Amendments to National Internal Revenue Code 1957

Tax is calculated from the starting semester of the business.
Tax is not charged beyond the end of the semester when the business is abandoned.
No refund is allowed if the full yearly tax was paid despite abandonment.

Businesses with percentage taxes must file monthly returns and pay taxes within 20 days after each month.
Retiring business operators must notify authorities, file returns, and settle taxes within 20 days after closure.
Late payment incurs a 25% penalty of the tax due.
Willful neglect or fraudulent returns attract a 50% surcharge on the tax or deficiency.

A one-time 7% tax is imposed on the gross selling price or value of sales, barter, exchanges not specifically taxed elsewhere.
Manufacturers bear the tax liability.
Deduction allowed for cost of taxed materials used in manufacturing.
Special computation rules apply to sawmill operators, taxing 33.33% of the gross cost of logs purchased.
Detailed records and vouchers of purchases and sales must be maintained by sawmill operators.

The value of tax-free products used in manufacturing is deducted from the value of finished products for tax computations.

Operators of rope factories, sugar centrals, rice mills, coconut oil mills, corn mills, and desiccated coconut factories pay 2% tax on the gross value of the products.
Tax is based on the actual selling price or market value at factory or mill warehouse.
Products exported without re-entry to the Philippines are exempt from tax.
Small-scale rice and corn mills (16 horsepower or less) are exempt.
In contract manufacturing, tax on the planter's share is withheld and remitted by the operator.
Sugar refiners may deduct previously taxed raw sugar costs from the gross value.
Deduction also applies for materials previously subject to tax used in manufacturing.

A 3% tax on gross receipts applies to various contractors and operators across construction, installation, transport support, and service establishment sectors.
Restaurant and refreshment parlor operators pay 3%; bars and cafes serving wine or liquor pay 7%; establishments connected to cabarets or nightclubs pay 10%.
Separate invoices must be issued for food/refreshments and alcoholic beverage sales.

Keepers of garages, transport contractors, and common carriers (land, air, water) pay 2% tax on monthly gross receipts.
Exemptions include owners of bancas and animal-drawn two-wheeled vehicles.

Real estate broker: Persons acting for compensation in sales, purchases, loans, leases, or management of real estate.
Real estate salesman: Individuals employed by brokers to perform broker functions.
Activities performed on own property or pursuant to court order/power of attorney are excluded.
Real estate dealer: Persons engaged in the business of buying, selling, leasing, or renting property as principal with rental income over 4,000 pesos annually.
Owners of sugar lands under the special tax law are exempt from dealer classification.

Stock, real estate, commercial, customs, and immigration brokers pay 6% tax on gross compensation.
Cinematographic film owners, lessors, and distributors pay 2% on gross receipts.
Records maintained by these parties may be used for tax assessment.
Returns must be declared within prescribed monthly reporting periods.

Persons manufacturing, rectifying, or repacking taxable articles without paid privilege tax face fines (2,000-10,000 pesos), imprisonment (6 months to 6 years), and forfeiture of products and property.
Repeat offenders face higher fines (5,000-15,000 pesos) and longer imprisonment (2-12 years).
Persons engaged in businesses with fixed privilege taxes without payment face fines up to 1,000 pesos, imprisonment up to 6 months, or both.

Capital gains are exempt from income tax if invested within one year into new productive agricultural or industrial enterprises that save or produce foreign currency.