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REPUBLIC ACT NO. 8424 AN ACT AMENDING THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES |  |
The Republic Act is to big to put in one page. For purposes of ease and clarity, this is subdivided into the Law Sections, and the National Internal Revenue Code(Contained in Section 3 of the Act). The Index is also provided for navigational purposes. | ||
ACT SECTION 1: Act Title
ACT SECTION 2: State Policy
ACT SECTION 3: The Internal Revenue Code, as amended: Please see below.
ACT SECTION 4: IRR Promulgation
ACT SECTION 5: Transitory Provisions
ACT SECTION 6: Separability Clause
ACT SECTION 7: Repealing Cause
ACT SECTION 8: Effectivity
ANNEX A-1: Local Distilled Spirits Brands Produced from Sap of Nipa, Coconut, etc. covered by SECTION 141(b)
ANNEX A-2: Local Distilled Spirits Brands Produced from Sap of Nipa, Coconut, etc. covered by SECTION 141(b)
ANNEX A-3: Distilled Spirits Brands Produced from Grains, Cereals, and Grains covered by SECTION 141 (b)
ANNEX A-4: Distilled Spirits Brands Produced from Grains, Cereals, and Grains covered by SECTION 141 (b)
ANNEX B C-1 C-2 D (Other statistics on Alcoholic Beverages)
National Internal Revenue Code of 1997 Index
TITLE I - ORGANIZATION AND FUNCTION OF THE BUREAU OF INTERNAL REVENUE SECTION 1. Title of the Code. SECTION 2. Powers and Duties of the Bureau of Internal Revenue SECTION 3. Chief Officials of the Bureau of Internal Revenue. SECTION 4. Power of the Commissioner to Interpret Tax Laws and to Decide Tax Cases. SECTION 5. Power of the Commissioner to Obtain Information, and to Summon, Examine, and Take Testimony of Persons
SECTION 6. Power of the Commissioner to Make Assessments and Prescribe Additional Requirements for Tax Administration and Enforcement.(A) Examination of Returns and Determination of Tax Due(B) Failure to Submit Required Returns, Statements, Reports and other Documents. (C) Authority to Conduct Inventory-taking, Surveillance and to Prescribe Presumptive Gross Sales and Receipts. (D) Authority to Terminate Taxable Period. (E) Authority of the Commissioner to Prescribe Real Property Values. (G) Authority to Accredit and Register Tax Agents. (H) Authority of the Commissioner to Prescribe Additional Procedural or Documentary Requirements. SECTION 7. Authority of the Commissioner to Delegate Power SECTION 8. Duty of the Commissioner to Ensure the Provision and Distribution of Forms, Receipts, Certificates, and Appliances, and the Acknowledgment of Payment of Taxes. (A) Provision and Distribution to Proper Officials. (B) Receipts for Payment Made. SECTION 9. Internal Revenue Districts. SECTION 10. Revenue Regional Director. SECTION 11. Duties of Revenue District Officers and Other Internal Revenue Officers. SECTION 12. Agents and Deputies for Collection of National Internal Revenue Taxes. SECTION 13. Authority of a Revenue Officer. SECTION 14. Authority of Officers to Administer Oaths and Take Testimony. SECTION 15. Authority of Internal Revenue Officers to Make Arrests and Seizures. SECTION 16. Assignment of Internal Revenue Officers Involved in Excise Tax Functions to Establishments Where Articles Subject to Excise Tax are Produced or Kept. SECTION 17. Assignment of Internal Revenue Officers and Other Employees to Other Duties. SECTION 18. Reports of Violation of Laws. SECTION 19. Contents of Commissioner's Annual Report SECTION 20. Submission of Report and Pertinent Information by the Commissioner. (A) Submission of Pertinent Information to Congress. (B) Report to Oversight Committee. SECTION 21. Sources of Revenue. TITLE II - TAX ON INCOME SECTION 22. Definitions. SECTION 23. General Principles of Income Taxation in the Philippines. SECTION 24. Income Tax Rates. (A) Rates of Income Tax on Individual Citizen and Individual Resident Alien of the Philippines. (B) Rate of Tax on Certain Passive Income: (1) Interests, Royalties, Prizes, and Other Winnings. (2) Cash and/or Property Dividends. (C) Capital Gains from Sale of Shares of Stock not Traded in the Stock Exchange. (D) Capital Gains from Sale of Real Property. (1) In General. (2) Exception. SECTION 25. Tax on Nonresident Alien Individual. (A) Nonresident Alien Engaged in Trade or Business Within the Philippines. (1) In General. (2) Cash and/or Property Dividends from a Domestic Corporation or Joint Stock Company, or Insurance or Mutual