Philippine National Internal Revenue Code (TAX Code)

NIRC OUTLINE 

TITLE I  -  ORGANIZATION AND FUNCTION OF THE BUREAU OF INTERNAL REVENUE

TITLE II  -  TAX ON INCOME

TITLE III  -  ESTATE AND DONOR'S TAXES

TITLE IV  -  VALUE- ADDED TAX

TITLE V - OTHER PERCENTAGE TAXES

TITLE VI - EXCISE TAXES ON CERTAIN GOODS

TITLE VII  -  DOCUMENTARY STAMP TAX

TITLE VIII  -  REMEDIES

TITLE IX  -  COMPLIANCE REQUIREMENTS

TITLE X  -  STATUTORY OFFENSES AND PENALTIES

TITLE XI  -  ALLOTMENT OF INTERNAL REVENUE

TITLE XII  -  OVERSIGHT COMMITTEE

TITLE XIII  -  REPEALING PROVISIONS

TITLE XIV  -  FINAL PROVISIONS


Source : http://www.bir.gov.ph/index.php/tax-code.html

i-Tax Amensty Mo Na Nga Iyan December 31, 2015 and prior years

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The Friar Lands Act or Philippine Act No. 1120

ACT NO. 1120  

AN ACT PROVIDING FOR THE ADMINISTRATION AND TEMPORARY LEASING AND SALE OF CERTAIN HACIENDAS AND PARCELS OF LAND, COMMONLY KNOWN AS FRIAR LANDS, FOR THE PURCHASE OF WHICH THE GOVERNMENT OF THE PHILIPPINE ISLANDS HAS RECENTLY CONTRACTED, PURSUANT TO THE PROVISIONS OF SECTIONS SIXTY-THREE, SIXTY-FOUR AND SIXTY-FIVE OF AN ACT OF THE CONGRESS OF THE UNITED STATES, ENTITLED "AN ACT TEMPORARILY TO PROVIDE FOR THE ADMINISTRATION OF THE AFFAIRS OF CIVIL GOVERNMENT IN THE PHILIPPINE ISLANDS, AND FOR OTHER PURPOSES," APPROVED ON THE FIRST DAY OF JULY, NINETEEN HUNDRED AND TWO

WHEREAS, pursuant to the provisions of section sixty-three, sixty-four, and sixty-five of an Act of the Congress of the United States, entitled "An Act temporarily to provide for the administration of the affairs of civil government in the Philippine Island, and for other purposes," approved July first, nineteen hundred and two, the Government of the Philippine Islands, on the twenty-second day of December, nineteen hundred and three, entered into contracts with the Philippine Sugar Estates Development Company, Limited, La Sociedad Agricola de Ultramar, the British-Manila Estates Company, Limited, and the Recoleto Order of the Philippine Islands, for the purchase of about one hundred and sixty-four thousand one hundred and twenty-seven hectares of land, situated in the provinces of Laguna, Bulacan, Cavite, Bataan, Cebu, Rizal, Isabela, and Mindoro, for the aggregate sum of seven million two hundred and thirty-nine thousand seven hundred and eighty-four dollars and sixty-cents, money of the United States; and 

WHEREAS, in said contracts of purchase it was provided, among other things, that the Government of the Philippine Islands should have a period of six months from the date of said contracts within which to examine the titles to said lands, and also within which to survey the same in order to ascertain whether there is the quantity of land specified in said contracts, and, in the event there is not, that a proportionate reduction shall be made in the amounts agreed to be paid therefor; and it was further provided in said contracts that the said parties, so agreeing to sell obligated themselves to convey good and indefeasible titles to said lands by proper conveyances; and

WHEREAS, by said section sixty-five of said Act of Congress the Government of the Philippine Islands is empowered to lease the said lands after their acquisition for a period not exceeding three years, and to sell the same on such terms and conditions as it may prescribe, subject to the limitations and conditions contained in said Act of Congress: Provided, That all deferred payments and the interest thereon shall be payable in the money prescribed for the payment of principal and interest of the bonds authorized to be issued and sold for the purpose of realizing the money necessary to pay for said lands by section sixty-four of said Act of Congress, and that said deferred payments shall bear interest at the rate borne by said bonds: And provided, further, That all monies realized or received from the sales or other disposition of said lands, or by reason thereof, shall constitute a trust fund for the payment of principal and interest of said bonds, and also constitute a sinking fund for the payment of said bonds at their maturity: And provided further, That actual settlers and occupants at the time said lands are acquired by the government shall have the preference over all others to lease, purchase, or acquire their landholdings within such reasonable time as may be determined by said government; and

WHEREAS, the said lands are not "public lands" in the sense in which those words are used in the Public Land Act, Number Nine Hundred and twenty-six, and cannot be acquired or leased under the provisions thereof, and it is necessary to provide proper agencies for carrying out the terms of said contracts of purchase and the requirements of said Act of Congress with preference to the leasing and selling of said lands and the creation of a sinking fund to secure the payment of the bonds so issued; Now, therefore.

Section 1. The Civil Governor is authorized and directed to have careful examination made to ascertain the sufficiency and soundness of the titles to said land so contracted to be purchased by the Government of the Philippine Islands from the said corporations as set forth in the preamble hereof,

His action in employing the firm of Del Pan, Ortigas and Fisher, Attorneys-at-law in the city of Manila, to make such examination and also to perform all legal services required of them in completing such purchases and thereafter in the leasing and selling of said lands as hereinafter provided, they to be compensated for their services at the rate of five thousand five hundred dollars per annum, payable monthly, for such time as in the opinion of the Civil Governor their services may be needed, is hereby approved and confirmed. 

Sec. 2. The Consulting Engineer to the Commission is hereby directed to have careful surveys made of the said haciendas and tracts of land in order to ascertain with accuracy and certainty whether there is the amount of land in each of said haciendas and tracts specified in said contracts, and for that purpose he is empowered to put in the field and maintain the necessary surveying parties, and any funds in his hands at the present time not in terms devoted to defraying the cost of specific public works are hereby declared available for the purpose. As soon as these surveys shall have been completed he shall make report of the results thereof to the Civil Governor. Such steps as have already been taken by the Consulting Engineer by direction of the Civil Governor looking to the survey of said haciendas and lands are approved and confirmed.

Sec. 3. The firm of Del Pan, Ortigas and Fisher is also directed, as soon as the examination of the title deeds to said property shall have been completed, to make report of the result of their investigation in that behalf to the Civil Governor, and under his direction to supervise the final deeds of conveyance of said lands by said corporations to the Government of the Philippine Islands. The Civil Governor is also directed to submit their report together with the said deeds to the Attorney-General for his opinion.

