Scope of power.
Section 6
SEC 6. Scope of power. — Except as otherwise provided in this Code, the province may impose among others, the taxes, fees or charges specifically mentioned in this Article.
PD 231 CHAPTER II
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Article I. Provinces
Tax on transfer of real property ownership.
Section 7
SEC 7. Tax on transfer of real property ownership. — The province may impose a tax on the sale, donation, barter, or on any other mode of transferring ownership or title, of real property at the rate of not exceeding one-fourth of one percent of the total consideration involved in the acquisition of the property or of its assessed value, whichever is higher, or in the absence of a specific consideration, the assessed value of the property. The transfer of real property ownership pursuant to Republic Act No. 3844, as amended, shall be exempt from this tax. For this purpose, the Register of Deeds of the province concerned shall, before registering any deed, require the presentation of the evidence of payment of this tax. Real property, for purposes of this tax, refers only to lands, buildings, and machineries intended by the owner of the land or building for an industry or works which may be carried on in a building or on a piece of land and which tends directly to meet the needs of the said industry or works. Buildings refer to all kinds of structure more or less permanently attached to a piece of land, excluding those which are merely superimposed on the soil.
Tax on business of printing and publication.
Section 8
SEC. 8. Tax on business of printing and publication. — The province may impose a tax on the business of persons engaged in the printing and/or publication of: any newspaper, magazine, review, or bulletin appearing at regular intervals, with fixed prices for subscription and sale and published ill the province; books, cards, posters, leaflets, handbills, certificates, receipts, pamphlets, and others of similar nature, at the rate of not exceeding one-half of one percent of the gross annual receipts for the preceding calendar year. In the case of newly started business, the rate shall not exceed one hundred pesos for a printer, fifty pesos for a publisher, and one hundred and fifty pesos for one who is both a printer and publisher. The receipts from the printing and/or publishing of books or other reading materials prescribed by the Department of Education and Culture as school texts or references shall not be included in tile gross receipts subject to the tax herein imposed.
Franchise to.
Section 9
SEC. 9. Franchise to. — Any provision of special laws to the contrary notwithstanding, province may impose a lax on businesses enjoying franchise, based on the gross receipts realized within its territorial jurisdiction, at the rate of not exceeding one-half of one percent of the gross annual receipts for the preceding calendar year. In the case of newly started business, the rate shall not exceed three thousand pesos per year. Sixty percent of the proceeds of the tax shall accrue to the general fund of the province and forty percent to the general fund of the municipalities serviced by the business on the basis of the gloss annual receipt derived therefrom by the franchise holder. In the case of a newly started business, forty percent of the proceeds of the tax shall be divided equally among the municipalities serviced by the business.
Sand and gravel fee.
Section 10
SEC. 10. Sand and gravel fee. — The province may levy and collect a fee of not exceeding seventy, five centavos per cubic meter of ordinary stones, sand, gravel, earth and other materials extracted from public and private lands of the Government or from the beds of seas, lakes, rivers, streams, creeks, and other public waters within the jurisdiction of the province.
Taxes transferred.
Section 11
SEC. 11. Taxes transferred. — The imposition of the taxes provided in Sections 12, 13, 14, 15 and 16 of this Code heretofore exercised by the National Government or the municipal government, shall henceforth be exercised by the provincial government, to the exclusion of the national or municipal government. To avoid any revenue loss, the province shall levy and collect such taxes as provided in said Sections 12, 13 and 14.
Occupation tax.
Section 12
SEC. 12. Occupation tax. — The province shall levy an annual occupation tax on all persons engaged in the exercise or practice of their profession or calling as follows: Seventy-five pesos: Lawyers, medical practitioners, architects, interior decorators, certified public accountants, civil, electrical, chemical, mechanical, mining or sanitary engineers, pharmacists, medical technologists, insurance agents and sub-agents, customs brokers, marine surveyors, actuaries, registered master plumbers, registered electricians, veterinarians, dentists, optometrists, opticians, commercial aviators, professional appraisers or connoisseurs of tobacco and other domestic or foreign products, licensed ship masters and marine chief engineers. Mechanical plant engineers, junior mechanical engineers and certified plant mechanics, unless they are professional mechanical engineers and have paid the corresponding fixed tax for mechanical engineers. Fifty pesos: Land surveyors, chief mates, marine second engineers, registered nurses, chiropodists, tattooers, masseurs, pelotaris, jockeys, professional actors and actresses, stage performers, hostesses, statisticians, commercial stewards and stewardesses, flight attendants, insurance adjusters, dietitians and embalmers. The Secretary of Finance shall include within the purview of the occupation tax other professions or callings not hereinabove enumerated which in the light of prevailing circumstances should properly be included therein and their corresponding tax rates. The tax imposed on such professions shall take effect two months after publication in a newspaper of general circulation. Every person legally authorized to practice his profession or calling shall pay the tax to the province where, he practices his profession or pursues his calling, or where he maintains his principal office in cases where the person practices his profession or pursues his calling in several places: Provided, That such person who has paid the corresponding occupation Lax as herein fixed shall be entitled to practice his profession or calling in all parts of the Philippines without being subject to any other national or local tax, license or fee for the practice of such profession or calling. Any individual or corporation employing a person shall require payment by that person of the privilege tax on occupation before employment and annually thereafter. The occupation tax shall be payable annually, on or before the thirty-first day of January. Any person first beginning an occupation or calling after the month of January must however pay the full tax before engaging therein. One line of occupation or calling does not become exempt by being conducted with some other occupation or calling for which the tax has been paid. Professionals exclusively employed in the Government shall be exempt from the payment of this tax. The occupation tax shall lie collected by the municipal treasurers and remitted to the provincial treasurer within ten days following the end of the month of collection. Seventy percent of the proceeds of the tax shall accrue to the general fund of the province and thirty percent shall be divided equally among the municipalities. The provincial treasurer shall release the shares of the municipalities within thirty days following the remittance of the collections by the municipal treasurer. Any person subject to the occupation tax shall write or print in deeds, receipts, prescriptions, reports, books of accounts, plans and designs, surveys and maps, as the case may be, the number of the official receipt issued to him.
Amusement tax on admission.
Section 13
SEC. 13. Amusement tax on admission. — The province shall impose a tax on admission to be collected from the proprietors, lessees, or operators of theaters, cinematographs, concert hall, circuses and other places of amusement at the following rates: When the amount paid for admission is one peso or less, twenty percent; and When the amount paid for admission exceeds one peso, thirty percent. In the case of theaters or cinematographs, the taxes herein prescribed shall first be deducted and withheld by the proprietors, lessees, or operators of the theaters or cinematographs and paid to the provincial treasurer concerned thru the municipal treasurer before the gross receipts are divided between the proprietors, lessees, or operators of the theaters or cinematographs and the distributors of the cinematographic films. The holding of operas, concerts, dramas, recitals, painting and art exhibitions, flower shows, musical programs, literary and oratorical presentations, except film exhibitions and radio or phonographic records thereof, shall be exempt from the payment of the taxes herein imposed. The taxes hereinabove imposed shall he due and payable within the first twenty days of the month following each quarter, by the proprietor, lessee, or operator concerned, and such taxes to be determined on the basis of a true and complete return of the amount of gross receipts derived during the preceding quarter. If the tax is not paid within the time fixed hereinabove, the taxpayer shall be subject to such surcharges, interests and penalties prescribed by this Code. In case of willful neglect to file the return and pay the tax within the time required or in case fraudulent return is filed or a false return is willfully made, the taxpayer shall be subject to a surcharge of fifty percent of the correct amount of the tax due in addition to the interest and penalties provided by this Code.
