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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
Power of the (B) To obtain on a regular basis from any person (A) x x x
Commissioner to other than the person whose internal revenue tax
obtain information liability is subject to audit or investigation, or from (B) To obtain on a regular basis from any person other than the
and to summon any office or officer of the national and local person whose internal revenue tax liability is subject to audit or
examine and take governments, government agencies and investigation, or from any office or officer of the national and
testimony of persons instrumentalities, including the Bangko Sentral ng local governments, government agencies and instrumentalities,
(B) Pilipinas and government-owned or -controlled including the Bangko Sentral ng Pilipinas and government-
corporations, any information such as, but not limited owned or -controlled corporations, any information such as, but
to, costs and volume of production, receipts or sales not limited to, costs and volume of production, receipts or sales
and gross incomes of taxpayers, and the names, and gross incomes of taxpayers, and the names, addresses, and
addresses, and financial statements of corporations, financial statements of corporations, mutual fund companies,
mutual fund companies, insurance companies, insurance companies, regional operating headquarters of
regional operating headquarters of multinational multinational companies, joint accounts, associations, joint
companies, joint accounts, associations, joint ventures of consortia and registered partnerships, and their
ventures of consortia and registered partnerships, and members: Provided, That the Cooperative Development
their members; Authority shall submit to the Bureau a tax incentive report,
which shall include information on the income tax, value-
added tax, and other tax incentives availed of by
cooperatives registered and enjoying incentives under
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
Republic Act No. 6938, as amended: Provided, further, That
the information submitted by the Cooperative Development
Authority to the Bureau shall be submitted to the
Department of Finance and shall be included in the database
created under Republic Act No. 10708, otherwise known as
‘The Tax Incentives Management and Transparency Act
(TIMTA).
xxx.
Sec. 6
(A) Examination of Return and Determination of (A) Examination of Returns and Determination of Tax
Power of the Tax Due. After a return has been filed as required Due.— After a return has been filed as required under the
Commissioner to under the provisions of this Code, the Commissioner provisions of this Code, the Commissioner or his duly
make assessments or his duly authorized representative may authorize authorized representative may authorize the examination of any
and prescribe the examination of any taxpayer and the assessment taxpayer and the assessment of the correct amount of tax,
additional of the correct amount of tax: Provided, however, That notwithstanding any law requiring the prior authorization of
requirements for tax failure to file a return shall not prevent the any government agency or instrumentality: Provided,
administration and Commissioner from authorizing the examination of however, That failure to file a return shall not prevent the
enforcement. any taxpayer. Commissioner from authorizing the examination of any
(A) (E) taxpayer.
(B) x x x
(C) x x x (B) x x x
(D) x x x (C) x x x
(D) x x x
(E) Authority of the Commissioner to Prescribe
Real Property Values. - The Commissioner is
hereby authorized to divide the Philippines into (E) Authority of the Commissioner to Prescribe Real Property
different zones or areas and shall, upon consultation Values.— The Commissioner is hereby -authorized to divide the
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
with competent appraisers both from the private and Philippines into different zones or areas and shall, upon
public sectors, determine the fair market value of real mandatory consultation with competent appraisers both from the
properties located in each zone or area. For purposes private and public sectors, and with prior notice to affected
of computing any internal revenue tax, the value of taxpayers, determine the fair market value af real properties
the property shall be, whichever is the higher of: located in each zone or area, subject to automatic adjustment
once every three (3) years through rules and regulations
(1) The fair market value as determined by issued by the Secretary of Finance based on the current
the Commissioner; or Philippine valuation standards: Provided, That no
adjustment in zonal valuation shall be valid unless published
(2) The fair market value as shown in the in a newspaper of general circulation in the province, city or
schedule of values of the Provincial and City municipality concerned, or in the absence thereof, shall be
Assessors. posted in the provincial capitol, city or municipal hall and in
two (2) other conspicuous public places therein: Provided,
further, That the basis of any valuation, including the
records of consultations done, shall be public records open to
the inquiry of any taxpayer. For purposes of computing any
internal revenue tax, the value of the property shall be,
whichever is the higher of:
Sec. 24
(A) Rates of Income Tax on Individual Citizen (A) Rates of Income Tax on Individual Citizen and
Income Tax Rates and Individual Resident Alien of the Philippines.- Individual Resident Alien of the Philippines.-
(A) (1)
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
(1) xxxx (1) xxxx
(2) Rates of Tax on Taxable Income of (2) Rates of Tax on Taxable Income of Individuals- The tax
Individuals. - The tax shall be computed in shall be computed in accordance with and at the rates established
accordance with and at the rates established in the in the following schedule:
following schedule:
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
Over ₱500,000 ₱125,000 + 32% Over ₱2M ₱490,000 + 32% of
of but the excess over ₱2M
the excess over not over
₱500,000 ₱8M
Over ₱8M ₱2,410,000 + 35% of
the excess over ₱8M
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
Additonal Provision:
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
taxable income, or eight percent (8%) income tax based on
gross sales or gross receipts and other non-operating income
in lieu of the graduated income tax rates under Subsection
(A)(2)(a) of this Section and the percentage tax under Section
116 of this Code.