Sec. 4. The Civil Governor is hereby empowered, when it shall have been ascertained that the titles to said lands are perfect and indefeasible and proper instruments of conveyance are tendered by said corporations, to direct the payment to the corporations named in the preamble of the several sums agreed to be paid for said lands, and to that end to draw the warrants of the Government of the Philippine Islands upon the sum realized from the sale of the bonds issued and sold as provided in Act Numbered One thousand and thirty-four.

Sec. 5. When the titles to said lands are finally vested in the Government of the Philippine Islands, they shall be under the immediate control and direction of the Bureau of Public Lands. The Chief of the Bureau of Public Lands is empowered and directed, pending the completion of the purchase of said lands, to receive, take charge of, and carefully preserve the said contracts of sale and purchase and all muniments, documents, title deeds or other papers pertaining to said lands, and all field notes, surveys, and other data relating thereto, and also the deeds of conveyance hereafter made pursuant to the terms of said contracts of sale and purchase, and thereafter to keep and preserve the same, except as required for registration of said lands.

Sec. 6. The title, deeds and instruments of conveyance pertaining to the lands in each province, when executed and delivered by said grantors to the Government and placed in the keeping of the Chief of the Bureau of Public Lands, as above provided, shall be by him transmitted to the register of deeds of each province in which any part of said lands lies, for registration in accordance with law. But before transmitting the title, deeds, and instruments of conveyance in this section mentioned to the register of deeds of each province for registration, the Chief of the Bureau of Public Lands shall record all such deeds and instruments at length in one or more books to be provided by him for that purpose and retained in the Bureau of Public Lands, when duly certified by him shall be received in all courts of the Philippine Islands as sufficient evidence of the contents of the instrument so recorded whenever it is not practicable to produce the originals in court. (Section 1, Act No. 1287).

Sec. 7. Upon the vesting of the titles to said lands in the Government of the Philippine Islands by proper deeds of conveyance, or sooner if so directed by the Civil Governor, the Chief of the Bureau of Public Lands shall ascertain the names and residences of the actual, bona fide settlers and occupants then in possession of said lands or of any portion of them, together with the extent of their several holdings and the character and value thereof. He is also directed to ascertain from said occupants whether they desire to purchase their holdings upon the terms prescribed in the succeeding sections.

Provided, That the failure on the part of the occupants to state their desire to lease or purchase said lands shall not be understood to mean that they do not desire to acquire them. In case of such failure it shall be the duty of the Director of Lands, or his agents, to enjoin such occupants to state their desire in writing within the period of eight days from the date of such injunction, and their failure to do so shall be understood to mean that such occupants do not desire either to lease or to purchase said lands. The Director of Lands shall neither lease nor sell the said lands to any other person until the foregoing requirements shall have been complied with, and any contracts of lease of sale hereafter executed without them shall be null and void. (Section 1, Act No. 1933.)

Sec. 8. In case any occupant in possession does not desire to purchase his holding, but does desire to lease the same, then it shall be the duty of the Chief of the Bureau of Public Lands, after vesting of title, to see that such occupant attorns in due form to the Government and enters into a lease with the usual covenants and agrees to pay a reasonable rental for the use and occupation of his holding. Such rental shall be fixed by the Chief of the Bureau of Lands, but in no instance shall any lease be made for a longer term than three years.

Sec. 9. In the event the Director of Lands should find any of said lands vacant, he is directed to take possession and charge thereof, and he may either lease such unoccupied lands for a term not exceeding three years, or sell same, as may be solicited, and in making such leases or such sales he shall proceed as provided in section eleven of this Act: Provided, however, That the sale made to an individual shall not exceed one hundred and forty-four hectares and to a corporation shall not exceed one thousand and twenty-four hectares: And provided, further, That this limitation shall not apply to sales made to a provincial or municipal government or to any other branch, subdivision, or entity of the Government. (Section 1, Act No. 3323.)

Sec. 10. Should he find any of the said lands in the possession of a person or persons declining either to buy or to rent, as above set forth, he shall take possession thereof if he can do so peaceably, and if not he shall begin proper legal proceedings in the Court of Land Registration to settle title and to oust him or them from his or their holdings and, upon adjudication in favor of the Government, shall likewise take possession of the same with the same power and authority as though originally vacant. He shall not, however, sell any of the main hacienda houses or other large and substantial buildings save upon a resolution of the Commission authorizing him to do so.

Sec. 11. Should any person who is the actual and bona fide settler upon, and occupant of, any portion of said lands at the time the same is conveyed to the Government of the Philippine Islands desire to purchase the land so occupied by him, he shall be entitled to do so at the actual cost thereof to the Government, and shall be granted fifteen years from the date of the purchase in which to pay for the same in equal annual installments, should he so desire paying interest at the rate of four per centum per annum on all deferred payments.

And the contracts of sale made prior to the approval of this Act may be extended, in the discretion of the Director of Lands, for a period of not more than ten years from the date on which said contracts must expire under the provisions of Act Numbered Eleven hundred and twenty. The terms of purchase shall be agreed upon between the purchaser and the Director of Lands, subject to the approval of the Secretary of Agriculture and Natural Resources.

Both in case of lease and of sale of vacant lands under the provisions of section nine of this Act, the Director of Lands shall notify the municipal president or municipal presidents of the municipality or municipalities in which said lands lie of said lease or sale before the same takes place. Upon receipt of such notification by said municipal president or municipal presidents the latter shall publish the same for three consecutive days, by bandillos, in the poblacion and barrio or barrios affected, and shall certify all these acts to the Director of Lands who shall then, and not before, execute a lease or proceed to make the said sale with preference, other conditions being equal, to the purchaser who has been a tenant or bona fide occupant at any time of the said lands or part thereof, and if there has been more than one occupant to the last tenant or occupant: Provided, however, That no lease or sale of vacant lands made in accordance with this section shall be valid nor of any effect without the requisite as to publication by bandillos, above provided: Provided, further, that the provisions of this paragraph shall not apply to leases or sales made to any provincial or municipal government or any subdivision, branch, or entity of the Government. (Section 2, Act No. 3323.)