Fees for sealing and licensing of weights and measures.
Section 14
SEC. 14. Fees for sealing and licensing of weights and measures. — The province shall collect fees for the sealing and licensing of weights and measures in accordance with the following schedule: For sealing linear metric measures: Measures not over one, meter — one peso Measures over one meter — two pesos For sealing metric measures of capacity: Measures not over ten liters — one peso Measures over ten liters — two pesos For sealing metric instruments of weights: Those with a capacity of not more than thirty kilograms — two pesos Those with a capacity of more than thirty but not more than three hundred kilograms — three pesos Those with a capacity of more than three hundred hut nut more than three thousand kilograms - five pesos Those with a capacity of more than three thousand kilograms - six pesos For an apothecary balance or other balance of precision, the fee shall be doubled. A complete set of weights for each scale or balance shall be sealed free of charge. For each extra weight, the fee shall be fifty centavos. The fees herein levied shall be paid at the place where the business is conducted. In the case of a peddler or similar itinerant vendor using only one weight or measure, he shall pay the fees in his place of residence. Municipal treasurers are hereby required to keep full sets of secondary standards in their offices for the use in testing of weights and measures. These secondary standards shall be compared with the fundamental standards in the National Institute of Science and Technology at least once a year. When found to he sufficiently accurate, the secondary standards shall he distinguished by label, tag, or seal, and shall he accompanied by a certificate showing the amount of its variation from the fundamental standards. If the variation is of sufficient magnitude to impair the utility of the instrument, it shall be destroyed in the National Institute of Science and Technology. The proceeds from these fees shall accrue entirely to the municipalities where collected. The provincial board shall prescribe the necessary regulations for the use; of such weights and measures.
Tax on peddlers.
Section 15
SEC. 15. Tax on peddlers. — An annual tax on peddlers engaged in the sale of any merchandise or article of commerce within the province, at the rates not exceeding those fixed hereunder: Amount of tax per annum (a) Peddlers of any article or merchandise carried in trucks or any other motor vehicles P30.00 (b) Peddlers of any article or merchandise carried in a motorized bicycle, tricycle or other motorized similar vehicles other than those specified in letter (a) above 15.00 (c) Peddlers of any article or merchandise carried in cart, carretela or other vehicles drawn by animals 30.00 (d) Peddlers of any article or merchandise carried on bicycle, pedicab or other similar vehicles 5.00 (e) Peddlers of any other article or merchandise carried by person 2.00 In addition to the above impositions, a peddler of textiles, jewelry, perfume and other luxury articles shall pay five pesos.
Rental fee for use of municipal waters, rivers, etc. as log pond.
Section 16
SEC. 16. Rental fee for use of municipal waters, rivers, etc. as log pond. — Any provision of existing laws or rules to the contrary notwithstanding, the province may charge an annual rental fee for the use of municipal waters, rivers, lakes, and the like within its territorial jurisdiction as log pond at the rate not exceeding five centavos per square meter of water space occupied. Sixty percent of the proceeds of the rentals shall accrue to the province and forty percent to the municipality, or municipalities in equal shares, where the log pond is located.
Specific limitations on power.
Section 17
SEC. 17. Specific limitations on power. — Except as otherwise provided in this Code, the province shall not levy the following: (a) Business tax; (b) Fishery rental and license fees; (c) Tax on articles subject to specific tax under the provisions of the National Internal Revenue Code; (d) Taxes and other impositions enumerated in Section 5, Chapter I of this Code; and (e) Municipal fees and charges under Section 20 of this Code. Article 2. Municipalities
Scops of powers.
Section 18
SEC. 18. Scops of powers. — Except as otherwise provided in this Code, the municipality may levy, among others, the taxes, fees, or charges provided in this Article, at rates not exceeding those fixed in the following sections.
Tax on business.
Section 19
SEC. 19. Tax on business. — The municipality may impose a tax on businesses as follows: (a) Tax on the business of manufacturing, importing, exporting, producing, wholesaling or retailing of, or dealing in, any article of commerce of whatever kind or nature, except those for which fixed taxes are provided herein: With gross annual sales for for the preceding calendar year in the amount of: Amount of tax per annum Less than P 1,000.00 10.00 P 1,000.00 or more but less than P 2,000.00 P 20.00 2,000.00 or more but less than 3,000.00 30.00 3,000.00 or more but less than 4,000.00 45.00 4,000.00 or more but less than 5,000.00 65.00 5,000.00 or more but less than 6,000.00 80.00 6,000.00 or more but less than 7,000.00 100.00 7,000.00 or more but less than 8,000.00 120.00 8,000.00 or more but less than 10,000.00 160.00 10,000.00 or more but less than 15,000.00 240.00 15,000.00 or more but less than 20,000.00 360.00 20,000.00 or more but less than 30,000.00 520.00 30,000.00 or more but less than 40,000.00 750.00 40,000.00 or more but less than 50,000.00 1,000.00 50,000.00 or more but less than 75,000.00 1,500.00 75,000.00 or more but less than 100,000.00 2,200.00 100,000.00 or more but less than 150,000.00 3,200.00 150,000.00 or more but less than 300,000.00 3,900.00 300,000.00 or more but less than 500,000.00 7,000.00 500,000.00 or more but less than 750,000.00 11,250.00 750,000.00 to 1,000,000.00 16,000.00 For every P50,000.00 or fraction thereof in excess of P1,000,000.00 200.00 In the case of a newly started business, the tax shall be at the rate of not exceeding one-tenth of one percent of its capital investment but in no case shall it be less than the minimum of P25.00 fixed above. The tax on the business of manufacturing, producing or importing agricultural implements, fertilizers, medicinal grugs, or dairy product shall be one-half of the rates above-prescribed. For purposes of collection of this tax, manufacturers and producers maintaining or operating branch or sales offices elsewhere shall record the sales in the branch or sales office making the sale and the tax thereon