Tax on Finance Companies.
Section 261
SEC. 261. Tax on Finance Companies.—There shall be. collected a tax of five per centum on the gross receipts derived by all finance companies doing business in the, Philippines from interests, discounts, and all other items treated as gross income under this Code. As used in this section "finance companies" refers to corporations or partnerships other than a bank, or insurance company, primarily organized for the purpose of extending credit facilities to consumers and to industrial, commercial or agricultural enterprises whether by granting direct loans or by discounting or factoring commercial papers or accounts receivable for profit, buying and selling contracts, leases, chattel mortgages and other evidences of indebtedness arising1 out of one or more of the steps in the distribution and sale of commodities.