Fund Company or Regional Operating Headquarter of Multinational Company, or Share in the Distributable Net Income of a Partnership (Except a General Professional Partnership), Joint Account, Joint Venture Taxable as a Corporation or Association, Interests, Royalties, Prizes, and Other Winnings. (B) Nonresident Alien Individual Not Engaged in Trade or Business Within the Philippines. (C) Alien Individual Employed by Regional or Area Headquarters and Regional Operating Headquarters of Multinational Companies. (D) Alien Individual Employed by Offshore Banking Units. (E) Alien Individual Employed by Petroleum Service Contractor and Subcontractor. SECTION 26. Tax Liability of Members of General Professional Partnerships. SECTION 27. Rates of Income Tax on Domestic Corporations. (A) In General. (B) Proprietary Educational Institutions and Hospitals. (C) Government-owned or -Controlled Corporations, Agencies or Instrumentalities.(D) Rates of Tax on Certain Passive Incomes. (1) Interest from Deposits and Yield or any other Monetary Benefit from Deposit Substitutes and from Trust Funds and Similar Arrangements, and Royalties.(2) Capital Gains from the Sale of Shares of Stock Not Traded in the Stock Exchange. (3) Tax on Income Derived under the Expanded Foreign Currency Deposit System. (4) Intercorporate Dividends. (5) Capital Gains Realized from the Sale, Exchange or Disposition of Lands and/or Buildings. (E) Minimum Corporate Income Tax on Domestic Corporations. (1) Imposition of Tax(2) Carry Forward of Excess Minimum Tax. (3) Relief from the Minimum Corporate Income Tax Under Certain Conditions. (4) Gross Income Defined. SECTION 28. Rates of Income Tax on Foreign Corporations.(A) Tax on Resident Foreign Corporations. (1) In General. (2) Minimum Corporate Income Tax on Resident Foreign Corporations. (3) International Carrier. (a) International Air Carrier. (b) International Shipping. (4) Offshore Banking Units. (5) Tax on Branch Profits Remittances. (6) Regional or Area Headquarters and Regional Operating Headquarters of Multinational Companies. (7) Tax on Certain Incomes Received by a Resident Foreign Corporation. (a) Interest from Deposits and Yield or any other Monetary Benefit from Deposit Substitutes, Trust Funds and Similar Arrangements and Royalties. (b) Income Derived under the Expanded Foreign Currency Deposit System. (c) Capital Gains from Sale of Shares of Stock Not Traded in the Stock Exchange. (d) Intercorporate Dividends. (B) Tax on Nonresident Foreign Corporation. (1) In General. (2) Nonresident Cinematographic Film Owner, Lessor or Distributor. (3) Nonresident Owner or Lessor of Vessels Chartered by Philippine Nationals. (4) Nonresident Owner or Lessor of Aircraft, Machineries and Other Equipment. (5) Tax on Certain Incomes Received by a Nonresident Foreign Corporation. (a) Interest on Foreign Loans(b) Intercorporate Dividends. (c) Capital Gains from Sale of Shares of Stock not Traded in the Stock Exchange. SECTION 29. Imposition of Improperly Accumulated Earnings Tax. (A) In General. (B) Tax on Corporations Subject to Improperly Accumulated Earnings Tax. (1) In General. (2) Exceptions. (C) Evidence of Purpose to Avoid Income Tax. (1) Prima Facie Evidence. (2) Evidence Determinative of Purpose. (D) Improperly Accumulated Taxable Income. (E) Reasonable Needs of the Business. SECTION 30. Exemptions from Tax on Corporations. SECTION 31. Taxable Income Defined. SECTION 32. Gross Income. (A) General Definition. (B) Exclusions from Gross Income. (1) Life Insurance. (2) Amount Received by Insured as Return of Premium. (3) Gifts, Bequests, and Devises. (4) Compensation for Injuries or Sickness. (5) Income Exempt under Treaty. (6) Retirement Benefits, Pensions, Gratuities, etc. (7) Miscellaneous Items. (a) Income Derived by Foreign Government. (b) Income Derived by the Government or its Political Subdivisions. (c) Prizes and Awards. SECTION 33. Special Treatment of Fringe Benefit. (A) Imposition of Tax. (B) Fringe Benefit Defined. (C) Fringe Benefits Not Taxable. SECTION 34. Deductions from Gross Income. (A) Expenses. (1) Ordinary and Necessary Trade, Business or Professional Expenses. (a) In General. (b) Substantiation Requirements. (c) Bribes, Kickbacks and Other Similar Payments.(2) Expenses Allowable to Private Educational Institutions. (B) Interest. (1) In General. (2) Exceptions..