Question & AnswerQ&A (Republic Act No. 82)
The tax rate is three percent per annum upon the amount by which the total net income does not exceed two thousand pesos.
A tax of twelve percent is levied on the entire net income received from all sources within the Philippines, but if the income exceeds sixteen thousand five hundred pesos, the rates in Section 21 apply. Filing a true and accurate income return allows them to compute tax using Section 21 rates regardless of the income amount.
Section 23 allows personal exemptions as deductions from net income for the purpose of tax computation, though the specific exemptions are not detailed in the amendment provided.
Twelve percent of the total net income received in the preceding taxable year from all sources.
Yes, exemptions include labor, agricultural, or horticultural organizations not organized for profit; mutual savings banks without capital stock; fraternal beneficiary societies; cemetery companies for members; religious, charitable, scientific, cultural, or educational corporations; business leagues; civic leagues; and farmer associations organized for members' benefit.
Interest upon the obligations of the Government of the Republic of the Philippines or any political subdivision thereof, as provided by the issuing act.
Capital assets are properties held by taxpayers excluding stocks in trade or depreciable business properties. Gains or losses on capital assets held more than twelve months are considered at 50%, while those held twelve months or less are considered at 100%. Losses are allowed only to the extent of gains.
Interest paid on bonds, mortgages, deeds of trust, or similar obligations to nonresident alien individuals or citizens/residents must have twelve percent withheld unless exemptions are claimed through filing notices.
A tax equal to twelve percent of annual or periodical gains, profits, and income is withheld at the source by payors.
The repeal takes effect as of July 4, 1946.