Chapter 6
Community Tax
Section
63. Community Tax
Cities or municipalities may levy a community tax in accordance
with the provisions of this Article.
Section
64. Individuals Liable to Community Tax
Every inhabitant of the Philippines eighteen (18) years of age
or over who has been regularly employed on a wage or salary basis
for at least thirty (30) consecutive working days during any calendar
year, or who is engaged in business or occupation, or who owns
real property with an aggregate assessed value of ONE THOUSAND
PESOS (P1,000.00) or more, or who is required by law to file an
income tax return shall pay an annual community tax of FIVE PESOS
(P5.00) and an annual additional tax of ONE PESO (P1.00) for every
ONE THOUSAND PESOS (P1,000.00) of income regardless of whether
from business, exercise of profession or from property which in
no case shall exceed FIVE THOUSAND PESOS (P5,000.00).
In
the case of husband and wife, the additional tax herein imposed
shall be based upon the total property owned by them and the total
gross receipts or earnings derived by them.
Section
65. Juridical Persons Liable to Community Tax
Every corporation no matter how created or organized, whether
domestic or resident foreign, engaged in or doing business in
the Philippines shall pay an annual community tax of FIVE HUNDRED
PESOS (P500.00) and an annual additional tax which in no case
shall exceed TEN THOUSAND PESOS (P10,000.00) in accordance with
the following schedule:
- For
every FIVE THOUSAND PESOS (P5,000.00) worth of real property
in the Philippines owned by it during the preceding year based
on the valuation used for the payment of the real property
tax under existing laws, found in the assessment rolls of
the city or municipality where the real property is situated
-- TWO PESOS (P2.00); and
- For
every Five Thousand pesos (P5,000.00) of gross receipts or
earnings derived by it from its business in the Philippines
during the preceding year -- TWO PESOS (P2.00).
The
dividends received by a corporation from another corporation however
shall, for the purpose of the additional tax, be considered as
part of the gross receipts or earnings of said corporation.
Section
66. Exemptions
The following are exempt from the community tax:
1.
Diplomatic and consular representatives; and
2.
Transient visitors when their stay in the Philippines does not
exceed three (3) months.
Section
67. Place of Payment
The community tax shall be paid in the place of residence of the
individual, or in the place where the principal office of the
juridical entity is located.
Section
68. Time or Payment; Penalties for Delinquency
a.
The community tax shall accrue on the first (1st) day of January
of each year which shall be paid not later than the last day of
February of each year. If a person reaches the age of eighteen
(18) years or otherwise loses the benefit of exemption on or before
the last day of June, he shall be liable for the community tax
on the day he reaches such age or upon the day the exemption ends.
However, if a person reaches the age of eighteen (18) years or
loses the benefit of exemption on or before the last day of March,
he shall have twenty (20) days to pay the community tax without
becoming delinquent.
- Persons
who come to reside in the Philippines or reach the age of
eighteen (18) years on or after the first (1st) day of July
of any year, or who cease to belong to an exempt class on
or after same date, shall not be subject to the community
tax for that year.
b.
Corporations established and organized on or before the last day
of June shall be liable for the community tax for that year. But
corporations established and organized on or before the last day
of March shall have twenty (20) days within which to pay the community
tax without becoming delinquent. Corporations established and
organized on or after the first day of July shall not be subject
to the community tax for that year.
If
the tax is not paid within the time prescribed above, there shall
be added to the unpaid amount an interest of twenty-four percent
(24%) per annum from the due date until it is paid.
Section
69. Community Tax Certificate
A community tax certificate shall be issued to every person or
corporation upon payment of the community tax. A community tax
certificate may also be issued to any person or corporation not
subject to the community tax upon payment of ONE PEOS (P1.00).
Section
70. Presentation of Community tax Certificate on Certain Occasions
a.
When an individual subject to the community tax acknowledges any
document before a notary public, takes the oath of office upon
election or appointment to any position in the government service;
receives any license, certificate, or permit from any public authority;
pays any tax or fee; receives any money from any public fund;
transacts other official business; or receives any salary or wage
from any person or corporation, it shall be the duty of any person,
officer, or corporation with whom such transaction is made or
business done or from whom any salary or wage is received to require
such individual to exhibit the community tax certificate.
- The
presentation of community tax certificate shall not be required
in connection with the registration of a voter.
b.
When, through its authorized officers, any corporation subject
to the community tax receives any license, certificate or permit
from any public authority, pays any tax or fee, receives money
from public funds, or transacts other official business, it shall
be the duty of the public official with whom such transaction
is made or business done, to require such corporation to exhibit
the community tax certificate.
c. The community tax certificate required in the two preceding
paragraphs shall be the one issued for the current year, except
for the period from January until the fifteenth (15th) of April
each year, in which case the certificate issued for the preceding
year shall suffice.
Section
71. Printing of Community Tax Certificates and Distribution of
Proceeds
a.
The Bureau of Internal Revenue shall cause the printing of community
tax certificates and distribute the same to the cities and municipalities
through the city and municipal treasurers in accordance with prescribed
regulations.
The
proceeds of the tax shall accrue to the general funds of the cities,
municipalities and barangays, except a portion thereof which shall
accrue to the general fund of the National Government to cover
the actual cost of printing and distribution of the forms and
other related expenses. The city or municipal treasurer concerned
shall remit to the national treasurer the said share of the National
Government in the proceeds of the tax within ten (10) days after
the end of each quarter.
b.
The city or municipal treasurer shall deputize the barangay treasurer
to collect the community tax in their respective jurisdictions:
Provided, however, That said barangay treasurer shall be bonded
in accordance with existing laws.
c. The proceeds of the community tax actually and directly collected
by the city or municipal treasurer shall accrue entirely to the
general fund of the city or municipality concerned. However, proceeds
of the community tax collected through the barangay treasurers
shall be apportioned as follows:
- Fifty
percent (50%) shall accrue to the general fund of the city
or municipal concerned; and
-
Fifty
percent (50%) shall accrue to the barangay where the tax
is collected.