(C) Taxes. (1) In General. (2) Limitations on Deductions. (3) Credit Against Tax for Taxes of Foreign Countries. (a) Citizen and Domestic Corporation.(b) Partnerships and Estates.(4) Limitations on Credit. (5) Adjustments on Payment of Incurred Taxes..(6) Year in Which Credit Taken. (7) Proof of Credits. (D) Losses. (1) In General. (2) Proof of Loss.(3) Net Operating Loss Carry-over..(4) Capital Losses(a) Limitation. (b) Securities Becoming Worthless. (5) Losses From Wash Sales of Stock or Securities. (6) Wagering Losses. (7) Abandonment Losses(E) Bad Debts. (1) In General. (2) Securities Becoming Worthless. (F) Depreciation. (1) General Rule. (2) Use of Certain Methods and Rates(3) Agreement as to Useful Life on Which Depreciation Rate is Based. (4) Depreciation of Properties Used in Petroleum Operations. (5) Depreciation of Properties Used in Mining Operations. (6) Depreciation Deductible by Nonresident Aliens Engaged in Trade or Business or Resident Foreign Corporations.(G) Depletion of Oil and Gas Wells and Mines.(1) In General. (2) Election to Deduct Exploration and Development Expenditures. (3) Depletion of Oil and Gas Wells and Mines Deductible by a Nonresident Alien Individual or Foreign Corporation. (H) Charitable and Other Contributions. (1) In General. (2) Contributions Deductible in Full. (a) Donations to the Government. (b) Donations to Certain Foreign Institutions or International Organizations. (c) Donations to Accredited Nongovernment Organizations. (3) Valuation. (4) Proof of Deductions. (I) Research and Development. (1) In General. (2) Amortization of Certain Research and Development Expenditures(3) Limitations on Deduction. (J) Pension Trusts. (K) Additional Requirements for Deductibility of Certain Payments. (L) Optional Standard Deduction. (M) Premium Payments on Health and/or Hospitalization Insurance of an Individual Taxpayer. SECTION 35. Allowance of Personal Exemption for Individual Taxpayer. (A) In General. (B) Additional Exemption for Dependents. (C) Change of Status. (D) Personal Exemption Allowable to Nonresident Alien Individual. SECTION 36. Items not Deductible. (A) General Rule.(B) Losses from Sales or Exchanges of Property. SECTION 37. Special Provisions Regarding Income and Deductions of Insurance Companies, Whether Domestic or Foreign. (A) Special Deductions Allowed to Insurance Companies. (B) Mutual Insurance Companies. (C) Mutual Marine Insurance Companies. (D) Assessment Insurance Companies. SECTION 38. Losses from Wash Sales of Stock or Securities. SECTION 39. Capital Gains and Losses. (A) Definitions. (1) Capital Assets. (2) Net Capital Gain. (3) Net Capital Loss. (B) Percentage Taken into Account. (D) Net Capital Loss Carry-over. (E) Retirement of Bonds, Etc. (F) Gains and Losses from Short Sales, Etc. SECTION 40. Determination of Amount and Recognition of Gain or Loss. (A) Computation of Gain or Loss. (B) Basis for Determining Gain or Loss from Sale or Disposition of Property. (C) Exchange of Property. (1) General Rule. (2) Exception. (3) Exchange not Solely in Kind. (4) Assumption of Liability. (5) Basis. (6) Definitions. SECTION 41. Inventories. SECTION 42. Income from Sources Within the Philippines. (A) Gross Income From Sources Within the Philippines. (1) Interests. (2) Dividends. (3) Services. (4) Rentals and Royalties. (5) Sale of Real Property. (6) Sale of Personal Property. (B) Taxable Income From Sources Within the Philippines. (1) General Rule. (2) Exception.(C) Gross Income From Sources Without the Philippines. (D) Taxable Income From Sources Without the Philippines. (E) Income From Sources Partly Within and Partly Without the Philippines(F) Definitions. SECTION 43. General Rule. SECTION 44. Period in which Items of Gross Income Included. SECTION 45. Period for which Deductions and Credits Taken. SECTION 46. Change of Accounting Period. SECTION 47. Final or Adjustment Returns for a Period of Less than Twelve (12) Months. (A) Returns for Short Period Resulting from Change of Accounting Period. (B) Income Computed on Basis of Short Period. SECTION 48. Accounting for Long-term Contracts. SECTION 49. Installment Basis. (A) Sales of Dealers in Personal Property. (B) Sales of Realty and Casual Sales of Personality. (C) Sales of Real Property Considered as Capital Asset by Individuals.(D) Change from Accrual to Installment Basis. SECTION 50. Allocation of Income and Deductions. SECTION 51. Individual Return. (A) Requirements(B) Where to File..