Sec. 12. It shall be the duty of the Chief of the Bureau of Public Lands by proper investigation to ascertain what is the actual value of the parcel of land held by each settler and occupant, taking into consideration the location and quality of each holding of land, and any other circumstances giving its value. The basis of valuation shall likewise be, so far as practicable, such that the aggregate of the values of all the holdings included in each particular tract shall be equal to the cost to the Government to the entire tract, including the cost of surveys, administration and interest upon the purchase money to the time of sale. When the cost thereof shall have been thus ascertained, the Chief of the Bureau of Public Lands shall give the said settler and occupant a certificate which shall set forth in detail that the Government has agreed to sell to such settler and occupant the amount of land so held by him, at the price so fixed, payable as provided in this Act at the office of the Chief of Bureau of Public Lands, in gold coin of the United States or its equivalent in Philippine currency, and that upon the payment of the final installment together with all accrued interest the Government will convey to such settler and occupant the said land so held by him by proper instrument of conveyance, which shall be issued and become effective in the manner provided in section one hundred and twenty-two of the Land Registration Act. The Chief of the Bureau of Public Lands shall, in each instance where a certificate is given to the settler and occupant of any holding, take his formal receipt showing the delivery of such certificate, signed by said settler and occupant.

Sec. 13. The acceptance by the settler and occupant of such certificate shall be considered as an agreement by him to pay the purchase price so fixed and in the installments and at the interest specified in the certificate, and he shall from such acceptance become a debtor to the Government in the amount together with all accrued interest. In the event that any such settler and occupant may desire to pay for his holding of said lands in cash, or within a shorter period of time than that above specified, he shall be allowed to do so, and if payment be made in cash the lands shall at once be conveyed to him as above provided. But if purchase is made by installments, the certificate shall so state in accordance with the facts of the transaction; Provided, however, That every settler and occupant who desires to purchase his holding must enter into the agreement to purchase such holding by accepting the said certificate and executing the said receipt whenever called on to do so by the Chief of the Bureau of Public Lands, and a failure on the part of the settler and occupant to comply with this requirement shall be considered as a refusal to purchase, and he shall be ousted as above provided and thereafter his holding may be leased or sold as in case of unoccupied lands: And provided further, That the Chief of the Bureau of Public Lands in this discretion may require to any settler and occupant so desiring to purchase that, pending the investigation requisite to fix the precise extent of his holding and its cost he shall attorn to the Government as its tenant and pay a reasonable rent for the use of his holding; but no such lease shall be for a longer term that three years, and refusal on the part of any settler and occupant so desiring to purchase to execute a lease pending such investigation shall be treated as a refusal either to lease or to purchase, and the Chief of the Bureau of Public Lands shall proceed to oust him as in this Act provided.

Sec. 14. Provided, That, when by reason of fire, flood, drought, or other calamity arising in consequence of the act of God or of the public enemy, the crops of a lessee or purchaser shall be damaged or destroyed to such an extent that the prevailing market value of the harvest for the year in which such calamity occurs shall be less than one-half of the value of an average annual harvest, the Director of Lands, by administrative order, shall suspend the collection of rental, or the installment of the purchase price, or interest due to the deferred payments, or both installment and interest, corresponding to the period of such calamity, if it shall be made to appear to his satisfaction that such loss has actually occurred, without contributory negligence on the part of said lessee or purchaser, and that the latter has no sufficient income other than that derived from the sale of his crops from which to make payment of the rental or installment and interest due.

The rental or installment or interest so suspended shall be distributed through the periods remaining on the contract of lease or the sale certificate.

Sec. 15. The Government hereby reserves the title to each and every parcel of land sold under the provisions of this Act until the full payment of all installments or purchase money and interest by the purchaser has been made, and any sale or encumbrance made by him shall be invalid as against the Government of the Philippine Islands and shall be in all respects subordinate to its prior claim.

The right of possession and purchase acquired by certificates of sale signed under the provisions hereof by purchasers of friar lands, pending final payment and the issuance of title, shall be considered as personal property for the purposes of serving as security for mortgages, and shall be considered as such in judicial proceedings relative to such security. (Section 1, Act No. 2642.)

Sec. 16. In the event of the death of a holder of a certificate the issuance of which is provided for in section twelve hereof, prior to the execution of a deed by the Government to any purchaser, the interest of the holder of the certificate shall descend and deed shall be issued to the persons who under the laws of the Philippine Islands would have taken had the title been perfected before the death of the holder of the certificate, upon proof of compliance with all the requirements of the certificate. In case the holder of the certificate shall have sold his interest in the land before having complied with all the conditions thereof, the purchaser shall have all the rights of the holder of the certificate upon presenting his assignment to the Chief of the Bureau of Public Lands for registration. (Section 1, Act No. 2945.)

Sec. 17. In the event that any lessee or purchaser of land under the provisions of this Act should fail to pay his rent or any installment of purchase money and interest thereon, or accrued interest on any installment not due, when and as the same matures, it shall be the duty of the chief of the Bureau of Public Lands at once to protect the Government from loss. In the case of a lease, when the lessee is delinquent in payment of rent, the Chief of the Bureau of Public Lands is empowered to declare the lease forfeited, making proper entry to that effect in the books of his office and giving notice thereof to the tenant, and to enter upon and take possession of the land held by the lessee and bring suit against the lessee for all rent due; in the case of a delinquent purchaser, the Chief of the Bureau of Public Lands may enforce payment of any past-due installment and interest by bringing suit to recover the same with interest thereon, and also to enforce the lien of the Government against the land by selling the same in the manner provided by Act Numbered One Hundred and Ninety for the foreclosure of mortgages. In the event of such sale the purchaser at such sale shall acquire a good and indefeasible title. The proceeds of sale shall be applied to the payment of the costs of court and of all installments due or to become due on such land. If the proceeds of the sale are sufficient to pay all delinquent installments as well as all future installments and all costs of the litigation there shall be no further claim or liability against the original purchaser. If the proceeds of the sale of said lands should amount to more than sufficient to pay all purchase money and interest due the Government and cost of suit, the surplus thereof shall be returned to the original purchaser, or to the person entitled thereto.

Sec. 18. No lease or sale made by Chief of the Bureau of Public Lands under the provisions of this Act shall be valid until approved by the Secretary of the Interior.

Sec. 19. No purchaser or lessee under this Act shall acquire any exclusive rights to any canal, ditch, reservoir, or other irrigation works, or to any water supply upon which such irrigation works are or may be dependent, but all of such irrigation works and water supplies shall remain under the exclusive control of the Government of the Philippine Islands to be administered under the direction of the Chief of the Bureau of Public Lands for the common benefit of those interests dependent upon them. And the Government reserves as a part of the contract of sale in each instance the right to levy an equitable contribution or tax for the maintenance of such irrigation works, the assessment of which shall be based upon the amount of benefits received, and each purchaser under this Act, by accepting the certificate of sale or deed herein provided to be given, shall be held to assess thereto. And it is further provided that all lands leased or conveyed under this Act shall remain subject to the right of way of such irrigation canals, ditches, and reservoirs as now exist or as the Government may hereafter see fit to construct.

