THE EVOLUTION OF

PHILIPPINES TAXATION
 TAXATION
imposition of
compulsory levies on
individuals or entities
b y g o ve r n m e n t s . Ta xe s
are levied in almost
every country of the
world, primarily to
raise revenue for
government
expenditures, although
they serve other
purposes as well.

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THE POLICY OF ‘’’TAXATION IN
THE PHILIPPINES’’’ IS
GOVERNED CHIEFLY BY
THE CONSTITUTION OF THE
PHILIPPINES AND
THREE REPUBLIC ACTS.

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 CONSTITUTION: ARTICLE VI,
SECTION 28 OF THE
CONSTITUTION
states that “the rule of taxation shall
be uniform and equitable” and that
“Congress shall evolve a progressive
system of taxation.”

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 NATIONAL LAW: NATIONAL
INTERNAL REVENUE CODE
enacted as Republic Act No. 8424 or the ‘’Tax
Reform Act of 1997’’ and subsequent laws
amending it; the law was most recently
amended by Republic Act No. 10963 or the
‘’Tax Reform for Acceleration and Inclusion Act.

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 LOCAL LAWS

major sources of revenue for Taxes imposed at the national

the local government level are collected by
units (LGUs) are the taxes the Bureau of Internal
collected by virtue of Revenue (BIR), while those
Republic Act No. 7160 or the imposed at the local level
‘’Local Government Code of (i.e., provincial, city, municip
1991’’, and those sourced al, barangay) are collected by
from the proceeds collected a local treasurer’s office.
by virtue of a local ordinance.
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 HISTORICAL BACKGROUND
When martial law was declared in 1972, the
Tax research in the Philippines was
institutionalized with the enactment of
Republic Act (RA) No. 2211 (May 15,
1959) creating the Joint Legislative
Executive Tax Commission (JLETC).
Providing technical support to the
Commission Proper was a Technical Staff
which was formally organized on April 1,
1960.
commission proper of the JLETC was
dissolved. Recognizing, however, the vital role
of a tax research institution in the overall
economic development thrust of the New
Society, then President Ferdinand E. Marcos,
through the recommendation of the
Presidential Reorganization Committee,
decreed the conversion of the JLETC’s
Technical Staff to the National Tax Research
Center (NTRC). On December 6, 1972, by
virtue of Presidential Decree 74, the NTRC was
organized as a purely single-headed agency
under the administrative supervision of the
National Economic and Development
Authority (NEDA).
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More than a decade after, in another wave of government
reorganization brought by the ascendancy of Ms. Corazon
Aquino to the presidency in 1986, the NTRC was made an
attached agency of the Department of Finance (DOF) by virtue of
Executive Order No. 127 (January 30, 1987).

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 THANK YOU

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