Sec. 24
(B) Rate of Tax on Certain Passive Income.- (B) Rate of Tax on Certain Passive Income.-
Income Tax Rates
(B) (1) (1) Interests, Royalties, Prizes, and Other (1) Interests, Royalties, Prizes, and Other Winnings. -
Winnings. -
x xx
x xx
other winnings (except winnings amounting to Ten thousand
other winnings (except Philippine Charity pesos (₱10,000) or less from Philippine Charity Sweepstakes
Sweepstakes and Lotto winnings), derived from and Lotto which shall be exempt), derived from sources
sources within the Philippines: within the Philippines:
Provided, however, That interest income received by Provided, however, That interest income received by an
an individual taxpayer (except a nonresident individual taxpayer (except a nonresident individual) from a
individual) from a depository bank under the depository bank under the expanded foreign currency deposit
expanded foreign currency deposit system shall be system shall be subject to a final income tax at the rate of
subject to a final income tax at the rate of seven and fifteen percent (15%) of such interest income:
one-half percent (7 1/2%) of such interest income:
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
Provided, further, That interest income from long-term deposit
Provided, further, That interest income from long- or investment in the form of savings, common or individual trust
term deposit or investment in the form of savings, funds, deposit substitutes, investment management accounts and
common or individual trust funds, deposit substitutes, other investments evidenced by certificates in such form
investment management accounts and other prescribed by the Bangko Sentral ng Pilipinas (BSP) shall be
investments evidenced by certificates in such form exempt from the tax imposed under this Subsection: Provided,
prescribed by the BangkoSentralngPilipinas (BSP) finally, That should the holder of the certificate pre-
shall be exempt from the tax imposed under this terminate the deposit or investment before the fifth (5th)
Subsection: Provided, finally, That should the holder year, a final tax shall be imposed on the entire income and
of the certificate pre-terminate the deposit or shall be deducted and withheld by the depository bank from
investment before the fifth (5th) year, a final tax shall the proceeds of the long-term deposit or investment
be imposed on the entire income and shall be certificate based on the remaining maturity thereof:
deducted and withheld by the depository bank from
the proceeds of the long-term deposit or investment x xx.