Sec. 20. All persons receiving title to lands under the provisions of this Act shall hold such lands subject to the same public servitudes as existed upon lands owned by private persons under the sovereignty of Spain, including those with reference to the literal of the sea and the banks of navigable rivers upon which rafting may be done.

Sec. 21. The Civil Governor, when authorized by resolution of the Commission, may, by proclamation, designate any tract or tracts of said lands as nonalienable, and reserve the same for public use, and thereafter such tracts shall not be subject to sale, lease, or other disposition under this Act.

Provided, however, That in petition by any provincial or municipal government, or branch of the Insular Government, or any Government entity, the Governor-General may, by executive order, exempt from lease, sale or other disposition any unsold or vacant land for the public service or use; and such provincial or municipal government, or branch of the Insular Government or Government entity shall pay to the friar lands sinking fund the full value of the property so reserved, together with the accrued interest thereon. (Section 3, Act No. 3509.)

Sec. 22. It shall be the duty of the Chief of the Bureau of Public Lands to make quarterly reports, through the Secretary of the Interior, to the Commission showing the lands leased or sold by him in accordance with the provisions of this Act, the amounts of money derived from such rentals and sales, and such other information as in his opinion may be of value to the Commission in connection with the said lands and their administration and disposition as provided by this Act. Both the Secretary of the Interior and the Chief of the Bureau of Public Lands shall have the right to require of the special counsel named in the first section hereof, or of their successors, such advice and assistance as from time to time may be required by them in the performance of their duties under this Act, and it shall be the duty of said counselors to give such legal advice and assistance.

Sec. 23. All moneys derived by the Chief of the Bureau of Public Lands from the leasing or sale of said lands, or from interest or deferred payments thereon, shall by him be promptly deposited in the Insular Treasury. Such money shall be by the Treasurer held separate and apart from general insular funds and shall constitute a trust fund for the payment of the principal and interest of the seven million two hundred thirty-seven thousand dollars of bonds, issued and sold by the Secretary of War in the name and on behalf of the Government of the Philippine Islands for the purpose of raising money to pay the purchase price of said lands as provided in Act Numbered One thousand and thirty-four, entitled "An Act providing for the issue of bonds of the Government of the Philippine Islands to the amount of seven million two hundred and thirty-seven thousand dollars, gold coin of the United States of the present standard value, for the purpose of acquiring funds for the payment of the purchase price of certain large tracts of land in the Philippine Islands, commonly known as the Friar Lands, pursuant to the provisions of sections sixty-three, sixty-four, and sixty-five of the Act of Congress entitled "An Act temporarily to provide for the administration of the affairs of civil government in the Philippine Islands, and for other purposes, approved July first, nineteen hundred and two." Said money shall also constitute a sinking fund for the payment of said bonds at maturity and may be invested and reinvested in safe interest-bearing bonds or other securities which shall likewise be held by the Treasurer as a part of such sinking fund, and all interest, dividend, or profits derived from said bonds or other securities thus purchased shall likewise be a part of such sinking fund and may in turn be invested and reinvested in bonds or other securities. All purchases of bonds or other securities by the Treasurer shall be subject to the approval of the Secretary of Finance and Justice.

Sec. 24. The Chief of the Bureau of Public Lands, under the supervision of the Secretary of the Interior, shall prepare and issue such forms and instructions, consistent with this Act, as may be necessary and proper to carry into effect all the provisions hereof that are to be administered by or under the direction of the Bureau of Public Lands, and for the conduct of all proceedings arising under such provisions.

Sec. 25. The sum of ten thousand pesos, Philippine currency, is hereby appropriated, out of any funds in the Insular Treasury not otherwise appropriated, for the purpose of paying the salary of the special counsel referred to in the first section hereof and for making the investigations and surveys required hereby and for the general carrying out of the provisions of this Act.

Sec. 26. The short title of this Act shall be "The Friar Lands Act."

Sec. 27. The public good requiring the speedy enactment of this bill, the passage of the same is hereby expedited in accordance with section two of "An Act prescribing the order of procedure by the Commission in the enactment of laws," passed September twenty-six, nineteen hundred.

Sec. 28. This Act shall take effect on its passage.

Enacted, April 26, 1904

SEC. 165. Establishment of Distillery Warehouse

SEC. 164. Information to be Given by Manufacturers, Importers, Indentors, and Wholesalers of any Apparatus or Mechanical Contrivance Specially for the Manufacture of Articles Subject to Excise Tax and Importers, Indentors, Manufacturers or Sellers of Cigarette Paper in Bobbins, Cigarette Tipping Paper or Cigarette Filter Tips

SEC. 163. Preservation of Invoices and Stamps

SEC. 162. Records to be Kept by Dealers in Leaf Tobacco

SEC. 161. Records to be Kept by Wholesale Dealers

SEC. 160. Manufacturers' and Importers' Bond

SEC. 159. Proof of Exportation; Exporter's Bond

SEC. 158. Storage of Goods in Internal-revenue Bonded Warehouses

SEC. 157. Removal of Articles After the Payment of Tax

SEC. 156. Labels and Form of Packages

SEC. 155. Manufacturers to Provide Themselves with Counting or Metering Devices to Determine Production

SEC. 154. Premises Subject to Approval by Commissioner

SEC. 153. Records to be Kept by Manufacturers; Assessment Based Thereon

SEC. 152. Extent of Supervision Over Establishments Producing Taxable Output.

