Section 2
Sec. 2. 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 five pesos and an annual additional tax which, in no case, shall exceed one thousand pesos, in accordance with the following schedule: For every five thousand pesos worth of real property in the Philippines owned by it during the preceding year, the valuation to be based upon the assessment rolls of the municipality where the real property is situated, one peso; and For every five thousand pesos of gross receipts or earnings derived by it from its business in the Philippines during the preceding year, one peso: provided, however, That dividends received by a corporation from another corporation shall not, for the purposes of the additional¦tax, be considered as part of the gross receipts or earnings of said corporation. The term "corporation" as used in this Act includes joint-stock company, partnership, joint account (cuenta en participdeion), association, or insurance company, no matter how created or organized. The term 4 resident foreign" when applied to a corporation means a foreign corporation engaged in trade or business within the Philippines or having an office or place of business therein.