certificate based on the remaining maturity thereof:
Section 24
(B) x xx (B) xxxxx
Income Tax Rates (2) Cash and/or Property Dividends.- A final tax at (2) Cash and/or Property Dividends.- A final tax at the
(B) (2) the following rates shall be imposed upon the cash following rates shall be imposed upon the cash and/or property
and/or property dividends actually or constructively dividends actually or constructively received by an individual
received by an individual from a domestic from a domestic corporation or from a joint stock company,
corporation or from a joint stock company, insurance insurance or mutual fund companies and regional operating
or mutual fund companies and regional operating headquarters of multinational companies, or on the share of an
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
headquarters of multinational companies, or on the individual in the distributable net income after tax of a
share of an individual in the distributable net income partnership (except a general professional partnership) of which
after tax of a partnership (except a general he is a partner, or on the share of an individual in the net income
professional partnership) of which he is a partner, or after tax of an association, a joint account, or a joint venture or
on the share of an individual in the net income after consortium taxable as a corporation of which he is a member or
tax of an association, a joint account, or a joint co-venturer:
venture or consortium taxable as a corporation of
which he is a member or co-venturer:
Section 24
(C) Capital Gains from Sale of Shares of Stock not (C) Capital Gains from Sale of Shares of Stock not Traded in
Income Tax Rates Traded in the Stock Exchange. - The provisions of the Stock Exchange.— The provisions of Section 39(B)
(C) Section 39(B) notwithstanding, a final tax at the rates notwithstanding, a final tax at the rate of fifteen percent (15%)
prescribed below is hereby imposed upon the net is hereby imposed upon the net capital gains realized during the
capital gains realized during the taxable year from the taxable year from the sale, barter, exchange or other disposition
sale, barter, exchange or other disposition of shares of shares of stock in a domestic corporation, except shares sold,
of stock in a domestic corporation, except shares or disposed of through the stock exchange.
sold, or disposed of through the stock exchange.
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
“x xx.”
Not over ₱100,000 5%
On any amount in
excess of 10%
₱100,000
Sec. 25. Tax on Nonresident Alien Individual.— (F) The preferential tax treatment provided in Subsections
Tax on Nonresident (C), (D), and (E) of this Section shall not be applicable to
Individual (C) (D) (A) Nonresident Alien Engaged in Trade or regional headquarters (RHQs), regional operating
(E) Business Within the Philippines.—x xx headquarters (ROHQs), offshore banking units (OBUs) or
petroleum service contractors and subcontractors registering
(B) Nonresident Alien Individual Not Engaged in with the Securities and Exchange Commission (SEC) after
Trade or Business Within the Philippines.— x xx January 1, 2018: Provided, however, That existing
RHQs/ROHQs, OBUs or petroleum service contractors and
(C) Alien individuals and qualified Filipino subcontractors presently availing of preferential tax rates for
employees employed by qualified employees shall continue to be entitled to avail of the
Regional or area and Regional Operating preferential tax rate for present and future qualified employees
headquarters of multinational companies (RHQs and
ROHQs) [Subsection (C)]
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
Sec. 27
(A) In General.- x x x (A) In General.- x x x
Rates of Income Tax
on Domestic (B) Proprietary Educational Institutions and (B) Proprietary Educational Institutions and Hospitals.- x x
Corporations Hospitals.- x x x x
(C) (D) (1) (2)
(C) Government-owned or -Controlled (C) Government-owned or -Controlled Corporations,
Corporations, Agencies or Instrumentalities. - The Agencies or Instrumentalities.— The provisions of existing
provisions of existing special or general laws to the special or general laws to the contrary notwithstanding, all
contrary notwithstanding, all corporations, agencies, corporations, agencies, or instrumentalities owned or controlled
or instrumentalities owned or controlled by the by the Government, except the Government Service Insurance
Government, except the Government Service System (GSIS), the Social Security System (SSS), the Philippine
Insurance System (GSIS), the Social Security System Health Insurance Corporation (PHIC), and the local water
(SSS), the Philippine Health Insurance Corporation districts shall pay such rate of tax upon their taxable income as
(PHIC), the local water districts (LWDs), and the are imposed by this Section upon corporations or associations
Philippine Charity Sweepstakes Office (PCSO) engaged in similar business, industry, or activity.