SEC. 151. Mineral Products

SEC. 150. Non-essential Goods

SEC. 149. Automobiles

SEC. 148. Manufactured Oils and Other Fuels

SEC. 147. Definition of Terms

SEC. 146. Inspection Fee

Sec. 145. Cigars and Cigarettes

SEC. 144. Tobacco Products

Sec. 143. Fermented Liquor

SEC. 142. Wines

SEC. 141. Distilled Spirits

SEC. 140. Removal of Tobacco Products without Prepayment of Tax

SEC. 146. Inspection Fee

SEC. 139. Removal of Damaged Liquors Free of Tax

SEC. 138. Removal of Fermented Liquors to Bonded Warehouse

SEC. 137. Removal of Spirits Under Bond for Rectification

SEC. 136. Denaturation, Withdrawal and Use of Denatured Alcohol

SEC. 135. Petroleum Products Sold to International Carriers and Exempt Entities or Agencies

SEC. 134. Domestic Denatured Alcohol

SEC. 133. Removal of Wines and distilled Spirits for Treatment of Tobacco Leaf

SEC. 132. Mode of Computing Contents of Cask or Package

SEC. 131. Payment of Excise Taxes on Imported Articles

SEC. 130. Filing of Return and Payment of Excise Tax on Domestic Products

SEC.129. Goods subject to Excise Taxes

SEC. 128. Returns and Payment of Percentage Taxes

SEC. 127. Tax on Sale, Barter or Exchange of Shares of Stock Listed and Traded through the Local Stock Exchange or through Initial Public Offering

SEC. 126. Tax on Winnings

SEC. 125. Amusement Taxes

SEC. 124. Tax on Agents of Foreign Insurance Companies

SEC. 123. Tax on Life Insurance Premiums

SEC. 122. Tax on Other Non-Bank Financial Intermediaries

SEC. 121. Tax on Banks and Non-Bank Financial Intermediaries Performing Quasi- Banking Functions

SEC. 120. Tax on Overseas Dispatch, Message or Conversation Originating from the Philippines

SEC. 119. Tax on Franchises

SEC. 118 Percentage Tax on International Carriers

SEC. 117. Percentage Tax on Domestic Carriers and Keepers of Garages

SEC. 116. Tax on Persons Exempt from Value-Added Tax (VAT)

SEC. 115. Power of the Commissioner to Suspend the Business Operations of a Taxpaye

SEC. 114. Return and Payment of Value-Added Tax

SEC. 113. Invoicing and Accounting Requirements for VAT-Registered Persons

SEC. 112. Refunds or Tax Credits of Input Tax

SEC. 111. Transitional/Presumptive Input Tax Credits

SEC. 110. Tax Credits

SEC. 109. Exempt Transactions

SEC. 108. Value-added Tax on Sale of Services and Use or Lease of Properties

SEC. 107. Value-Added Tax on Importation of Goods

SEC. 106. Value-Added Tax on Sale of Goods or Properties

SEC. 105. Persons Liable

SEC. 104. Definitions

SEC. 103. Filing of Return and Payment of Tax

SEC. 102. Valuation of Gifts Made in Property

SEC. 101. Exemption of Certain Gifts

SEC. 100. Transfer for Less Than Adequate and Full Consideration

SEC. 99. Rates of Tax Payable by Donor

SEC. 98. Imposition of Tax

SEC. 97. Payment of Tax Antecedent to the Transfer of Shares, Bonds or Rights

SEC. 96. Restitution of Tax Upon Satisfaction of Outstanding Obligations

SEC. 95. Duties of Certain Officers and Debtors

SEC. 94. Payment before Delivery by Executor or Administrator

SEC. 93. Definition of Deficiency

SEC. 92. Discharge of Executor or Administrator from Personal Liability

SEC. 91. Payment of Tax

SEC. 90. Estate Tax Returns

SEC. 89. Notice of Death to be Filed

SEC. 88. Determination of the Value of the Estate

SEC. 87 Exemption of Certain Acquisitions and Transmissions

SEC. 86. Computation of Net Estate

SEC. 85. Gross Estate

SEC. 84. Rates of Estate Tax

SEC. 83. Statements and Returns

SEC. 82. Return and Payment in Case of Government Employees

SEC. 81. Filing of Return and Payment of Taxes Withheld

SEC. 80. Liability for Tax

SEC. 79. Income Tax Collected at Source

SEC. 78. Definitions

SEC. 77. Place and Time of Filing and Payment of Quarterly Corporate Income Tax

SEC. 76. - Final Adjustment Return

SEC. 75. - Declaration of Quarterly Corporate Income Tax

SEC. 75. - Declaration of Quarterly Corporate Income Tax. - Every corporation shall file in duplicate a quarterly summary declaration of its gross income and deductions on a cumulative basis for the preceding quarter or quarters upon which the income tax, as provided in Title II of this Code, shall be levied, collected and paid. The tax so computed shall be decreased by the amount of tax previously paid or assessed during the preceding quarters and shall be paid not later than sixty (60) days from the close of each of the first three (3) quarters of the taxable year, whether calendar or fiscal year.

Source: https://www.bir.gov.ph/index.php/tax-code.html#title2

SEC. 74. Declaration of Income Tax for Individuals.

SEC. 74. Declaration of Income Tax for Individuals. -

(A) In General. - Except as otherwise provided in this Section, every individual subject to income tax under Sections 24 and 25(A) of this Title, who is receiving self-employment income, whether it constitutes the sole source of his income or in combination with salaries, wages and other fixed or determinable income, shall make and file a declaration of his estimated income for the current taxable year on or before April 15 of the same taxable year. In general, 'self-employment income' consists of the earnings derived by the individual from the practice of profession or conduct of trade or business carried on by him as a sole proprietor or by a partnership of which he is a member. Nonresident Filipino citizens, with respect to income from without the Philippines, and nonresident aliens not engaged in trade or business in the Philippines, are not required to render a declaration of estimated income tax. The declaration shall contain such pertinent information as the Secretary of Finance, upon recommendation of the Commissioner, may, by rules and regulations prescribe. An individual may make amendments of a declaration filed during the taxable year under the rules and regulations prescribed by the Secretary of Finance, upon recommendation of the Commissioner.

(B) Return and Payment of Estimated Income Tax by Individuals. - The amount of estimated income as defined in Subsection (C) with respect to which a declaration is required under Subsection (A) shall be paid in four (4) installments. The first installment shall be paid at the time of the declaration and the second and third shall be paid on August 15 and November 15 of the current year, respectively. The fourth installment shall be paid on or before April 15 of the following calendar year when the final adjusted income tax return is due to be filed.

(C) Definition of Estimated Tax. - In the case of an individual, the term 'estimated tax' means the amount which the individual declared as income tax in his final adjusted and annual income tax return for the preceding taxable year minus the sum of the credits allowed under this Title against the said tax. If, during the current taxable year, the taxpayer reasonable expects to pay a bigger income tax, he shall file an amended declaration during any interval of installment payment dates.

Source: https://www.bir.gov.ph/index.php/tax-code.html#title2

SEC. 73. Distribution of Dividends or Assets by Corporations

SEC. 73.  Distribution of Dividends or Assets by Corporations

(A) Definition of Dividends. - The term 'dividends' when used in this Title means any distribution made by a corporation to its shareholders out of its earnings or profits and payable to its shareholders, whether in money or in other property.