(C) When to File. SECTION 52. Corporation Returns. (A) Requirements. (B) Taxable Year of Corporation. (C) Return of Corporation Contemplating Dissolution or Reorganization. (D) Return on Capital Gains Realized from Sale of Shares of Stock not Traded in the Local Stock Exchange. SECTION 53. Extension of Time to File Returns. SECTION 54. Returns of Receivers, Trustees in Bankruptcy or Assignees SECTION 55. Returns of General Professional Partnerships. SECTION 56. Payment and Assessment of Income Tax for Individuals and Corporations. (A) Payment of Tax. (1) In General(2) Installment Payment. (3) Payment of Capital Gains Tax. (B) Assessment and Payment of Deficiency Tax. SECTION 57. Withholding of Tax at Source. (A) Withholding of Final Tax on Certain Incomes. (B) Withholding of Creditable Tax at Source. (C) Tax-free Covenant Bonds. SECTION 58. Returns and Payment of Taxes Withheld at Source. (A) Quarterly Returns and Payments of Taxes Withheld. (B) Statement of Income Payments Made and Taxes Withheld. (C) Annual Information Return. (D) Income of Recipient. (E) Registration with Register of Deeds. SECTION 59. Tax on Profits Collectible from Owner or Other Persons. SECTION 60. Imposition of Tax. (A) Application of Tax. (B) Exception. (C) Computation and Payment. (1) In General. (2) Consolidation of Income of Two or More Trusts. SECTION 61. Taxable Income. SECTION 62. Exemption Allowed to Estates and Trusts. SECTION 63. Revocable Trusts. SECTION 64. Income for Benefit of Grantor. SECTION 65. Fiduciary Returns. SECTION 66. Fiduciaries Indemnified Against Claims for Taxes Paid. SECTION 67. Collection of Foreign Payments. SECTION 68. Information at Source as to Income Payments. SECTION 69. Return of Information of Brokers. SECTION 70. Returns of Foreign Corporations. (A) Requirements. (B) Form and Contents of Return. SECTION 71. Disposition of Income Tax Returns, Publication of Lists of Taxpayers and Filers. SECTION 72. Suit to Recover Tax Based on False or Fraudulent Returns. SECTION 73. Distribution of Dividends or Assets by Corporations. (A) Definition of Dividends.(B) Stock Dividend. (C) Dividends Distributed are Deemed Made from Most Recently Accumulated Profits. (D) Net Income of a Partnership Deemed Constructively Received by Partners. SECTION 74. Declaration of Income Tax for Individuals. (A) In General. (B) Return and Payment of Estimated Income Tax by Individuals. (C) Definition of Estimated Tax. SECTION 75. Declaration of Quarterly Corporate Income Tax. SECTION 76. Fiscal Adjustment Return. SECTION 77. Place and Time of Filing and Payment of Quarterly Corporate Income Tax. (A) Place of Filing. (B) Time of Filing the Income Tax Return. SECTION 78. Definitions. (A) Wages. (B) Payroll Period. (C) Employee. (D) Employer. SECTION 79. Income Tax Collected at Source. (A) Requirement of Withholding. (B) Tax Paid by Recipient. (C) Refunds or Credits.(1) Employer. (2) Employees. (D) Personal Exemptions(1) In General. (2) Exemption Certificates. (a) When to File(b) Change of Status. (c) Use of Certificates. (d) Failure to Furnish Certificate. (E) Withholding on Basis of Average Wages. (F) Husband and Wife. (G) Nonresident Aliens. (H) Year-end Adjustment SECTION 80. Liability for Tax. (A) Employer. (B) Employee. SECTION 81. Filing of Return and Payment of Taxes Withheld. SECTION 82. Return and Payment in Case of Government Employees. SECTION 83. Statements and Returns. (A) Requirements. (B) Annual Information Returns. (C) Extension of Time. TITLE III - ESTATE AND DONOR'S TAXES SECTION 84. Rates of Estate Tax SECTION 85. Gross Estate. (A) Decedent's Interest. (B) Transfer in Contemplation of Death. (C) Revocable Transfer. (D) Property Passing Under General Power of Appointment. (E) Proceeds of Life Insurance. (F) Prior Interests. (G) Transfers for Insufficient Consideration. (H) Capital of the Surviving Spouse. SECTION 86. Computation of Net Estate. (A) Deductions Allowed to the Estate of a Citizen or a Resident. (1) Expenses, Losses, Indebtedness, and Taxes. (2) Property Previously Taxed. (3) Transfers for Public Use. (4) The Family Home. (5) Standard Deduction. (6) Medical Expenses(7) Amount Received by Heirs Under Republic Act No. 4917. (B) Deductions Allowed to Nonresident Estates. (1) Expenses, Losses, Indebtedness and Taxes. (2) Property Previously Taxed. (3) Transfers for Public Use(C) Share in the Conjugal Property(D) Miscellaneous Provisions. (E) Tax Credit for Estate Taxes Paid to a Foreign Country(1) In General. (2) Limitations on Credit. SECTION 87. Exemption of Certain Acquisitions and Transmissions SECTION 88. Determination of the Value of the Estate. (A) Usufruct. (B) Properties SECTION 89. Notice of Death to be Filed. SECTION 90. Estate Tax Returns. (A) Requirements. (B) Time for Filing. (C) Extension of Time.