BASIC TAXATION
Maria Theresa San Pablo - Llamado
1st Semester, AY 2023 - 2024
DLSU College of Law
Part 2: Income Taxation
I.
INTRODUCTION
A. Income Tax Systems
1. Global Tax System
2. Schedular Tax System
3. Semi-schedular or semi-global tax system
B. Features of the Philippine Income Tax Law
1. Direct tax
2. Progressive tax
3. Comprehensive
4. Semi-schedular or semi-global tax system
C. Criteria in Imposing Philippine Income tax
1. Citizenship principle
2. Residence principle
3. Source principle
D. Structure of Income Tax Law, in Brief
1. Taxpayer
2. Tax Base
3. Tax Rate
4. Taxable Period
a. Calendar Year
b. Fiscal Year
Secs. 22, 43-47, NIRC
1
Secs. 51-53, 166-172, Revenue Regulations No. 2
5. Tax Accounting
E. Types of Philippine Income tax
II.
CONCEPT OF INCOME
A. Income Tax Defined
Sec. 32(A), 40(A), NIRC
Sec. 36, Revenue Regulations No. 2
Madrigal v. Rafferty (38 Phil 414)
Fisher v. Trinidad (43 Phil 973)
CIR v. BOAC, G.R. No. L-65773-74 April 30, 1987
Association of Non-Profit Clubs, Inc. v. Bureau of Internal Revenue, G.R. No.
228539, June 26, 2019
B. When is income taxable?
Sec. 43-44, NIRC
Secs. 51-53, Revenue Regulations No. 2
1. Existence of income
- Capital Gain
- Ordinary Gain
- Business Income
- Passive Income
- Other Forms
- Presumed Gain
2. Realization of income
a. Tests of Realization
Sec. 38 and 41, Revenue Regulations No. 2
CIR v. CA, CTA & Anscor, G.R. No. 108576 January 20, 1999
b. Actual v. constructive receipt
Limpan v. CIR (17 SCRA 703)
Republic v. dela Rama (18 SCRA 861)
CIR v. Solidbank, G.R. No. 148191, Nov. 25, 2003
c. Miscellaneous Receipts
2
i. Indirect Receipts – condonation, cancellation of Indebtedness and
Discharge by Third Parties
ii. Recovery of Bad Debts – Tax Benefit Principle
iii. Income from Unlawful Activities
CIR v. Javier, G.R. No. 78953, July 31, 1991
Republic v. Marcos, Sandiganbayan Case No 0141, Dec 19, 2019.
3.
Tests in determining income
i. Realization Test
Eisner v. Macomber (252 US 189)
Fisher v. Trinidad (43 Phil 973)
ii. Claim of Right doctrine or Doctrine of ownership, command, or control
iii. Economic benefit test / Doctrine of proprietary interest
iv. Severance Test
4.
Methods of Accounting for taxable income and deductible expenses
i. Cash v. accrual method of accounting
Secs. 43 – 45, 50, NIRC
Sec. 51- 53 Rev. Reg. No. 2 (RR 2)
ii. Installment v. deferred payment v. percentage of completion (in long
term contracts)
Sec. 48-50, NIRC
Sec. 44, RR 2
Consolidated Mines v. CTA, GR L-18844, Aug. 29, 1974
Filipinas Synthetic v. CA, 316 SCRA 480
iii. Distinction between tax accounting and financial accounting
iv. Recording of Income and Expenses/Keeping of Books
Secs. 175-179, Revenue Regulations No. 2
Revenue Regulations Nos. 17-13, 4-14
CIR v. Wyeth Suaco, 202 SCRA 135
Consolidated Mines v. CTA, G.R. No. 18843, August 29, 1974; 58 SCRA
618
CIR v. Isabela Cultural Corp., G.R. No. 172231, Feb. 12, 2007
CIR v. Lancaster, G.R. No. 183408, July 12, 2017
III.
KINDS OF TAXPAYERS
Sec. 23, 22(A, N), NIRC
A. Individual Taxpayers
3
1. Citizens
Sec. 23(A-D), NIRC
Secs. 1 and 2, Art. IV, 1987 Constitution
a. Resident citizens
Sec. 23(E), NIRC
b. Non-resident citizens
Secs. 22(E), 23(B), NIRC
Overseas Filipino Workers
Sec. 23(C), NIRC
2. Aliens
a. Resident aliens
Secs. 22(F), 24(B), NIRC
Sec. 5, Revenue Regulations No. 2
b. Non-resident aliens
i. 180 – day rule
ii. NRA engaged in trade or business in the Philippines
Secs. 22(G), 25(A), NIRC
Revenue Regulations 2-2021
iii. NRA not engaged in trade or business in the Philippines
Secs. 25(B), NIRC
3. Special Class of Individual Employees
i. Minimum Wage Earners
Secs. 22(H) and 24, last paragraph, NIRC
RR 1-18, RR 8-2018
ii. Rank and File Employee
iii. Managerial/Supervisory Employee
4. Self-Employed and/or Professionals (SEPs)
5. Mixed income earner
6. Estates and Trusts
7. Co-ownerships
8. General Professional Partnerships
4
i. GPP is not taxable entity
ii. Professional fee of GPP exempt from expanded withholding tax
iii. Share of partners in partnership profit deemed distributed to partners
in year profit earned
B. Corporations
1.
Domestic corporation, defined
2.
Partnership taxable as corporation
3.
Joint Venture (JV) and Consortium
a. Exempt JV and consortium
b. Taxable JV consortium
4.
Foreign Corporations
a. Resident foreign corporation
b. Non-resident foreign corporation
c. Subsidiary v. branch of a foreign corporation
IV.
