Question & AnswerQ&A (Republic Act No. 2376)
Republic Act No. 2376 is an act amending certain sections of Commonwealth Act No. 466, known as the National Internal Revenue Code, specifically addressing exemptions and percentage tax provisions.
Exemptions include persons with gross monthly sales or receipts not exceeding 200 pesos; Filipinos selling food products at retail in public market places; peddlers selling at retail domestic food products with stock not exceeding 100 pesos in value daily; producers working at home with daily production value not exceeding 5 pesos; owners of animal-drawn two-wheeled vehicles; owners of bancas; and government employees or persons devoted exclusively to religious, educational, charitable institutions or hospitals for the tax imposed by paragraph (B).
The term 'public market' includes tabu, talipapa, and other barrio markets.
Producers must be parents and children living as one family working in their own homes, with each capable person's daily production value not exceeding five pesos.
Excluded commodities include articles taxed under Title IV, agricultural products and ordinary salt sold by producers or owners, fish and by-products sold by fishermen, minerals sold by lessees or owners, articles taxed under section 189, and articles exported abroad by the manufacturer or producer.
Yes, persons whose gross monthly sales or receipts do not exceed 200 pesos are exempt from the percentage taxes imposed in these sections.
They are subject to a tax equivalent to three percent of their gross receipts.
They pay a three percent tax on their gross receipts.
They are subject to a seven percent tax on their gross receipts, with special provisions requiring separate invoices for food and liquor sales.
Establishments within or accessible to race tracks or jai-alai pay a twenty percent tax, and those within or accessible to cabarets or nightclubs pay a ten percent tax on their gross receipts.