Article 35p. 35

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

CHAPTER XII QUARTERLY CORPORATE

INCOME TAX ANNUAL DECLARATION AND

QUARTERLY PAYMENTS OF INCOME TAXES

SEC. 74. Declaration of Income Tax for Individuals. -

(A) In General. - Except as otherwise provided in this

Section, every individual subject to income tax under

Sections 24 and 25(A) of this Title, who is receiving

self-employment income, whether it constitutes the sole

source of his income or in combination with salaries,

wages, and other fixed or determinable income, shall

make and file a declaration of his estimated income for

the current taxable year on or before May 15 of the same

taxable year. (as amended by RA No 10963) In general,

' self-employment

income '

consists

of

the

earnings

derived by the individual from the practice of profession

or conduct of trade or business carried on by him as a

sole proprietor or by a partnership of which he is a

member. Nonresident Filipino citizens, with respect to

income from without the Philippines, and nonresident

aliens not engaged in trade or business in the Philippines,

are not required to render a declaration of estimated

income tax. The declaration shall contain such pertinent

information

as

the

Secretary

of

Finance,

upon

recommendation of the Commissioner, may, by rules and

regulations

prescribe.

An

individual

may

make

amendments of a declaration filed during the taxable

year under the rules and regulations prescribed by the

Secretary

of

Finance,

upon

recommendation of the

Commissioner.

(B) Return and Payment of Estimated Income Tax by

Individuals.

-

The

amount

of

estimated income as

defined

in

Subsection

(C)

with

respect to which a

declaration is required under Subsection (A) shall be paid

in four (4) installments. The first installment shall be paid

at the time of declaration and the second and third shall

be paid on August 15 and November 15 of the current

year, respectively. The fourth installment shall be paid on

or before May 15 of the following calendar year when the

final adjusted income tax return is due to be filed. (as

amended by RA No 10963)

(C) Definition of Estimated Tax. - In the case of an

individual, the term ' estimated tax ' means the amount

which the individual declared as income tax in his final

adjusted and annual income tax return for the preceding

taxable year minus the sum of the credits allowed under

this Title against the said tax. If, during the current taxable

year, the taxpayer reasonable expects to pay a bigger

income tax, he shall file an amended declaration during

any interval of installment payment dates.

SEC. 75. - Declaration of Quarterly Corporate Income

Tax. - Every corporation shall file in duplicate a quarterly

summary declaration of its gross income and deductions

on a cumulative basis for the preceding quarter or

quarters upon which the income tax, as provided in Title II

of this Code, shall be levied, collected and paid. The tax so

computed shall be decreased by the amount of tax

previously

paid

or

assessed

during

the

preceding

quarters and shall be paid not later than sixty (60) days

from the close of each of the first three (3) quarters of the

taxable year, whether calendar or fiscal year.

SEC. 76. - Final Adjustment Return. - Every corporation

liable to tax under Section 27 shall file a final adjustment

return

covering

the

total

taxable

income

for

the

preceding calendar or fiscal year. If the sum of the

quarterly tax payments made during the said taxable

year is not equal to the total tax due on the entire taxable

income of that year, the corporation shall either:

(A) Pay the balance of tax still due; or

(B) Carry-over the excess credit; or

(C) Be credited or refunded with the excess amount

paid, as the case may be.

In case the corporation is entitled to a tax credit or refund

of the excess estimated quarterly income taxes paid, the

excess amount shown on its final adjustment return may

be

carried over and credited against the estimated

quarterly income tax liabilities for the taxable quarters of

the

suceeding

taxable

years.

Once

the

option

to

carry-over and apply the excess quarterly income tax

against income tax due for the taxable quarters of the

succeeding taxable years has been made, such option

shall be considered irrevocable for that taxable period

and no application for cash refund or issuance of a tax

credit certificate shall be allowed therefor.

SEC. 77.

Place and Time of Filing and Payment of

Quarterly Corporate Income Tax. -

(A)

Place

of

Filing.

-

Except as the Commissioner

otherwise permits, the quarterly income tax declaration

required in Section 75 and the final adjustment return

required I Section 76 shall be filed with the authorized

agent banks or Revenue District Officer or Collection

Agent

or

duly

authorized

Treasurer

of

the

city

or

municipality having jurisdiction over the location of the

principal office of the corporation filing the return or

place where its main books of accounts and other data

from which the return is prepared are kept.

(B)

Time

of

Filing

the Income Tax Return. - The

corporate quarterly declaration shall be filed within sixty

(60) days following the close of each of the first three (3)

quarters of the taxable year. The final adjustment return

shall be filed on or before the fifteenth (15 th ) day of April,

or on or before the fifteenth (15 th ) day of the fourth (4 th )

month following the close of the fiscal year, as the case

may be.

(C) Time of Payment of the Income Tax. - The income

tax due on the corporate quarterly returns and the final

adjustment income tax returns computed in accordance

with Sections 75 and 76 shall be paid at the time the

declaration or return is filed in a manner prescribed by

the Commissioner.

CHAPTER XIII WITHHOLDING ON WAGES

Revenue Regulation Implementing the Withholding

of Income Tax Provisions of TRAIN Act

Revenue Regulation Implementing the Withholding

of Income Tax Provisions of the Tax Reform Act of

1997

SEC. 78. Definitions. - As used in this Chapter:

(A)

Wages. - The term ' wages ' means all remuneration

(other than fees paid to a public official) for services

performed by an employee for his employer, including

the cash value of all remuneration paid in any medium

other than cash, except that such term shall not include

remuneration paid:

(1) For agricultural labor paid entirely in products of

the farm where the labor is performed, or

(2) For domestic service in a private home, or

(3)

For

casual

labor

not

in

the

course of the

employer's trade or business, or

(4) For services by a citizen or resident of the

Philippines

for

a

foreign

government

or

an

international organization.

If the remuneration paid by an employer to an employee

for services performed during one-half ( 1 / 2 ) or more of any

payroll period of not more than thirty-one (31) consecutive

days constitutes wages, all the remuneration paid by such

employer to such employee for such period shall be

deemed to be wages; but if the remuneration paid by an

employer to an employee for services performed during

more than one -half ( 1 / 2 ) of any such payroll period does

not constitute wages, then none of the remuneration

© Compiled by RGL

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