Payment of percentage taxes.
Section 193
SEC. 193. Payment of percentage taxes.— (a) In general. Unless otherwise specifically provided, it shall be the uty of every person conducting a business on which a percentage tax is imposed under this Title, to make a true and complete return of the amount of his, her or its gross quarterly sales, receipts or earnings, or gross value of output actually removed from the factory or mill warehouse and within twenty days after the end of each quarter pay the tax due thereon: Provided, That any person retiring from a business subject to the percentage tax shall notify the nearest internal revenue officer thereof, file his return or declaration, and pay the tax dus thereon within twenty days after closing his business. For purposes of this section, sales on consignment shall be considered actually sold on the day of sale or sixty days after the date consigned, whichever is earlier. If the percentage tax in any business is not paid within the time specified above, the amount of the tax shall be increased by twenty-five per centum, the increment to be a part of the tax and the entire unpaid amount shall be subject to interest at the rate of fourteen per cent per annum. In case of willful neglect to file the return within the period prescribed herein, or in case a false or fraudulent return is willfully made, there shall be added to the tax or to the deficiency tax in case any payment has been made on the basis of such return before the discovery of the falsity or fraud, a surcharge of fifty per centum of its amount and the entire unpaid amount shall be subject to interest at the rate of fourteen per centum per annum. The amount so added to any tax shall be collected at the same time and in the same manner and as part of the tax unless the tax has been paid before the discovery of the falsity or fraud, in which case, the amount so added shall be collected in the same manner as the tax, (b) Sales tax on imported articles.—When the articles are imported, the percentage taxes established in sections 194, 195, 196, 197, 198, 199 and 201 of this Code shall be paid in advance by the importer, in accordance with the regulations promulgated by the Secretary of Finance and prior to the release of such articles from customs' custody, based on the import invoice value thereof, certified to as correct under penalties of perjury by the Philippine Consul at the port of origin if there is any, including freight, postage, insurance, commission, customs duty and all similar charges, plus one hundred per centum of such total value in the case of articles enumerated in sections 194 and 195; fifty per centum of such total value in the case of articles enumerated in Sections 196, 197, 198; and twenty-five per centum in the case of articles enumerated in Sections 199 and 201. The tax imposed in this Section shall not apply to articles to be used by the importer himself in the manufacture or preparation of articles subject to specific tax: Provided, however, That where the National Economic Development Authority certifies to the availability of local raw materials of sufficient quantity, comparable quality and price to meet the needs of manufacturers subject to specific tax, the importation of such raw materials by said manufacturers for use in their manufacture shall be subject to the tax herein imposed. The tax herein imposed shall be collected in all cases where the original importer sold, transferred, or negotiated the imported articles to third persons before release thereof from customs' custody, regardless of the tax status of the original importer and the indorsee or transferee, the same to be paid by the transferee and/or indorsee. The provisions of this Code shall not be construed as nullifying whatever interpretation the government has given to the word "importer" heretofore. In the case of tax-free articles brought or imported into the Philippines by persons, entities or agencies exempt from tax which are subsequently sold, transferred, or exchanged in the Philippines to non-exempt private persons or entities, the purchasers shall be considered the importers thereof. The tax due on such articles shall constitute a lien on the article itself superior to all other or liens, irrespective of the possessor thereof. Any percentage tax paid under Sections one hundred ninety-four, one hundred ninety-five, one hundred ninety-six, one hundred ninety-seven, one hundred ninety-eight, one hundred ninety-nine, and two hundred-one on domestically manufactured or on imported raw materials used in the manufacture of finished products exported shall be allowed to be credited against other tax liabilities of the manufacturer-exporter: Provided, however, That said percentage taxes paid are indicated as a separate item in the invoices. (c) Flexibility Clause.—In the interest of the national economy and the general welfare, and subject to the limitations herein prescribed, the President, upon recommendation of the Secretary of Finance and the National Economic Development Authority, is hereby empowered to revise the rates of percentage taxes, including any necessary change in the classification of the articles enumerated in sections 194, 195, 196, 197, 198, 199 and 201. The existing rates may be increased by not more than 50% or decreased by not more than 10%. The above authority may be exercised by the President if any of the following conditions exist: (1) Economic conditions render it necessary to increase revenue, or to re-direct expenditure or consumption patterns by increasing or decreasing the rates of percentage tax on certain commodities; (2) Where, in the light of technological and social changes, it is necessary to classify new products or to re- classify certain articles subject to the sales tax on the basis of the changed concepts of essentiality or the degree of manufacturing done; or (3) Where it is necessary to counter an adverse action on the part of another country.