The imposition, rates and sharing of the proceeds of the residence to.
Section 38
SEC. 38. The imposition, rates and sharing of the proceeds of the residence to. — The levy, collection and administration of the residence tax by the National Government through the Bureau of Internal Revenue a. well as the rates and accrual of the proceeds thereof shall be in accordance with the provisions of this Article. (a) Individual liable to residence tax. — Every inhabitant of the Philippines eighteen years of age or over who has been regularly employed on a wage or salary basis for at least thirty consecutive working days during any calendar year at the rate of not less than one peso a day, or who is engaged in business or occupation or who owns real properly with an aggregate assessed value of one thousand pesos or more, or who is required by law to file an income tax return shall pay an annual residence tax of one peso and an annual additional tax which in no case shall exceed three thousand pesos in accordance with the following schedule: (1) For every five thousand pesos worth of real property in the Philippines, owned by such person during the preceding year, based on the valuation used for the payment of the real property tax under existing laws, found in the assessments rolls of the municipality or city where the property is situated, two pesos; (2) For every five thousand pesos of gross receipts or earnings, in excess of ten thousand pesos, derived by such person from his business in the Philippines during the preceding year, two pesos; and (3) For every one thousand pesos of salaries or gross receipts or earnings derived by such person from the exercise of any profession in the Philippines or from the pursuit of any occupation therein during the preceding year, one peso. For the purpose of the additional lax, dividends received by the taxpayer from any corporation shall not be considered as part of his gross receipts or earnings. In the case of husband and wife, the additional tax herein imposed shall be based upon the total property owned by them or upon the total gross receipts or earnings derived by them. (b) 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 fifty pesos and an annual additional tax which, in no case, shall exceed six thousand pesos, in accordance with the following schedule: (1) For every five thousand pesos worth of real property in the Philippines owned by it during the preceding year, based on the valuation used for the payment of the real property tax under existing laws, found in the assessment rolls of the municipality or city where the real property is situated, two pesos; and (2) For every five thousand pesos of gross receipts or earnings, derived by it from its business in the Philippines during the preceding year, two pesos. However, the dividends received by a corporation from another corporation shall not, for the purpose of the additional tax, be considered as part of the gross receipts or earnings of said corporation. (c) Exemptions — The following are exempt from the residence tax: (1) Diplomatic and consular representatives and officers of foreign powers; (2) Members of the United States Armed Forces; (3) Civilian officers and employees of the military, naval or any other branch of the United States Government who are not Filipino citizens; and (4) Transient visitors when their stay in the Philippines does not exceed three months. (d) Place of payment. — The residence taxes due from an individual or a juridical entity shall be paid in the place of residence of the individual or in the place where the principal office of the juridical entity is located. (e) Time for payment; penalties for delinquency. — Liability for the residence taxes accrues on the first day of January of each year as regards persons then residents of the Philippines and liable to the taxes and if a person so liable fails to pay the taxes on or before the thirty-first day of March he h II be delinquent. As regards those who come to reside in the Philippines on or before the last day of June and those who reach the age of eighteen years or otherwise lose the benefit of exemption on or before that day liability shall attach upon the day of arrival or upon the day the exemption ceases; and if arriving or becoming liable on or before the last day of March, they shall likewise be delinquent upon fail the taxes on or before the thirtieth day of June, but such persons, arriving or becoming liable after the last day of March, shall have twenty days within which to pay the taxes without becoming delinquent Persons who come to reside in the Philippines or arrive at the age of eighteen years on or after the first day of July of any year or who cease to belong to an exempt class on or after the same date, shall not be subject to the taxes for that year. As regards corporations which may he established or organized on or before the thirtieth of June, liability for the residence tax for that year shall attach, and if becoming liable on or before the last day of March, shall have twenty days within which to pay the taxes without becoming delinquent; those which may be established or organized on or after the first day of July of any year, shall not be subject to the tax for such year. If the taxes arc not paid within the time prescribed above, there