Title IX, Chapter III – Rules and Regulations

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SECTION 244.  Authority of Secretary of Finance to Promulgate Rules and Regulations. – The Secretary of Finance, upon recommendation of the Commissioner, shall promulgate all needful rules and regulations for the effective enforcement of the provisions of this Code. SECTION 245.  Specific Provisions to be Contained in Rules and Regulations. – The rules and regulations of the Bureau of Internal Revenue shall, among other things, contain provisions specifying, prescribing or defining: (a)        The time and manner in which Revenue Regional Directors shall canvass their respective Revenue Regions for the purpose of discovering persons and property liable to national internal revenue taxes, and the manner in which their lists and records of taxable persons and taxable objects shall be made and kept; (b)       The forms of labels, brands or marks to be required on goods subject to an excise tax, and the manner in which the labeling, branding or marking shall

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Title IX, Chapter II – Administrative Provisions

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SEC. 236.         Registration Requirements. – (A)       Requirements. – Every person subject to any internal revenue tax shall register once with the appropriate Revenue District Officer: The registration shall contain the taxpayer’s name, style, place of residence, business and such other information as may be required by the Commissioner in the form prescribed therefor: Provided, That the Commissioner shall simplify the business registration and tax compliance requirements of self-employed individuals and/or professionals. A person maintaining a head office, branch or facility shall register with the Revenue District Officer having jurisdiction over the head office, branch or facility. For purposes of this Section, the term ‘facility’ may include but not limited to sales outlets, places of production, warehouses or storage places. (As amended by RA No. 10963 (December 19, 2017)).    Annual Registration Fee. -Repealed (B)       Registration of Each Type of Internal Revenue Tax. – Every person who is required to register

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Title IX , Chapter I – Keeping of Books of Accounts and Records

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Title IX – Compliance requirements Chapter I – Keeping of Books of Accounts and records SEC. 232.         Keeping of Books of Accounts. – (A)       Corporations, Companies, Partnerships or Persons Required to Keep Books Of Accounts. – All corporations, companies, partnerships or persons required by law to pay internal revenue taxes shall keep and use relevant and appropriate set of bookkeeping records duly authorized by the Secretary of Finance wherein all transactions and results of operations are shown and from which all taxes due the Government may readily and accurately be ascertained and determined any time of the year: Provided, That corporations, companies, partnerships or persons whose gross annual sales, earnings, receipts or output exceed Three million pesos (P3,000,000), shall have their books of accounts audited and examined yearly by independent Certified Public Accountants and their income tax returns accompanied with a duly accomplished Account Information Form (AIF) which shall contain,

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Title VIII, Chapter III – Protesting an Assessment, Refund, Etc.

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SECTION 228   Protesting of Assessment. – When the Commissioner or his duly authorized representative finds that proper taxes should be assessed, he shall first notify the taxpayer of his findings: Provided, however, That a preassessment notice shall not be required in the following cases: (a)        When the finding for any deficiency tax is the result of mathematical error in the computation of the tax as appearing on the face of the return; or (b)       When a discrepancy has been determined between the tax withheld and the amount actually remitted by the withholding agent; or (c)        When a taxpayer who opted to claim a refund or tax credit of excess creditable withholding tax for a taxable period was determined to have carried over and automatically applied the same amount claimed against the estimated tax liabilities for the taxable quarter or quarters of the succeeding taxable year; or (d)       When the excise

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Title VIII, Chapter II – Civil Remedies for Collection of Taxes

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SECTION 205.  Remedies for the collection of Delinquent Taxes. – The civil remedies for the collection of internal revenue taxes, fees, or charges, and any increment thereto resulting from delinquency shall be: (a)        By distraint of goods, chattels, or effects, and other personal property of whatever character, including stocks and other securities, debts, credits, bank accounts, and interest in and rights to personal property, and by levy upon real property and interest in or rights to real property; and (b)       By civil or criminal action. Either of these remedies or both simultaneously may be pursued in the discretion of the authorities charged with the collection of such taxes: Provided, however, that the remedies of distraint and levy shall not be availed of where the amount of tax involved is not more than One hundred pesos (P100). The judgement in the criminal cases shall not only impose the penalty but shall

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Title VIII – Remedies, Chapter I Remedies, In General

