8/3/2019 pagcor 9337

1/25

REPUBLIC ACT NO. 9337

AN ACT AMENDING SECTIONS 27, 28, 34, 106, 107, 108, 109, 110, 111, 112,113, 114, 116, 117, 119, 121, 148, 151, 236, 237 AND 288 OF THE NATIONAL

INTERNAL REENUE CODE OF 1997, AS AMENDED, AND FOR OTHERPURPOSES

Be it enacted by the Senate and the House of Representatives of the Philippines inCongress assembled:

S!"#$%& 1.Section 27 of the National Internal Revenue Code of 1997, asamended, is hereby further amended to read as follows:

S!C" 27" Rates of Income #a$ on %omestic Cor&orations" '

()* In +eneral" ' !$ce&t as otherwise &rovided in this Code, anincome ta$ of thirty'five &ercent (-.* is hereby im&osed u&onthe ta$able income derived durin/ each ta$able year from allsources within and without the 0hili&&ines by every cor&oration,as defined in Section 22(* of this Code and ta$able under this#itle as a cor&oration, or/anied in, or e$istin/ under the laws ofthe 0hili&&ines: 0rovided, #hat effective 3anuary 1, 2449, therate of income ta$ shall be thirty &ercent (4.*"

In the case of cor&orations ado&tin/ the fiscal'year accountin/&eriod, the ta$able income shall be com&uted without re/ard tothe s&ecific date when s&ecific sales, &urchases and othertransactions occur" #heir income and e$&enses for the fiscal yearshall be deemed to have been earned and s&ent e5ually foreach month of the &eriod"

#he cor&orate income ta$ rate shall be a&&lied on the amountcom&uted by multi&lyin/ the number of months covered by thenew rate within the fiscal year by the ta$able income of thecor&oration for the &eriod, divided by twelve"

Provided, further, #hat the 0resident, u&on the recommendationof the Secretary of 6inance, may, effective 3anuary 1, 2444,allow cor&orations the o&tion to be ta$ed at fifteen &ercent (1-.*of /ross income as defined herein, after the followin/ conditionshave been satisfied:

(1* ) ta$ effort ratio of twenty &ercent (24.* of +ross National0roduct (+N0*

(2* ) ratio of forty &ercent (84.* of income ta$ collection to totalta$ revenues

(* ) )# ta$ effort of four &ercent (8.* of +N0 and

(8* ) 4"9 &ercent (4"9.* ratio of the Consolidated 0ublic Sector6inancial 0osition (C0S60* to +N0"

#he o&tion to be ta$ed based on /ross income shall beavailable only to firms whose ratio of cost of sales to /ross salesor recei&ts from all sources does not e$ceed fifty'five &ercent(--.*"

#he election of the /ross income ta$ o&tion by the cor&orationshall be irrevocable for three (* consecutive ta$able yearsdurin/ which the cor&oration is 5ualified under the scheme"

6or &ur&oses of this Section, the term '(%)) $&"%*! derivedfrom business shall be e5uivalent to /ross sales less salesreturns, discounts and allowances and "%)# %+ '%%) )%-"Cost of /ood sold shall include all business e$&enses directlyincurred to &roduce the merchandise to brin/ them to their&resent location and use"

6or a tradin/ or merchandisin/ concern, "%)# %+ '%%) )%-shall include the invoice cost of the /oods sold, &lus im&ort

duties, frei/ht in trans&ortin/ the /oods to the &lace where the/oods are actually sold, includin/ insurance while the /oods arein transit"

6or a manufacturin/ concern, "%)# %+ '%%) *&/+"#/(!& )%- shall include all costs of &roduction of finished /oods,such as raw materials used, direct labor and manufacturin/overhead, frei/ht cost, insurance &remiums and other costsincurred to brin/ the raw materials to the factory or warehouse"

In the case of ta$&ayers en/a/ed in the sale of service, '(%))$&"%*! means /ross recei&ts less sales returns, allowancesand discounts"