shall accrue to the local government where the branch or sales office is located. In cases where there is no such branch or sales office in the locality where the Bale is effected, the sale shall be duly recorded in the principal office and the tax shall accrue to the local government where said principal office is located. (b) On cafes, cafeterias, ice-cream and other refreshment parlors, restaurants, soda fountain bars, carinderias or food caterers: With gross annual sales for for the preceding calendar year in the amount of: Amount of tax per annum Less than P 2,000.00 30.00 P 2,000.00 or more but less than P 3,750.00 P 50.00 3,750.00 or more but less than 4,500.00 70.00 4,500.00 or more but less than 6,125.00 90.00 6,125.00 or more but less than 7,250.00 110.00 7,250.00 or more but less than 8,750.00 130.00 8,750.00 or more but less than 10,275.00 150.00 10,275.00 or more but less than 12,125.00 180.00 12,125.00 or more but less than 15,250.00 220.00 15,250.00 or more but less than 16,750.00 250.00 16,750.00 or more but less than 18,250.00 270.00 18,250.00 or more but less than 20,625.00 290.00 20,625.00 or more but less than 23,375.00 350.00 23,375.00 or more but less than 27,000.00 400.00 27,000.00 or more but less than 30,000.00 450.00 30,000.00 or more but less than 33,000.00 500.00 33,000.00 or more but less than 35,875.00 550.00 35,875.00 or more but less than 40,625.00 610.00 40,625.00 or more but less than 45,500.00 660.00 45,500.00 to 50,000.00 750.00 For every P1,000.00 or fraction thereof in excess of P50,000.00 5.00 In the case of a newly started business, the tax shall be at the rate of not exceeding one-tenth of one percent of its capital investment but in no case shall it be less than the minimum of P30.00 fixed above. In cases where a single person or juridical entity conducts or operates two or more of the related businesses mentioned in Subsection (a) or in Subsection (b) above, the computation of the tax shall be based on the combined total gross receipts of the said two or more related businesses. (c) On all business establishments principally rendering or offering to render services, such as repair and welding shops; service stations; painting shops; plastic lamination, photostatic, white/blue printing, recopying or duplicating services; photographic studios; tailor and dress shops; laundry shops; beauty parlors; battery charging shops; barber shops; assaying laboratories; advertising agencies; collecting agencies; funeral parlors; massage or therapeutic clinics; construction and/or repair shops of motor vehicles, animal-drawn vehicles, bicycles and/or tricycles; goldsmiths and silversmiths; shops for shearing animals; lathe machine shops; vaciador shops; upholstery shops; vulcanizing shops; stables; garages; parking lots; and public warehouses and bodegas: With gross annual receipts for for the preceding calendar year in the amount of: Amount of tax per annum Less than P 5,000.00 P 25.00 P 5,000.00 or more but less than P 10,000.00 56.00 10,000.00 or more but less than 15,000.00 125.00 15,000.00 or more but less than 20,000.00 218.00 20,000.00 or more but less than 30,000.00 375.00 30,000.00 or more but less than 40,000.00 612.00 40,000.00 or more but less than 50,000.00 900.00 50,000.00 or more but less than 75,000.00 1,406.00 75,000.00 or more but less than 100,000.00 2,187.00 100,000.00 or more but less than 150,000.00 3,437.00 150,000.00 or more but less than 200,000.00 5,250.00 200,000.00 or more but less than 250,000.00 7,312.00 250,000.00 or more but less than 300,000.00 9,625.00 300,000.00 or more but less than 400,000.00 13,125.00 400,000.00 500,000.00 18,000.00 For every P10,000.00 or fraction thereof in excess of P500,000.00 100.00 In the case of a newly started business, the tax shall be at the rate of not exceeding one-tenth of one percent of its capital investment but in no case shall it be less than the minimum of P25.00 fixed above. (d) On the business of brewers, rectifiers, distillers, and repackers of liquors, distilled spirits and/or wines: Amount of tax per annum (1) Wholesale dealers in foreign liquors P 800.00 (2) Wholesale dealers in domestic liquors 400.00 (3) Retail dealers in foreign liquors 200.00 (4) Retail dealers in domestic liquors 100.00 (5) Brewers 2,000.00 (6) Distillers of spirits 1,500.00 (7) Rectifiers of distilled spirits 1,500.00 (8) Repackers of wines and distilled spirits 1,500.00 (9) Retail dealers in vino liquors 50.00 (10) Retail dealers in fermented liquors 80.00 (11) Wholesale dealers in fermented liquors 200.00 (12) Retail peddlers of distilled, manufactured or fermented liquors 160.00 (13) Wholesale peddlers of distilled, manufactured or fermented liquors 200.00 (14) Retail dealers in tuba, basi and/or tapuy 50.00 (e) Tax on tobacco dealers and peddlers: (1) Retail leaf tobacco dealers 50.00 (2) Wholesale leaf tobacco dealers 200.00 (3) Retail tobacco dealers 50.00 (4) Wholesale tobacco dealers 200.00 (5) Retail peddlers of manufactured tobacco 50.00 (6) Wholesale peddlers of manufactured tobacco 200.00 (f) Tax on amusement devices: (1) Each jukebox machine 100.00 (2) Each machine or apparatus for visual entertainment 50.00 (3) Each apparatus for weighing persons 30.00 (g) On amusement places wherein the customers thereof actively participate without making bets or wagers, including hut not limited to the following: Amount of Tax per annum (1) Night and day clubs P 6,000.00 (2) Night clubs or day clubs 4,000.00 (3) Cocktail lounges or bars 1,600.00 (4) Cabarets or dance halls 1,000.00 (5) Skating rinks 500.00 (6) Bath houses, swimming pools, resorts and other similar places 300.00 (7) Steam baths, saunas and other similar establishments, per cubicle 100.00 (8) Billiard and pool halls: For the first table 50.00 For each additional table 20.00 (9) Bowling alleys: Automatic, per lane 100.00 Non-automatic, per lane 80.00 (10) Circuses, carnivals, and the like - P40.00 per day for the first ten days and P5.00 per day thereafter (11) Merry-go-rounds, roller-coasters, ferries wheels, swings, shooting galleries, and other similar contrivances — for each contrivance, P 10.00 per day for the first ten days and P2.00 per day thereafter. (12) Theaters and cinematographs: Itinerant operators P10.00 per day With orchestra only with seating capacity of less than 500 persons 500.00 With balcony and orchestra with seating capacity from 500 to 999 persons 800.00 With balcony and orchestra with seating capacity of 1,000 persons and above 1,000.00 With loge, balcony and orchestra 1,500.00 Plus: Amusement tax of P0.05 per admission payable to the municipal treasurer the next