QuestionsQuestions (PRESIDENTIAL DECREE NO. 231)
Presidential Decree No. 231 governs the exercise by provinces, cities, municipalities, and barrios of their taxing and other revenue-raising powers in the Philippines.
Taxation must be uniform in each local subdivision, based on the taxpayer's ability to pay, levied only for public purposes, must not be unjust, excessive, oppressive, confiscatory, or contrary to law, public policy or national economic policy, cannot be collected by private persons, and revenues must benefit the local government imposing the tax.
The provincial board for provinces, the city council or municipal board for cities, the municipal council for municipalities, and the barrio council for barrios.
Local governments cannot impose documentary stamp tax, taxes on forest products, income taxes, customs duties (with exceptions), taxes on banks and insurance companies, export taxes on Philippine products, taxes on goods in transit, taxes on agricultural products sold by the farmer, and percentage taxes on sales except as provided.
Not exceeding one-fourth of one percent of the total consideration involved or of the assessed value, whichever is higher.
It is an annual tax levied on professionals and occupations with rates ranging from fifty to seventy-five pesos, depending on the profession or calling, payable to the province where the profession is practiced.
If not paid within the fixed time, surcharges, interests, and penalties apply, with a surcharge of fifty percent for willful neglect or fraudulent returns in addition to interest and penalties.
Seventy percent of the proceeds accrue to the general fund of the province and thirty percent is divided equally among the municipalities.
Certified true copies of all ordinances levying taxes must be published for three consecutive days in a newspaper of general circulation within the jurisdiction or posted in the local legislative hall and other conspicuous places within ten days after approval.
They may examine the books, accounts, and other pertinent records of any person or entity doing business within their jurisdiction during regular business hours, not more than once every quarter per establishment.
Local governments may collect delinquent taxes through distraint of personal property or by legal action, either simultaneously or separately.
Business means commercial activity customarily engaged in as a means of livelihood, involving some independence of judgment and power of decision.
Cities may levy and collect taxes, fees, and other impositions that provinces or municipalities may levy, including those in Sections 12, 13, 14, 15, and 16, usually at rates up to 50% higher than provinces or municipalities, except for uniform taxes.
No, a city may impose either the graduated fixed tax or the percentage tax on the same subject but not both.
Any officer or employee attempting enforcement after notice of disapproval or suspension may be dismissed from service.