Title II – Income Taxation, CHAPTER IX – Returns and Payment of Tax SECTION 51. Individual Return. – (A) Requirements. – (1) Except as provided in paragraph (2) of this Subsection, the following individuals are required to file an income tax return: (a) Every Filipino citizen residing in the Philippines; (b) Every Filipino citizen residing outside the Philippines, on his income from sources within the Philippines; (c) Every alien residing in the Philippines, on income derived from sources within the Philippines; and (d) Every nonresident alien engaged in trade or business or in the exercise of profession in the Philippines. (2) The following individuals shall not be required to file an income tax return: (a) An individual whose taxable income does not exceed two hundred fifty thousand pesos (P250,000) under Section 24(A)(2)(a): Provided, That a citizen of the Philippines and any alien individual engaged in business or practice of profession
Title II – Income Taxation, CHAPTER VIII – Accounting Periods and Methods of Accounting SECTION 43. General Rule. – The taxable income shall be computed upon the basis of the taxpayer’s annual accounting period (fiscal year or calendar year, as the case may be) in accordance with the method of accounting regularly employed in keeping the books of such taxpayer; but if no such method of accounting has been so employed, or if the method employed does not clearly reflect the income, the computation shall be made in accordance with such method as in the opinion of the Commissioner clearly reflects the income. If the taxpayer’s annual accounting period is other than a fiscal year, as defined in Section 22(Q), or if the taxpayer has no annual accounting period, or does not keep books, or if the taxpayer is an individual, the taxable income shall be computed on the basis
Title II – Income Taxation, CHAPTER VI – Computation of Gross Income SECTION 32. Gross Income. – (A) General Definition. – Except when otherwise provided in this Title, gross income means all income derived from whatever source, including (but not limited to) the following items: (1) Compensation for services in whatever form paid, including, but not limited to fees, salaries, wages, commissions, and similar items; (2) Gross income derived from the conduct of trade or business or the exercise of a profession; (3) Gains derived from dealings in property; (4) Interests; (5) Rents; (6) Royalties; (7) Dividends; (8) Annuities; (9) Prizes and winnings; (10) Pensions; and (11) Partner’s distributive share from the net income of the general professional partnership. (B) Exclusions from Gross Income. – The following items shall not be included in gross income and shall be exempt from taxation under this Title: (1) Life Insurance. – The proceeds
Title II – Income Taxation, CHAPTER V – Computation of Taxable Income SEC. 31. Taxable Income Defined. – The term ‘taxable income‘ means the pertinent items of gross income specified in this Code, less deductions, if any, authorized for such types of income by this Code or other special laws. (As amended by RA No. 10963 (December 19, 2017)). (Manual encoding credits: Jacky Margaret Adriano)
Title II – Income Taxation, CHAPTER IV – Tax on Corporations SECTION 27. Rates of Income Tax on Domestic Corporation. – (A) In General. – Except as otherwise provided in this Code, an income tax rate of twenty five percent (25%) effective July 1, 2020, is hereby imposed upon the taxable income derived during each taxable year from all sources within and without the Philippines by every corporation, as defined in Section 22(B) of this Code and taxable under this Title as a corporation, organized in, or existing under the laws of the Philippines. Provided, that corporations with net taxable income not exceeding Five million pesos (P5,000,000.00) and with total assets not exceeding One hundred million pesos (P100,000,000.00), excluding land on which the particular business entity’s office, plants, and equipment are situated during the taxable year for which the tax is imposed, shall be taxed at twenty percent (20%). In
Title II – Income Taxation, CHAPTER III – Tax on Individuals SECTION 24. Income Tax Rates. – (A) Rates of Income Tax on Individual Citizen and Individual Resident Alien of the Philippines. (1) An income tax is hereby imposed: (a) On the taxable income defined in Section 31 of this Code, other than income subject to tax under Subsections (B), (C), and (D) of this Section, derived for each taxable year from all sources within and without the Philippines by every individual citizen of the Philippines residing therein; (b) On the taxable income defined in Section 31 of this Code, other than income subject to tax under Subsections (B), (C), and (D) of this Section, derived for each taxable year from all sources within the Philippines by an individual citizen of the Philippines who is residing outside of the Philippines including overseas contract workers referred to in Subsection (C)
CHAPTER II General Principles SECTION 23. General Principles of Income Taxation in the Philippines. –Except when otherwise provided in this Code: (A) A citizen of the Philippines residing therein is taxable on all income derived from sources within and without the Philippines; (B) A nonresident citizen is taxable only on income derived from sources within the Philippines; (C) An individual citizen of the Philippines who is working and deriving income from abroad as an overseas contract worker is taxable only on income from sources within the Philippines: Provided, That a seaman who is a citizen of the Philippines and who receives compensation for services rendered abroad as a member of the complement of a vessel engaged exclusively in international trade shall be treated as an overseas contract worker; (D) An alien individual, whether a resident or not of the Philippines, is taxable only on income derived from sources within
REPUBLIC ACT NO. 8424 (Approved December 11, 1997, Effective January 1, 1998) AN ACT AMENDING THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES (As last amended by RA No. 11534, March 26, 2021) TITLE I Organization and Function of the Bureau of Internal Revenue SECTION 1. Title of the Code. – This Code shall be known as the National Internal Revenue Code of 1997. SECTION 2. Powers and Duties of the Bureau of Internal Revenue. -The Bureau of Internal Revenue shall be under the supervision and control of the Department of Finance and its powers and duties shall comprehend the assessment and collection of all national internal revenue taxes, fees, and charges, and the enforcement of all forfeitures, penalties, and fines connected therewith, including the execution of judgments in all cases decided in its favor by the Court of Tax Appeals and the ordinary courts. The Bureau
CHAPTER I Definitions SECTION 22. Definitions. – When used in this Title: (A) The term ‘person‘ means an individual, a trust, estate, or corporation. (B) The term ‘corporation’ shall include one person corporation, partnerships, no matter how created or organized, joint-stock companies, joint accounts (cuentas en participación), associations, or insurance companies, but does not include general professional partnerships and a joint venture or consortium formed for the purpose of undertaking construction projects or engaging in petroleum, coal, geothermal and other energy operations pursuant to an operating or consortium agreement under a service contract with the Government. ‘General professional partnerships’ are partnerships formed by persons for the sole purpose of exercising their common profession, no part of the income of which is derived from engaging in any trade or business. (As amended by RA 11534 CREATE, March 26, 2021) (C) The term ‘domestic,’ when applied to a corporation, means a corporation, means
TITLE XVII – MISCELLANEOUS PROVISIONS Section 173. Outstanding Capital Stock Defined. – The term “outstanding capital stock”, as used in this Code, shall mean the total shares of stock issued under binding subscription contracts to subscribers or stockholder, whether fully or partially paid, except as treasury shares. Section 174. Designation of Governing Boards. – The provisions of specific provisions of this Code to the contrary notwithstanding, nonstock or special corporation may, through their articles of incorporation or their bylaws, designate their governing boards by any name other than as board of directors. Section 175. Collection and Use of Registration, Incorporation and other Fees. – For a more effective implementation of this Code, the Commission is hereby authorized to collect, retain, and use fees, fines, and other charges pursuant to this Code, and its rules and regulations. The amount collected shall be deposited and maintained in a separate account which shall
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