following business day. An additional tax not exceeding one hundred percent of the rates hereinabove fixed shall be imposed on theaters and cinematographs which are air-conditioned. (13) Boxing stadium 300.00 (14) Boxing contests, P100.00 each night plus an amusement tax of P0.05 per admission ticket payable to the municipal treasurer the next following business day (15) Race track for conducting horse races Per day or fraction thereof - P50.00 2,000.00 (16) Cockpits: Per cockfight - Ordinary - P3.00 Per cockfight - Derby - P10.00 Holding of international derby cockfight, per day - P2,000.00 Per cockfight, international derby - P100.00 3,000.00 (h) On pawnshops: Amount of tax per annum With capital of - Less than P50,000.00 P 1,000.00 P50,000.00 or more but less than P100,000.00 1,500.00 100,000.00 or more but less than 200,000.00 2,000.00 200,000.00 or more 4,000.00 (i) On boarding houses with accommodations for — Amount of tax per annum Less than 10 boarders P20.00 10 to 19 boarders 30.00 20-39 boarders 40.00 40 or more boarders 50.00 (j) Tax on lodging houses with accommodations for — Less than 15 lodgers 600.00 15 to 24 lodgers 900.00 25 or more lodgers 1,200.00 (k) Tax on hotels and motels baaed on gross receipts for the preceding quarter at the following rates: Gross quarterly receipts Amount of Tax per quater Less than P2,500.00 P 15.00 P 2,500.00 or more but less than P 5,000.00 23.00 5,000.00 or more but less than 7,500.00 32.00 7,500.00 or more but less than 10,000.00 40.00 10,000.00 or more but less than 12,500.00 48.00 12,500.00 or more but less than 15,000.00 56.00 15,000.00 or more but less than 17,500.00 64.00 17,500.00 or more but less than 20,000.00 72.00 20,000.00 or more but less than 22,500.00 80.00 22,500.00 or more but less than 25,000.00 88.00 25,000.00 or more but less than 30,000.00 107.00 30,000.00 or more but less than 35,000.00 126.00 35,000.00 or more but less than 40,000.00 145.00 40,000.00 or more but less than 45,000.00 164.00 45,000.00 or more but less than 50,000.00 183.00 50,000.00 or more but less than 55,000.00 202.00 55,000.00 or more but less than 60,000.00 221.00 60,000.00 or more but less than 65,000.00 240.00 65,000.00 or more but less than 70,000.00 259.00 70,000.00 or more but less than 75,000.00 278.00 75,000.00 or more but less than 82,500.00 296.00 82,500.00 or more but less than 90,000.00 314.00 90,000.00 or more but less than 97,500.00 332.00 97,500.00 or more but less than 105,000.00 350.00 105,000.00 or more but less than 112,500.00 368.00 112,500.00 or more but less than 120,000.00 386.00 120,000.00 or more but less than 127,500.00 404.00 127,500.00 or more but less than 135,000.00 422.00 135,000.00 or more but less than 142,000.00 440.00 142,500.00 or more but less than 150,000.00 458.00 150,000.00 or more but less than 160,000.00 478.00 160,000.00 or more but less than 170,000.00 498.00 170,000.00 or more but less than 180,000.00 518.00 180,000.00 or more but less than 190,000.00 538.00 190,000.00 or more but less than 200,000.00 558.00 200,000.00 or more but less than 210,000.00 578.00 210,000.00 or more but less than 220,000.00 598.00 220,000.00 or more but less than 230,000.00 618.00 230,000.00 or more but less than 240,000.00 638.00 240,000.00 or more but less than 250,000.00 658.00 250,000.00 or more but less than 275,000.00 700.00 275,000.00 or more but less than 300,000.00 742.00 300,000.00 or more but less than 325,000.00 783.00 325,000.00 or more but less than 350,000.00 827.00 350,000.00 or more but less than 375,000.00 889.00 375,000.00 or more but less than 400,000.00 991.00 400,000.00 or more but less than 425,000.00 953.00 425,000.00 or more but less than 450,000.00 995.00 450,000.00 or more but less than 475,000.00 1,037.00 475,000.00 to 500,000.00 1,079.00 For every P1,000.00 or fraction thereof in excess of P 500,000.00 1.00 In the case of a newly started business, the tax shall not be less than the minimum of P15.00 prescribed above. (l) On private detective or security agency P 50.00 per annum (m) On real estate dealers: (1) Subdivision operators: Per square meter P 0.01 per annum The computation of the tax on subdivision operators shall be based only on the total area of the remaining lots titled in the name of the subdivision operator. (2) Lessors of real estate based on gross receipts for the preceding year, at rates not exceeding the following: Amount of Tax per annum Less than P1,000.00 P Exempt P 1,000.00 or more but less than P 4,000.00 20.00 4,000.00 or more but less than 10,000.00 50.00 10,000.00 or more but less than 20,000.00 150.00 20,000.00 or more but less than 30,000.00 300.00 30,000.00 or more but less than 50,000.00 500.00 For every P1,000.00 in excess of 50,000.00 5.00 In the case of a newly started business of lessors of rewal estate , the shall not be less than the minimum of P20.00 fixed above. (n) On golf links P1,000.00 per annum (o) On fishponds or fish breeding grounds, per hectare or fraction thereof — 50.00 per annum (p) Tax on private cemeteries and memorial parks: Amount of Tax per annum (1) Less than 2 hectares P P 500.00 (2) 2 hectares to 5 hectares 750.00 (3) More than 5 hectares 1,000.00 (q) Taxes on billboards, signboards and advertisements: (1) Billboards or Signboards for advertisement of business, per square meter or fraction thereof: Single face — 10.00 Double face — 20.00 (2) Billboards or signs for professionals, per square meter or fraction thereof — 8.00 (3) Billboards, signs or advertisement for business and professions painted on any building or structure or otherwise separated or detached therefrom, per square meter or fraction thereof— 9.00 (4) Advertisements by means of placards, per square meter or fraction thereof — 9.00 (5) Advertisements for business or profession by means of elides in movies payable by owners of moviehouses — 100.00 In addition to the taxes provided above under items (1) to (5), inclusive, for the use of electric or neon lights in billboards, per square foot or fraction thereof — 10.00 (6) Mass display of signs: Amount of tax per quarter or fraction thereof From 100 to 250 display signs — P 300.00 From 251 to 500 display signs — 450.00 From 501 to 750 display signs — 550.00 From 751 to 1000 display signs— 700.00 1001 or more display signs — 1,500.00 (7) Advertisement by means of vehicles, balloons, kite, etc.: Per day or fraction — P 40.00 Per week or fraction — 60.00 Per month or fraction — 80.00 Signs, signboards, billboards and advertisements displayed at the place where the profession or business advertised is conducted shall be exempt from the tax herein provided.
Fees and charges.