and the Philippine Amusement and Gaming
Corporation (PAGCOR), shall pay such rate of tax (D) Rates of Tax on Certain Passive Incomes.—
upon their taxable income as are imposed by this
Section upon corporations or associations engaged in
(1) Interest from Deposits and Yield or any other Monetary
s similar business, industry, or activity. Benefit from Deposit Substitutes and from Trust Funds and
Similar Arrangements, and Royalties.— A final tax at the rate
(D) Rates of Tax on Certain Passive Incomes. - of twenty percent (20%) is hereby imposed upon the amount of
interest on currency bank deposit and yield or any other
(1) Interest from Deposits and Yield or any monetary benefit from deposit substitutes and from trust funds
other Monetary Benefit from Deposit and similar arrangements received by domestic corporations, and
Substitutes and from Trust Funds and Similar royalties, derived from sources within the Philippines: Provided,
Arrangements, and Royalties. - A final tax at however, That interest income derived by a domestic corporation
the rate of twenty percent (20%) is hereby from a depository bank under the expanded foreign currency
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
imposed upon the amount of interest on currency deposit system shall be subject to a final income tax at the rate of
bank deposit and yield or any other monetary fifteen percent (15%) of such interest income.
benefit from deposit substitutes and from trust
funds and similar arrangements received by (2) Capital Gains from the Sale of Shares of Stock Not
domestic corporations, and royalties, derived Traded in the Stock Exchange.— A final tax at the rate of
from sources within the Philippines: Provided, fifteen percent (15%) shall be imposed on net capital gains
however, That interest income derived by a realized during the taxable year from the sale, exchange or other
domestic corporation from a depository bank disposition of shares of stock in a domestic corporation except
under the expanded foreign currency deposit shares sold or disposed of through the stock exchange.
system shall be subject to a final income tax at
the rate of seven and one-half percent (7 1/2%) xxx.
of such interest income.
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
Sec. 31
SEC. 31. Taxable Income Defined. -The term Sec. 31. Taxable Income Defined.— The term ‘taxable income’
Taxable Income 'taxable income' means the pertinent items of gross means the pertinent items of gross income specified in this Code,
Defined income specified in this Code, less the deductions less deductions, if any, authorized for such types of income by
and/or personal and additional exemptions, if any, this Code or other special laws.
authorized for such types of income by this Code or
other special laws.
Sec. 32
A) General Definition.— x xx A) General Definition.— x xx
Gross Income (B)
(7e) (B) Exclusions from Gross Income.— x xx (B) Exclusions from Gross Income.— x xx
(1) x xx (1) x xx
(i) Benefits received by officials and employees of (i) Benefits received by officials and employees of the national
the national and local government pursuant to and local government pursuant to Republic Act No. 6686;
Republic Act No. 6686;
(ii) Benefits received by employees pursuant to (ii) Benefits received by employees pursuant to Presidential
Presidential Decree No. 851, as amended by Decree No. 851, as amended by Memorandum Order No. 28,
Memorandum Order No. 28, dated August 13, 1986; dated August 13, 1986;
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
(iii) Benefits received by officials and employees not
covered by Presidential decree No. 851, as amended (iii) Benefits received by officials and employees not covered by
by Memorandum Order No. 28, dated August 13, Presidential Decree No. 851, as amended by Memorandum
1986; and Order No. 28, dated August 13,1986; and
(iv) Other benefits such as productivity incentives
and Christmas bonus: Provided, That every three (iv) Other benefits such as productivity incentives and Christmas
(3) years after the effectivity of this Act, the bonus
President of the Philippines shall adjust the
amount herein stated to its present value using the
Consumer Price Index (CPI), as published by the
National Statistics Office.
