Addition of Ad Valorem Tax on Mining Output
- Imposes an ad valorem tax on the output of mines as a new subsection
Issuance of Secondary Cedula Certificates
- Collector of Internal Revenue issues a secondary cedula certificate free of charge upon proof of loss/destruction
- Must be without fraud or negligence
- Secondary certificate serves as a valid replacement
Liability and Credit on Percentage Taxes
- Percentage tax applies when quarterly receipts or sales equal or exceed 200 pesos
- Fixed privilege tax must be paid in advance
- Credit given against percentage tax if threshold met after fixed tax payment
- Quarterly business reporting is mandatory
Percentage Tax on Merchants
- One percent tax on gross sales value of goods, including raw, manufactured, domestic, or foreign
- Exemptions: retail sellers of exclusively domestic food products, retail dealers in tuba and similar liquors, and retail leaf tobacco dealers
Percentage Tax on Printers and Publishers
- Tax at 1% of gross receipts
- Exemptions for publications with regular intervals and fixed subscription prices, excluding those primarily publishing advertisements
Percentage Tax on Contractors, Warehousemen, and Related Businesses
- Imposes 1% tax on gross receipts for contractors, warehousemen, dockyard proprietors, utilities (light, heat, power), telecommunications services, and hospitality businesses
Percentage Tax on Carriers and Stable Keepers
- Tax at one percent on gross receipts of transportation contractors, common carriers, and keepers of livery stables and garages
- Exception: boat owners taxed under Bureau of Customs laws
Fixed Privilege Taxes on Certain Businesses
- Retail dealers in fermented liquors: 20 pesos
- Tobacco dealers: 12 pesos
- Retail leaf tobacco dealers: 20 pesos
- Merchants and related businesses subject to percentage tax: 8 pesos
- Proprietors of cockpits: 200 pesos plus 0.25 pesos per cockfight
- Race track owners: 300 pesos per race day
- Manufacturers and wholesale dealers in motor spirits and oils: 8 pesos
Definitions Pertaining to Tobacco Dealers and Motor Spirit Dealers
- Tobacco dealer: anyone selling cigars, cigarettes, or manufactured tobacco either personally or on commission
- Retail leaf tobacco dealer: sells leaf tobacco other than to registered dealers or manufacturers
- Planters of leaf tobacco exempted from leaf tobacco tax on their own product
- Manufacturer/wholesale dealer in motor spirits/oils: sells 400 liters or more at one time or is an importer/manufacturer
License Fees for Professional Categories
- Pharmacists, opticians, dentists: 40 pesos
- Procuradores judiciales, agents of business, insurance agents: 40 pesos
- "Agent of business" defined broadly to include agents dealing with public officers and those operating collecting, advertising, employment, or detective agencies
Specific Tax Rates on Alcohol
- Denatured alcohol produced from nipa, coconut, buri palm sap or cane juice/syrup/sugar: 0.35 pesos per proof liter
Exemption for Domestic Denatured Alcohol
- Domestic alcohol with at least 180 degrees proof (90% absolute alcohol) when properly denatured may be withdrawn from registered distilleries or bonded warehouses tax-free for fuel, light, power, or industrial use
Specific Tax on Fermented Liquors
- Six centavos per liter on beer, lager, ale, porter, and other fermented liquors except certain domestic varieties (e.g., tuba, bassi)
Specific Tax on Tobacco Products
- Sixty centavos per kilogram on manufactured tobacco products except cigars, cigarettes, and specially prepared chewing tobacco
- Forty-eight centavos per kilogram on specially prepared chewing tobacco
Specific Tax on Cigars and Cigarettes
- Six pesos per thousand cigars
- Cigarettes taxed as follows:
- Up to 2 kg per thousand: 1.20 pesos per thousand
- Over 2 kg per thousand: 2 pesos per thousand
- Handmade cigars and cigarettes made by consumers for personal use are exempt
Specific Tax on Motor Spirits and Mineral Oils
- Taxes per liter:
- Naphtha, gasoline, light distillates: 4 centavos
- Kerosene or petroleum: 1.5 centavos
- Lubricating oils: 4 centavos
- Denatured alcohol: 1.5 centavos
- Applies to locally manufactured and imported products
- Reporting and payment due on inventory before disposal
- Bonding required for removals prior to tax payment
- No double taxation when transferring between wholesalers
- Wholesale dealers selling only taxed products may be relieved from further privilege tax
Specific Tax on Coal and Coke
- One peso per metric ton
Privilege Tax on Outdoor Signs and Billboards
- Tax based on surface area:
- 1 peso per m² annually for signs on business buildings
- 2 pesos per m² annually for billboards and signs not on business buildings
- Minimum tax applies for signs under 1 m²
- Exemptions for signs displaying only business name/nature on business premises
- Prepayment discounts available
- Government may remove untaxed or offensive signs, with owner liable for removal expenses
- Appeal process to Secretary of Finance and Justice available
Ad Valorem Tax on Mining Output
- One and one-half percent tax on gross output's actual market value
- Deferred application until 1918 for mining concessions granted before April 11, 1899
- Tax assessed and collected before removal of output from mine locality
- Bonding allowed as security for deferred payment
- Periodic public assessment of market values by Collector of Internal Revenue
Mandatory Signage for Distillers, Rectifiers, and Wholesale Liquor Dealers
- Must display conspicuous signs with name/firm, registration status, and assessment number
- Signage applies also to manufacturers and wholesale dealers of motor spirits and mineral oils
Controlled Conditions for Denaturing Alcohol
- Process to occur only in distillery or approved bonded warehouse
- Transfer of alcohol for denaturing only under bond and strict regulatory conditions
Penalties for Unlawful Business Pursuits
- Conducting distilling, rectifying, wholesale/retail liquor, tobacco manufacturing/sales without privilege tax:
- Fine: 200 to 2,000 pesos
- Imprisonment: up to 6 months
- Confiscation of distilled spirits, stills, premises, and related properties for distillers or rectifiers
- For other businesses requiring fixed privilege tax but unpaid:
- Fine: up to 1,000 pesos
- Imprisonment: up to 6 months
Penalties for Failure to Make True Returns
- Failure to make required returns: fine up to 2,000 pesos or imprisonment up to 1 year
- False or fraudulent returns: fine up to 10,000 pesos or imprisonment up to 2 years
Penalties for Unlawful Use of Denatured Alcohol
- Prohibited to use denatured or industrial alcohol in beverage manufacture or medicinal preparations
- Violators face fines up to 1,000 pesos and/or imprisonment up to 1 year
- Also penalizes recovery or redistillation of denatured alcohol and use or sale of recovered alcohol
Penalties for Unlawful Removal of Mining Products
- First offense: fine up to 1,000 pesos and/or imprisonment up to 6 months; products forfeited
- Repeat offense:
- Imprisonment 1 month to 2 years
- For concessionaires/owners/managers or by their connivance: forfeiture of mining concession, rights, machinery, and unlawfully removed products
Effective Period of Tax Increases
- All tax increases effective from January 1, 1915 through December 31, 1915