(* Proprietary Educational Institutions and Hospitals'0ro&rietary educational institutions and hos&itals which are non'&rofit shall &ay a ta$ of ten &ercent (14.* on their ta$ableincome e$ce&t those covered by Subsection (%* hereof:0rovided, #hat if the /ross income from unrelated trade,business or other activity e$ceeds fifty &ercent (-4.* of the total/ross income derived by such educational institutions orhos&itals from all sources, the ta$ &rescribed in Subdection ()*hereof shall be im&osed on the entire ta$able income" 6or&ur&oses of this Subsection, the term /&(!-#! #(!,

8/3/2019 pagcor 9337

2/25

/)$&!)) %( %#!( "#$$# means any trade, business or otheractivity, the conduct of which is not substantially related to thee$ercise or &erformance by such educational institution orhos&ital of its &rimary &ur&ose or function" ) (%($!#(!/"#$%&- $&)#$#/#$%& is any &rivate school maintained andadministered by &rivate individuals or /rou&s with an issued&ermit to o&erate from the %e&artment of !ducation, Culture andS&orts (%!CS*, or the Commission on ;i/her !ducation(C;!%*, or the #echnical !ducation and Sect to a final income ta$ atthe rate of seven and one'half &ercent (7 1?2.* of such interest

income"

(2* Capital !ains from the Sale of Shares of Stoc+ ot %radedin the Stoc+ E&change' ) final ta$ at the rates &rescribed belowshall be im&osed on net ca&ital /ains realied durin/ the ta$ableyear from the sale, e$chan/e or other dis&osition of shares ofstoc< in a domestic cor&oration e$ce&t shares sold or dis&osedof throu/h the stoc< e$chan/e:

Not over 0144,444 """""""""""""""""""""""""""""""""""""""" -.)mount in e$cess of 0144,444 """"""""""""""""""""""" 14.

(* %a& on Income 'erived under the E&panded *oreignCurrency 'eposit System' Income derived by a de&ositoryban< under the e$&anded forei/n currency de&osit system fromforei/n currency transactions with nonresidents, offshoreban

8/3/2019 pagcor 9337

3/25

commenced its business o&erations, when the minimum incometa$ is /reater than the ta$ com&uted under Subsection ()* of thisSection for the ta$able year"

(2* Carry *or#ard of E&cess )inimum %a&' )ny e$cess of theminimum cor&orate income, ta$ over the normal income ta$ ascom&uted under Subsection ()* of this Section shall be carriedforward and credited a/ainst the normal income ta$ for the three(* immediately succeedin/ ta$able years"

(* Relief from the )inimum Corporate Income %a& 0nderCertain Conditions' #he Secretary of 6inance is herebyauthoried to sus&end the im&osition of the minimum cor&orateincome ta$ on any cor&oration which suffers losses on accountof &rolon/ed labor dis&ute, or because of force ma1eure, orbecause of le/itimate business reverses"

#he Secretary of 6inance is hereby authoried to &romul/ate,u&on recommendation of the Commissioner, the necessary rulesand re/ulations that shall define the terms and conditions underwhich he may sus&end the im&osition of the minimum cor&orateincome ta$ in a meritorious case"

(8* !ross Income 'efined' 6or &ur&oses of a&&lyin/ theminimum cor&orate income ta$ &rovided under Subsection (!*hereof, the term '(%)) $&"%*! shall mean /ross sales lesssales returns, discounts and allowances and cost of /oods sold"C%)# %+ '%%) )%- shall include all business e$&enses directlyincurred to &roduce the merchandise to brin/ them to their&resent location and use"

6or a tradin/ or merchandisin/ concern, C%)# %+ '%%) )%-shall include the invoice of the /oods sold, &lus im&ort duties,frei/ht in trans&ortin/ the /oods to the &lace where the /oodsare actually sold includin/ insurance while the /oods are intransit"

6or a manufacturin/ concern, "%)# %+ '%%) *&/+"#/(!& )%- shall include all costs of &roduction of finished /oods,such as raw materials used, direct labor and manufacturin/overhead, frei/ht cost, insurance &remiums and other costsincurred to brin/ the raw materials to the factory or warehouse"