(D) Place of Filing. SECTION 91. Payment of Tax. (A) Time of Payment. (B) Extension of Time. (C) Liability for Payment. SECTION 92. Discharge of Executor or Administrator from Personal Liability. SECTION 93. Definition of Deficiency. SECTION 94. Payment Before Delivery by Executor or Administrator SECTION 95. Duties of Certain Officers and Debtors. SECTION 96. Restitution of Tax Upon Satisfaction of Outstanding Obligations. SECTION 97. Payment of Tax Antecedent to the Transfer of Shares, Bonds or Rights. SECTION 98. Imposition of Tax. SECTION 99. Rates of Tax Payable by Donor. (A) In General. (B) Tax Payable by Donor if Donee is a Stranger. SECTION 100. Transfer for Less Than Adequate and Full Consideration. SECTION 101. Exemption of Certain Gifts(A) In the Case of Gifts Made by a Resident(B) In the Case of Gifts Made by a Nonresident not a Citizen of the Philippines. (C) Tax Credit for Donor's Taxes Paid to a Foreign Country. (1) In General. (2) Limitations on Credit. SECTION 102. Valuation of Gifts Made in Property. SECTION 103. Filing of Return and Payment of Tax. (A) Requirements. (B) Time and Place of Filing and Payment. SECTION 104. Definitions. TITLE IV - VALUE-ADDED TAX SECTION 105. Persons Liable. SECTION 106. Value-added Tax on Sale of Goods or Properties. (A) Rate and Base of Tax. (B) Transactions Deemed Sale. (C) Changes in or Cessation of Status of a VAT-registered Person. (D) Determination of the Tax. SECTION 107. Value-added Tax on Importation of Goods(A) In General. (B) Transfer of Goods by Tax-exempt Persons SECTION 108. Value-added Tax on Sale of Services and Use or Lease of Properties. (A) Rate and Base of Tax. (B) Transactions Subject to Zero Percent (0%) Rate. SECTION 109. Exempt Transactions SECTION 110. Tax Credits. (A) Creditable Input Tax. (B) Excess Output or Input Tax. (C) Determination of Creditable Input Tax. SECTION 111. Transitional/Presumptive Input Tax Credits. (A) Transitional Input Tax Credits. (B) Presumptive Input Tax Credits. SECTION 112. Refunds or Tax Credits of Input Tax(A) Zero-rated or Effectively Zero-rated Sales. (B) Capital Goods. (C) Cancellation of VAT Registration. (D) Period within which Refund or Tax Credit of Input Taxes shall be Made.(E) Manner of Giving Refund SECTION 113. Invoicing and Accounting Requirements for VAT-Registered Persons. (A) Invoicing Requirements. (B) Accounting Requirements. SECTION 114. Return and Payment of Value-added Tax. (A) In General. (B) Where to File the Return and Pay the Tax. (C) Withholding of Creditable Value-added Tax SECTION 115. Power of the Commissioner to Suspend the Business Operations of a Taxpayer. (A) In the Case of a VAT-registered Person(B) Failure of any Person to Register as Required under SECTION 236. TITLE V - OTHER PERCENTAGE TAXES SECTION 116. Tax on Persons Exempt from Value-added Tax (VAT). SECTION 117. Percentage Tax on Domestic Carriers and Keepers of Garages. SECTION 118. Percentage Tax on International Carriers. SECTION 119. Tax on Franchises. SECTION 120. Tax on Overseas Dispatch, Message or Conversation Originating from the Philippines(A) Persons Liable. (B) Exemptions. (1) Government. (2) Diplomatic Services. (3) International Organizations. (4) News Services. SECTION 121. Tax on Banks and Non-bank Financial Intermediaries. SECTION 122. Tax on Finance Companies. SECTION 123. Tax on Life Insurance Premiums. SECTION 124. Tax on Agents of Foreign Insurance Companies. SECTION 125. Amusement Taxes. SECTION 126. Tax on Winnings. SECTION 127. Tax on Sale, Barter or Exchange of Shares of Stock Listed and Traded through the Local Stock Exchange or through Initial Public Offering. (A) Tax on Sale, Barter or Exchange of Shares of Stock Listed and Traded through the Local Stock Exchange. (B) Tax on Shares of Stock Sold or Exchanged through Initial Public Offering(1) Stock Not Owned by Individuals. (2) Family and Partnership