Filing Obligations of Fiduciaries and Special Cases
- Guardians, trustees, executors, administrators, receivers, conservators, and other fiduciaries must file income tax returns for the person, trust, or estate they represent.
- The fiduciary or person making the return must take an oath affirming sufficient knowledge and correctness of the return.
- Joint fiduciaries may file a single return in the province of one fiduciary.
- Income of unmarried minors from property received from living parents is included in the parent's return.
Taxation of General Co-partnerships (Compania Colectiva)
- Registered general co-partnerships are not taxed as entities; only individual partners are taxed on their distributive shares.
- Partners must include their shares of profits on their returns, excluding interest on certain government obligations as specifically provided.
- Co-partnerships must, upon request, render accurate returns disclosing earnings and the names of individuals entitled to profits.
- Such partnerships have the privilege to fix their fiscal year and file returns accordingly.
Accounting Methods and Tax Computation
- Individuals may file returns using accounting bases other than actual receipts and disbursements if such bases clearly reflect income.
- Such alternative methods require approval and regulation by the Collector of Internal Revenue and Secretary of Finance.
Deductibility of Interest on Indebtedness
- Corporations may deduct interest paid on indebtedness except that incurred to purchase or carry tax-exempt obligations.
- Bonds guaranteed to be free from taxation do not allow deductions for taxes paid pursuant to such guaranties.
- For foreign income, only the portion of interest attributable to income derived from Philippine sources is deductible.
Corporate and Association Filing Requirements
- Corporations, joint-stock companies, partnerships, associations, and insurance companies must file annual net income returns by March 1, or within 60 days after fiscal year-end if a fiscal year is used.
- Returns must be sworn to by principal officers such as president and treasurer.
- Returns are filed at the location of the principal office or principal place of business in the Philippines.
- Returns received by local officers must be promptly forwarded to the Collector of Internal Revenue.
- Extensions for filing may be granted in meritorious cases.
Effectivity of the Act
- The amendments shall take effect on January 1, 1930, except where otherwise provided.