Article 50p. 50

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

organization or any of its agencies based in the

Philippines

enjoying

privileges,

exemptions

and

immunities

which

the

Government

of

the

Philippines is committed to recognize pursuant to

an international agreement; and

(4) News Services. - Amounts paid for messages

from any newspaper, press association, radio or

television

newspaper,

broadcasting

agency,

or

newstickers services, to any other newspaper, press

association,

radio

or

television

newspaper

broadcasting agency, or newsticker service or to a

bona

fide

correspondent, which messages deal

exclusively with the collection of news items for, or

the dissemination of news item through, public

press,

radio

or

television

broadcasting

or

a

newsticker service furnishing a general news service

similar to that of the public press.

SEC.

121.

Tax

on

Banks

and

Non-Bank

Financial

Intermediaries Performing Quasi- Banking Functions. -

There shall be collected a tax on a gross receipt derived

from sources within the Philippines by all banks and

non-bank financial intermediaries in accordance with the

following schedule:

(a) On interest, commissions and discounts from

lending activities as well as income from financial

leasing, on the basis of remaining maturities of

instruments

from

which

such

receipts

are

derived:

Maturity period is five years or less

Maturity period is more than five years

(b) On dividends and equity shares and net

income of subsidiaries

(c)

On

royalties,

rentals

of

property,

real

or

personal, profits, from exchange and all other

items treated as gross income under Section 32 of

this Code

(d) On net trading gains within the taxable year

on foreign currency, debt securities, derivatives,

and other similar financial instruments.

5%

1%

0%

7%

7%

Provided, however, That in case the maturity period

referred

to

in

paragraph

(a)

is

shortened

thru

pre-termination,

then

the

maturity

period

shall

be

reckoned to end as of the date of pre-termination for

purposes of classifying the transaction and the correct

rate of tax shall be applied accordingly.

Provided, finally, That the generally accepted accounting

principles as may be prescribed by the Bangko Sentral ng

Pilipinas for the bank or non-bank financial intermediary

performing quasi-banking functions shall likewise be the

basis for the calculation of gross receipts. [84]

Nothing in this Code shall preclude the Commissioner

from imposing the same tax herein provided on persons

performing similar banking activities.

SEC.

122.

Tax

on

Other

Non-Bank

Financial

Intermediaries. [85] - There shall be collected a tax of five

percent (5%) on the gross receipts derived by other

non-bank financial intermediaries doing business in the

Philippines, from interests, commissions, discounts and

all other items treated as gross income under this code.:

Provided, That interests, commissions and discounts from

lending

activities,

as

well

as income from financial

leasing, shall be taxed on the basis of the remaining

maturities of the instruments from which such receipts

are derived, in accordance with the following schedule:

Maturity period is five years or less

Maturity period is more than five years

5%

1%

Provided, however, That in case the maturity period is

shortened thru pre-termination, then the maturity period

shall be reckoned to end as of the date of pre-termination

for purposes of classifying the transaction and the correct

rate of tax shall be applied accordingly.

Provided, finally, That the generally accepted accounting

principles as may be prescribed by the Securities and

Exchange

Commission

for

other

non-bank

financial

intermediaries

shall

likewise

be

the

basis

for

the

calculation of gross receipts. [86]

Nothing in this Code shall preclude the Commissioner

from imposing the same tax herein provided on persons

performing similar financing activities.

SEC. 123. Tax on Life Insurance Premiums. - There shall

be collected from every person, company or corporation

(except purely cooperative companies or associations)

doing life insurance business of any sort in the Philippines

a tax of two percent (2%)

[87] of the total premium

collected, whether such premiums are paid in money,

notes, credits or any substitute for money; but premiums

refunded within six (6) months after payment on account

of rejection of risk or returned for other reason to a person

insured shall not be included in the taxable receipts; nor

shall any tax be paid upon reinsurance by a company that

has already paid the tax; nor upon doing business outside

the Philippines on account of any life insurance of the

insured who is a nonresident, if any tax on such premium

is imposed by the foreign country where the branch is

established nor upon premiums collected or received on

account of any reinsurance , if the insured, in case of

personal insurance, resides outside the Philippines, if any

tax on such premiums is imposed by the foreign country

where

the

original

insurance

has

been

issued

or

perfected;

nor

upon

that

portion

of

the

premiums

collected or received by the insurance companies on

variable

contracts

(as

defined

in

Section

232(2)

of

Presidential Decree No. 612), in excess of the amounts

necessary to insure the lives of the variable contract

workers.

' Cooperative companies or associations ' are such as are

conducted by the members thereof with the money

collected from among themselves and solely for their

own protection and not for profit.

SEC.

124.

Tax

on

Agents

of

Foreign

Insurance

Companies.

-

Every

fire,

marine

or

miscellaneous

insurance agent authorized under the Insurance Code to

procure policies of insurance as he may have previously

been legally authorized to transact on risks located in the

Philippines for companies not authorized to transact

business in the Philippines shall pay a tax equal to twice

the

tax

imposed

in Section 123: Provided, That the

provision of this Section shall not apply to reinsurance:

Provided, however, That the provisions of this Section

shall not affect the right of an owner of property to apply

for and obtain for himself policies in foreign companies in

cases where said owner does not make use of the

services of any agent, company or corporation residing or

doing business in the Philippines. In all cases where

owners of property obtain insurance directly with foreign

companies, it shall be the duty of said owners to report to

the Insurance Commissioner and to the Commissioner

each case where insurance has been so effected, and

shall pay the tax of five percent (5%)on premiums paid, in

the manner required by Section 123.

SEC. 125. Amusement Taxes. - There shall be collected

from

the

proprietor,

lessee

or

operator of cockpits,

cabarets,

night

or

day

clubs,

boxing

exhibitions,

professional basketball games, Jai-Alai and racetracks, a

tax equivalent to:

(a) Eighteen percent (18%) in the case of cockpits;

(b) Eighteen percent (18%) in the case of cabarets,

night or day clubs;

(c)

Ten

percent

(10%)

in

the

case

of

boxing

exhibitions:

Provided,

however,

That

boxing

exhibitions

wherein

World

or

Oriental

Championships in any division is at stake shall be

exempt from amusement tax: Provided, further,

That at least one of the contenders for World or

Oriental

Championship

is

a

citizen[s]

of

the

© Compiled by RGL

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