Ownerships. (3) Option. (4) Constructive Ownership as Actual Ownership. (C) Return on Capital Gains Realized from Sale of Shares of Stocks. (1) Return on Capital Gains Realized from Sale of Shares of Stock Listed and Traded in the Local Stock Exchange. (2) Return on Public Offerings of Shares of Stock(D) Common Provisions SECTION 128. Returns and Payment of Percentage Taxes. (A) Returns of Gross Sales, Receipts or Earnings and Payment of Tax. (1) Persons Liable to Pay Percentage Taxes(2) Person Retiring from Business. (3) Exceptions. (4) Determination of Correct Sales or Receipts. (B) Where to FileTITLE VI - EXCISE TAXES ON CERTAIN GOODS SECTION 129. Goods Subject to Excise Taxes. SECTION 130. Filing of Return and Payment of Excise Tax on Domestic Products. (A) Persons Liable to File a Return, Filing of Return on Removal and Payment of Tax. (1) Persons Liable to File a Return. (2) Time for Filing of Return and Payment of the Tax. (3) Place for Filing of the Return and Payment of the Tax. (4) Exceptions. (B) Determination of Gross Selling Price of Goods Subject to Ad Valorem Tax. (C) Manufacturer's or Producer's Sworn Statement. (D) Credit for Excise Tax on Goods Actually Exported. SECTION 131. Payment of Excise Taxes on Imported Articles. (A) Persons Liable. (B) Rate and Basis of the Excise Tax on Imported Articles. SECTION 132. Mode of Computing Contents of Cask or Package. SECTION 133. Removal of Wines and Distilled Spirits for Treatment of Tobacco Leaf . SECTION 134. Domestic Denatured Alcohol. SECTION 135. Petroleum Products Sold to International Carriers and Exempt Entities or Agencies. SECTION 136. Denaturation, Withdrawal and Use of Denatured Alcohol. SECTION 137. Removal of Spirits Under Bond for Rectification. SECTION 138. Removal of Fermented Liquors to Bonded Warehouse. SECTION 139. Removal of Damaged Liquors Free of Tax. SECTION 140. Removal of Tobacco Products Without Prepayment of Tax. SECTION 141. Distilled Spirits. SECTION 142. Wines. SECTION 143. Fermented Liquor. SECTION 144. Tobacco Products. SECTION 145. Cigars and Cigarettes. (A) Cigars. (B) Cigarettes Packed by Hand. (C) Cigarettes Packed by Machine. SECTION 146. Inspection Fee. SECTION 147. Definition of Terms. SECTION 148. Manufactured Oils and Other Fuels. SECTION 149. Automobiles. SECTION 150. Non-essential Goods. SECTION 151. Mineral Products. SECTION 152. Extent of Supervision Over Establishments Producing Taxable Output. SECTION 153. Records to be Kept by Manufacturers; Assessment Based Thereon. SECTION 154. Premises Subject to Approval by Commissioner. SECTION 155. Manufacturers to Provide Themselves with Counting or Metering Devices to Determine Production. SECTION 156.Labels and Form of Packages. SECTION 157. Removal of Articles After the Payment of Tax. SECTION 158. Storage of Goods in Internal-revenue Bonded Warehouses. SECTION 159. Proof of Exportation; Exporter's Bond. SECTION 160. Manufacturers' and Importers' Bond. (A) Initial Bond. (B) Bond for the Succeeding Years of Operation. SECTION 161. Records to be Kept by Wholesale Dealers. SECTION 162. Records to be Kept by Dealers in Leaf Tobacco. SECTION 163. Preservation of Invoices and Stamps. SECTION 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. SECTION 165. Establishment of Distillery Warehouse. SECTION 166. Custody of Distillery or Distillery Warehouse SECTION 167. Limitation on Quantity of Spirits Removed from Warehouse. SECTION 168. Denaturing Within Premises SECTION 169. Recovery of Alcohol for Use in Arts and Industries. SECTION 170. Requirements Governing Rectification and Compounding of Liquors. SECTION 171. Authority of Internal Revenue Officer in Searching for Taxable Articles. SECTION 172. Detention of Package Containing Taxable Articles. TITLE VII - DOCUMENTARY STAMP TAX SECTION 173. Stamp Taxes Upon Documents, Loan Agreements, Instruments and Papers. SECTION 174. Stamp Tax on Debentures and Certificates of Indebtedness. SECTION 175. Stamp Tax on Original Issue of Shares of Stock. SECTION 176. Stamp Tax on Sales, Agreement to Sell, Memoranda of Sales, Deliveries or Transfer of Due-bills, Certificates of Obligation, or Shares of Certificates of Stock. SECTION 177. Stamp Tax on Bonds, Debentures, Certificates of Stock or Indebtedness Issued in Foreign Countries. SECTION 178. Stamp Tax on Certificates of Profits or Interest in Property or Accumulations.