Section 20
SEC. 20. Fees and charges. — The municipality may collect the following fees and charges, among others, at rates not exceeding those enumerated hereunder: (a) Cart and sledge registration fee, per annum 12.00 (b) Circus or menagerie parades, and other parades using banners, floats or musical instruments, except civic and military parades and religious procession, P50.00 per day (c) Registration fees on large cattle: (1) Certificate of ownership 1.00 (2) Certificate of transfer 2.00 (d) Building permit fee: (1) Construction of residential buildings costing: Not exceeding P3,000.00 10.00 For each succeeding P1,000.00 or fraction thereof 2.00 (2) Construction of commercial or industrial buildings costing: Not exceeding P5,000.00 25.00 For each succeeding P1,000.00 or fraction thereof 4.00 (3) Residential building repairs costing: Less than P500.00 Exempt P 500.00 but not exceeding P1,000.00 2.00 For each succeeding P500.00 or fraction thereof 1.00 (4) Commercial or industrial building repairs costing: Not exceeding P1,000.00 5.00 For each succeeding P1,000.00 or fraction thereof 2.00 (5) Construction and repairs of other structures: Same rates as those fixed under items (1), (2), (3) or (4) above. (e) Marriage fees: (1) Application fee 10.00 (2) License fee 2.00 (3) Solemnization fee 5.00 (f) Registration fees on the civil status of persons — For the registration o£ documents and for certified copies of documents on file in the office of the local civil registrar: (1) Per registration of legitimation 5.00 (2) Per registration of an adoption 5.00 (3) Per registration of an annulment of marriage 15.00 (4) Per registration of a divorce 15.00 (5) Per registration of a naturalization 30.00 (6) Per registration of a change of name 5.00 (7) Per certified copies of any document in the 1.00 register, for each 100 words Tile civil registrar may issue certified copies of documents free of charge for official use at the request of a competent court or other government agency. The issuance of certified copies of birth certificates of children reaching school age when such certificates are required for admission to the primary grades of the public schools shall be considered official and given free of charge. (m) (g) Secretary's fees — For the issuance of copies of official records and documents: (1) For every 100 words or fraction thereof, typewritten (not including the certificate and any notation) 1.00 (2) Where the copy to be furnished is in a printed form, in whole or in part, for each page (double this fee if there are two pages in a sheet) 2.00 (3) For each certificate of correctness (with seal of office) written on the copy or attached thereto 2.00 (4) For copies furnished other bureaus, offices and branches of the government for official business (except those copies required by the court at the request of litigants, in which case charges should be made in accordance with the above schedule) Free (5) For certifying the official act of a municipal judge or other certificate (judicial), with seal 2.00 (6) For certified copies of any paper, record, decree, judgment or entry ol which any person is entitled to demand and receive a copy (in connection with judicial proceedings), for each 100 words. 1.00 (7) Xerox or any other copy produced by copying machine, per page 2.00 (8) Photo copy, per page 5.00 (h) Police clearance fee, per certificate issued: (1) For employment, scholarships, study grants and other purpose not hereunder specified 2.00 (2) For firearms permit application 20.00 (3) For change of name 20.00 (4) For passport or visa application 30.00 (5) For application for Filipino citizenship 100.00 (i) Fees for the impounding and/or sale of astray animals, including cost of feeds: (1) Large cattle, per day 10.00 (2) All other animals, per day 5.00 (J) Burial Permit fee 1.00 (k) Fee for exhumation of cadaver 1.00 (l) Fee for removal of cadaver 3.00 (m) Dog license fee, per annum 2.00 (n) Bicycle permit fee, per annum 5.00
Fishery rentals or fees.
Section 21
SEC. 21. Fishery rentals or fees. — Municipalities, in the exercise of their authority to grant exclusive fishery rights and license individual fishing gears in municipal waters, may levy or fix rentals or fees therefor in accordance with the provisions of this Section in conjunction with other operative laws and regulations on municipal fisheries. (a) Municipal water — Municipal waters includes not only streams, lakes and tidal waters included within the municipality, not being the subject of private ownership, and not comprised within national parks, public forest, timber lands, forest reserves, or fishery reserves, but also marine waters included between two lines drawn perpendicularly to the general coast from points where the boundary lines of the municipality or city touch the sea at low tide and a third parallel with the general coastline and distant from it three nautical miles. Where two municipalities are so situated on the opposite shores that there is less than six nautical miles of marine water between them, the third line shall be a line equally distant from the opposite shores of the respective municipalities. (b) Grant of fishery rights and licensing of fishing vessels. — Pursuant to the authority of the municipality, the municipal council may: Grant the exclusive fishery rights to erect fish corrals, operate fishponds or oyster beds, or take or catch bangus fry or kawag-kawag or fry of other species for propagation, by public auction, within definite portion or area of the municipal waters, for which purpose the council shall divide the municipal waters into fishing zones with fixed areas and boundaries and minimum annual rental for each zone; Grant the privilege of taking fish from municipal waters by nets, traps or other fishing gears to persons qualified under the provisions of this Section and other existing laws on municipal fisheries; Issue licenses for the operation of fishing vessels of three (3) Lons or less, for which purpose the council is empowered to promulgate, subject to the approval of the Secretary of Agriculture and Natural Resources, rules and regulations regarding the issuance of such licenses to qualified applicants under existing law. A licensee of any locality shall not fish in the municipal waters of another locality without first securing the necessary license from, and paying the corresponding taxes and fees therefor to the latter municipality. Deep-sea fishermen duly licensed under Section 18, of Act 4003, as amended, may be allowed to fish in municipal waters if they secure the necessary license therefor from the municipal authorities concerned and pay the corresponding taxes or fees. (c) Issuance of individual licenses in case no bidders opt to lease fishing zones. — If, after two notices for the grant of exclusive fishery rights thru public auction, no interested bidders opt to lease any fishing zone within the municipal waters, the municipal council is authorized to grant the privilege of erecting fish corrals, operating fishponds or oyster culture beds, or catching bangus fry or kawag-kawag within a definite area or portion of the municipal waters to individuals upon payment of license fees therefor at the rates not exceeding those fixed hereunder: (1) Fish corrals: Annual Fee Less than 3 meters 30.00 3 meters or more but less than 5 meters 60.00 5 meters or more but less than 8 meters 200.00 8 meters or more but less than 10 meters 360.00 10 meters or more but less than 15 meters 500.00 15 meters or more 800.00 (2) Operation of fishponds or oyster culture beds: Per hectare 10.00 (3) catching bangus fry or kawag-kawag: Less than 1,000 square meters 500.00 1,000 sq. m. or more but less than 2,000 sq. m. 800.00 2,000 sq. m. or more but less than 4,000 sq. m. 1,500.00 4,000 sq. m. or more but less than 6,000 sq. m. 2,200.00 6,000 sq. m. or more but less than 8,000 sq. m. 3,000.00 8,000 square meters or over 4,000.00 (d) Privilege of residents to take fish in municipal waters. — Any person who is not a grantee of a license or privilege to engage in commercial fishing shall be allowed to fish for domestic use, in any municipal waters, in case no communal fishery therein has been established: Provided, however, That in no case shall fishing be allowed within two hundred meters from a fish corral licensed by the city or municipality: And provided, further, That no fish caught under this privilege shall be sold.
Specific limitations on power.
Section 22
SEC. 22. Specific limitations on power. — Except as otherwise provided in this Code, the Municipality shall not levy the following: Taxes, fees, and charges that the province or city is authorized to levy in this Code; Taxes on Articles, subject to specific tax under the provisions of the National Internal Revenue Code; and Taxes and other impositions enumerated in Section 5, Chapter I of this Code. Article 3. Cities
Scope of power.
Section 23
SEC 23. Scope of power. — Except as otherwise provided in this Code, the city may levy and collect, among others, any of the taxes, fees and other impositions that the province or the municipality may levy and collect. The exercise of the taxing powers of the city extends to the taxes, fees and other impositions mentioned in Sections 12, 13, 14, 15 and 16 of this Code which the city shall also impose and collect, to the exclusion of the national and municipal governments. The rates of the taxes, fees, or other impositions that the city shall fix may exceed the maximum rates allowed for the province or municipality by not more than fifty percent, except the rates of the taxes and fees provided in Sections 12, 13 and 14 in Chapter II of this Code which shall be uniform for the province and the city. In lieu of the graduated fixed tax prescribed under Section 19 of this Code as read in relation with this Section, the city may impose a percentage tax on the sales of non-essential commodities at the rate of not exceeding two percent and on the sales of essential commodities at the rate of not exceeding one percent. In no case, however, shall the city impose both the graduated fixed tax and the percentage tax on the same subject. For purposes of this tax, the following shall be considered essential commodities: (a) Rice, corn, wheat flour, meat, milk, fish, sugar, salt and other agricultural, marine and freshwater products: (b) Laundry soap, medicine and household remedies: (c) Locally manufactured ordinary fabrics and canned foodstuffs: (d) Commodities covered by the Price Control Law; and (e) Such other related and similar products necessary to human life and well-being. The city may levy any tax, fee or other imposition not specifically enumerated or otherwise provided for in this Code, subject to the provisions of Sections 49 and 50 of this Code.