GROSS INCOME
A. Gross Income Defined
Sec. 32 (A), NIRC
B. Gross Income v. Net Income v. Taxable Income
C. Inclusions and Exclusions, in General
1. Inclusions
a. Income from Whatever Source
Secs. 31-32, NIRC
Sec. 61, Revenue Regulations No. 2
b. Situs of Income
Sec. 42, NIRC
Secs. 152-165, Revenue Regulations No. 2
5
c. From Sources Within the Philippines
Sec. 42 (A, B), NIRC
CIR v. BOAC, G.R. No. L-65773-74, April 30, 1987, 149 SCRA 395
NDC v. CIR, G.R. No. L-53961, June 30, 1987, 151 SCRA 472
CIR v. Baier-Nickel, G.R. No. 165793, August 29, 2006
Manila Electric v. Yatco, G.R. No. 45697, November 1, 1939 69 Phil 89
Phil. Guaranty v. CIR, G.R. No. L-22074, Apr. 30, 1965
d. From Sources Without the Philippines
Sec. 42(C), NIRC
e. Partly Within/Without the Philippines
Sec. 42(E), NIRC
2. Exclusions - Section 32(B), NIRC
- Rationale of the exclusions
- Taxpayers who may avail of the exclusions
- Exclusions distinguished from deductions and tax credit
D. Situs/Sources of Income
1. Meaning of situs of income
2. Classification of income as to source
Sec. 42, NIRC
Sec. 152-165, RR2
a. Gross or taxable income from sources within the Philippines
Sec. 42(A), (B), NIRC
Sec. 28(A)(3)(a)(b), NIRC
Commissioner v. BOAC (149 SCRA 395)
NDC v. Commissioner (151 SCRA 472)
CIR v. Baier-Nickel, G.R. No. 165793, August 29, 2006
- Manila Electric v. Yatco, G.R. No. 45697, November 1, 1939 69 Phil 89
- Phil. Guaranty v. CIR, G.R. No. L-22074, Apr. 30, 1965
Howden v. Collector (13 SCRA 601)
b. Gross or taxable income from sources without the Philippines
Sec. 42 (C) and (D), NIRC
c. Income partly within/partly without the Philippines
Sec. 42 (E), NIRC
3. Source Rules in determining income from within and without
a. Interests – residence of debtor
6
b. Dividends – residence of corporation paying dividend
c. Services – place of performance of service
d. Rentals and royalties – location of property or interest in such
property
e. Sale of real property – location of real property
f. Sale of personal property
g. Shares of stock of domestic corporation
E. Sources of Income Subject to Tax
1. Compensation income
Sec. 32(A)(1), NIRC
Rep. Act No. 10963 (TRAIN Law), Dec. 19, 2017
Revenue Regulations No. 11-2018, Jan. 31, 2018, as amended by RR 14-18
Revenue Memorandum Circular No. 050-18, May 11, 2018
Sec. 2.78.1(A), Revenue Regulations No. 2-98
Sec. 2.78.1(A), Revenue Regulations No. 2-98
Sec. 2.83.5, Revenue Regulations No. 10-2008
Sec. 2.83.6, Revenue Regulations No. 2-98
Revenue Memorandum Circular No. 34-2008
Henderson v. Collector, 1 SCRA 649
Polo v. CIR, G.R. No. L-78780, July 23, 1987
ING Bank v CIR, G.R. No. 167679, July 22, 2015
2. Fringe Benefits
Sec. 33, NIRC
Revenue Regulations Nos. 3-98, 8-2000, 10-2000, 05-2008, 05-2011
Revenue Regulations No. 10-2002
Revenue Memorandum Circular No. 88-2012, December 27, 2012
3. Income from Business
Sec. 32(A)(2), 27(E), NIRC
Secs. 36-38, 43-47, Revenue Regulations No. 2
4. Professional Income
5. Income from dealings in property
Sec. 32 (A)(3), 39-40, NIRC
Rodriguez v. Collector (28 SCRA 1119)
Gonzales v. CTA (14 SCRA 71)
Gutierrez v. CTA (101 Phil 173)
i. Type of properties
7
aa. ordinary assets
bb. capital assets
•
What is capital asset
Sec. 39 (A), NIRC
Rev. Regs. 07-03
•
Distinction between ordinary and capital asset
Secs. 24(D), 39, NIRC
Secs. 132-135, Revenue Regulations No. 2
Revenue Regulations No. 7-2003
Tuazon vs. Lingad, G.R. No. L-24248 July 31, 1974
Calasanz vs. CIR, G.R. No. L-26284, Oct. 9, 1986
Ferrer vs. Collector, G.R. No. L-16021, August 31, 1962
•
Long term (capital) asset v. short term (capital) asset
Sec. 39 (B), NIRC
ii. Types of gains from dealings in property
aa. Ordinary income v. capital gain
Sec. 39, NIRC and Sec. 22 (Z), NIRC
bb. Actual v. presumed gain
Sec. 6 (E), NIRC
Sec. 24(D), NIRC
Sec. 27(D)(5), NIRC
Sec. 100, NIRC
cc.
Net capital gain (loss)
Sec. 39 (A), NIRC
Tuason v. Lingad (58 SCRA 170)
Ferrer v. Collector (5 SCRA 1022)
Calasanz v. Commissioner (144 SCRA 664)
Gonzales v. CTA (14 SCRA 79)
iii. Special rules pertaining to income/loss from dealings in property
classified as capital asset
aa.
Computation of the amount of the gain (loss)
Sec. 40 (A), NIRC
•
Cost or basis of the property sold
Sec. 40 (B), NIRC
8
•
Cost or basis of property exchanged in corporate readjustment
Sec. 40 (C) (5), NIRC
Revenue Memorandum Order No. 32-2001, Nov. 29, 2001
•
Recognition of gain/loss in exchange of property
General rule
Sec. 40 (C, 1), NIRC
Exceptions:
*
Where no gain/loss shall be recognized
Sec. 40 (C)(2), NIRC
CIR v. Filinvest Development Corporation, G.R. No. 163653,
July 19, 2011
CIR v Co, G.R. No. 241424. February 26, 2020
CIR v. HSBC, G.R. No. 227121. December 9, 2020
Meaning of merger/consolidation/control securities
Sec. 40 (C) (6), NIRC
Com. v. Rufino (148 SCRA 42)
Revenue Memo Order 26-92
Rev. Regs. 18-2001
Rev. Memorandum Ruling No. 01-01
Rev. Memorandum Ruling No. 01-02
Revenue Memorandum Order 32-2001; RMO 17-2016
Sec. 75 -79 Revised Corporation Code
CIR vs. Rufino, G.R. Nos. L-33665-68 February 27, 1987
De Facto Merger
Revenue Memorandum Ruling 1-2002, Apr. 25, 2002
*
Transaction where gain is recognized but not the loss
Exchange not solely in kind
Sec. 40 (C)(3), NIRC
Wash sales/compared with short selling
Sec. 38, NIRC
Sec. 39 (F), NIRC
Transactions between related taxpayers
Sec. 36 (B)
9
Illegal transactions
Sec. 96, RR 2
*
•
Gains and losses attributed to exercise privilege or options to
buy/sell property
Percentage of gain or loss taken into account (note: for individuals
only)
Sec. 39 (B), NIRC
bb. Income tax treatment of capital loss
•
Capital loss limitation rule (applicable to both corporations and
individuals)
Sec. 39 (C), NIRC
•
Net loss Carry-Over Rule (applicable only to individuals)
Sec. 39 (D), NIRC
iv. Income from dealings in capital asset subject to special rules
aa.