Where a corporation distributes all of its assets in complete liquidation or dissolution, the gain realized or loss sustained by the stockholder, whether individual or corporate, is a taxable income or a deductible loss, as the case may be.

(B) Stock Dividend. - A stock dividend representing the transfer of surplus to capital account shall not be subject to tax. However, if a corporation cancels or redeems stock issued as a dividend at such time and in such manner as to make the distribution and cancellation or redemption, in whole or in part, essentially equivalent to the distribution of a taxable dividend, the amount so distributed in redemption or cancellation of the stock shall be considered as taxable income to the extent that it represents a distribution of earnings or profits.

(C) Dividends Distributed are Deemed Made from Most Recently Accumulated Profits. - Any distribution made to the shareholders or members of a corporation shall be deemed to have been made from the most recently accumulated profits or surplus, and shall constitute a part of the annual income of the distributee for the year in which received.

(D) Net Income of a Partnership Deemed Constructively Received by Partners. - The taxable income declared by a partnership for a taxable year which is subject to tax under Section 27 (A) of this Code, after deducting the corporate income tax imposed therein, shall be deemed to have been actually or constructively received by the partners in the same taxable year and shall be taxed to them in their individual capacity, whether actually distributed or not.

Source: https://www.bir.gov.ph/index.php/tax-code.html#title2

SEC. 72. Suit to Recover Tax Based on False or Fraudulent Returns

SEC. 72.  Suit to Recover Tax Based on False or Fraudulent Returns. - When an assessment is made in case of any list, statement or return, which in the opinion of the Commissioner was false or fraudulent or contained any understatement or undervaluation, no tax collected under such assessment shall be recovered by any suit, unless it is proved that the said list, statement or return was not false nor fraudulent and did not contain any understatement or undervaluation; but this provision shall not apply to statements or returns made or to be made in good faith regarding annual depreciation of oil or gas wells and mines.

SEC. 71. Disposition of Income Tax Returns, Publication of Lists of Taxpayers and Filers

SEC. 71. Disposition of Income Tax Returns, Publication of Lists of Taxpayers and Filers. - After the assessment shall have been made, as provided in this Title, the returns, together with any corrections thereof which may have been made by the Commissioner, shall be filed in the Office of the Commissioner and shall constitute public records and be open to inspection as such upon the order of the President of the Philippines, under rules and regulations to be prescribed by the Secretary of Finance, upon recommendation of the Commissioner.

The Commissioner may, in each year, cause to be prepared and published in any newspaper the lists containing the names and addresses of persons who have filed income tax returns.

Income tax returns of specific taxpayers subject of a request for exchange of information by a foreign tax authority pursuant to an international convention or agreement on tax matters to which the Philippines is a signatory or a party of, shall be open to inspection upon the order of the President of the Philippines, under rules and regulations as may be prescribed by the Secretary of Finance, upon recommendation of the Commissioner. ^[41]

SEC. 70. Returns of Foreign Corporations

SEC. 70. Returns of Foreign Corporations. -

(A) Requirements. - Under rules and regulations prescribed by the Secretary of finance, upon the recommendation of the Commissioner, any attorney, accountant, fiduciary, bank, trust company, financial institution or other person, who aids, assists, counsels or advises in, or with respect to; the formation, organization or reorganization of any foreign corporation, shall, within thirty (30) days thereafter, file with the Commissioner a return.

(B) Form and Contents of Return. - Such return shall be in such form and shall set forth; under oath, in respect of each such corporation, to the full extent of the information within the possession or knowledge or under the control of the person required to file the return, such information as the Secretary of Finance, upon recommendation of the Commissioner, shall prescribe by rules and regulations as necessary for carrying out the provisions of this Title. Nothing in this Section shall be construed to require the divulging of privileged communications between attorney and client.

SEC. 69. Return of Information of Brokers

SEC. 69. Return of Information of Brokers. - Every person, corporation or duly registered general co-partnership (compania colectiva), doing business as a broker in any exchange or board or other similar place of business, shall, when required by the Commissioner, render a correct return duly verified under oath under such rules and regulations as the Secretary of Finance, upon recommendation of the Commissioner, may prescribe, showing the names of customers for whom such person, corporation or duly registered general co-partnership (compania colectiva) has transacted any business, with such details as to the profits, losses or other information which the Commissioner, may require as to each of such customers as will enable the Commissioner to determine whether all income tax due on profits or gains of such customers has been paid.

SEC. 68. Information at Source as to Income Payments

SEC. 68. Information at Source as to Income Payments. - all persons, corporations or duly registered co- partnerships (companies colectivas), in whatever capacity acting, including lessees or mortgagors of real or personal property, trustees, acting in any trust capacity, executors, administrators, receivers, conservators and employees making payment to another person, corporation or duly registered general co-partnership (compania colectiva), of interests, rents, salaries, wages, premiums, annuities, compensations, remunerations, emoluments or other fixed or determinable gains, profits and income, other than payment described in Section 69, in any taxable year, or in the case of such payments made by the Government of the Philippines, the officers or employees of the Government having information as to such payments and required to make returns in regard thereto, are authorized and required to render a true and accurate return to the Commissioner, under such rules and regulations, and in such form and manner as may be prescribed by the Secretary of Finance, upon recommendation of the Commissioner, setting forth the amount of such gains, profits and income and the name and address of the recipient of such payments: Provided, That such returns shall be required, in the case of payments of interest upon bonds and mortgages or deeds of trust or other similar obligations of corporations, and in the case of collections of items, not payable in the Philippines, of interest upon the bonds of foreign countries and interest from the bonds and dividends from the stock of foreign corporations by persons, corporations or duly registered general co-partnerships (companies colectivas), undertaking as a matter of business or for profit or otherwise the collection of foreign payments of such interests or dividends by means of coupons or bills of exchange.

SEC. 67. Collection of Foreign Payments

CHAPTER XI

OTHER INCOME TAX REQUIREMENTS

SEC. 67. Collection of Foreign Payments. - All persons, corporations, duly registered general co-partnerships (companies colectivas) undertaking for profit or otherwise the collection of foreign payments of interests or dividends by means of coupons, checks or bills of exchange shall obtain a license from the Commissioner, and shall be subject to such rules and regulations enabling the government to obtain the information required under this Title, as the Secretary of Finance, upon recommendation of the Commissioner, shall prescribe.

SEC. 66. Fiduciaries Indemnified Against Claims for Taxes Paid

SEC. 66. Fiduciaries Indemnified Against Claims for Taxes Paid. - Trustees, executors, administrators and other fiduciaries are indemnified against the claims or demands of every beneficiary for all payments of taxes which they shall be required to make under the provisions of this Title, and they shall have credit for the amount of such payments against the beneficiary or principal in any accounting which they make as such trustees or other fiduciaries.