Additional taxing powers.
Section 24
SEC. 24. Additional taxing powers. — Nothing herein shall be construed as prohibiting the city from levying taxes on articles subject to specific tax under the provisions of the National Internal Revenue Code kit in no case shall the rate of the specific tax imposed by the city on such articles exceed twenty-five percent of the rates provided in the National Internal Revenue Code.
Specific limitation on power.
Section 25
SEC. 25. Specific limitation on power. — Except as otherwise provided in this Code, the city shall not levy the taxes and other impositions enumerated in Section 5, Chapter I of this Code. Article 4. Barrios
Scope of power.
Section 26
SEC. 26. Scope of power. — Except as otherwise authorized, the exercise of the taxing and other revenue-raising powers of the barrio is hereby limited to the taxes, fees, charges, and contributions mentioned in this Article.
License taxes and fees.
Section 27
SEC 27. License taxes and fees. — A barrio may levy taxes or fees on the following, at rates that shall not exceed twenty-five percent, in the case of a barrio in a municipality, and ten percent, in the case of barrio in the city, of a similar tax or fee already imposed by the city or municipality: (a) Stores and signs, signboards and billboards displayed or maintained in any place exposed to public view, except those displayed at the place where the profession or business advertised is conducted; and (b) Gamecocks owned by residents of the barrios and on the cockfights conducted therein. Nothing herein shall be construed as to authorize the barrio council to permit cockfights.
Service charges.
Section 28
SEC. 28. Service charges. — Barrios may collect reasonable charges for services rendered in connection with the regulation of the use of barrio-owned properties or service facilities such as palay, copra or tobacco drier and the like.
Contributions.
Section 29
SEC. 29. Contributions. — In addition to the above-specified taxing and other revenue-raising powers, the barrio council may solicit monies, material, and other contributions from the following sources: (a) Monies, materials and voluntary labor for specific public works and cooperative enterprises of the barrio raised from residents, landholders, producers, and merchants of the barrio; (b) Monies from grants-in-aid, subsidies, contributions, and revenue made available to barrios from municipal, provincial or national funds; and (c) Monies from private agencies and individuals. Article 5. Common Revenue-Raising Powers
Market fees.
Section 30
SEC. 30. Market fees. — Local governments may collect fees or rentals for the occupancy or use of public markets and premises in accordance with the provisions of this Section. (a) Subdivision of market building and rates of fees and rentals therefor. —The public market shall be subdivided into sections with each section housing one class or group of allied goods, commodities or merchandise. The local board or council shall fix for each section, reasonable rates of fees or rentals per square meter of space per month and/or day. In case there are several market buildings, or pavilions, each one of them shall be given a number or other designation for better identification. (b) Rentals for fixed stalls, booths and tiendas. — Rentals for fixed stalls, booths and tiendas shall be fixed by the month to be paid within the first twenty days of the month. The fixed stalls, booths and tiendas situated in the best locations shall be assigned higher rates per square meter than those less favorably located: Provided, That said higher rates per square meter shall be within the range of such rates determined by the local board or council as provided in Subsection (a) of this Section. (c) Market fees for the occupancy of market premises. — The market fees for the occupancy of market premises shall be fixed at such reasonable rate per day per square meter of space occupied therein, or a fraction thereof. (d) Market entrance fee. — In lieu of the regular market fees based on the space occupied, a market entrance fee may be imposed on all transient vendors of any commodity or merchandise being brought into the public market for sale on the basis of weight, bundle, sack, can, cartload, or any other convenient unit of measure. The amount of entrance fee to be imposed shall not exceed the amount of market fee collectible where the fee charged is on the basis of space occupied by the said commodity or merchandise, as provided for in the preceding Subsection. In case the vendor from whom an entrance fee was collected occupies any table, cubicle or other space with an area in excess of what he paid for, he shall be required to pay the correct amount of fee due thereon less what he may have already paid as entrance fees. Duly licensed suppliers or distributors of goods, commodities or general merchandise of permanent occupants of market stalls, booths, tiendas, or other space, as well as the same occupants when they bring in goods, commodities or merchandise to replenish or augment their stock, shall not be considered as transient vendors required to pay the market entrance fees herein authorized. (e) Payment of fees. — Unless otherwise provided herein, the market fee must be paid in advance before any person can sell, or offer to sell, any commodity or merchandise within the public market and its premises. (f) Adjudication of vacant market stalls to applicants. — The Secretary of Finance shall promulgate rules and regulations governing the adjudication of viand stalls in the public market to applicants. (g) Duties and powers of the provincial, city and municipal treasurer. — The treasurer shall exercise direct and immediate supervision, administration and control over public markets and the personnel thereof, including those whose duties concern the maintenance and upkeep of the market and market premises, in accordance with local ordinances and other pertinent rules and regulations. The provincial treasurer shall exercise general supervision over municipal public markets. (h) Issuance of cash tickets to transient vendors; prohibition on transfer thereof. — Cash tickets shall be issued to the vendor buying the same and his name shall be written on the hack thereof. The cash tickets shall pertain only to the person buying the same and shall be good only for the space or spaces of the market premises to which they are assigned while in the hands of the original purchaser. If a vendor disposes of his merchandise by wholesale to another vendor, the latter shall purchase new tickets if he desires lo sell tin: same merchandise even it this is done in the same place occupied by the previous vendor. (i) Prohibition. — The peddling or salt; outside the public market site or premises of foodstuffs which easily deteriorate, like fish and meat, is hereby prohibited. (j) Penalties. — Any person occupying nr using space in the public market without first paying the fees hereinabove provided, shall be subject to the payment of market fees in an amount equivalent to three times as much as the regular rate for the space so occupied. Any person occupying more space than what is duly leased to him shall pay double the regular rate for such extra space; and any person who fails to pay the monthly rent within the time fixed herein shall pay a penalty of twenty-five percent of the rent due. The lease contract of any person found habitually incurring the foregoing violations shall be cancelled.
Slaughterhouse fees.