Sec. 33
(A) Imposition of Tax. - A final tax of thirty-four (A) Imposition of Tax.— Effective January 1, 2018 and
Special Treatment of percent (34%) effective January 1, 1998; thirty-three onwards, a final tax of thirty-five percent (35%) is hereby
Fringe Benefit (A) percent (33%) effective January 1, 1999; and thirty- imposed on the grossed-up monetary value of fringe benefit
two percent (32%) effective January 1, 2000 and furnished or granted to the employee (except rank and file
thereafter, is hereby imposed on the grossed-up employees as defined herein) by the employer, whether an
monetary value of fringe benefit furnished or granted individual or a corporation (unless the fringe benefit is required
to the employee (except rank and file employees as by the nature of, or necessary to the trade, business or profession
defined herein) by the employer, whether an of the employer, or when the fringe benefit is for the
individual or a corporation (unless the fringe benefit convenience or advantage of the employer). The tax herein
is required by the nature of, or necessary to the trade, imposed is payable by the employer which tax shall be paid in
business or profession of the employer, or when the the same manner as provided for under Section 57(A) of this
fringe benefit is for the convenience or advantage of Code. The grossed-up monetary value of the fringe benefit
the employer). The tax herein imposed is payable by shall be determined by dividing the actual monetary value of
the employer which tax shall be paid in the same the fringe benefit by sixty five percent (65%) effective
manner as provided for under Section 57 (A) of this January 1, 2018 and onwards: Provided, however, That fringe
Code. The grossed-up monetary value of the fringe benefit furnished to employees and taxable under Subsections
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
benefit shall be determined by dividing the actual (B), (C), (D), and (E) of Section 25 shall be taxed at the
monetary value of the fringe benefit by sixty-six applicable rates imposed thereat: Provided, further, That the
percent (66%) effective January 1, 1998; sixty-seven grossed-up value of the fringe benefit shall be determined by
percent (67%) effective January 1, 1999; and sixty- dividing the actual monetary value of the fringe benefit by the
eight percent (68%) effective January 1, 2000 and difference between one hundred percent (100%) and the
thereafter: Provided, however, That fringe benefit applicable rates of income tax under Subsections (B), (C), (D),
furnished to employees and taxable under and (E) of Section 25.
Subsections (B), (C), (D) and (E) of Section 25 shall
be taxed at the applicable rates imposed thereat: x xx.
Provided, further, That the grossed -up monetary
value of the fringe benefit shall be determined by
dividing the actual monetary value of the fringe
benefit by the difference between one hundred
percent (100%) and the applicable rates of income
tax under Subsections (B), (C), (D), and (E) of
Section 25.
(B) – x xx
Sec. 34
SEC. 34. Deductions from Gross Income. - Except Sec. 34. Deductions from Gross Income.— Except for
Deductions from for taxpayers earning compensation income arising taxpayers earning compensation income arising from personal
Gross Income from personal services rendered under an employer- services rendered under an employer-employee relationship
(L) (M) employee relationship where no deductions shall be where no deductions shall be allowed under this Section, in
allowed under this Section other than under computing taxable income subject to income tax under Sections
subsection (M) hereof, in computing taxable income 24(A); 25(A); 26; 27(A), (B), and (C); and 28(A)(1), there shall
subject to income tax under Sections 24(A); 25(A); be allowed the following deductions from gross income:
26; 27(A), (B) and (C); and 28(A)(1), there shall be
allowed the following deductions from gross income; (A) Expenses.—
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
(a) In General.— x xx x xx
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
irrevocable for the taxable year for which the return professional partnership and the partners comprising such
is made: Provided, That an individual who is entitled partnership may avail of the optional standard deduction
to and claimed for the optional standard deduction only once, either by the general professional partnership or
shall not be required to submit with his tax return the partners comprising the partnership: Provided, finally,
such financial statements otherwise required under That except when the Commissioner otherwise permits, the said
this Code: Provided, further, That except when the individual shall keep such records pertaining to his gross sales or
Commissioner otherwise permits, the said individual gross receipts, the said corporation shall keep such records
shall keep such records pertaining to his gross sales pertaining to his gross income as defined in Section 32 of this
or gross receipts, or the said corporation shall keep Code during the taxable year, as may be required by the rules
such records pertaining to his gross income as and regulations promulgated by the Secretary of Finance, upon
defined in Section 32 of this Code during the taxable recommendation of the Commissioner.
year, as may be required by the rules and regulations
promulgated by the Secretary of Finance, upon, Notwithstanding the provisions of the preceding Subsections, x
recommendation of the Commissioner. [32] xx.
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
to this deduction.