Dealings in real property situated in the Philippines
Secs. 6(E), 24(A), 24(D)(1), NIRC
Rev. Regs. 07-03
Rev. Regs. 13-99
Revenue Memorandum Circular No. 035-17
•
Foreclosure Sales of Real Property
Revenue Memorandum Order Nos. 29-86, 16-88, 27-89 and 6-92
Revenue Regulations No. 4-99
bb. Dealings in shares of stock of Philippine corporations
Definition of “shares”
Section 6-9, Revised Corporation Code
RR 6-2008, April 22, 2008, as amended by RR 16-2012, RR 62013 and RR 20-20
Sec. 22 (L), NIRC
Sec. 24(C), NIRC
Sec. 27(D)(2), NIRC
Sec. 28(A)(7)(c), NIRC
Sec. 55, RR 2
Rev. Regs. 6-2008
10
•
shares listed and traded in the stock exchange
•
shares not listed and traded in the stock exchange
Sec. 127, NIRC
cc. Other capital assets
v. Sale of Principal Residence
Rev. Regs. No. 13-99
Rev. Regs. No. 14-2000
6. Passive investment income
a. Interest income
Sec. 32(A)(4) NIRC
Sec. 24(B)(1) NIRC
Sec. 22(Y) NIRC
Sec. 22(FF) NIRC
Sec. 28(A)(4), NIRC
Sec. 27(D)(3), NIRC
Sec. 57 RR2
Revenue Regulations No. 10-98
RR 14-2011; RMC 77-2012; RMC 81-2012
BDO v. Republic, G.R. No. 198756, January 13, 2015
b. Dividend income
i. Dividends, defined
ii. Kinds of dividends
aa. Cash dividend
bb. Stock dividend
cc. Property dividend
dd. Liquidating dividend
Sec. 73, NIRC
Sec. 59, NIRC
Commissioner v. Wander Phils. (160 SCRA 573)
ee. Disguised dividend
Sec. 32 (A)(7), NIRC
Sec. 73(C, D), NIRC
Revenue Memorandum No. 31-90
Secs. 250-253, 58, 71, RR 2
11
CIR v. Manning (66 SCRA 14)
Republic v. de la Rama (18 SCRA 861)
Wise v Meer, G.R. No. 48231. June 30, 1947
CIR v. CA, G.R. No. 108576, Jan. 20, 1999
c. Royalty income
Sec. 32(A)(6), NIRC
Sec. 42(A)(4), NIRC
CIR v. SC Johnson, G.R. No. 127105, June 25, 1999
d. Rental income
Sec. 32 (A)(5) NIRC
Sec. 74, 49, 58, RR 2
Revenue Regulations 19-86
BIR Ruling No. 009-07
Limpan v. CIR (17 SCRA 703)
i. Lease of Personal Property
ii. Lease of real property
iii. Tax Treatment of
aa. Leasehold improvements by lessee
bb. VAT added to rental/paid by the lessee
cc. Advance rental/long term lease
7. Annuities/Proceeds from life insurance/other types of insurance
Sec. 32(A)(8), NIRC
Sec. 48 RR 2
8. Prizes and awards
Sec. 32(A)(9), NIRC
Sec. 282, NIRC
Revenue Memorandum Order No. 12-93
Revenue Regulations No. 016-10; Revenue Memorandum Order No. 046-11
CIR v. COA, G.R. No. 101976, Jan. 29, 1993
9. Pensions/retirement benefits/separation pay
Sec. 32(A)(10), NIRC
10. Partner’s Distributive Share of the Gross Income of General Professional
Partnerships
12
Sec. 32(A)(11), NIRC
11. Income from any source whatever
a. Forgiveness of indebtedness
Sec. 30, RR 2
b. Recovery of accounts previously written off
Sec. 34(E)(1), NIRC
Sec. 50, Revenue Regulations No. 2
c. Receipt of tax refunds or credit
Sec. 34(C)(1), NIRC
d. Income from any source whatever
- Found Treasure
- Damages
BIR Ruling No. 1211-18 dated 28 September 2018
BIR Ruling No. 26-2018 dated 18 January 2018
- Informer’s Reward
Penid v. Virata, G.R. No. L-44004, March 25, 1983
V.
EXCLUSIONS FROM GROSS INCOME AND EXEMPT CORPORATIONS
A. Exclusions From Gross Income
1. Rationale of the exclusions
2. Taxpayers who may avail of the exclusions
3. Exclusions distinguished from deductions and tax credit
4. Under the Constitution
a. Income derived by the government or its political subdivision from the
exercise of any essential governmental function
Sec. 32 (B)(7), NIRC
Sec. 4 (3) Art. XIV Constitution
Sec. 4 (4) Art. XIV, Constitution
Sec. 28 (3) Art. VI, Constitution
5. Under the Tax Code
a. Proceeds of Life Insurance Policies
Sec. 32(B)(1), NIRC
Sec. 62 RR 2
El Oriente Fabrica v. Posadas, G.R. No. 34774, September 21,1931
56 Phil 147
b. Return of premium paid
Sec. 32(B)(2), NIRC
13
Sec. 48 RR 2
c. Amounts received under life insurance, endowment or annuity
contracts
d. Value of property acquired by gift, bequest, devise or descent
e. Amounts received through accident or health insurance
Sec. 32(B)(4), NIRC
Sec. 63 RR2
f. Income exempt under tax treaty
Sec. 32(B)(5), NIRC
g. Certain passive income of foreign governments from their Philippine
investments
Section 32 (B)(7,a) NIRC as amended by RA 8424
CIR V. Mitsubishi Metal (181 SCRA 214)
NDC v. CIR, G.R. No. L-53961, June 30, 1987
h. Interest income from long term deposit or investment
Sec. 22 (FF), NIRC
Sec. 24 (B)(1), NIRC
Sec. 25 (A)(2), NIRC
Note: Exemption applies only to individual taxpayers except nonresident alien not engaged in trade or business. They are taxed at
25%.
For corporate taxpayers no exemption
i. Retirement benefits, pensions, gratuities, etc.