Section 31
SEC. 31. Slaughterhouse fees. — Local governments may collect fees for the slaughter of animals and the use of corrals in accordance with the provisions of this Section. (a) Permit fee to slaughter. — Before any animal is slaughtered for public consumption, a permit therefore shall he secured from the health officer concerned or his duly authorized representative and the corresponding fee collected at a reasonable rate to be fixed by the focal board or council. (b) Rates of slaughter fees. — Slaughter fees may be fixed per head of animals or per kilo of the meat thereof. In any case, the slaughter fees that may be prescribed shall not exceed the following rates: For public consumption on the basis of head: Large cattle, per head P5.00 Hogs, per head 3.00 Goats, per head 2.00 Sheep, per head 2.00 Others, per head 2.00 For public consumption on the basis of kilo: Large cattle, per kilo of dressed meat P0.65 Hogs, per kilo of dressed meat 0.03 Goats, per kilo of dressed meat 0.02 Sheep, per kilo of dressed meat 0.02 Others, per kilo of dressed meat 0.02 For home consumption on the basis of head: Large cattle, per head P2.50 Hogs, per head 1.50 Goats, per head 1.00 Sheep, per head 1.00 Others, per head 1.00 For home consumption on the basis of kilo: Large cattle, per kilo P 0.025 Hogs, per kilo 0.015 Goats, per kilo 0.01 Sheep, per kilo 0.01 Others, per kilo 0.01 If fees are to be charged per kilo, each slaughterhouse shall be provided with a balance on which all dressed meat, including the liver, heart, tongue, and other parts utilized for consumption shall be weighed. The weighing shall be made under the supervision of the city/municipal treasurer or his duly authorized representative. (c) Place of slaughter. — The slaughter of any kind of animal for sale to, or consumption of, the public shall be done only in the municipal slaughterhouse. The slaughter of animals intended for home consumption may be done elsewhere except large cattle: Provided, That the animals slaughtered shall not be sold or offered for sale. (d) Requirements for the issuance of a permit for the slaughter of large cattle. — Upon issuance of the permit required in Subsection (c) of this Section, large cattle shall be slaughtered at the city/municipal slaughterhouse or in any other place as may be authorized in the local ordinance. Before issuing the permit for the slaughter of largo cattle, the treasurer shall require for branded cattle the production of the certificate of ownership if the owner is the applicant, or tile original certificate of ownership and the certificate of transfer showing title in the name of the person applying for the permit if he B not the original owner. If the applicant is not the original owner and there is no certificate of transfer made in his favor, one such certificate shall be issued and the corresponding fee collected therefor. For unhanded cattle that have not yet reached the required age for branding, the treasurer shall require such evidence as will be satisfactory to him regarding the ownership of the animal for which permit to slaughter has been requested. For unbranded cattle of the required age, the necessary owners' and transfer certificates shall be issued and the corresponding fees collected therefor before the permit is granted. (e) Corral fee. — Fees at the rates not exceeding those herein fixed, per day, or fraction thereof may be collected for the animals to be slaughtered which are deposited and kept in a corral owned by the local government. Large cattle, per head P0.50 Hogs, per head 0.30 Goats, per head 0.20 Sheep, per head 0.20 Others, per head 0.20
Public utility charge.
Section 32
SEC. 32. Public utility charge. — Local governments shall have the power to collect charges for services rendered in connection with the operation of public utilities owned, operated and maintained them, a, the rates to be fixed by the loci board or council concerned. The maximum annual net profit that may be derived therefrom shall not be in excess of ten percent of the capital invested in the public utility. The yearly financial statements covering the utility shall he audited by the provincial or city auditor concerned and should the amount of the net profit of the public utility be found to be in excess of the percentage herein fixed, the charges thereof shall be accordingly adjusted and the excess shall be spent only for the improvement of the public utility.
Tuition fees.
Section 33
SEC. 33. Tuition fees. —Local governments may collect tuition fees in the school, they operate subject to the approval of the Secretary of Education and Culture. No charge shall in any case be made for instruction in the elementary grades. Monies collected from tuition fees shall be spent only for educational
Tolls for roads, bridges, canal, and ferries.
Section 34
SEC. 34. Tolls for roads, bridges, canal, and ferries. — When the local board or council shall deem it necessary for the maintenance of any road or canal within its territory, it may designate that road or canal or part thereof, or any bridge or ferry, built or to be built, or maintained as part thereof, as a toll road bridge, canal or ferry, and may fix tolls therefor at reasonable rates. In the exercise of the authority above conferred, the local board or council shall deem it necessary for the maintenance of any road or canal within its territory, it may designate that road or canal or part thereof, or any bridge or ferry, built, or maintained as part thereof, as a toll road, bridge, canal or ferry, and may fix tolls thereof at reasonable rates. In the exercise of the authority above conferred, the local board or council may erect toll gates or equip ferries and may employ persons necessary to operate them. The proceeds derived from these sources shall be applied only to the payment of interests and sinking fund charges, in case the toll road canal o bridge has been financed from loans or bond issues, and to the repair and maintenance of the road, canal or bridge for which the collections were made. In the event that such proceeds exceed the amount which the local government shall apply annually to the payment of interests and sinking fund charges on the bonds and to the repair and maintenance of the road, canal or bridge for which the collections were made, the local board or council may subject to th approval of the Secretary of Public Works and Communications and upon such terms and conditions as he may prescribe, borrow from the proceeds not to exceed ninety percent of the excess collections, without interest and for public works only. Whenever, thirty days after service of a request by the provincial board, any municipality shall decline or neglect to establish and maintain a suitable ferry over any stream or other water situated upon the course of a municipal road, the provincial board may establish and maintain a provincial toll ferry at that place and collect reasonable rates of ferriage for its use. No toll or ferriage authorized herein shall be collected from: (a) officers and enlisted men of the United States Armed Forces or other employees of the United States Government in the Philippines; (b) officers and enlisted men of the Armed Forces of the Philippines; (c) members of the municipal police; (d) national, provincial, municipal or barrio officers and employees on official business; (c) any person travelling on foot or mounted on an animal, alone or accompanying animals; (f) vehicles engaged primarily in the carrying of mail; and (g) animal-drawn vehicles. When the local board or council decides that the collection of tolls in accordance with the provisions hereof may be discontinued without injury to the public welfare, it shall order a discontinuance of the collection of the tolls, and thereafter the road, bridge, canal or ferry in question shall be free for public use.
Charges for holding benefits.
Section 35
SEC. 35 Charges for holding benefits. — The local board or council is hereby authorized to hold benefits to raise funds for some specific purpose having in view the general welfare of the local government and its inhabitants without the need of securing a permit from the Department of Social Welfare. The proceeds thereof shall he disbursed for the specific purpose for which the benefit was held and the excess of the proceeds if any, shall accrue to the general fund of the local government concerned. No such benefit shall be held within one hundred twenty days immediately preceding a national or local elections.
Permit fee.
Section 36
SEC. 36. Permit fee. — The local government may collect a fee sufficient to cover the cost of regulation, inspection and surveillance relative to the issuance of a permit which shall be required of an individual or any juridical entity before the same shall engage in any business or occupation under the provisions of this Code.
Service charge.
Section 37
SEC. 37. Service charge. — The local government may collect a charge for any service rendered by it in an amount reasonably commensurate to such service. Article 6. Residence Tax
The imposition, rates and sharing of the proceeds of the residence to.