In the case of ta$&ayers en/a/ed in the sale of service, '(%))$&"%*! means /ross recei&ts less sales returns, allowances,discounts and cost of services" C%)# %+ )!($"!) shall mean alldirect costs and e$&enses necessarily incurred to &rovide theservices re5uired by the customers and clients includin/ ()*

salaries and em&loyee benefits of &ersonnel, consultants ands&ecialists directly renderin/ the service and (* cost of facilitiesdirectly utilied in &rovidin/ the service such as de&reciation orrental of e5ui&ment used and cost of su&&lies Provided,ho#ever, #hat in the case of ban

8/3/2019 pagcor 9337

4/25

under the same conditions, on a resident forei/n,cor&oration ta$able under, &ara/ra&h (1* of thisSubsection"

(* International Carrier' )n international carrier doin/business in the 0hili&&ines shall &ay a ta$ of two andone'half &ercent (2 1?2.* on its +ross 0hili&&ineillin/s as defined hereunder:

(a* International $ir Carrier' +ross 0hili&&ineillin/s refers to the amount of /ross revenuederived from carria/e of &ersons, e$cessba//a/e, car/o and mail ori/inatin/ from the0hili&&ines in a continuous and uninterru&tedfli/ht, irres&ective of the &lace of sale or issueand the &lace of &ayment of the ticectto a ta$ of fifteen &ercent (1-.* which shall be basedon the total &rofits a&&lied or earmar

8/3/2019 pagcor 9337

5/25

Substitutes, %rust *unds and Similar$rrangements and Royalties' Interest fromany currency ban< de&osit and yield or anyother monetary benefit from de&ositsubstitutes and from trust funds and similararran/ements and royalties derived fromsources within the 0hili&&ines shall be sub>ectto a final income ta$ at the rate of twenty&ercent (24.* of such interest: Provided,ho#ever,#hat interest income derived by a

resident forei/n cor&oration from a de&ositoryban< under the e$&anded forei/n currencyde&osit system shall be sub>ect to a finalincome ta$ at the rate of seven and one'half&ercent (7 1?2.* of such interest income"

(b* Income 'erived under the E&panded*oreign Currency 'eposit System' Incomederived by a de&ository ban< under thee$&anded forei/n currency de&osit systemfrom forei/n currency transactions withnonresidents, offshore banect to ta$ under sub&ara/ra&h -(c*: 0rovided, #hateffective 3anuary 1, 2449, the rate of income ta$ shallbe thirty &ercent (4.*"

(2* onresident Cinematographic *ilm 2#ner, .essoror 'istributor' ) cinemato/ra&hic film owner, lessor, ordistributor shall &ay a ta$ of twenty'five &ercent (2-.*of its /ross income from all sources within the

0hili&&ines"

(* onresident 2#ner or .essor of 4essels Charteredby Philippine ationals' ) nonresident owner or lessorof vessels shall be sub>ect to a ta$ of four and one'half&ercent (8 1?2.* of /ross rentals, lease or charter feesfrom leases or charters to 6ili&ino citiens orcor&orations, as a&&roved by the @aritime Industry

)uthority"

8/3/2019 pagcor 9337

6/25

(8* onresident 2#ner or .essor of $ircraft,)achineries and 2ther E3uipment' Rentals, chartersand other fees derived by a nonresident lessor ofaircraft, machineries and other e5ui&ment shall besub>ect to a ta$ of seven and one'half &ercent (7 1?2.*of /ross rentals or fees"

(-* #a$ on Certain Incomes Received by a Nonresident6orei/n Cor&oration" '

(a* Interest on *oreign .oans' ) finalwithholdin/ ta$ at the rate of twenty &ercent(24.* is hereby im&osed on the amount ofinterest on forei/n loans contracted on or after

