QuestionsQuestions (Republic Act No. 2025)
Fixed taxes may be paid annually on or before January 20, or semi-annually on or before January 20 and July 20. Any person first beginning a business or occupation must pay the tax before engaging therein.
When the occupation or business is newly begun during any year, the tax is reckoned from the commencement of the current semester.
If the occupation or business is abandoned, the tax shall not be exacted for a longer period than to the end of the semester.
No. The taxpayer who elected to pay the tax in full for the year is not entitled to a refund corresponding to the unused period.
The taxpayer must file a true and complete return of gross monthly sales/receipts/earnings (or gross value of output actually removed from the factory/mill warehouse) and pay the tax due within 20 days after the end of each month.
They must notify the nearest internal revenue officer, file the return or declaration, and pay the tax due within 20 days after closing the business.
The tax amount is increased by 25%, and the increment becomes part of the tax.
A surcharge of 50% of the amount of the tax or deficiency tax is added. It is collected at the same time and in the same manner as part of the tax unless the tax was paid before discovery of falsity/fraud, in which case the surcharge is collected in the same manner as the tax.
A 7% tax equivalent is imposed on the gross selling price or gross value in money of the articles sold/transferred, assessed once only on original sale, barter, exchange, and similar transactions, paid by the manufacturer or producer.
Where the articles manufactured are made out of materials likewise subject to tax under Sec. 186 and Sec. 189, the total cost of such materials (as duly established) shall be deductible from the gross selling price or gross value in money of the manufactured articles.
The tax is computed on 33 1/3% of the gross cost of logs purchased during any given month intended for manufacture.
The gross cost includes freight, insurance, and similar charges incurred up to delivery to the mill site. They must keep complete records of log purchases with corresponding vouchers (official/auxiliary invoices or commercial invoices), and if commercial invoices cover only a portion of logs under an official invoice, the assessment numbers and names/addresses of vendors must be indicated. They must also keep complete records of lumber purchased for resale.
In determining the value of the finished article, the value of the tax-free product must be deducted.
A 2% tax on the gross value in money of all the rope/sugar/rice/coconut oil/ground or milled corn/desiccated coconut manufactured or milled, based on actual selling price or market value at the time these articles leave the factory or mill warehouse.
If they are removed for exportation and actually exported without returning to the Philippines—whether exported in original state or as an ingredient/part of any manufactured article or product.
The tax on the share pertaining to the planter or owner of the raw materials is charged to that planter/owner and withheld by the proprietor/operator of the factory/central/mill and paid to the Collector of Internal Revenue.
They are liable for the payment of the tax and are punished by a fine of not less than ₱2,000 nor more than ₱10,000 and imprisonment of not less than 6 months nor more than 6 years; the specified articles and certain related properties/interests used or connected with the illicit business are forfeited.
They are exempt if invested within one year from the end of the year they are earned in new productive agricultural or industrial enterprises which are dollar-saving or dollar-producing.