SEC. 65. Fiduciary Returns

SEC. 65. Fiduciary Returns. - Guardians, trustees, executors, administrators, receivers, conservators and all persons or corporations, acting in any fiduciary capacity, shall render, in duplicate, a return of the income of the person, trust or estate for whom or which they act, and be subject to all the provisions of this Title, which apply to individuals in case such person, estate or trust has a gross income of Twenty thousand pesos (P20,000) ^[40] or over during the taxable year. Such fiduciary or person filing the return for him or it, shall take oath that he has sufficient knowledge of the affairs of such person, trust or estate to enable him to make such return and that the same is, to the best of his knowledge and belief, true and correct, and be subject to all the provisions of this Title which apply to individuals: Provided, That a return made by or for one or two or more joint fiduciaries filed in the province where such fiduciaries reside; under such rules and regulations as the Secretary of Finance, upon recommendation of the Commissioner, shall prescribe, shall be a sufficient compliance with the requirements of this Section.

SEC. 64. Income for Benefit of Grantor.

SEC. 64. Income for Benefit of Grantor. -

(A) Where any part of the income of a trust (1) is, or in the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such part of the income may be held or accumulated for future distribution to the grantor, or (2) may, or in the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such part of the income, be distributed to the grantor, or (3) is, or in the discretion of the grantor or of any person not having a substantial adverse interest in the disposition of such part of the income may be applied to the payment of premiums upon policies of insurance on the life of the grantor, such part of the income of the trust shall be included in computing the taxable income of the grantor. `

(B) As used in this Section, the term 'in the discretion of the grantor' means in the discretion of the grantor, either alone or in conjunction with any person not having a substantial adverse interest in the disposition of the part of the income in question.

SEC. 63. Revocable trusts

SEC. 63.  Revocable trusts. - Where at any time the power to revest in the grantor title to any part of the corpus of the trust is vested (1) in the grantor either alone or in conjunction with any person not having a substantial adverse interest in the disposition of such part of the corpus or the income therefrom, or (2) in any person not having a substantial adverse interest in the disposition of such part of the corpus or the income therefrom, the income of such part of the trust shall be included in computing the taxable income of the grantor.

SEC. 62. Exemption Allowed to Estates and Trusts

SEC. 62.  Exemption Allowed to Estates and Trusts. - For the purpose of the tax provided for in this Title, there shall be allowed an exemption of Twenty thousand pesos (P20,000) ^[39] from the income of the estate or trust.

SEC. 61. Taxable Income

SEC. 61. Taxable Income. - The taxable income of the estate or trust shall be computed in the same manner and on the same basis as in the case of an individual, except that:

(A) There shall be allowed as a deduction in computing the taxable income of the estate or trust the amount of the income of the estate or trust for the taxable year which is to be distributed currently by the fiduciary to the beneficiaries, and the amount of the income collected by a guardian of an infant which is to be held or distributed as the court may direct, but the amount so allowed as a deduction shall be included in computing the taxable income of the beneficiaries, whether distributed to them or not. Any amount allowed as a deduction under this Subsection shall not be allowed as a deduction under Subsection (B) of this Section in the same or any succeeding taxable year.

(B) In the case of income received by estates of deceased persons during the period of administration or settlement of the estate, and in the case of income which, in the discretion of the fiduciary, may be either distributed to the beneficiary or accumulated, there shall be allowed as an additional deduction in computing the taxable income of the estate or trust the amount of the income of the estate or trust for its taxable year, which is properly paid or credited during such year to any legatee, heir or beneficiary but the amount so allowed as a deduction shall be included in computing the taxable income of the legatee, heir or beneficiary.

(C) In the case of a trust administered in a foreign country, the deductions mentioned in Subsections (A) and (B) of this Section shall not be allowed: Provided, That the amount of any income included in the return of said trust shall not be included in computing the income of the beneficiaries.

SEC. 60. Imposition of Tax

CHAPTER X

ESTATES AND TRUSTS

SEC. 60. Imposition of Tax. -

(A) Application of Tax. - The tax imposed by this Title upon individuals shall apply to the income of estates or of any kind of property held in trust, including:

(1) Income accumulated in trust for the benefit of unborn or unascertained person or persons with contingent interests, and income accumulated or held for future distribution under the terms of the will or trust;

(2) Income which is to be distributed currently by the fiduciary to the beneficiaries, and income collected by a guardian of an infant which is to be held or distributed as the court may direct;

(3) Income received by estates of deceased persons during the period of administration or settlement of the estate; and

(4) Income which, in the discretion of the fiduciary, may be either distributed to the beneficiaries or accumulated.

(B) Exception. - The tax imposed by this Title shall not apply to employee's trust which forms part of a pension, stock bonus or profit-sharing plan of an employer for the benefit of some or all of his employees (1) if contributions are made to the trust by such employer, or employees, or both for the purpose of distributing to such employees the earnings and principal of the fund accumulated by the trust in accordance with such plan, and (2) if under the trust instrument it is impossible, at any time prior to the satisfaction of all liabilities with respect to employees under the trust, for any part of the corpus or income to be (within the taxable year or thereafter) used for, or diverted to, purposes other than for the exclusive benefit of his employees: Provided, That any amount actually distributed to any employee or distributee shall be taxable to him in the year in which so distributed to the extent that it exceeds the amount contributed by such employee or distributee.

(C) Computation and Payment. -

(1) In General. - The tax shall be computed upon the taxable income of the estate or trust and shall be paid by the fiduciary, except as provided in Section 63 (relating to revocable trusts) and Section 64 (relating to income for the benefit of the grantor).

(2) Consolidation of Income of Two or More Trusts. - Where, in the case of two or more trusts, the creator of the trust in each instance is the same person, and the beneficiary in each instance is the same, the taxable income of all the trusts shall be consolidated and the tax provided in this Section computed on such consolidated income, and such proportion of said tax shall be assessed and collected from each trustee which the taxable income of the trust administered by him bears to the consolidated income of the several trusts.

SEC. 59. Tax on Profits Collectible from Owner or Other Persons

SEC. 59. Tax on Profits Collectible from Owner or Other Persons. - The tax imposed under this Title upon gains, profits, and income not falling under the foregoing and not returned and paid by virtue of the foregoing or as otherwise provided by law shall be assessed by personal return under rules and regulations to be prescribed by the Secretary of Finance, upon recommendation of the Commissioner. The intent and purpose of the Title is that all gains, profits and income of a taxable class, as defined in this Title, shall be charged and assessed with the corresponding tax prescribed by this Title, and said tax shall be paid by the owners of such gains, profits and income, or the proper person having the receipt, custody, control or disposal of the same. For purposes of this Title, ownership of such gains, profits and income or liability to pay the tax shall be determined as of the year for which a return is required to be rendered.

