Article 37p. 37

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

taxable compensation income for the entire taxable year

in accordance with Section 24(A). The difference between

the tax due from the employee for the entire year and the

sum of taxes withheld from January to November shall

either be withheld from his salary in December of the

current calendar year or refunded to the employee not

later than January 25 of the succeeding year.

(as amended by RA No 10963)

SEC. 80. Liability for Tax. -

(A)

Employer. - The employer shall be liable for the

withholding and remittance of the correct amount of tax

required

to

be

deducted

and

withheld

under

this

Chapter. If the employer fails to withhold and remit the

correct amount of tax as required to be withheld under

the provision of this Chapter, such tax shall be collected

from

the

employer

together

with

the

penalties

or

additions to the tax otherwise applicable in

respect to

such

failure to withhold and remit.

(B) Employee. - Where an employee fails or refuses to file

the withholding exemption certificate or wilfully supplies

false

or

inaccurate

information

thereunder,

the

tax

otherwise required to be withheld by the employer shall

be collected from him including penalties or additions to

the tax from the due date of remittance until the date of

payment. On the other hand, excess taxes withheld made

by the employer due to:

(1)

Failure

or

refusal

to

file

the

withholding

exemption certificate; or

(2)

False and inaccurate information shall not be

refunded to the employee but shall be forfeited in

favor of the Government.

SEC.

81.

Filing

of

Return

and

Payment

of

Taxes

Withheld.

-

Except

as

the

Commissioner otherwise

permits, taxes deducted and withheld by the employer

on wages of employees shall be covered by a return and

paid to an authorized agent bank; Collection Agent, or

the duly authorized Treasurer of the city or municipality

where the employer has his legal residence or principal

place of business, or in case the employer is a corporation,

where the principal office is located.

The return shall be filed and the payment made within

twenty-five (25) days from the close of each calendar

quarter: Provided, however, That the Commissioner may,

with the approval of the Secretary of Finance, require the

employers to pay or deposit the taxes deducted and

withheld at more frequent intervals, in cases where such

requirement is deemed necessary to protect the interest

of the Government.

The taxes deducted and withheld by employers shall be

held in a special fund in trust for the Government until

the same are paid to the said collecting officers.

SEC. 82. Return and Payment in Case of Government

Employees. - If the employer is the Government of the

Philippines

or

any

political

subdivision,

agency

or

instrumentality

thereof,

the

return

of

the

amount

deducted and withheld upon any wage shall be made by

the officer or employee having control of the payment of

such wage, or by any officer or employee duly designated

for the purpose.

SEC. 83. Statements and Returns. -

(A)

Requirements. - Every employer required to deduct

and withhold a tax shall furnish to each such employee in

respect of his employment during the calendar year, on

or before January thirty-first (31 st ) of the succeeding year,

or if his employment is terminated before the close of

such calendar year, on the same day of which the last

payment

of

wages

is

made,

a

written

statement

confirming the wages paid by the employer to such

employee during the calendar year, and the amount of

tax deducted and withheld under this Chapter in respect

of such wages. The statement required to be furnished by

this Section in respect of any wage shall contain such

other information, and shall be furnished at such other

time and in such form as the Secretary

of

Finance,

upon

the

recommendation

of

the

Commissioner, may, by rules and regulation, prescribe.

(B)

Annual Information Returns. - Every employer

required to deduct and withhold the taxes in respect of

the wages of his employees shall, on or before January

thirty-first (31 st ) of the succeeding year, submit to the

Commissioner an annual information return containing a

list of employees, the total amount of compensation

income of each employee, the total amount of taxes

withheld therefrom during the year, accompanied by

copies of the statement referred to in the preceding

paragraph,

and

such

other

information

as

may

be

deemed necessary. This return, if made and filed in

accordance with rules and regulations promulgated by

the Secretary of Finance, upon recommendation of the

Commissioner, shall be sufficient compliance with the

requirements of Section 68 of this Title in respect of such

wages.

(C)

Extension of Time. - The Commissioner, under such

rules and regulations as may be promulgated by the

Secretary of Finance, may grant to any employer a

reasonable extension of time to furnish and submit the

statements and returns required under this Section.

TITLE III ESTATE AND DONOR'S TAXES

Revenue Regulation Implementing the Estate and

Donor’s Tax Provisions of TRAIN Act

CHAPTER I ESTATE TAX

SEC. 84. Rates of Estate Tax. - There shall be levied,

assessed, collected and paid upon the transfer of the net

estate as determined in accordance with Sections 85 and

86 of every decedent, whether resident or nonresident of

the Philippines, a tax at the rate of six percent (6%) based

on the value of such net estate. (as amended by RA No

10963)

SEC. 85. Gross Estate. - the value of the gross estate of

the decedent shall be determined by including the value

at the time of his death of all property, real or personal,

tangible

or

intangible,

wherever

situated:

Provided,

however, that in the case of a nonresident decedent who

at the time of his death was not a citizen of the

Philippines, only that part of the entire gross estate which

is situated in the Philippines shall be included in his

taxable estate.

(A) Decedent's Interest. - To the extent of the interest

therein of the decedent at the time of his death;

(B) Transfer in Contemplation of Death. - To the extent

of any interest therein of which the decedent has at any

time

made

a

transfer,

by

trust

or

otherwise,

in

contemplation of or intended to take effect in possession

or enjoyment at or after death, or of which he has at any

time made a transfer, by trust or otherwise, under which

he has retained for his life or for any period which does

not in fact end before his death (1) the possession or

enjoyment of, or the right to the income from the

property, or (2) the right, either alone or in conjunction

with any person, to designate the person who shall

possess or enjoy the property or the income therefrom;

except in case of a bona fide sale for an adequate and full

consideration in money or money's worth.

(C) Revocable Transfer. -

(1) To the extent of any interest therein, of which the

decedent has at any time made a transfer (except in

case of a bona fide sale for an adequate and full

consideration in money or money's worth) by trust

or otherwise, where the enjoyment thereof was

subject at the date of his death to any change

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