SECTION 179. Stamp Tax on Bank Checks, Drafts, Certificates of Deposit not Bearing Interest, and Other Instruments. SECTION 180. Stamp Tax on All Bonds, Loan Agreements, Promissory Notes, Bills of Exchange, Drafts, Instruments and Securities Issued by the Government or Any of its Instrumentalities, Deposit Substitute Debt Instruments, Certificates of Deposits Bearing Interest and Others Not Payable on Sight or Demand. SECTION 181. Stamp Tax Upon Acceptance of Bills of Exchange and Others. SECTION 182. Stamp Tax on Foreign Bills of Exchange and Letters of Credit. SECTION 183. Stamp Tax on Life Insurance Policies. SECTION 184. Stamp Tax on Policies of Insurance Upon Property. SECTION 185. Stamp Tax on Fidelity Bonds and Other Insurance Policies. SECTION 186. Stamp Tax on Policies of Annuities and Pre-Need Plans. SECTION 187. Stamp Tax on Indemnity Bonds. SECTION 188. Stamp Tax on Certificates. SECTION 189. Stamp Tax on Warehouse Receipts. SECTION 190. Stamp Tax on Jai-alai, Horse Race Tickets, Lotto or Other Authorized Numbers Games. SECTION 191. Stamp Tax On Bills of Lading or Receipts. SECTION 192. Stamp Tax on Proxies. SECTION 193. Stamp Tax on Powers of Attorney. SECTION 194. Stamp Tax on Leases and Other Hiring Agreements. SECTION 195. Stamp Tax on Mortgages, Pledges and Deeds of Trust. SECTION 196. Stamp Tax on Deeds of Sale and Conveyances of Real Property. SECTION 197. Stamp Tax on Charter Parties and Similar Instruments. SECTION 198. Stamp Tax on Assignments and Renewals of Certain Instruments. SECTION 199. Documents and Papers Not Subject to Stamp Tax. SECTION 200. Payment of Documentary Stamp Tax. (A) In General. (B) Time for Filing and Payment of the Tax. (C) Where to File. (D) Exception. SECTION 201. Effect of Failure to Stamp Taxable Document.TITLE VIII - REMEDIES SECTION 202. Final Deed to Purchaser. SECTION 203. Period of Limitation Upon Assessment and Collection SECTION 204. Authority of the Commissioner to Compromise, Abate and Refund or Credit Taxes. SECTION 205. Remedies for the Collection of Delinquent Taxes. SECTION 206. Constructive Distraint of the Property of a Taxpayer. SECTION 207. Summary Remedies. (A) Distraint of Personal Property.(B) Levy on Real Property. SECTION 208. Procedure for Distraint and Garnishment. SECTION 209. Sale of Property Distrained and Disposition of Proceeds. SECTION 210. Release of Distrained Property Upon Payment Prior to Sale. SECTION 211. Report of Sale to Bureau of Internal Revenue. SECTION 212. Purchase by Government at Sale Upon Distraint. SECTION 213. Advertisement and Sale. SECTION 214. Redemption of Property Sold. SECTION 215. Forfeiture to Government for Want of Bidder. SECTION 216. Resale of Real Estate Taken for Taxes. SECTION 217. Further Distraint or Levy. SECTION 218. Injunction not Available to Restrain Collection of Tax. SECTION 219. Nature and Extent of Tax Lien. SECTION 220. Form and Mode of Proceeding in Actions Arising under this Code. SECTION 221. Remedy for Enforcement of Statutory Penal Provisions. SECTION 222. Exceptions as to Period of Limitation of Assessment and Collection of Taxes. SECTION 223. Suspension of Running of Statute of Limitations. SECTION 224. Remedy for Enforcement of Forfeitures. SECTION 225. When Property to be Sold or Destroyed. SECTION 226. Disposition of Funds Recovered in Legal Proceedings or Obtained from Forfeitures. SECTION 227. Satisfaction of Judgment Recovered Against any Internal Revenue Officer. SECTION 228. Protesting of Assessment. SECTION 229. Recovery of Tax Erroneously or Illegally Collected. SECTION 230. Forfeiture of Cash Refund and of Tax Credit. (A) Forfeiture of Refund. (B) Forfeiture of Tax Credit. (C) Transitory Provision. SECTION 231. Action to Contest Forfeiture of Chattel. TITLE IX - COMPLIANCE REQUIREMENTS SECTION 232. Keeping of Books of Accounts. (A) Corporations, Companies, Partnerships or Persons Required to Keep Books of Accounts. (B) Independent Certified Public Accountant Defined. SECTION 233. Subsidiary Books. SECTION 234. Language in which Books are to be Kept; Translation. SECTION 235. Preservation of Books of Accounts and Other Accounting Records. SECTION 236. Registration Requirements. (A) Requirements. (B) Annual Registration Fee. (C) Registration of Each Type of Internal Revenue Tax. (D) Transfer of Registration. (E) Other Updates. (F) Cancellation of Registration. (G) Persons Commencing Business. (H) Persons Becoming Liable to the Value-added Tax. (I) Optional Registration of Exempt Person. (J) Supplying of Taxpayer Identification Number (TIN). SECTION 237. Issuance of Receipts or Sales or Commercial Invoices. SECTION 238. Printing of Receipts or Sales or Commercial Invoices. SECTION 