SEC. 58. Returns and Payment of Taxes Withheld at Source

SEC. 58. Returns and Payment of Taxes Withheld at Source. -

(A) Quarterly Returns and Payments of Taxes Withheld. - Taxes deducted and withheld under Section 57 by withholding agents shall be covered by a return and paid to, except in cases where the Commissioner otherwise permits, an authorized agent bank, Revenue District Officer, Collection Agent, or duly authorized Treasurer of the city or municipality where the withholding agent has his legal residence or principal place of business, or where the withholding agent is a corporation, where the principal office is located.

The taxes deducted and withheld by the withholding agent shall be held as a special fund in trust for the government until paid to the collecting officers.

The return for final withholding tax shall be filed and the payment made within twenty-five (25) days from the close of each calendar quarter, while the return for creditable withholding taxes shall be filed and the payment made not later than the last day of the month following the close of the quarter during which withholding was made: Provided, That the Commissioner, with the approval of the Secretary of Finance, may require these withholding agents to pay or deposit the taxes deducted or withheld at more frequent intervals when necessary to protect the interest of the government.

(B) Statement of Income Payments Made and Taxes Withheld. - Every withholding agent required to deduct and withhold taxes under Section 57 shall furnish each recipient, in respect to his or its receipts during the calendar quarter or year, a written statement showing the income or other payments made by the withholding agent during such quarter or year, and the amount of the tax deducted and withheld therefrom, simultaneously upon payment at the request of the payee, but not later than the twentieth (20th) day following the close of the quarter in the case of corporate payee, or not later than March 1 of the following year in the case of individual payee for creditable withholding taxes. For final withholding taxes, the statement should be given to the payee on or before January 31 of the succeeding year.

(C) Annual Information Return. - Every withholding agent required to deduct and withhold taxes under Section 57 shall submit to the Commissioner an annual information return containing the list of payees and income payments, amount of taxes withheld from each payee and such other pertinent information as may be required by the Commissioner. In the case of final withholding taxes, the return shall be filed on or before January 31 of the succeeding year, and for creditable withholding taxes, not later than March 1 of the year following the year for which the annual report is being submitted. This return, if made and filed in accordance with the rules and regulations approved by the Secretary of Finance, upon recommendation of the Commissioner, shall be sufficient compliance with the requirements of Section 68 of this Title in respect to the income payments.

The Commissioner may, by rules and regulations, grant to any withholding agent a reasonable extension of time to furnish and submit the return required in this Subsection.

(D) Income of Recipient. - Income upon which any creditable tax is required to be withheld at source under Section 57 shall be included in the return of its recipient but the excess of the amount of tax so withheld over the tax due on his return shall be refunded to him subject to the provisions of Section 204; if the income tax collected at source is less than the tax due on his return, the difference shall be paid in accordance with the provisions of Section 56.

All taxes withheld pursuant to the provisions of this Code and its implementing rules and regulations are hereby considered trust funds and shall be maintained in a separate account and not commingled with any other funds of the withholding agent.

(E) Registration with Register of Deeds. - No registration of any document transferring real property shall be effected by the Register of Deeds unless the Commissioner or his duly authorized representative has certified that such transfer has been reported, and the capital gains or creditable withholding tax, if any, has been paid: Provided, however, That the information as may be required by rules and regulations to be prescribed by the Secretary of Finance, upon recommendation of the Commissioner, shall be annotated by the Register of Deeds in the Transfer Certificate of Title or Condominium Certificate of Title: Provided, further, That in cases of transfer of property to a corporation, pursuant to a merger, consolidation or reorganization, and where the law allows deferred recognition of income in accordance with Section 40, the information as may be required by rules and regulations to be prescribed by the Secretary of Finance, upon recommendation of the Commissioner, shall be annotated by the Register of Deeds at the back of the Transfer Certificate of Title or Condominium Certificate of Title of the real property involved: Provided, finally, That any violation of this provision by the Register of Deeds shall be subject to the penalties imposed under Section 269 of this Code.

SEC. 57. Withholding of Tax at Source

SEC. 57. Withholding of Tax at Source. -

(A) Withholding of Final Tax on Certain Incomes. - Subject to rules and regulations the Secretary of Finance may promulgate, upon the recommendation of the Commissioner, requiring the filing of income tax return by certain income payees, the tax imposed or prescribed by Sections 24(B)(1), 24(B)(2), 24(C), 24(D)(1); 25(A)(2), 25(A)(3), 25(B), 25(C), 25(D), 25(E), 27(D)(1), 27(D)(2), 27(D)(3), 27(D)(5), 28 (A)(4), 28(A)(5), 28(A)(7)(a), 28(A)(7)(b), 28(A)(7)(c), 28(B)(1), 28(B)(2), 28(B)(3), 28(B)(4), 28(B)(5)(a), 28(B)(5)(b), 28(B)(5)(c); 33; and 282 of this Code on specified items of income shall be withheld by payor-corporation and/or person and paid in the same manner and subject to the same conditions as provided in Section 58 of this Code.

(B) Withholding of Creditable Tax at Source. - The Secretary of Finance may, upon the recommendation of the Commissioner, require the withholding of a tax on the items of income payable to natural or juridical persons, residing in the Philippines, by payor-corporation/persons as provided for by law, at the rate of not less than one percent (1%) but not more than thirty-two percent (32%) thereof, which shall be credited against the income tax liability of the taxpayer for the taxable year.

(C) Tax-free Covenant Bonds. - In any case where bonds, mortgages, deeds of trust or other similar obligations of domestic or resident foreign corporations, contain a contract or provisions by which the obligor agrees to pay any portion of the tax imposed in this Title upon the obligee or to reimburse the obligee for any portion of the tax or to pay the interest without deduction for any tax which the obligor may be required or permitted to pay thereon or to retain therefrom under any law of the Philippines, or any state or country, the obligor shall deduct bonds, mortgages, deeds of trust or other obligations, whether the interest or other payments are payable annually or at shorter or longer periods, and whether the bonds, securities or obligations had been or will be issued or marketed, and the interest or other payment thereon paid, within or without the Philippines, if the interest or other payment is payable to a nonresident alien or to a citizen or resident of the Philippines.