BATAS PAMBANSA BILANG.

135

BATAS PAMBANSA BLG. 135 - AN ACT AMENDING CERTAIN PROVISIONS OF THE NATIONAL INTERNAL REVENUE CODE OF 1977, AS AMENDED, AND FOR OTHER PURPOSES Section 1. Sec. 21 of the National Internal Revenue Code of 1977, as amended, is hereby further amended to read as follows !Sec. 21. Rates of ta" on citi#ens or residents. $ %a& 'n ta"able com(ensation income. $ ) ta" is hereby im(osed u(on the ta"able com(ensation income as determined in Sec. 2* %a& received durin+ each ta"able year from all sources by every individual, whether a citi#en of the ,hili((ines, determined in accordance with the followin+ schedule Not over ,2,-.. ./ 'ver ,2,-.. but not over ,-,... 1/ 'ver ,-,... but not over ,1.,... ,2- 0 1/ of e"cess over ,-,... 'ver ,1.,... but not over ,2.,... ,17- 0 7/ of e"cess over ,1.,... 'ver ,2.,... but not over ,2.,... ,*7- 0 11/ of e"cess over ,2.,... 'ver ,2.,... but not over ,3.,... ,1,.7- 0 1-/ of e"cess over ,2.,... 'ver ,3.,... but not over ,1..,... ,3,.7- 0 19/ of e"cess over ,3.,... 'ver ,1..,... but not over ,2-.,... ,11,3-7 0 22/ of e"cess over ,1..,... 'ver ,2-.,... but not over ,-..,... ,29,37- 0 29/ of e"cess over ,2-.,... 'ver ,-..,... ,122,17- 0 1-/ of e"cess over ,-..,... !%b& 'n ta"able net income. $ ) ta" is hereby im(osed u(on the ta"able net income as determined in Sec. 29%a& received durin+ each ta"able year from all sources by every individual, whether a citi#en of the ,hili((ines, or an alien residin+ in the ,hili((ines determined in accordance with the followin+ schedule Not over ,1.,... -/ 'ver ,1.,... but not over ,1.,... ,-.. 0 1-/ of e"cess over ,1.,... 'ver ,1.,... but not over ,1-.,... ,1,-.. 0 1./ of e"cess over ,1.,... 'ver ,1-.,... but not over ,-..,... ,19,-.. 0 2-/ of e"cess over ,1-.,... 'ver ,-..,... ,197,... 0 3./ of e"cess over ,-..,... !%c& 'n royalties, (ri#es and other winnin+s. $ Royalties, (ri#es %e"ce(t (ri#es amountin+ to 4hree thousand (esos or less which shall be sub5ect to ta" under (ara+ra(h 6b7 and other winnin+s %e"ce(t ,hili((ine Charity Swee(sta8es winnin+s& received by citi#ens and resident alien individuals shall be sub5ect to a final ta" at the rate of fifteen (er centum %1-/& on the total amount thereof, which shall be collected and (aid as (rovided in Sections -1 and -2 of this Code. !%d& 'n interest from ban8 de(osits and yield or any other monetary benefit from de(osit substitutes and from trust fund and similar arran+ements. $ Interest from ,hili((ine Currency 9an8 de(osits and yield or any other monetary benefit from de(osit substitutes and from trust fund and similar arran+ements whether received by citi#ens of the ,hili((ines or by resident alien individuals, shall be sub5ect to the final ta" as follows %a& fifteen (er centum %1-/& of the interest on savin+s de(osits, and %b& twenty (er centum %2./& of interest on time de(osits and yield or any other monetary benefit from de(osit substitutes and from trust fund and similar arran+ements, which shall be collected and (aid as (rovided in Sec. -1 and -2 of this Code ,rovided, 4hat no ta" shall be im(osed if the a++re+ate amount of the interest on all ,hili((ine Currency de(osit accounts maintained by a de(ositor alone or to+ether with another in any one ban8 at any time durin+ the ta"able (eriod does not e"ceed 'ne thousand (esos %,1,...,...& a year or 4wo hundred fifty (esos %2-....& (er :uarter ,rovided, further, 4hat if the reci(ient of such interest is e"em(t from income ta"ation, no ta" shall be im(osed and that, if the reci(ient is en5oyin+ (referential income ta" treatment, then the (referential ta" rates so (rovided shall be im(osed. !%e& 'n dividends and share of individual (artner in the net (rofits or ta"able (artnershi(. $ ;ividends

received by an individual who is a citi#en of the ,hili((ines or resident alien from a domestic cor(oration and the share of an individual (artner in a (artnershi( sub5ect to ta" under Sec. 22 %a& shall be sub5ect to a final ta" at the rate of fifteen (er centum %1-/& on the total amount thereof, which shall be collected and (aid as (rovided in Sections -1 and -2 of this Code. !%f& 'n ad5usted +ross income. $ ) ta" is hereby im(osed u(on the ad5usted +ross income derived by a non<resident citi#en from all sources without the ,hili((ines durin+ each ta"able year com(uted in accordance with the followin+ schedule If the amount sub5ect to ta" is Not over =.S.>3,...... 1/ 'ver =.S.>3,...... but not over =.S.>2.,...... =.S. >3. (lus of e"cess over =.S. >3,... 'ver =.S. >2.,... =.S. >12. (lus 1/ of e"cess over =.S. >2.,...

2/

?or (ur(oses of this (ara+ra(h, !ad5usted +ross income! means the +ross income from all sources without the ,hili((ines less the followin+ !%1& )n allowance for (ersonal e"em(tion in the amount of 4wo thousand dollars %=.S. >2,...&, if the (erson ma8in+ the return is a sin+le or a married (erson le+ally se(arated from his or her s(ouse@ or ?our 4housand dollars %=.S. >2,...&, if the (erson ma8in+ the return is married or head of the family, as defined in Sec. 21 of this Code and !%2& 4he total amount of the national income ta" actually (aid to the +overnment of the forei+n country of his residence. !Avery non<resident citi#en availin+ of the s(ecial rates (rovided herein is re:uired to su((ort his declaration of +ross income, e"em(tion and deductions claimed by attachin+ to his ,hili((ine income ta" return a co(y of the income ta" return he has filed with the +overnment of the forei+n country of his residence.!