)u/ust 1, 19BA

(b* Intercorporate 'ividends' ) finalwithholdin/ ta$ at the rate of fifteen &ercent(1-.* is hereby im&osed on the amount ofcash and?or &ro&erty dividends received froma domestic cor&oration, which shall becollected and &aid as &rovided in Section-7()* of this Code, sub>ect to the condition thatthe country in which the nonresident forei/ncor&oration is domiciled, shall allow a credita/ainst the ta$ due from the nonresidentforei/n cor&oration ta$es deemed to havebeen &aid in the 0hili&&ines e5uivalent totwenty &ercent (24.*, which re&resents thedifference between the re/ular income ta$ ofthirty'five &ercent (-.* and the fifteen&ercent (1-.* ta$ on dividends as &rovided inthis sub&ara/ra&h: 0rovided, #hat effective3anuary 1, 2449, the credit a/ainst the ta$ dueshall be e5uivalent to fifteen &ercent (1-.*,which re&resents the difference between there/ular income ta$ of thirty &ercent (4.* andthe fifteen &ercent (1-.* ta$ on dividends

(c* Capital !ains from Sale of Shares ofStoc+ not %raded in the Stoc+ E&change' )final ta$ at the rates &rescribed below ishereby im&osed u&on the net ca&ital /ainsrealied durin/ the ta$able year from the sale,barter, e$chan/e or other dis&osition of sharesof stoc< in a domestic cor&oration, e$ce&tshares sold, or dis&osed of throu/h the stocect to the value'added ta$ shall beallowed ta$ credit as follows:

(a* #otal in&ut ta$ which, can be directlyattributed to transactions sub>ect to value'addta$ and

(b* ) ratable &ortion of any in&ut ta$ whichcannot be directly attributed to either activity"

#he term $&/# # means the value'added ta$ due

from or &aid by a )#'re/istered &erson in the course ofhis trade or business on im&ortation of /oods or local&urchase of /oods or services, includin/ lease or use of&ro&erty, from a )#'re/istered &erson" It shall alsoinclude the transitional in&ut ta$ determined inaccordance with Section 111 of this Code"

#he term %/#/# # means the value'added ta$ dueon the sale or lease of ta$able /oods or &ro&erties orservices by any &erson re/istered or re5uired to re/isterunder Section 2A of this Code"

(* E&cess 2utput or Input %a&' If at the end of any ta$able5uarter the out&ut ta$ e$ceeds the in&ut ta$, the e$cess shall be&aid by the )#'re/istered &erson" If the in&ut ta$ e$ceeds theout&ut ta$, the e$cess shall be carried over to the succeedin/5uarter or 5uarters: Provided, #hat the in&ut ta$ inclusive of in&ut)# carried over from the &revious 5uarter that may be creditedin every 5uarter shall not e$ceed seventy &ercent (74.* of theout&ut )#: Provided, ho#ever,#hat any in&ut ta$ attributable toero'rated sales by a )#'re/istered &erson may at his o&tion berefunded or credited a/ainst other internal revenue ta$es,sub>ect to the &rovisions of Section 112"

(C* 'etermination of Creditable Input %a&' #he sum of thee$cess in&ut ta$ carried over from the &receedin/ month or5uarter and the in&ut ta$ creditable to a )#'re/istered &ersondurin/ the ta$able month or 5uarter shall be reduced by theamount of claim for refund or ta$ credit for value'added ta$ andother ad>ustments, such as &urchase returns or allowances andin&ut ta$ attributable to e$em&t sale"

#he claim for ta$ credit referred to in the fore/oin/ &ara/ra&hshall include not only those filed with the ureau of InternalRevenue but also those filed with other /overnment a/encies,such as the oard of Investments and the ureau of Customs"

SEC. 9.Section 111 of the same Code, as amended, is hereby further amended toread as follows:

S!C" 111" %ransitional/ Presumptive Input %a& Credits" '

()* %ransitional Input %a& Credits' ) &erson who becomesliable to value'added ta$ or any &erson who elects to be a )#'re/istered &erson shall, sub>ect to the filin/ of an inventoryaccordin/ to rules and re/ulations &rescribed by the Secretary of6inance, u&on recommendation of the Commissioner, be allowedin&ut ta$ on his be/innin/ inventory of /oods, materials andsu&&lies e5uivalent to two &ercent (2.* of the value of such

inventory or the actual value'added ta$ &aid on such /oods,materials and su&&lies, whichever is hi/her, which shall becreditable a/ainst the out&ut ta$"