Sec. 35
Sec. 35- Allowance of Personal Exemption for
Allowance of Individual Taxpayer,
Personal Exemption
REPEALED
for Individual (A)- x xx
Taxpayer
Sec. 51
Sec. 51. Individual Returns.— Sec. 51. Individual Returns.—
Individual Return
(2a) (A) x xx (A) x xx
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
(1) x xx (1) x xx
(a) x xx (a) x xx
(2) The following individuals shall not be required to (2) The following individuals shall not be required to file an
file an income tax return: income tax return:
(a) An individual whose gross income does not (a) An individual whose taxable income does not exceed
exceed his total personal and additional Two hundred fifty thousand pesos (₱250,000) under
exemptions for dependents under Section 35: Section 24(A)(2)(a): Provided, That a citizen of the
Provided, That a citizen of the Philippines and Philippines and any alien individual engaged in business or
any alien individual engaged in business or practice of profession within the Philippines shall file an
practice of profession within the Philippine income tax return, regardless of the amount of gross income;
shall file an income tax return, regardless of
the amount of gross income; (b) x xx
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
(C) Allowable deductions under this Code;
x xx.
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
president or other principal officer, and shall be electronic form, be filed by the president, vice-president or
sworn to by such officer and by the treasurer or other principal officer, and shall be sworn to by such officer
assistant treasurer. and by the treasurer or assistant treasurer, and shall only
contain the following information:
x x x.
Sec. 56
(A) Payment of Tax.- (A) Payment of Tax.—
Payment and (1) x x x
Assessment of (1) x xx
Income Tax for (2) Installment of Payment. - When the tax due
Individuals and is in excess of Two thousand pesos (P2,000), the (2) Installment of Payment.— When a tax due is in excess of
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
Corporations. (A)(2) taxpayer other than a corporation may elect to pay Two thousand pesos (₱2,000), the taxpayer other than a
the tax in two (2) equal installments in which corporation, may elect to pay the tax in two (2) equal
case, the first installment shall be paid at the time installments, in which case, the first installment shall be paid at
the return is filed and the second installment, on the time the return is filed and the second installment on or
or before July 15 following the close of the before October 15 following the close of the calendar year, if
calendar year. If any installment is not paid on or any installment is not paid on or before the date fixed for its
before the date fixed for its payment, the whole payment, the whole amount of the tax unpaid becomes due and
amount of the tax unpaid becomes due and payable together with the delinquency penalties.
payable, together with the delinquency penalties.
x x x.
Sec. 57
(A) x x x (A) x xx
Withholding of Tax
at Source (B) (B) Withholding of Creditable Tax at Source. - (B) Withholding of Creditable Tax at Source.— The Secretary
The Secretary of Finance may, upon the of Finance may, upon the recommendation of the Commissioner,
recommendation of the Commissioner, require the require the withholding of a tax on the items of income payable
withholding of a tax on the items of income payable to natural or juridical persons, residing in the Philippines, by
to natural or juridical persons, residing in the payor-corporation/persons as provided for by law, at the rate of
Philippines, by payor-corporation/persons as not less than one percent (1%) but not more than thirty-two
provided for by law, at the rate of not less than one percent (32%) thereof, which shall be credited against the
percent (1%) but not more than thirty-two percent income tax liability of the taxpayer for the taxable year:
(32%) thereof, which shall be credited against the Provided, That, beginning January 1, 2019, the rate of
income tax liability of the taxpayer for the taxable withholding shall not be less than one percent (1%) but not
year. more than fifteen percent (15%) of the income payment.
