QuestionsQuestions (Republic Act No. 1148)
RA 1148 amends Section 24 of the National Internal Revenue Code (Commonwealth Act No. 466) to adjust the rate of tax on corporations, including special rules for certain institutions and dividend treatment.
Section 24, “Rate of tax on corporations,” of Commonwealth Act No. 466, as amended.
Every corporation organized in or existing under the laws of the Philippines, regardless of how created or organized, and similarly foreign corporations for income from sources within the Philippines.
Duly registered general co-partnerships ("compa\xc3\xb1ias colectivas").
A tax of twenty percent (20%) on the portion of total net income that does not exceed PHP 100,000.
A tax of twenty-eight percent (28%) on the amount by which total net income exceeds PHP 100,000.
Yes. A like tax rate applies to the total net income received in the preceding taxable year from all sources within the Philippines by every corporation organized or existing under laws of a foreign country.
They pay a tax of twelve percent (12%) on their total net income.
They pay a tax of ten percent (10%) on their total net income.
For dividends received by such corporation, only twenty-five percent (25%) thereof shall be returnable for purposes of the tax imposed by this section.
When the dividends are received from (1) a domestic corporation liable to tax under Chapter (the chapter containing Section 24) or (2) a domestic corporation engaged in new and necessary industry, as defined under Republic Act No. 901.
The provisions apply to income received from January 1, 1954.
It takes effect upon its approval.
The annual tax is levied, assessed, collected, and paid on the total net income received in the preceding taxable year.
Only the 20% rate applies to the amount not exceeding PHP 100,000; there is no amount exceeding PHP 100,000.