(* Presumptive Input %a& Credits'

0ersons or firms en/a/ed in the &rocessin/ of sardines, mac

8/3/2019 pagcor 9337

15/25

in money of their &urchases of &rimary a/ricultural &roducts which areused as in&uts to their &roduction"

)s used in this Subsection, the term (%"!))$&' shall mean&asteuriation, cannin/ and activities which throu/h &hysical or chemical&rocess alter the e$terior te$ture or form or inner substance of a &roductin such manner as to &re&are it for s&ecial use to which it could not havebeen &ut in its ori/inal form or condition"

SEC. 10.Section 112 of the same Code, as amended, is hereby further amended

to read as follows:

S!C" 112" Refunds or %a& Credits of Input %a& '

()* 6ero"Rated or Effectively 6ero"Rated Sales' )ny )#'re/istered &erson, whose sales are ero'rated or effectivelyero'rated may, within two (2* years after the close of the ta$able5uarter when the sales were made, a&&ly for the issuance of ata$ credit certificate or refund of creditable in&ut ta$ due or &aidattributable to such sales, e$ce&t transitional in&ut ta$, to thee$tent that such in&ut ta$ has not been a&&lied a/ainst out&utta$: Provided, ho#ever,#hat in the case of ero'rated salesunder Section 14A()*(2*(a*(1*, (2* and (b* and Section 14B (*(1*

and (2*, the acce&table forei/n currency e$chan/e &roceedsthereof had been duly accounted for in accordance with the rulesand re/ulations of the an/

8/3/2019 pagcor 9337

16/25

(a* #he amount of the ta$ shall be shown as ase&arate item in the invoice or recei&t

(b* If the sale is e$em&t from value'added ta$,the term AT!!*# )-! shall be written or&rinted &rominently on the invoice or recei&t

(c* If the sale is sub>ect to ero &ercent (4.*value'added ta$, the term !(%(#! )-!shall be written or &rinted &rominently on the

invoice or recei&t

(d* If the sale involves /oods, &ro&erties orservices some of which are sub>ect to andsome of which are )# ero'rated or )#'e$em&t, the invoice or recei&t shall clearlyindicate the breaournals shall containsuch information as may be re5uired by the Secretary of6inance"

(%* Conse3uence of Issuing Erroneous 4at Invoice or 4at2fficial Receipt'

(1* If a &erson who is not a )#'re/istered &ersonissues an invoice or recei&t showin/ his #a$&ayerIdentification Number (#IN*, followed by the word )#:

(a* #he issuer shall, in addition to any liabilityto other &ercenta/e ta$es, be liable to:

(i* #he ta$ im&osed in Section 14A or14B without the benefit of any in&utta$ credit and

(ii* ) -4. surchar/e under Section28B (* of this code

(b* #he )# shall, if the other re5uisiteinformation re5uired under Subsection (*hereof is shown on the invoice or recei&t, bereco/nied as an in&ut ta$ credit to the&urchaser under Section 114 of this Code"

(2* If a )#'re/istered &erson issues a )# invoice or)# official recei&t for a )#'e$em&t transaction, butfails to dis&lay &rominently on the invoice or recei&t the

term )#'e$em&t Sale, the issuer shall be liable toaccount for the ta$ im&osed in Section 14A or 14B as ifSection 149 did not a&&ly"

(!* %ransitional Period' Notwithstandin/ Subsection (* hereof,ta$&ayers may continue to issue )# invoices and )# officialrecei&ts for the &eriod 3uly 1, 244- to %ecember 1, 244-, inaccordance with ureau of Internal Revenue administrative&ractices that e$isted as of %ecember 1, 2448"

SEC. 12.Section 118 of the same Code, as amended, is hereby further amendedto read as follows:

S!C" 118" Return and Payment of 4alue"$dded %a&'

