. 253. Exemption of savings institutions. — The deposits in associations or companies known as provident institutions, savings banks, savings funds, or savings institutions, having no capital stock and which do no other business than receiving deposits to be loaned or invested for the sole benefit of the parties making such deposits and without profit or compensation to the association or company, shall be exempt from this tax on so much of their deposits as such institutions have invested in securities satisfactory to the Treasurer of the Philippines and on all deposits, not exceeding four thousand pesos, made in the name of any one person.
Exemption in case of reduced circulation.
SEC. 254. Exemption in case of reduced circulation. — When the outstanding circulation of any bank is reduced to an amount not exceeding five per centum of the chartered or declared capital existing at the time the same was issued, such circulation shall be free from taxation; and when any bank which has ceased to issue notes or circulation deposits with the Treasurer of the Philippines in lawful money, the amount of its outstanding circulation to be redeemed at par, under such regulations as the Secretary of Finance may prescribe, it shall be exempt from any tax upon said circulation.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