shall be added to the unpaid amount an interest of fourteen percent from the due date until it is paid. (f) Residence certificate. — A residence certificate shall be issued to every person or corporation upon payment of the residence tax. A residence certificate shall also he issued to any person or corporation not liable to the payment of the residence tax upon payment of fifty centavos. (g) Presentation of residence certificate upon certain occasions. — When a person liable to the taxes prescribed in this Section acknowledges any document before a notary public, takes the oath of office upon election or appointment to any position in the government service; receives any license, certificate or permit from any public authority, pays any tax or fee, receives any money from any public fund, or transacts other official business, or receives any salary or wage from any person or corporation it shall be the duty of such person or officer of such corporation with whom such transaction is had or business done or from whom any salary or wage is received to require the exhibition of the residence certificate showing the payment of the residence taxes by such person. The presentation of the residence certificate shall not be required in connection with the registration of a voter. When, through its authorized officers, any corporation liable to the taxes prescribed in this Section receives any license, certificate or permit from any public authority, pays any tax or fee, receives any money from any public fund, or transacts other official business, it shall be the duty of the public officiate with whom such transaction is had or business done to require the exhibition of the residence certificate showing the payment of the residence taxes by such corporation. The certificate mentioned in the two preceding paragraphs shall be the one issued for the current year, except from January until April fifteen of each year arid except also in the case of the payment of the residence lax at any time; during the year, in which cases the exhibition of the certificate for the previous year shall suffice. (h) Collection and disposition of the proceeds. —The Bureau of Internal Revenue shall collect the residence taxes thru the city and municipal treasurers in accordance with prescribed regulations. The proceeds of the lax shall accrue to the general funds of provinces, cities and municipalities except five percent thereof which shall accrue to the general fund of the National Government to cover the coats of printing and distribution of the forms and other incidental expenses. The provincial or city treasurer concerned shall remit to the National Treasurer the five percent share of the National Government in the proceeds of the tax within ten days after the end of each quarter. The remaining ninety-five percent collected by municipalities shall be divided equally between the province and the municipality where Uh: tax is collected. The municipal treasurer shall retain the share of the municipality and remit to the provincial treasurer the share of the province, as well as the five percent share of the National Government, within five days after the end of each month. (i) Administrative remedies. — The provisions of this Code in relation to the collection of taxes not inconsistent with the provisions of this Section are extended and made applicable to all the provisions of this Section and to the taxes herein imposed. (j) Authority of the Secretary of Finance to promulgate rules and regulations. — The Secretary of Finance shall promulgate all rules and regulations for the effective enforcement of the provisions of this Section. (k) Unlawful use of residence certificates. — Any person who, with intent to defraud the Government deceive the courts, or mislead any treasurer or other person, uses, attempts to use, or is in possession of any residence certificate issued to any other person or corporation shall he punished by a fine of not exceeding two hundred pesos or imprisonment for a tern, of not more than six months, or both. (1) Falsification or counterfeiting of residence certificate. — Any person who makes, sells, or uses any false or counterfeit residence certificate which is an imitation of, or purports to be, a lawful residence certificate; who alters the written or printed figures or letters contained therein; who has in his possession any such fake counterfeit or altered certificate for the purpose of using the same in the payment of revenue or in securing any exemption or privilege conferred by law; or who procures the commission of any such offense by another, shall for each offense be punished by a fine in a sum not less than two hundred pesos nor more than five thousand pesos, or imprisonment for a term of not less than two months nor more than five years, or both. (m) Violation of this Section or regulation. — Any person who violates any provision of this Section, or any regulation promulgated in accordance therewith, for which delinquency no specific penalty is provided by this Section or any law, stall be punished by a fine of not more than three hundred pesos, imprisonment for not more than six months, or both: Provided, That delinquency in the payment of this residence tax shall be dealt with in accordance with Subsections (e) and (i) hereof.