Sec. 32(B)(6), NIRC
RA 4917; RA 7641
CIR v. CA, G.R. No. 96016, October 17, 1991, 203 SCRA 72
CIR v. GCI Retirement, G.R. No. 95022, March 23, 1992, 207 SCRA
487
i. Retirement benefits received under R.A. No. 7641, 4917 and Sec.
60(B) of Tax Code
ii. Separation pay for causes beyond control of employee
iii. Retirement benefits from foreign government agencies
iv. Payments under US Veterans Administration
j. Winnings/Prizes
i. Philippine Charity Sweepstakes and lotto winnings
Sec. 24 (B)(1), NIRC
ii. Prizes and awards in sports competition
14
Sec. 32 (B)(7,d), NIRC
Reference: RA 7549
iii. Prizes and awards / religious / charitable / scientific / artistic /
literary
Sec. 32 (B)(7,c) - Requisites for exclusion
k. Gain derived from buying and selling shares of stocks classified as
capital asset listed and traded in the local exchange excluded/exempt
from income tax but subject to percentage tax
Sec. 127, NIRC
RR 6-08 dated April 22, 2008
13th Month Pay and Other Benefits
Sec. 32 (7)(b,e), NIRC
6. Under a Tax Treaty
7. Under special laws, e.g. Bayanihan II Act (RA 11494)
B. Exempt Corporations
VI.
COSTS, DEDUCTIONS AND PERSONAL EXEMPTIONS
A. Deductions from Gross Income, General Rules
1. Deductions construed strictly against taxpayers claiming it
2. Deductions must be paid or incurred in connection with the taxpayer’s trade,
business or profession
3. Deductions must be supported by adequate receipts or invoices (except for
optional standard deduction)
Sec. 34, NIRC
Secs. 119-120, Revenue Regulations No. 2
CIR v. General Foods, G.R. No. 143672, April 24, 2003
Commissioner v. Philippine Acetylene, G.R. No. L-22443, May 29, 1971, 39
SCRA 70
B. Return of Capital (Cost of Sales/Services)
1. Sale of inventory of goods by manufacturers and dealers of properties
2. Sale of stock in trade by a real estate dealer and dealer in securities
3. Sale of Services
C. Itemized Deductions
1. Business expenses (Sec. 65, RR 2)
15
Sec. 34(A), NIRC
Secs. 67-70, 74-75, Revenue Regulations No. 2
Atlas Consolidated Mining & Development Corp. v. CIR
a. Requisites for Deductibility
Ø Nature: Ordinary and necessary
CIR v. General Foods (Phils.), Inc. (401 SCRA 545)
Ø Paid and incurred during taxable year
CIR vs. Isabela Cultural Corporation (515 SCRA 556)
b. Salaries, wages and other forms of compensation for personal services
actually rendered, INCLUDING the grossed-up monetary value of the
fringe benefit subjected to FBT which tax should have been paid
Sec. 34(A), NIRC
Secs. 70-73 RR2
Kuenzle & Streiff, Inc. v. CIR (16 Phil 670)
C.M. Hoskins v. Commissioner (30 SCRA 434)
Aguinaldo Industries v. Com. (112 SCRA 136)
c. Traveling/Transportation expenses (Sec. 66 RR2; RR 3-98)
d. Cost of materials (Sec. 67, RR 2)
e. Rentals and/or other payments for use or possession of property (Sec.
74, RR 2)
f. Repairs and Maintenance (Sec. 68, RR 2)
Com. V. Soriano Cia (38 SCRA 67)
Gutierrez v. Collector (14 SCRA 33)
g. Expenses under lease agreements (Sec. 74, RR 2)
h. Expenses for professionals (Sec. 69, RR 2)
i. Entertainment expenses (RR 3-98)
RR 10-2002 (Ceilings for entertainment, amusement and
recreational expenses (July 10, 2002)
j. Political campaign expenses
k. Training Expenses
2. Interest
Sec. 34 (B), 36(B), NIRC
RR 13-00
Secs. 78-79 RR2
Paper Industries v. CA, G.R. Nos. 106494-50, December 1, 1995, 250 SCRA
434
a. Requisites for deductibility
Com. v. Prieto (109 Phil 592)
Kuenzle v. Coll (28 SCRA 365)
16
b. Non-deductible interest expense
c.
Interest subject to special rules
Sec. 34(B)(2), NIRC
aa. Interest paid in advance
bb. Interest periodically amortized
Sec. 34(B)(3), NIRC
cc. Interest expense incurred to acquire property for use in
trade/business/profession
3. Taxes
Sec. 34(C), NIRC
RMC 13-80
Sec. 80-83, 84 par. 1, 85, 92, RR2
a. Requisites for deductibility
b. Non-deductible taxes
c. Treatments of surcharges/interests/fines for delinquency
d. Treatment of special assessment
e. Tax Credit v. Deduction
CIR v. Lednicky, et al. (11 SCRA 603)
CIR v. Bicolandia Drug Corp. (496 SCRA 176)
Mercury Drug Corporation v. CIR, G.R. No. 164050, July 20, 2011, 654
SCRA 124
4. Losses
Sec. 34 (D), 36(B) NIRC
Sec. 93-101 and 104, RR2
RR 12-77
Plaridel Security v. Com (21 SCRA 1187)
Com. v. Priscilla Estate (11 SCRA 130)
Fernandez Hermanos v. Com (29 SCRA 552)
Tambunting v. CIR, G.R. No.173373, July 29, 2013
China Bank v. CA, G.R. No. 125508, July 19, 2000, 336 SCRA 178
Paper Industries v. CA, G.R. Nos. 106494-50, December 1, 1995, 250 SCRA
434
a. Requisites for deductibility
b. Other types of losses
i. Capital losses
ii. Securities becoming worthless
iii. Shrinkage in value of stocks
17
iv. Losses on wash sales of stocks or securities
Section 34(D)(5), NIRC
Sec. 38, Revenue Regulations No. 2
v. Wagering losses
Sec. 34(D)(6), NIRC
vi. NOLCO
Sec. 34(D)(3)
RR No. 14-01
Section 4, RA No. 11469 (Bayanihan 1); RR 25-2020
vii. Abandonment Loss
Sec. 34(D)(7), NIRC
viii.
Loss Due to Voluntary Removal of Buildings, Scrapping of Old
Machinery, etc.
