Section 14
SEC. 14. Section 91 of said Code is hereby amended to read as follows: "SEC. 91. Income tax collected at source.— (a) Requirement of withholding.—Every employer making payment of wages shall deduct and withhold upon such wages a tax determined in accordance with regulations to be prepared by the Minister of Finance. The tax withheld is a final tax, except where the personal circumstances or income of the taxpayer change within the taxable year or where the taxpayer has multiple employment. "(b) Tax paid by recipient.—If the employer, in violation of the provisions of this chapter, fails to deduct and withhold the tax as required under this chapter, and thereafter the tax against which such tax may be credited is paid, the tax so required to be deducted and withheld shall not be collected from the employer; but this subsection shall in no case relieve the employer from liability for any penalties or additions to the tax otherwise applicable in respect of such failure to deduct and withhold. "(c) Refunds or credits.— (1) Employer.—When there has been an overpayment of tax under this section, refund or credit shall be made to the employer only to the extent that the amount of such overpayment was not deducted and withheld hereunder by the employer. "(2) Employees.—The amount deducted and withheld under this chapter during any calendar year shall be allowed as a credit to the recipient of such income against the tax imposed under the main provisions of this Title. Refunds and credits in cases of excessive withholding shall be granted under rules and regulations promulgated by the Minister of Finance. "Any excess of the taxes withheld over the tax due from the taxpayer shall be returned or credited within three months from the fifteenth day of April. Refunds or credits made after such time shall earn interest at the rate, of six per centum (6%) per annum starting after the lapse of the three-month period to the date the refund or credit is made. "Refunds shall be made upon warrants drawn by the Commissioner or by his duly authorized representative without the necessity of counter-signature by the Chairman, Commission on Audit or the latter's duly authorized representatives as an exception to the requirement prescribed by Section 621 of the Revised Administrative Code. "(d) Personal exemptions.— "(1) In general.—Unless otherwise provided by this chapter, the personal and additional exemptions applicable under this chapter shall be determined in accordance with the main provisions of this Title. "(2) Exemption certificates.— "(A) When, to be filed.—On or before the date of commencement of employment with an employer, or within ten days from the effectivity of this Code in case of persons already employed, the employee shall furnish the employer with a signed withholding exemption certificate relating to the personal and additional exemptions to which he is entitled. "(B) Change of status.—In case of change of status of an employee as a result of which he would be entitled to a lesser amount of exemption, the employee shall, within ten days from such change, file with the employer a new withholding exemption certificate reflecting the change. If the change would entitle the employee to a greater amount of exemption, he may furnish the employer with a new withholding exemption certificate reflecting such change. "(C) Use of certificates.—-The certificates filed hereunder shall be used by the employer in the determination of the amount of taxes to be withheld. "(D) Failure to furnish certificate.—Where an employee, in violation of this chapter, either fails or refuses to file a withholding exemption certificate, the employer shall withhold the taxes prescribed under the schedule for zero exemption of the withholding tax table in sub section (a). " (e) Withholding on basis of average wages.—The Commissioner of Internal Revenue may, under regulations promulgated by the Minister of Finance, authorize employers (1) to estimate the wages which will be paid to an employee in any quarter of the calendar year, (2) to determine the amount to be deducted and withheld upon each payment of wages to such employee during such quarter as if the appropriate average of the wages so estimated constituted the actual wages paid, and (3) to deduct and withhold upon any payment of wages to such employee during such quarter such amount as may be required to be deducted and withheld during such quarter without regard to this subsection. " (f) Husband and wife.—When a husband and wife each are recipients of wages, whether from the same or from different employers, taxes to be withheld shall be determined on the following bases: "(1) The husband shall be deemed the head of the family and proper claimant of the additional exemption in respect to any dependent children; "(2) Taxes shall be withheld from the wages of the wife in accordance with the schedule for zero exemption of the withholding tax table in subsection (a). '"(g) Non-resident aliens.—Wages paid to non-resident alien individuals engaged in trade or business in the Philippines shall be subject to the provisions of this chapter."