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SECTION 202.  Final Deed to Purchaser. – In case the taxpayer shall not redeem the property as herein provided, the Revenue District Officer shall, as grantor, execute a deed conveying to the purchaser so much of the property as has been sold, free from all liens of any kind whatsoever, and the deed shall succinctly recite all the proceedings upon which the validity of the sale depends. SECTION 203.  Period of Limitation Upon Assessment and Collection. – Except as provided in Section 222, internal revenue taxes shall be assessed within three (3) years after the last day prescribed by law for the filing of the return, and no proceeding in court without assessment for the collection of such taxes shall be begun after the expiration of such period: Provided, That in case where a return is filed beyond the period prescribed by law the three (3)-year period shall be counted

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Title VII – Documentary Stamp Tax

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SECTION 173.  Stamp Taxes Upon Documents, Loan Agreements, Instruments and Papers. – Upon documents, instruments, loan agreements and papers, and upon acceptances, assignments, sales and transfers of the obligation, right of property incident thereto, there shall be levied, collected and paid for, and in respect of the transaction so had or accomplished, the corresponding documentary stamp taxes prescribed in the following Sections of this Title, by the person making, signing, issuing, accepting, or transferring the same wherever the document is made, signed, issued, accepted or transferred when the obligation or right arises from Philippine sources or the property is situated in the Philippines, and at the same time such act is done or transaction had: Provided, That whenever one party to the taxable document enjoys exemption from the tax herein imposed, the other party thereto who is not exempt shall be the one directly liable for the tax. SEC. 174.        

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Title V – Other Percentage Taxes

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SEC. 116. Tax on Persons Exempt from Value-Added Tax (VAT). – Any person whose sales or receipts are exempt under Section 109 (CC) of this Code from the payment of value added tax and who is not a VAT-registered person shall pay a tax equivalent to three percent (3%) of his gross quarterly sales or receipts: Provided, That cooperatives, shall be exempt from the three percent (3%) gross receipts tax herein imposed: Provided, Further, that effective July 1, 2020 until June 30, 2023, the rate shall be one percent (1%). (As amended by RA No. 9337 (May 24, 2005), RA No. 10963 (December 19, 2017), and RA 11534 (March 26, 20201)) (Note: The amendment introduced by the TRAIN Law was vetoed by the President. The Veto message reads:C. Exemptions from percentage tax of gross sales/receipts not exceeding five hundred thousand pesos (P500,000) I am constrained to veto the provision which

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RA 8424: Title III, Chapter II – Compliance Requirements

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TITLE IV – VALUE ADDED TAX, CHAPTER II – Compliance Requirements SEC. 113. Invoicing and Accounting Requirements for VAT-registered Persons. – (A) Invoicing Requirements. – A VAT-registered person shall issue a VAT invoice for every sale, barter, exchange, or lease of goods or properties and for every sale, barter or exchange of services. (B) Information Contained in the VAT Invoice. – The following information shall be indicated in the VAT invoice: (C) Accounting Requirements. – Notwithstanding the provisions of Section 233, all persons subject to the value-added tax under Sections 106 and 108 shall, in addition to the regular accounting records required, maintain a subsidiary sales journal and subsidiary purchase journal on which the daily sales and purchases are recorded. The subsidiary journals shall contain such information as may be required by the Secretary of Finance. (D)  Consequence of Issuing Erroneous VAT Invoice. – (1)  If a person who is not a VAT-registered person issues

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RA 8424: Title IV, Chapter I – Imposition of Tax

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TITLE IV – VALUE ADDED TAX, CHAPTER I – Imposition of Tax SECTION 105. Persons Liable. – Any person who, in the course of trade or business, sells, barters, exchanges, leases goods or properties, renders services, and any person who imports goods shall be subject to the value-added tax (VAT) imposed in Sections 106 to 108 of this Code. The value-added tax is an indirect tax and the amount of tax may be shifted or passed on to the buyer, transferee or lessee of the goods, properties or services. This rule shall likewise apply to existing contracts of sale or lease of goods, properties or services at the time of the effectivity of Republic Act No. 7716. The phrase ‘in the course of trade or business‘ means the regular conduct or pursuit of a commercial or an economic activity, including transactions incidental thereto, by any person regardless of whether or

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