Sec. 97, RR No. 2
ix. Obsolescence
Sec. 110, RR No. 2
5. Bad Debts
Sec. 34(E), NIRC
Secs. 102-104, RR2
RR 25-2002; RR 5-99
a. Definition
b. Requisites for deductibility
Collector v. Goodrich (21 SCRA 1336)
PRC v. CA (256 SCRA 667)
Fernandez Hermanos v. CIR (supra)
6. Depreciation
Sec. 34(F), NIRC
Sec. 105-115, RR2
Revenue Regulations 19-86
Revenue Regulations 12-2012; Bulletin “F”; Annex “A”, RR No. 19-86;
RMC 2-2013
RMC 70-2010
a. Definition
b. Requisites for deductibility
c. Methods of computing depreciation allowance
i. Straight-line method
ii. Declining-balance method
iii. Sum-of-the-years-digit method
18
Basilan v. Com (21 SCRA 17)
Commissioner of Internal Revenue v. Priscila Estate, Inc. Et. Al., L18282, May 29, 1964
7. Depletion
Sec. 34(G), NIRC
Sec. 3, RR 5-76
a. Definition
b. Requisites for deductibility
Consolidated Mines v. CTA, G.R. Nos. L-18843 & 18844, 58 SCRA 618
8. Charitable and Other Contributions
Sec. 34(H), NIRC
Revenue Regulations No. 13-98, as amended
RMC No. 88-07
EO 720 dated 11 April 2008
E.O. 7
BIR-NEDA Regulations Nos. 1-81 and 1-82
a. Definition
b. Requisites for deductibility
Roxas v. CTA (23 SCRA 276)
9. Contributions to Pension Trusts
Sec. 34(J), NIRC
Sec. 118, Revenue Regulations No. 2
RMC No. 39-2014
a. Definition
b.
Requisites for deductibility
D. Optional standard deduction
Sec. 34(L), NIRC
RR 16-08 dated Nov. 16, 2008
RR 2-2010 dated Feb. 24, 2010
RR No. 2-2014
RMC No. 16-2010
The following may claim OSD in lieu of itemized deductions
19
a. Individuals
i. Resident Citizen
ii. Non-resident citizen
iii. Resident Alien
iv. Estates and Trusts
b. Corporations
E. Personal and additional exemptions (R.A. 9504, Minimum Wage Earner Law)
1. Basic personal exemptions
2. Additional exemptions for taxpayer with dependents
3. Status-at-the-end-of-the-year rule
F. Deductions under Special Laws
- Senior Citizen’s Discount
RR 7-10, as amended by RR 8-10 and RR 11-15, implementing RA 9994
- Sales Discounts for Persons with Disability
RR 1-09; RR 5-17, as amended by RR 9-19; RMC 38-12
G. Special Deductions
Sec. 37, NIRC
H. Items not deductible
Sec. 36, NIRC
Secs. 119-122, Revenue Regulations No. 2
Atlas Consolidated v. CIR, G.R. No. L-26911, Jan. 27, 1981
Gancayco v. Collector, G.R. No. L-13325, April 20, 1961, 1 SCRA 980
1. Personal, living or family expenses
2. Amount paid for new buildings or for permanent improvements (Capital
expenditures)
Revenue Expenditures vs. Capital Expenditures
Atlas Consolidated Mining & Development Corp. v. CIR, G.R. No. L-26911,
Jan. 27, 1981
Kepco Phil Corp. v. CIR, G.R. No. 179356, Dec. 14, 2009
3. Amount expended in restoring property
4. Premiums paid on life insurance policy covering life or any other officer or
employee financially interested
20
5. Interest expense, bad debt and losses from sales of property between related
parties
Sec. 36 NIRC
6. Illegal Expenses
Sec. 34(1), NIRC
Callanoc v. Collector, 3 SCRA 517
3M Philippines v. CIR, G.R. No. 82833, Sept. 26, 1988
I. Limitations and Substantiation
Sec. 34, NIRC
M.E. Holding Corporation v. Court of Appeals, G.R. No. 160193, March 3, 2008,
547 SCRA 389
CIR v. Isabela Cultural Corporation, G.R. No. 172231, Feb. 12, 2007
J. Additional Requirements for deductibility of certain payments; withholding
Sec.34(J), NIRC
RMO 38-83
RR 12-2013
VII.
TAX BASE AND TAX RATES
A. Computation of Tax
Tax payable by a taxpayer is computed as follows:
Applicable Tax Base
Multiplied by:
Applicable Tax Rate
Income Tax
Less:
Any Tax Credit (either
creditable withholding
tax or foreign taxes
paid)
Tax Payable
B. Tax Base
1.
Taxable income
a. Compensation Income, Business and Professional Income, Capital gain not
subject to Final Tax, Passive income not subject to final tax and other
income LESS
21
b. Deductions
c. Exemptions (in case of individuals)
2. Gross Income
a. Under NIRC - Generally, passive income subject to final tax
b. Under special laws – PEZA, SBMA registered entities
3. HIGHEST between Gross selling price, fair market value per tax declaration
and zonal value per BIR in case of capital asset
Section 6(E), NIRC
4. Gain from sale of Real property
5. Net capital gain – in case of sale of shares not listed and traded in the stock
exchange
C. Tax Rates
1. Individuals
a. Graduated income tax rates on taxable income
b. Capital gains – Flat rate
i. on sales of shares of stock of domestic corporation (except dealers in
securities
aa.
½ of 1% Gross selling price – listed shares
bb.
5% for 1st 100,000 and 10% in excess of 100,000 of Net Capital
Gains – shares not listed and exchanged in stock exchange
ii. on sale of real property classified as capital asset by individual – Flat
rate of 6%
c. Passive income subject to final tax at preferential rates
2.
Corporations
a. Domestic
i. Regular of normal income tax rate – flat rate (30% starting 2009)
ii. MCIT
Sec. 27, NIRC
RR 9-98
RR 12-07
iii. Domestic corporations entitled to preferential tax rates
aa.
Hospitals which are nonprofit and proprietary educational
institutions – 10% of taxable income
Sec. 27(B), NIRC, as amended by RA No. 11635
RR No. 3-2022
CIR v. St. Luke’s Medical Center, Inc., G.R. Nos. 195909 and
195960, September 26, 2012)
22
bb.
Foreign Currency deposit unit of local universal or commercial
bank – 10% final tax
cc.
Firms taxed under special income tax regimes (e.g., registered
entities under PEZA law (RA 7916) and Bases Conversion and
Dev’t. Act (RA 7227) – 5% final tax on gross income
iv. Resident Foreign Corporations (RFC)
aa.
General Rule: 30% of net taxable income from sources within the
Philippines
bb.