()* In !eneral' !very &erson liable to &ay the value'added ta$im&osed under this #itle shall file a 5uarterly return of the amountof his /ross sales or recei&ts within twenty'five (2-* daysfollowin/ the close of each ta$able 5uarter &rescribed for eachta$&ayer: Provided, ho#ever,#hat )#'re/istered &ersons shall&ay the value'added ta$ on a monthly basis"

)ny &erson, whose re/istration has been cancelled inaccordance with Section 2A, shall file a return and &ay the ta$

8/3/2019 pagcor 9337

17/25

due thereon within twenty'five (2-* days from the date ofcancellation of re/istration: Provided,#hat only one consolidatedreturn shall be filed by the ta$&ayer for his &rinci&al &lace ofbusiness or head office and all branches"

(* ;here to *ile the Return and Pay the %a&' !$ce&t as theCommissioner otherwise &ermits, the return shall be filed withand the ta$ &aid to an authoried a/ent ban

8/3/2019 pagcor 9337

18/25

S!C" 119" %a& on *ranchises' )ny &rovision of /eneral or s&ecial law tothe contrary notwithstandin/, there shall be levied, assessed andcollected in res&ect to all franchises on radio and?or televisionbroadcastin/ com&anies whose annual /ross recei&ts of the &recedin/year does not e$ceed #en million &esos (014,444,444*, sub>ect to Section2A of this Code, a ta$ of three &ercent (.* and on /as and waterutilities, a ta$ of two &ercent (2.* on the /ross recei&ts derived from thebusiness covered by the law /rantin/ the franchise: Provided, however,#hat radio and television broadcastin/ com&anies referred to in thisSection shall have an o&tion to be re/istered as a value'added ta$&ayerand &ay the ta$ due thereon: Provided, further,#hat once the o&tion ise$ercised, said o&tion shall be irrevocable"

#he /rantee shall file the return with, and &ay the ta$ due thereon to theCommissioner or his duly authoried re&resentative, in accordance withthe &rovisions of Section 12B of this Code, and the return shall be sub>ectto audit by the ureau of Internal Revenue, any &rovision of any e$istin/law to the contrary notwithstandin/"

SEC. 16.Section 121 of the same Code, as amended, is hereby further amendedto read as follows:

S!C" 121" %a& on Ban+s and on"Ban+ *inancial IntermediariesPerforming

8/3/2019 pagcor 9337

19/25

(c* Ha$es and &etroleum, &er ect to the ta$ herein&rescribed" 6or &ur&oses of this Subsection, the removal ofdenatured alcohol of not less than one hundred ei/hty de/rees

(1B4o

* &roof (ninety &ercent (94.* absolute alcohol* shall bedeemed to have been removed for motive &ower, unless shownotherwise

(e* Na&htha, re/ular /asoline and other similar &roducts ofdistillation, &er liter of volume ca&acity, 6our &esos and thirty'fivecentavos (08"-*: Provided, ho#ever,#hat na&htha, when usedas a raw material in the &roduction of &etrochemical &roducts oras re&lacement fuel for natural /as'fired'combined cycle &ower&lant, in lieu of locally'e$tracted natural /as durin/ the non'availability thereof, sub>ect to the rules and re/ulations to be&romul/ated by the Secretary of !ner/y, in consultation with theSecretary of 6inance, &er liter of volume ca&acity, ero (04"44*:Provided, further,#hat the by'&roduct includin/ fuel oil, diesel

fuel, ect to the a&&licable e$ciseta$ s&ecified in this Section, e$ce&t when such by'&roducts aretransferred to any of the local oil refineries throu/h sale, barter ore$chan/e, for the &ur&ose of further &rocessin/ or blendin/ intofinished &roducts which are sub>ect to e$cise ta$ under thisSection

(f* Deaded &remium /asoline, &er liter of volume ca&acity, 6ive&esos and thirty'five centavos (0-"-* unleaded &remium/asoline, &er liter of volume ca&acity, 6our &esos and thirty'fivecentavos (08"-*

(/* )viation turbo >et fuel, &er liter of volume ca&acity, #hree&esos and si$ty'seven centavos (0"A7*

