Article 31p. 31

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

recommendation of the commissioner, shall, by rules and

regulations, prescribe.

The dissolving or reorganizing corporation shall, prior to

the issuance by the Securities and Exchange Commission

of the Certificate of Dissolution or Reorganization, as may

be defined by rules and regulations prescribed by the

Secretary

of

Finance,

upon

recommendation of the

Commissioner, secure a certificate of tax clearance from

the Bureau of Internal Revenue which certificate shall be

submitted to the Securities and Exchange Commission.

(D) Return on Capital Gains Realized from Sale of

Shares

of

Stock

not

Traded

in

the

Local

Stock

Exchange. - Every corporation deriving capital gains from

the sale or exchange of shares of stock not traded thru a

local stock exchange as prescribed under Sections 24(C),

25(A)(3), 27(E)(2), 28(A)(8)(c) and 28 (B)(5)(c) shall file a

return within thirty (30) days after each transactions and a

final consolidated return of all transactions during the

taxable year on or before the fifteenth (15th) day of the

fourth (4th) month following the close of the taxable year.

SEC. 53. Extension of Time to File Returns. - The

Commissioner

may,

in

meritorious

cases,

grant

a

reasonable extension of time for filing returns of income

(or final and adjustment returns in case of corporations),

subject to the provisions of Section 56 of this Code.

SEC. 54. Returns of Receivers, Trustees in Bankruptcy

or Assignees. - In cases wherein receivers, trustees in

bankruptcy or assignees are operating the property or

business of a corporation, subject to the tax imposed by

this Title, such receivers, trustees or assignees shall make

returns of net income [38] as and for such corporation, in

the same manner and form as such organization is

hereinbefore required to make returns, and any tax due

on the income as returned by receivers, trustees or

assignees shall be assessed and collected in the same

manner as if assessed directly against the organizations

of whose businesses or properties they have custody or

control.

SEC. 55. Returns of General Professional Partnerships. -

Every

general

professional

partnership

shall

file,

in

duplicate, a return of its income, except income exempt

under Section 32(B) of this Title, setting forth the items of

gross income and of deductions allowed by this Title, and

the

names,

Taxpayer

Identification

Numbers

(TIN),

addresses and shares of each of the partners.

SEC. 56. Payment and Assessment of Income Tax for

Individuals and Corporations. -

(A) Payment of Tax. -

(1) In General. - The total amount of tax imposed by

this Title shall be paid by the person subject thereto

at the time the return is filed. In the case of tramp

vessels, the shipping agents and/or the husbanding

agents, and in their absence, the captains thereof

are required to file the return herein provided and

pay the tax due thereon before their departure.

Upon failure of the said agents or captains to file the

return and pay the tax, the Bureau of Customs is

hereby authorized to hold the vessel and prevent its

departure until proof of payment of the tax is

presented or a sufficient bond is filed to answer for

the tax due.

(2) Installment of Payment. - When a tax due is in

excess of Two thousand pesos (P2,000), the taxpayer

other than a corporation, may elect to pay the tax in

two (2) equal installments, in which case, the first

installment shall be paid at the time the return is

filed

and

the

second installment on or before

October 15 following the close of the calendar year, if

any installment is not paid on or before the date

fixed for its payment, the whole amount of the tax

unpaid becomes due and payable together with the

delinquency

penalties. (as

amended

by

RA

No

10963)

(3) Payment of Capital Gains Tax. - The total

amount

of

tax

imposed

and

prescribed

under

Section

24

(c),

24(D),

27(E)(2),

28(A)(8)(c)

and

28(B)(5)(c) shall be paid on the date the return

prescribed therefor is filed by the person liable

thereto: Provided, That if the seller submits proof of

his intention to avail himself of the benefit of

exemption of capital gains under existing special

laws, no such payments shall be required: Provided,

further,

That

in

case

of

failure

to

qualify

for

exemption

under

such

special

laws

and

implementing rules and regulations, the tax due on

the gains realized from the original transaction shall

immediately become due and payable, subject to

the penalties prescribed under applicable provisions

of this Code: Provided, finally, That if the seller,

having paid the tax, submits such proof of intent

within six (6) months from the registration of the

document transferring the real property, he shall be

entitled to a refund of such tax upon verification of

his compliance with the requirements for such

exemption.

In case the taxpayer elects and is qualified to report the

gain by installments under Section 49 of this Code, the

tax due from each installment payment shall be paid

within (30) days from the receipt of such payments.

No

registration

of

any

document

transferring

real

property shall be effected by the Register of Deeds unless

the Commissioner or his duly authorized representative

has certified that such transfer has been reported, and

the tax herein imposed, if any, has been paid.

(B) Assessment and Payment of Deficiency Tax. - After

the return is filed, the Commissioner shall examine it and

assess

the

correct

amount

of

the

tax.

The

tax

or

deficiency income tax so discovered shall be paid upon

notice and demand from the Commissioner.

As used in this Chapter, in respect of a tax imposed by

this Title, the term ' deficiency ' means:

(1) The amount by which the tax imposed by this

Title exceeds the amount shown as the tax by the

taxpayer upon his return; but the amount so shown

on the return shall be increased by the amounts

previously

assessed

(or

collected

without

assessment) as a deficiency, and decreased by the

amount previously abated, credited, returned or

otherwise repaid in respect of such tax; or

(2) If no amount is shown as the tax by the taxpayer

upon this return, or if no return is made by the

taxpayer, then the amount by which the tax exceeds

the

amounts

previously

assessed

(or

collected

without

assessment)

as

a

deficiency;

but such

amounts previously assessed or collected without

assessment shall first be decreased by the amounts

previously abated, credited returned or otherwise

repaid in respect of such tax.

SEC. 57. Withholding of Tax at Source. -

(A) Withholding of Final Tax on Certain Incomes. -

Subject to rules and regulations the Secretary of Finance

may

promulgate,

upon the recommendation of the

Commissioner, requiring the filing of income tax return

by certain income payees, the tax imposed or prescribed

by

Sections

24(B)(1),

24(B)(2),

24(C), 24(D)(1); 25(A)(2),

25(A)(3), 25(B), 25(C), 25(D), 25(E), 27(D)(1), 27(D)(2), 27(D)(3),

27(D)(5),

28

(A)(4),

28(A)(5),

28(A)(7)(a),

28(A)(7)(b),

28(A)(7)(c), 28(B)(1), 28(B)(2), 28(B)(3), 28(B)(4), 28(B)(5)(a),

28(B)(5)(b),

28(B)(5)(c);

33;

and

282

of this Code on

specified

items

of

income

shall

be

withheld

by

payor-corporation and/or person and paid in the same

manner and subject to the same conditions as provided

in Section 58 of this Code.

(B) Withholding of Creditable Tax at Source. - The

Secretary of Finance may, upon the recommendation of

the Commissioner, require the withholding of a tax on

the

items of income payable to natural or juridical

persons,

residing

in

the

Philippines,

by

payor-corporation/persons as provided for by law, at the

rate of not less than one percent (1%) but not more than

thirty-two percent (32%) thereof, which shall be credited

© Compiled by RGL

31 of 201