Exempt entities
1. Regional Area Headquarters
2. Representative Office
cc.
RFCs subject to preferential tax rates
1. International Carrier – 2 ½% on Gross Philippine billings
Sec. 28(A)(3), NIRC
RA 10378, March 7, 2013
RR 15-2013
CIR v. British Overseas Airways Corporation, G.R. No. L65773, April 30, 1987
South African Airways v. CIR, G.R. No. 180356, February 16,
2010
RR No. 15-2002, May 20, 2002
2. Offshore banking units (OBUs) – 10% final tax
3. Regional Operating Headquarters – 10% net taxable income
Sec. 22(DD), (EE), NIRC
Sec. 28(A)(6), NIRC
4. Foreign currency deposit unit in Philippines of foreign bank –
10% final tax
Sec.28(A)(4), NIRC
RR 10-98
5. Branch of foreign corp. registered with PEZA, SBMA, CDA, etc.
– 5% final tax on gross income
6. Qualified Service Contractor and sub-contractor engaged in
petroleum operations in the Philippines
P.D. 87
P.D. 1354
dd. Branch profits remittance tax
v. Non-resident Foreign Corporations (NRFC)
aa. General Rule: 30% of gross income
bb. NRFCs subject to preferential tax rates
23
VIII.
TAXATION OF INDIVIDUALS
A.
Classification of Individual Taxpayers
1.
Citizens of the Philippines
a. Resident Citizen (RC)
b. Non-resident (NRC)
Sec. 22(E), NIRC
Sec. 23(C); 24(A.1,b)
2.
Aliens
a. Resident Alien (RA)
Sec. 22(F), NIRC
b. Non-resident alien (NRA)
Sec. 22(G), NIRC
i. NRA-engaged in trade or business (NRA-TB)
180-day test
Sec. 25(A.1), NIRC
ii. Non-resident alien not engaged in trade or business (NRA-XTB)
iii. Aliens employed by regional headquarters of multinational/by offshore
banking units/petroleum service contractors
Secs. 25 (C), 22 (DD) and 22 (EE), NIRC
iv. Aliens employed by OBUs
Sec. 25 (D), NIRC
v. Aliens employed by petroleum contractors/subcontractors
Sec. 25(E), NIRC
B. Taxation of Income of Resident Citizens:
RR 1-2019
RR 8-2018
RR 11-2018
RR 14-2018
RR 15-2018
24
RMO 23-2018
RMC 32-2018
RMC 50-2018
RMC 51-2018
1. General Rule:
a. Residents who are Citizens – Taxable on income from ALL sources (within
and without the Philippines)
b. Resident Aliens - taxable on income from sources WITHIN the Philippines
2.
General: Taxation of Compensation Income
a. Inclusions
i. Monetary compensation
Ø
Regular salary/wage
Ø
Separation pay/retirement benefit not otherwise exempt under
Sec. 32(B), NIRC
Ø
RR 1-68 as amended by RR 1-83 and RR 10-83
Ø
Bonuses, 13th Month Pay and other benefits unless exempt under
Sec. 32(B), NIRC
Ø
Director’s Fees
RMC 34-08
ii. Non-monetary compensation income
Ø
Fringe benefits not subject to fringe benefits tax (FBT)
Sec. 33, NIRC
RR 2-98
RR 3-98
b. Exclusions
i. Fringe benefits already subject to FBT
RR 3-98, as amended by RR 8-00; RR 10-00; RR 5-08
ii. De Minimis Benefits
RR 3-98, as amended by
RR 10-00 dated Dec. 14, 2000
RR 5-08 dated April 17, 2008
RR 010-08 dated July 8, 2008
iii. 13th month pay and other benefits and payments specifically excluded
from taxable compensation income
25
Sec. 32(B)(7,e), NIRC
c. Deductions
Sec. 35, NIRC
i.
Personal Exemptions and Additional Exemptions
Sec. 35, NIRC
RA No. 9504
RR 10-2008
Pansacola vs. CIR (507 SCRA 81)
ii.
Health and hospitalization insurance
Sec. 34(M), NIRC
3. Taxation of Compensation Income of a Minimum Wage Earner
Republic Act No. 9504
Secs. 22(H), 24, NIRC
RR 10-08, RR 8-2018
Soriano v. Secretary of Finance, G.R. No. 184450, January 24, 2017
Definition of Statutory Minimum Wage
Definition of Minimum Wage Earner
Income also subject to tax exemption: holiday pay,
overtime pay, night shift differential, and hazard
4. Taxation of Business Income/Income from the Practice of Profession
Formula: (pure business/professional income)
Gross Business Income &/or Income from Practice of
Profession
Less: (a) Allowable Deduction (itemized or optional
deduction)
(b)
Personal & Additional Exemptions and
hospitalization/health insurance premium
xxx
(xxx)
(xxx)
Total Taxable Income
xxx
Multiplied by: Tax Rate
xxx
Income Tax
Less: Creditable Withholding Tax on Compensation
Income / Other Allowable Tax Credit
Tax Payable
xxx
(xxx)
xxx
a. Gross Income – includes all income from business or practice of profession
during the taxable year (whether accrued or actually received, depending
on the accounting method used)
Refer to Part IV of Outline
b. Allowable deductions from Gross Income
26
Refer to Part VI (C) – (E) of Outline
5. Income from dealings in properties other than capital assets (e.g. sale of
office equipment)
-
Included as part of business income or income from the practice of
profession
6. Taxation of Passive Income
a. Passive income subject to final tax (withheld at source and remitted to
the BIR by the payor of the income: no longer to be reported in the ITR)
i. Interest income
Sec. 24(B)(1), 22(FF), NIRC
Revenue Regulations No. 10-98
Revenue Regulations No. 14-2012, November 7, 2012
Revenue Regulations No. 1-2019
Revenue Regulations No. 8-2018
Revenue Regulations No. 11-2018
v Interest from ANY CURRENCY bank deposit/any other monetary
benefit from deposit substitutes/trust funds / similar
arrangements
v Interest income received by a resident individual taxpayer from a
depository bank under the FCDU System
RR 10-98
v Interest income from long-term (5-yr) deposit / investment
evidenced by certificates prescribed by BSP
ii. Royalties
Sec. 24 (B), NIRC
RMC 44-05
RMC 77-2003
iii. Dividends from domestic corp.