Section 38
SEC. 38. The imposition, rates and sharing of the proceeds of the residence to. — The levy, collection and administration of the residence tax by the National Government through the Bureau of Internal Revenue a. well as the rates and accrual of the proceeds thereof shall be in accordance with the provisions of this Article. (a) Individual liable to residence tax. — Every inhabitant of the Philippines eighteen years of age or over who has been regularly employed on a wage or salary basis for at least thirty consecutive working days during any calendar year at the rate of not less than one peso a day, or who is engaged in business or occupation or who owns real properly with an aggregate assessed value of one thousand pesos or more, or who is required by law to file an income tax return shall pay an annual residence tax of one peso and an annual additional tax which in no case shall exceed three thousand pesos in accordance with the following schedule: (1) For every five thousand pesos worth of real property in the Philippines, owned by such person during the preceding year, based on the valuation used for the payment of the real property tax under existing laws, found in the assessments rolls of the municipality or city where the property is situated, two pesos; (2) For every five thousand pesos of gross receipts or earnings, in excess of ten thousand pesos, derived by such person from his business in the Philippines during the preceding year, two pesos; and (3) For every one thousand pesos of salaries or gross receipts or earnings derived by such person from the exercise of any profession in the Philippines or from the pursuit of any occupation therein during the preceding year, one peso. For the purpose of the additional lax, dividends received by the taxpayer from any corporation shall not be considered as part of his gross receipts or earnings. In the case of husband and wife, the additional tax herein imposed shall be based upon the total property owned by them or upon the total gross receipts or earnings derived by them. (b) Entities liable to residence tax. — Every corporation no matter how created or organized, whether domestic or resident foreign, engaged in or doing business in the Philippines shall pay an annual residence tax of fifty pesos and an annual additional tax which, in no case, shall exceed six thousand pesos, in accordance with the following schedule: (1) For every five thousand pesos worth of real property in the Philippines owned by it during the preceding year, based on the valuation used for the payment of the real property tax under existing laws, found in the assessment rolls of the municipality or city where the real property is situated, two pesos; and (2) For every five thousand pesos of gross receipts or earnings, derived by it from its business in the Philippines during the preceding year, two pesos. However, the dividends received by a corporation from another corporation shall not, for the purpose of the additional tax, be considered as part of the gross receipts or earnings of said corporation. (c) Exemptions — The following are exempt from the residence tax: (1) Diplomatic and consular representatives and officers of foreign powers; (2) Members of the United States Armed Forces; (3) Civilian officers and employees of the military, naval or any other branch of the United States Government who are not Filipino citizens; and (4) Transient visitors when their stay in the Philippines does not exceed three months. (d) Place of payment. — The residence taxes due from an individual or a juridical entity shall be paid in the place of residence of the individual or in the place where the principal office of the juridical entity is located. (e) Time for payment; penalties for delinquency. — Liability for the residence taxes accrues on the first day of January of each year as regards persons then residents of the Philippines and liable to the taxes and if a person so liable fails to pay the taxes on or before the thirty-first day of March he h II be delinquent. As regards those who come to reside in the Philippines on or before the last day of June and those who reach the age of eighteen years or otherwise lose the benefit of exemption on or before that day liability shall attach upon the day of arrival or upon the day the exemption ceases; and if arriving or becoming liable on or before the last day of March, they shall likewise be delinquent upon fail the taxes on or before the thirtieth day of June, but such persons, arriving or becoming liable after the last day of March, shall have twenty days within which to pay the taxes without becoming delinquent Persons who come to reside in the Philippines or arrive at the age of eighteen years on or after the first day of July of any year or who cease to belong to an exempt class on or after the same date, shall not be subject to the taxes for that year. As regards corporations which may he established or organized on or before the thirtieth of June, liability for the residence tax for that year shall attach, and if becoming liable on or before the last day of March, shall have twenty days within which to pay the taxes without becoming delinquent; those which may be established or organized on or after the first day of July of any year, shall not be subject to the tax for such year. If the taxes arc not paid within the time prescribed above, there shall be added to the unpaid amount an interest of fourteen percent from the due date until it is paid. (f) Residence certificate. — A residence certificate shall be issued to every person or corporation upon payment of the residence tax. A residence certificate shall also he issued to any person or corporation not liable to the payment of the residence tax upon payment of fifty centavos. (g) Presentation of residence certificate upon certain occasions. — When a person liable to the taxes prescribed in this Section acknowledges any document before a notary public, takes the oath of office upon election or appointment to any position in the government service; receives any license, certificate or permit from any public authority, pays any tax or fee, receives any money from any public fund, or transacts other official business, or receives any salary or wage from any person or corporation it shall be the duty of such person or officer of such corporation with whom such transaction is had or business done or from whom any salary or wage is received to require the exhibition of the residence certificate showing the payment of the residence taxes by such person. The presentation of the residence certificate shall not be required in connection with the registration of a voter. When, through its authorized officers, any corporation liable to the taxes prescribed in this Section receives any license, certificate or permit from any public authority, pays any tax or fee, receives any money from any public fund, or transacts other official business, it shall be the duty of the public officiate with whom such transaction is had or business done to require the exhibition of the residence certificate showing the payment of the residence taxes by such corporation. The certificate mentioned in the two preceding paragraphs shall be the one issued for the current year, except from January until April fifteen of each year arid except also in the case of the payment of the residence lax at any time; during the year, in which cases the exhibition of the certificate for the previous year shall suffice. (h) Collection and disposition of the proceeds. —The Bureau of Internal Revenue shall collect the residence taxes thru the city and municipal treasurers in accordance with prescribed regulations. The proceeds of the lax shall accrue to the general funds of provinces, cities and municipalities except five percent thereof which shall accrue to the general fund of the National Government to cover the coats of printing and distribution of the forms and other incidental expenses. The provincial or city treasurer concerned shall remit to the National Treasurer the five percent share of the National Government in the proceeds of the tax within ten days after the end of each quarter. The remaining ninety-five percent collected by municipalities shall be divided equally between the province and the municipality where Uh: tax is collected. The municipal treasurer shall retain the share of the municipality and remit to the provincial treasurer the share of the province, as well as the five percent share of the National Government, within five days after the end of each month. (i) Administrative remedies. — The provisions of this Code in relation to the collection of taxes not inconsistent with the provisions of this Section are extended and made applicable to all the provisions of this Section and to the taxes herein imposed. (j) Authority of the Secretary of Finance to promulgate rules and regulations. — The Secretary of Finance shall promulgate all rules and regulations for the effective enforcement of the provisions of this Section. (k) Unlawful use of residence certificates. — Any person who, with intent to defraud the Government deceive the courts, or mislead any treasurer or other person, uses, attempts to use, or is in possession of any residence certificate issued to any other person or corporation shall he punished by a fine of not exceeding two hundred pesos or imprisonment for a tern, of not more than six months, or both. (1) Falsification or counterfeiting of residence certificate. — Any person who makes, sells, or uses any false or counterfeit residence certificate which is an imitation of, or purports to be, a lawful residence certificate; who alters the written or printed figures or letters contained therein; who has in his possession any such fake counterfeit or altered certificate for the purpose of using the same in the payment of revenue or in securing any exemption or privilege conferred by law; or who procures the commission of any such offense by another, shall for each offense be punished by a fine in a sum not less than two hundred pesos nor more than five thousand pesos, or imprisonment for a term of not less than two months nor more than five years, or both. (m) Violation of this Section or regulation. — Any person who violates any provision of this Section, or any regulation promulgated in accordance therewith, for which delinquency no specific penalty is provided by this Section or any law, stall be punished by a fine of not more than three hundred pesos, imprisonment for not more than six months, or both: Provided, That delinquency in the payment of this residence tax shall be dealt with in accordance with Subsections (e) and (i) hereof.
Back to PD 231 — full text
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Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).