Question & AnswerQ&A (Act No. 3605)
The income tax shall be computed upon the net income of each person subject thereto, received in each preceding calendar year ending December 31.
Every person of lawful age having an income of four thousand pesos or over for the taxable year is required to file a true and accurate return under oath on or before the first day of March following the taxable year.
Yes, the Collector of Internal Revenue has the authority to grant a reasonable extension of time for filing returns of income in meritorious cases.
Yes, a return may be filed by a representative if the person liable for the return is unable to file due to illness, absence, or nonresidence. Both the principal and the representative assume responsibility for the accuracy of the return.
Guardians, trustees, executors, administrators, receivers, conservators, corporations, partnerships, joint-accounts, or associations acting in fiduciary capacity must render a return of the income of the person, trust, or estate for whom or which they act.
The income of unmarried minors derived from property received from a living parent shall be included in the parent's income tax return.
Partners in a registered general co-partnership are liable for income tax only in their individual capacity on their share of the profits, excluding certain exempt interests. The co-partnership itself may be required to file a return of earnings and show distributive shares of income to partners.
Individuals keeping accounts on any basis other than actual receipts and disbursements may, subject to regulations, make their return on that basis if it clearly reflects their income.
Interest paid on indebtedness incurred or continued to purchase or carry tax-exempt obligations is not deductible. Also, no deduction is allowed for taxes paid on bonds with guarantees for tax-free interest.
The return must be sworn to by the president, vice-president, or other principal officer, and by the treasurer or assistant treasurer of the corporation or association.