Sec. 24(B)(2), NIRC
Sec. 73, NIRC
iv. Prizes (except prizes amounting to ten thousands pesos (P10,000.00)
or less which shall be subject to tax under Sec. 24(A) of the Code)
Sec. 24(B), NIRC
v. Other winnings (except PCSO / lotto winnings) derived from sources
within R.P.
Sec. 24(B), NIRC
b. Passive Income NOT Subject to Final Tax (to be reported in the
taxpayer’s ITR)
Sec. 24(A)(1), NIRC
7. Taxation of Capital Gains
27
a. Income from sale of shares of stock of a Philippine corporation
i. Shares traded and listed in the stock exchange
Sec. 24(C); Sec. 127, NIRC
RR 6-08 dated April 22, 2008, as amended by Revenue
Regulation No. 1-2019, and Revenue - Regulation No. 8-2018,
and Revenue Regulation 20-2020
RMC 73-07
ii. Shares not listed and traded in the stock exchange
Sec. 24(C), NIRC
RR 6-08 dated April 22, 2008, as amended by Revenue
Regulation No. 1-2019, and Revenue - Regulation No. 8-2018,
and Revenue Regulation 20-2020
b. Income from the sale of real property situated in the Philippines
i. General rule
Sec. 24(D.1), NIRC
Art. 415, Civil Code
RR 8-98, 13-99, as amended by 14-2000 and 6-01
ii. Exception
- Sale of Principal Residence
Sec. 24 (D,2), NIRC
RR 8-98, 13-99, as amended by RR 14-2000 and 6-01
RMC 45-02
- Socialized Housing
Secs. 19, 20, 32, RA 7279
Secs. 93, 188, NIRC
c. Income from the sale / exchange / other disposition of other capital
assets
i. Special rules to be applied
Sec. 39 (B) – (D), NIRC
Ø Loss limitation rule
Ø Loss carry-over rule
Ø Holding period rule
ii. Taxation of capital gain
Sec. 24(A), NIRC
C. Taxation of Non-resident Citizens
Secs. 23(B) and 24(A), NIRC
Revenue Regulation No. 1-2011
1. General Rule:
28
Income from sources within the Philippines are taxed exactly as income of
resident citizens, except as indicated below.
2. Exceptions:
a. Taxation of interest income from depository
foreign currency deposit system
banks under the expanded
RR 10-98
b. Income from sources outside of the Philippines – not subject to Phil. income
tax
D. Taxation of Non-resident Aliens Engaged in Trade or Business in the Philippines
Sec. 25(A), NIRC
Revenue Regulations 2-2021
1. General Rule:
They are taxed exactly as resident citizens but only on their income from
sources within the Philippines., except as indicated below. Their income from
foreign sources are exempt from Philippine income tax.
2. Exceptions:
a. Limitation on deductible tax credit
Sec. 34(C)(2), NIRC
b. Interest income from foreign currency-denominated deposits with FCDUs –
EXEMPT from tax
Sec. 24(B), NIRC
RR 10-98
c. Amount of deductible personal exemption
Sec. 35(D)
E. Taxation of Non-resident Aliens NOT Engaged in Trade or Business in the
Philippines
1. General Rule: Gross income (i.e. WITHOUT deductions) from Philippine sources
shall be taxes at the fixed FLAT rate of 25%.
Sec. 25(B), NIRC
2. Exceptions:
a. Capital gain from sale of shares of stock – exactly the same as resident
citizens
29
b. Capital gain from sale of real property situated in the Philippines exactly
the same as resident citizens
c. Interest income from foreign currency-denominated deposits with FCDUs –
EXEMPT from tax
Sec. 24(B), NIRC
RR 10-98
F. Individual Taxpayers Exempt from Income Tax
1. Senior citizens
RA No. 7432
RA 9257
Rev. Regs. 4-2006
Carlos Superdrug v. DSWS (526 SCRA 130)
2. Exemptions granted under international agreements
Reagan v. Com. (30 SCRA 968)
Com. v. Robertson (143 SCRA 397)
Tax treaty provision
G. Individuals Previously Subject to Special Rates
1. Aliens employed by regional headquarters of multinational / by offshore
banking units / petroleum service contractors
Secs. 25(C), 22(DD) and 22(EE), NIRC
2. Aliens employed by OBUs
Sec. 25(D), NIRC
3. Aliens employed by petroleum contractors / subcontractors
Sec. 25(E), NIRC
H. Members of General Professional Partnerships
Sec. 26, NIRC
IX.
TAXATION OF CORPORATIONS
Sec. 22(B), NIRC
A. Classification of Corporate Taxpayers (Recall: Part III(B))
1.
Domestic corporation, defined
Sections 3 and 4, Revised Corporation Code
Revenue Regulations 5-2021
a. Partnership taxable as corporation
30
Arts. 1767-1769, New Civil Code
Test whether an entity is a taxable partnership
Ona v. Commissioner (45 SCRA 74)
Afisco Insurance Corp. v. CIR, G.R.No. 112675, Jan. 25, 1999
CIR v. Batangas Tayabas Bus Co., 102 Phil 822
General Professional Partnership
Secs. 22(B), 26, 73(D), NIRC
Tan v. Del Rosario and CIR, G.R.No. L-109289, October 3, 1994
Co-ownership
Art. 484, Civil Code
Revenue Memorandum Circular No. 003-12, January 11, 2012
Revenue Memorandum Circular No. 89-12, December 27, 2012
Obillos v. CIR, L-68118, Oct. 29, 1985
b. Joint Venture (JV) and Consortium
Revenue Regulation No. 10-2012, June 1, 2012
i. Exempt JV/consortium
ii. Taxable JV/consortium
2.
Foreign Corporations
a. Resident foreign corporation (RFC)
b. Non-resident foreign corporation (NRFC)
Marubeni v. Com. (177 SCRA 500)
c. Subsidiary v. branch of a foreign corporation
3.
Tax-exempt corporations
Sec. 30; 27(C), NIRC
RMC 76-2003
RMC No. 35-2012, August 3, 2012
Review: Exemption under the Constitution
Hospital de San Juan de Dios v. Pasay City (16 SCRA 226)
Educational Institutions
CIR v. CA, CTA and YMCA of the Philippines, G.R. No. 124043, October 14,
1998
CIR v. De La Salle University, Inc., G.R. No. 196596, November 9, 2016
Cooperatives
Dumaguete Cathedral Credit Cooperative (DCCCO) v. CIR, G.R. N. 182722,
January 22, 2010
31
Hospitals
CIR v. St. Luke’s Medical Center, G.R. No. 195960, September 26, 2012
Sec. 30(E) vs. Sec. 30(G), NIRC
B. Taxation of Domestic Corporation
Sec. 27, NIRC
1.