(h* Eerosene, &er liter of volume ca&acity, ero (04"44*:Provided,#hat ect to the same ta$ on aviation turbo >et fuel under the&recedin/ &ara/ra&h (/*, such ta$ to be assessed on the userthereof

(i* %iesel fuel oil, and on similar fuel oils havin/ more or less thesame /eneratin/ &ower, &er liter of volume ca&acity, ero(04"44*

(>* Di5uefied &etroleum /as, &er liter, ero (04"44*: Provided,#hat li5uefied &etroleum /as used for motive &ower shall beta$ed, at the e5uivalent rate as the e$cise ta$ on diesel fuel oil

(

8/3/2019 pagcor 9337

20/25

(a* Co&&er and other metallic minerals

(i* =n the first three (* years u&onthe effectivity of Re&ublic )ct No"7729, one &ercent (1.*

(ii* =n the fourth and the fifth years,one and a half &ercent (1 1?2.* and

(iii* =n the si$th year and thereafter,two &ercent (2.*

(b* +old and chromite, two &ercent (2.*"

(8*" =n indi/enous &etroleum, a ta$ of three &ercent(.* of the fair international mar

8/3/2019 pagcor 9337

21/25

#he re/istration shall contain the ta$&ayers name,style, &lace of residence, business, and such otherinformation as may be re5uired by the Commissioner inthe form &rescribed therefor"

) &erson maintainin/ a head office, branch or facilityshall re/ister with the Revenue %istrict =fficer havin/

>urisdiction over the head office, branch or facility" 6or&ur&oses of this Section, the term +"$-$# may includebut not be limited to sales outlets, &laces of &roduction,

warehouses or stora/e &laces"

(*$nnual Registration *ee' )n annual re/istration fee in theamount of 6ive hundred &esos (0-44* for every se&arate ordistinct establishment or &lace of business, includin/ facilityty&es where sales transactions occur, shall be &aid u&onre/istration and every year thereafter on or before the last day of3anuary: Provided, ho#ever,#hat coo&eratives, individualsearnin/ &urely com&ensation income, whether locally or abroad,and overseas wor

8/3/2019 pagcor 9337

22/25

(2* !very &erson who becomes liable to be re/isteredunder &ara/ra&h (1* of this Subsection shall re/isterwith the Revenue %istrict =ffice which has >urisdictionover the head office or branch of that &erson, and shall&ay the annual re/istration fee &rescribed in Subsection(* hereof" If he fails to re/ister, he shall be liable to &aythe ta$ under #itle I as if he were a )#'re/istered&erson, but without the benefit of in&ut ta$ credits forthe &eriod in which he was not &ro&erly re/istered"

(;* 2ptional Registration for 4alue"added %a& of E&emptPerson' (1* )ny &erson who is not re5uired to re/ister foralue'added ta$ under Subsection (+* hereof may elect tore/ister for alue'added ta$ by re/isterin/ with the Revenue%istrict =ffice that has >urisdiction over the head office of that&erson, and &ayin/ the annual re/istration fee in Subsection (*hereof"

(2* )ny &erson who elects to re/ister under thisSubsection shall not be entitled to cancel hisre/istration under Subsection (6*(2* for the ne$t three(* years"

6or &ur&oses of #itle I of this Code, any &erson who

has re/istered value'added ta$ as a ta$ ty&e inaccordance with the &rovisions of Subsection (C* hereofshall be referred to as a )#'re/istered &erson whoshall be assi/ned only one #a$&ayer IdentificationNumber (#IN*"

(I* Supplying of %a&payer Identification umber(#IN*" ' )ny&erson re5uired under the authority of this Code to maurisdiction over his le/al residence"

=nly one #a$&ayer Identification Number (#IN* shall beassi/ned to a ta$&ayer" )ny &erson who shall securemore than one #a$&ayer Identification Number shall becriminally liable under the &rovisions of Section 27- oniolation of =ther 0rovisions of this Code orRe/ulations in +eneral"

SEC. 20.Section 27 of the Code, as amended, is hereby amended to read asfollows:

8/3/2019 pagcor 9337

23/25

S!C" 27" Issuance of Receipts or Sales or Commercial Invoices' )ll&ersons sub>ect to an internal revenue ta$ shall, for each sale andtransfer of merchandise or for services rendered valued at #wenty'five&esos (02-"44* or more, issue duly re/istered recei&ts or sale orcommercial invoices, &re&ared at least in du&licate, showin/ the date oftransaction, 5uantity, unit cost and descri&tion of merchandise or nature ofservice: 0rovided, however, #hat where the recei&t is issued to cover&ayment made as rentals, commissions, com&ensation or fees, recei&tsor invoices shall be issued which shall show the name, business style, ifany, and address of the &urchaser, customer or client"

#he ori/inal of each recei&t or invoice shall be issued to the &urchaser,customer or client at the time the transaction is effected, who, if en/a/edin business or in the e$ercise of &rofession, shall ??8' #heincremental revenues from the increase in the documentarystam& ta$es under R")" No" 7AA4 shall be set aside for thefollowin/ &ur&oses:

(1* In 1998 and 199-, twenty'five &ercent (2-.*thereof res&ectively, shall accrue to the Fnified ;ome'Dendin/ 0ro/ram under !$ecutive =rder No" 94&articularly for mass'socialied housin/ &ro/ram to be

allocated as follows: fifty &ercent (-4.* for mass'socialied housin/ thirty &ercent (4.* for thecommunity mort/a/e &ro/ram and twenty &ercent(24.* for land banects: Provided, ho#ever,#hat for the years 1998 and 199-, thirty &ercent (4.*,and for the years 199A, 1997 and 199B, twenty &ercent(24.*, of this fund'shall be allocated for de&ressed&rovinces as declared by the 0resident as of the time ofthe effectivity of R")" No" 7AA4: Provided, further,#hatavailments under this fund shall be determined by the0resident on the basis of e5uity"

@Provided, finally,#hat in &ara/ra&hs (2*, (* and (8* ofthis Section, not more than one &ercent (1.* of theallocated funds thereof shall be used for administrativee$&enses by the im&lementin/ a/encies"

(* Incremental Revenues from Republic $ct o A8' 6ifteen&ercent (1-.* of the incremental revenue collected from thee$cise ta$ on tobacco &roducts under R")" No" B284 shall beallocated and divided amon/ the &rovinces &roducin/ burley andnative tobacco in accordance with the vo1ume of tobacco leaf&roduction" #he fund shall be e$clusively utilied for &ro/rams in&ursuit of the followin/ ob>ectives:

(1* Coo&erative &ro>ects that will enhance better 5ualityof a/ricultural &roducts and increase income and&roductivity of farmers

(2* Divelihood &ro>ects, &articularly the develo&ment ofalternative farmin/ system to enhance farmers incomeand

(* )/ro'industrial &ro>ects that will enable tobaccofarmers to be involved in the mana/ement and

8/3/2019 pagcor 9337

24/25

subse5uent ownershi& of &ro>ects, such as &ost'harvestand secondary &rocessin/ li

8/3/2019 pagcor 9337

25/25

SEC. 24.Repealing Clause' #he followin/ laws or &rovisions of laws are herebyre&ealed and the &ersons and?or transactions affected herein are made sub>ect tothe value'added ta$ sub>ect to the &rovisions of #itle I of the National InternalRevenue Code of 1997, as amended:

()* Section 1 of R")" No" A9- on the e$em&tion from value'added ta$ ofNational 0ower Cor&oration (N0C*

(* Section A, fifth &ara/ra&h of R")" No" 91A on the ero )# rateim&osed on the sales of /enerated &ower by /eneration com&anies and

(C* )ll other laws, acts, decrees, e$ecutive orders, issuances and rulesand re/ulations or &arts thereof which are contrary to and inconsistentwith any &rovisions of this )ct are hereby re&ealed, amended or modifiedaccordin/ly"

SEC. 25.Separability Clause' If any &rovision of this )ct is subse5uently declaredunconstitutional, the validity of the remainin/ &rovisions hereof shall remain in fullforce and effect"

SEC. 26.Effectivity Clause' #his )ct shall ta