Section 30
SEC. 30. Section 193 of the National Internal Revenue Code as amended by Presidential Decree No. 1705 is hereby further amended to read as follows: “Sec. 193. Payment of percentage taxes. “(a) In general. (1) Declaration and payment of quarterly gross sales, receipts, etc. Unless otherwise specifically provided it shall be the duty of every person conducting a business on which a percentage tax is imposed under this Title, to render a quarterly declaration on a cumulative basis of the amount of his, her or its gross sales, receipts or earnings or gross value of output actually removed from the factory or mill warehouse and to compute the tax due thereon. “(i) For each of the first three quarters of the taxable year, the tax so computed shall be decreased by the amount of tax previously paid and by the sum of the tax credits allowed under this Title for the preceding and current quarters. The tax due shall be paid not later than twenty days following the close of each of the first three quarters of the taxable year: Provided, That any person retiring from a business subject to the percentage tax shall notify the nearest Internal Revenue Officer, file his return or declaration and pay the tax due thereon within twenty days after closing his business. “(ii) Final Annual Percentage Tax Return. On or before the twentieth day of the second month following the close of the taxable year, every person liable to tax under this Section shall file a final percentage tax return covering the total gross sales, receipts or earnings or gross value of output actually removed from the factory or mill warehouse for the preceding calendar or fiscal year. If the sum of the total quarterly percentage tax payments made for the first three quarters and the total tax credit allowed under this Title for the preceding taxable year are not equal to the total tax due on the entire gross sales, receipts or earnings or gross value of the output for that taxable year, the taxpayer shall either: “(a) Pay the tax still due; or “(b) Credit to the extent allowable under this Title, the amount excess tax credits shown on the final adjustment return against the quarterly percentage tax liabilities for the succeeding taxable quarters. “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. “(2) Where to file. Except in cases where the Commissioner otherwise permits, the percentage tax returns required to be filed in the preceding paragraph shall be filed with the Revenue District Officer, Collection Agent, or duly authorized Treasurer of the municipality in which such person has his legal residence or principal place of business in the Philippines. “(3) Ad valorem penalties. “(i) Failure to file and pay the tax. If the percentage tax return is filed with a person other than that mentioned in the preceding subparagraph, or if the percentage tax on 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 twenty per centum per annum. “(ii) Willful neglect to file, or filing false or fraudulent return. 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 twenty per centum per annum. The amount so added to any tax shall be collected at the 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 Minister of Finance and prior to the release of such articles from Bureau of Custom’s custody, based on the home consumption value or price (excluding internal excise taxes) thereof, plus ten (10%) per cent of such home consumption value or price, including postage, commission, customs’ duty and all similar charges, except freight and insurance, to be declared in an importer’s return, plus One hundred per centum of such total value in the case of articles enumerated in Sections 194 and 195; fifty per centum in the case of articles under Sections 196 and 197; and twenty-five per centum in the case of articles under Sections 198, 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 and 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 shall be subject to the tax herein imposed. “(c) Value-Added Tax. The provisions of this Title to the contrary notwithstanding, when public interest so requires, the President upon recommendation of the Minister of Finance, may subject to the second sale of any article taxable under this Title to a value-added tax at rates not exceeding fifty per cent (50%) based on the gross selling price or gross value of any of the article sold, bartered, exchanged or transferred, less the cost of the article.”