Taxation of Business Income
a. Computation of Allowable Deductions
i. Itemized Deduction (Refer to VII (C))
ii. Optional Standard Deduction (Refer to VII(D))
b. Computation of Tax Payable
i. Regular Tax: Section 27, NIRC
ii. MCIT
Section 27(E), NIRC
RR 9-98
RR 12-07
RMC 30-08
Chamber of Real Estate and Builders’ Associations, Inc. v. Romulo,
G.R. No. 160756, March 9, 2010
The Manila Banking Corporation v. CIR, G.R. No. 168118, August 28,
2006
2. Taxation of Passive Income
a.
Passive Income Subject to Final Tax
b.
Passive Income NOT Subject to Final Tax
3. Taxation of Capital Gains
a. Income from sale of shares of stock
RR-6-08
b. Income from the sale of real property situated in the Philippines
c. Income from the sale / exchange / other disposition of other capital
assets
4. Other Taxes Imposed on Corporations: Improperly Accumulated Earnings Tax
(IAET)
RR 2-2001
Cyanamid Phils., Inc. v. CA (322 SCRA 639)
32
C. Taxation of Resident Foreign Corporations with respect to their income from
sources WITHIN the Philippines
1. Definition
Section 22(H), NIRC
Sec. 28(A), NIRC
- Secs. 22(B), (C), (D), (H), NIRC
- Title XV Revised Corporation Code
- Section 3(d), RA No. 7042 (Foreign Investments Act of 1991)
- Revenue Regulations 5-2021
•
Meaning of “Engaged in Trade or Business”
NV Reederit v. CIR, G.R. No. 46029, June 23, 1988, 162 SCRA 487
Air Canada v CIR, G.R. No. 169507, January 11, 2016
Includes:
Offshore Banking Units (“OBUs”)
Regional Operating Headquarters (“ROHQs”)
2. Taxation of RFCs:
Section 28(A), NIRC
3. Taxation of Branch Profits Remittance Tax
Sec. 28(A)(5), NIRC
Revenue Memorandum Circular 55-80
Bank of America v. CIR, G.R. No. 103092 July 21, 1994
Marubeni v. CIR, G.R. No. 76573 September 14, 1989
Deutsche Bank v. CIR, G.R. No. 188550, August 19, 2013
a. Entities exempt from BRFT: PEZA, SBMA-registered enterprises
b. Not deemed remittance of branch profit: remittable profits transferred to a
Philippine corporation; remittance of assigned capital
c. Deemed Branch Profit Remittance: see Revenue Memorandum Ruling 1-2001
(IV)
Marubeni vs. CIR 177 SCRA 500
D. Taxation of Non-resident Foreign Corporations with respect to their income from
sources WITHOUT the Philippines
1. Definition:
Section 22(1), NIRC
Revenue Regulations 5-2021
2. Taxation of NRFCs:
Section 28(B), NIRC
Revenue Regulations 2-2021
CIR vs. Procter and Gamble (204 SCRA 377; 160 SCRA 560)
33
CIR v. Wander Philippines, G.R. No. L-68375 April 15, 1988
Marubeni v. Commissioner, G.R. No. 76573 September 14, 1989
CIR v. Procter & Gamble, G.R.No. 66838, December 2, 1991
X.
ALLOCATION OF INCOME; TRANSFER PRICING
Sec. 50, NIRC
Revenue Regulations No. 2-2013; Revenue Regulations No. 19-2020
Yutivo Sons v. CIR, G.R. No. L-13203, January 28, 1961, 1 SCRA 160
XI.
TAX ON ESTATES AND TRUSTS
A.
Application of Tax
Articles 1440-1457, New Civil Code
Secs. 60-66, NIRC
Secs. 207-213, NIRC
RMC No. 39-2014, May 12, 2014
Secs. 207-213, Revenue Regulations No. 2
CIR v. CA, G.R. No. 95022, March 23, 1992
B.
Exception
C.
Computation and Payment
Sec. 60(B), NIRC
Sec. 60(C), NIRC
In General (Sec. 60(C)(1), NIRC)
Consolidation of income of two or more trusts (Sec. 60(C )(2), NIRC)
Taxable income (Sec. 61, NIRC)
Exemption allowed to Estates and Trusts (Sec. 62, NIRC)
Revocable trusts (Sec. 63, NIRC)
Income for benefit of grantor (Sec. 64(A), NIRC)
Meaning of “in the discretion of the grantor” (Sec. 64(B), NIRC)
CIR v. Visayas Electric, 23 SCRA 715
CIR v. CA, GCL Retirement Plan 207 SCRA 487
XII.
RETURNS AND PAYMENT OF TAX
Secs. 24-28, 33, 51-52, 55, 74-77, NIRC
RMC 31-2019
CIR v. TMX Sales, G.R. No. 83736 January 15, 1992
San Carlos Milling v. CIR, G.R. No. 103379 November 23, 1993
A. Individual return (Sec. 51, Sec. 56, NIRC)
34
1. Who are required to file
2. Those not required to file
3. Where to file
4. When to file
5. Where to pay
6. Capital gains on shares of stocks and real estate
7. Quarterly declaration of income tax (Sec. 74, NIRC)
B. Corporate regular returns (Sec. 52, Sec. 53, Sec. 56, NIRC)
1. Quarterly income tax (Sec. 75, NIRC)
2. Final adjustment return (Sec. 76, NIRC)
3. When to file
4. Where to file
5. When to pay
6. Capital gains on shares of stock
7. Return of corporations contemplating dissolution / reorganization
a. Sec. 244, NIRC, RR 2
b. BPI v. Commissioner of Internal Revenue (CA GR SP 38304, April 14,
2000)
XIII.
WITHHOLDING TAX
Secs. 57-58, 78-83, NIRC
Revenue Regulations Nos. 2-98, as amended
RR 11-2018, RR 14-2018, RR 1-2019, and RR 7-2019
BDO v Republic, GR No. 198756, Aug 16, 2016
CIR v. La Flor dela Isabela, GR No. 211289, Jan 14, 2019
CIR v. CA, CTA & Anscor, G.R. No. 108576 January 20, 1999
d. Final withholding tax at source (Sec. 57, NIRC)
e. Creditable Withholding Tax
XII.
Expanded withholding tax
XIII.
Withholding tax on compensation
f. Fringe benefits tax (RR 3-98)
35