239. Sign to be Exhibited by Distiller, Rectifier, Compounder, Repacker and Wholesale Liquor Dealer. SECTION 240. Sign to be Exhibited by Manufacturer of Products of Tobacco. SECTION 241. Exhibition of Certificate of Payment at Place of Business. SECTION 242. Continuation of Business of Deceased Person. SECTION 243. Removal of Business to Other Location. SECTION 244. Authority of Secretary of Finance to Promulgate Rules and Regulations. SECTION 245. Specific Provisions to be Contained in Rules and Regulations. (1) Value-Added Tax (VAT) (2) Excise Tax (3) Corporate Income Tax (4) Withholding Tax SECTION 246. Non-Retroactivity of Rulings. TITLE X - STATUTORY OFFENSES AND PENALTIES SECTION 247. General Provisions. SECTION 248. Civil Penalties. SECTION 249. Interest. (A) In General. (B) Deficiency Interest. (C) Delinquency Interest. (D) Interest on Extended Payment. SECTION 250. Failure to File Certain Information Returns. SECTION 251. Failure of a Withholding Agent to Collect and Remit Tax. SECTION 252. Failure of a Withholding Agent to Refund Excess Withholding Tax. SECTION 253. General Provisions. SECTION 254. Attempt to Evade or Defeat Tax. SECTION 255. Failure to File Return, Supply Correct and Accurate Information, Pay Tax, Withhold and Remit Tax and Refund Excess Taxes Withheld on Compensation. SECTION 256. Penal Liability of Corporations. SECTION 257. Penal Liability for Making False Entries, Records or Reports, or Using Falsified or Fake Accountable Forms. SECTION 258. Unlawful Pursuit of Business. SECTION 259. Illegal Collection of Foreign Payments. SECTION 260. Unlawful Possession of Cigarette Paper in Bobbins or Rolls, Etc. SECTION 261. Unlawful Use of Denatured Alcohol. SECTION 262. Shipment or Removal of Liquor or Tobacco Products under False Name or Brand or as an Imitation of any Existing or Otherwise Known Product Name or Brand. SECTION 263. Unlawful Possession or Removal of Articles Subject to Excise Tax without Payment of the Tax. SECTION 264. Failure or Refusal to Issue Receipts or Sales or Commercial Invoices, Violations Related to the Printing of such Receipts or Invoices and Other Violations. SECTION 265. Offenses Relating to Stamps. SECTION 266. Failure to Obey Summons. SECTION 267. Declaration under Penalties of Perjury. SECTION 268. Other Crimes and Offenses. (A) Misdeclaration or Misrepresentation of Manufacturers Subject to Excise Tax. (B) Forfeiture of Property Used in Unlicensed Business or Dies Used for Printing False Stamps, Etc. (C) Forfeiture of Goods Illegally Stored or Removed. SECTION 269. Violations Committed by Government Enforcement Officers. SECTION 270. Unlawful Divulgence of Trade Secrets. SECTION 271. Unlawful Interest of Revenue Law Enforcers in Business. SECTION 272. Violation of Withholding Tax Provision. SECTION 273. Penalty for Failure to Issue and Execute Warrant. SECTION 274. Penalty for Second and Subsequent Offenses. SECTION 275. Violation of Other Provisions of this Code or Rules and Regulations in General.
SECTION 276. Penalty for Selling, Transferring, Encumbering or in any way Disposing of Property Placed under Constructive Distraint. SECTION 277. Failure to Surrender Property Placed under Distraint and Levy. SECTION 278. Procuring Unlawful Divulgence of Trade Secrets. SECTION 279. Confiscation and Forfeiture of the Proceeds or Instruments of Crime. SECTION 280. Subsidiary Penalty. SECTION 281. Prescription for Violations of any Provision of this Code. SECTION 282. Informer's Reward to Persons Instrumental in the Discovery of Violations of the National Internal Revenue Code and in the Discovery and Seizure of Smuggled Goods. (A) For Violations of the National Internal Revenue Code. (B) For Discovery and Seizure of Smuggled Goods. TITLE XI - ALLOTMENT OF INTERNAL REVENUE SECTION 283. Disposition of National Internal Revenue SECTION 284. Allotment for the Commission on Audit. SECTION 285. Allotment for the Bureau of Internal Revenue. SECTION 286. Disposition of Proceeds of Insurance Premium Tax. SECTION 287. Shares of Local Government Units in the Proceeds from the Development and Utilization of the National Wealth. (A) Amount of Share of Local Government Units. (B) Share of the Local Governments from Any Government Agency or Government-owned or -Controlled Corporation(C) Allocation of Shares. SECTION 288. Disposition of Incremental Revenues. (A) Incremental Revenues from Republic Act No. 7660.(B) Incremental Revenues from Republic Act No. 8240. SECTION 289. TITLE XII - OVERSIGHT COMMITTEE SECTION 290. Congressional Oversight Committee. TITLE XIII - REPEALING PROVISIONS SECTION 291. In General. TITLE XIV - FINAL PROVISIONS SECTION 292. Separability Clause. 