QuestionsQuestions (Republic Act No. 969)
Republic Act No. 969, titled “An Act to Amend Subparagraph (b) of the First Paragraph of Section One Hundred Eighty-Eight of the National Internal Revenue Code, as Amended, Regarding Transactions and Persons Not Subject to Percentage Tax,” aims to amend the tax-exemption scope for certain transactions and sellers, particularly agricultural products and related items.
RA 969 amended subparagraph (b) of the first paragraph of Section 188 of the National Internal Revenue Code (Commonwealth Act No. 466, as amended).
Section 188 relates to transactions and persons not subject to percentage tax; RA 969 expands/clarifies what sales are excluded from percentage tax.
Yes. Agricultural products sold, bartered, or exchanged in the Philippines by the producer or owner of the land where produced are not subject to percentage tax, subject to the conditions stated in the law.
The seller must be the producer or the owner of the land where the agricultural products were produced.
For agricultural products, the text does not expressly limit the exemption to original state; it states the exemption applies to agricultural products as sold, bartered, or exchanged. (The “whether in their original state or not” phrase appears explicitly for fish and its by-products.)
Yes. It includes “the ordinary salt” when sold, bartered, or exchanged in the Philippines by the producer or owner of the land where produced.
The law includes “sold, bartered, or exchanged,” meaning the exemption covers these modes of transfer, not only cash sales.
Fish and its by-products sold, bartered, or exchanged in the Philippines by the fisherman or fishing operator are not subject to percentage tax.
No. The law expressly provides that fish and by-products are exempt “whether in their original state or not,” as long as sold/...).
It restricts the exemption to transactions occurring in the Philippines; products must be sold/bartered/exchanged “in this country” for the exemption to apply.
The seller must be the fisherman or the fishing operator.
No. The exemption is limited to sales/transactions made by the producer or owner of the land where produced (for agricultural products and ordinary salt).
RA 969 further amends the existing subparagraph (b) by revising and re-stating the categories of transactions and persons not subject to percentage tax—particularly covering agricultural products, ordinary salt, and fish and by-products under specific seller qualifications.
It takes effect upon its approval, as provided in Section 2 of the Act. It was approved on June 20, 1953.
It references the bill number and official gazette publication details where the law text appears, which is useful for locating the authoritative published version of the statute.