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
Sec. 58
(A) Quarterly Returns and Payments of Taxes (A) Quarterly Returns and Payments of Taxes Withheld. -
Returns and Withheld. - Taxes deducted and withheld under Taxes deducted and withheld under Section 57 by withholding
Payment of Taxes Section 57 by withholding agents shall be covered by agents shall be covered by a return and paid to, except in cases
Withheld at Source a return and paid to, except in cases where the where the Commissioner otherwise permits, an authorized agent
(A) Commissioner otherwise permits, an authorized agent bank, Revenue District Officer, Collection Agent, or duly
bank, Revenue District Officer, Collection Agent, or authorized Treasurer of the city or municipality where the
duly authorized Treasurer of the city or municipality withholding agent has his legal residence or principal place of
where the withholding agent has his legal residence business, or where the withholding agent is a corporation, where
or principal place of business, or where the the principal office is located.
withholding agent is a corporation, where the
principal office is located. The taxes deducted and withheld by the withholding agent shall
be held as a special fund in trust for the government until paid to
The taxes deducted and withheld by the withholding the collecting officers.
agent shall be held as a special fund in trust for the
government until paid to the collecting officers. The return for final withholding tax shall be filed and the
payment made within twenty-five (25) days from the close of
The return for final withholding tax shall be filed and each calendar quarter, while the return for creditable withholding
the payment made within twenty-five (25) days from taxes shall be filed and the payment made not later than the last
the close of each calendar quarter, while the return day of the month following the close of the quarter during which
for creditable withholding taxes shall be filed and the withholding was made.
payment made not later than the last day of the month
following the close of the quarter during which
withholding was made: Provided, That the
Commissioner, with the approval of the Secretary of
Finance, may require these withholding agents to pay
or deposit the taxes deducted or withheld at more
frequent intervals when necessary to protect the
interest of the government.
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
Sec. 62
SEC. 62. Exemption Allowed to Estates and
Exemption Allowed Trusts. - For the purpose of the tax provided for in
to Estates and Trusts this Title, there shall be allowed an exemption of REPEALED
Twenty thousand pesos (P20,000) [39] from the
income of the estate or trust.
Sec. 74
(A) In General. - Except as otherwise provided in (A) In General— Except as otherwise provided in this Section,
Declaration of this Section, every individual subject to income tax every individual subject to income tax under Sections 24 and
Income Tax for under Sections 24 and 25(A) of this Title, who is 25(A) of this Title, who is receiving self-employment income,
Individuals (A) (B) receiving self-employment income, whether it whether it constitutes the sole source of his income or in
constitutes the sole source of his income or in combination with salaries, wages and other fixed or
combination with salaries, wages and other fixed or determinable income, shall make and file a declaration of his
determinable income, shall make and file a estimated income for the current taxable year on or before May
declaration of his estimated income for the current 15 of the same taxable year. x xx
taxable year on or before April 15 of the same
taxable year. In general, 'self-employment income' (B) Return and Payment of Estimated Income Tax by
consists of the earnings derived by the individual Individuals.— The amount of estimated income as defined in
from the practice of profession or conduct of trade or Subsection (C) with respect to which a declaration is required
business carried on by him as a sole proprietor or by under Subsection (A) shall be paid in four (4) installments. The
a partnership of which he is a member. Nonresident first installment shall be paid at the time of declaration and the
Filipino citizens, with respect to income from without second and third shall be paid on August 15 and November 15 of
the Philippines, and nonresident aliens not engaged in the current year, respectively. The fourth installment shall be
trade or business in the Philippines, are not required paid on or before May 15 of the following calendar year when
to render a declaration of estimated income tax. The the final adjusted income tax return is due to be filed.
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
declaration shall contain such pertinent information
as the Secretary of Finance, upon recommendation of (C) xxx.
the Commissioner, may, by rules and regulations
prescribe. An individual may make amendments of a
declaration filed during the taxable year under the
rules and regulations prescribed by the Secretary of
Finance, upon recommendation of the Commissioner.
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
(2) Employee- x x x (2) Employee- x x x
(a) When to File. - On or before the date of (F) Year-end Adjustment.— x xx.”
commencement of employment with an
employer, the employee shall furnish the
employer with a signed withholding
exemption certificate relating to the personal
and additional exemptions to which he is
entitled.
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THE NATIONAL INTERNAL REVENUE CODE Tax Reform for Acceleration and Inclusion
TAX PROVISION OF 1997 (R.A. 10693)
(R.A. 8424)
filed hereunder shall be used by the employer
in the determination of the amount of taxes to
be withheld.
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