Question & AnswerQ&A (Republic Act No. 1065)
Republic Act No. 1065 is titled 'An Act to Extend the Effectivity of Republic Act Numbered Six Hundred,entitled "An Act to Prescribe a Graduated Scale for the Income Tax on Corporations by Amending Sections Twenty-Four and Fifty-Four of Commonwealth Act Numbered Four Hundred and Sixty-Six, otherwise known as the National Internal Revenue Code, as amended, for other purposes." Its main purpose is to extend the effectivity period of the income tax provisions on corporations prescribed under Republic Act No. 600.
Sections 24 and 54 of the National Internal Revenue Code, as amended, are affected by Republic Act No. 1065 through the extension of the graduated income tax scale on corporations.
The effectivity period of the provisions prescribing a graduated scale for the income tax on corporations is extended to cover income received from January 1, 1951 to December 31, 1955.
After December 31, 1955, the provisions of Sections 24 and 54 of the National Internal Revenue Code, as amended, shall again be in full force and effect.
It amends Section 3 to specify that the provisions of the act shall apply to income received between January 1, 1951 and December 31, 1955, after which the old provisions of the National Internal Revenue Code shall resume.
The Act took effect upon its approval on June 12, 1954.
The graduated scale prescribes different rates of income tax on corporations based on levels of income, which allows for progressive taxation and affects the corporation's tax liabilities accordingly.
No, this Act specifically applies only to income received within the period from January 1, 1951 to December 31, 1955.
Republic Act No. 1065 was enacted by the Senate and House of Representatives of the Philippines in Congress assembled.
It was necessary to extend the effectivity to continue applying the graduated income tax scale beyond the original expiration so that corporations would still be subject to the amended tax provisions until 1955, ensuring continuity in tax regulation and collection.