Article 8p. 8

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

(b) Estate and donor's taxes;

(c) Value-added tax;

(d) Other percentage taxes;

(e) Excise taxes;

(f) Documentary stamp taxes; and

(g) Such other taxes as are or hereafter may be

imposed and collected by the Bureau of Internal

Revenue.

TITLE II TAX ON INCOME

(As Last Amended by RA No. 10653, 10963) [5]

Revenue Regulation Implementing the Income Tax

Provisions of TRAIN Act

CHAPTER I - DEFINITIONS

SEC. 22. Definitions. - When used in this Title:

(A) The term ' person ' means an individual, a trust, estate

or corporation.

(B) The term ' corporation ' shall include partnerships, no

matter how created or organized, joint-stock companies,

joint accounts (cuentas en participacion), association, or

insurance

companies,

but

does not include general

professional

partnerships

and

a

joint

venture

or

consortium

formed

for

the

purpose

of

undertaking

construction projects or engaging in petroleum, coal,

geothermal and other energy operations pursuant to an

operating

consortium

agreement

under

a

service

contract with the Government. ' General professional

partnerships ' are partnerships formed by persons for the

sole purpose of exercising their common profession, no

part of the income of which is derived from engaging in

any trade or business.

(C) The term ' domestic ', when applied to a corporation,

means created or organized in the Philippines or under

its laws.

(D) The term ' foreign ', when applied to a corporation,

means a corporation which is not domestic

(E) The term ' nonresident citizen ' means;

(1) A citizen of the Philippines who establishes to the

satisfaction of the Commissioner the fact of his

physical presence abroad with a definite intention to

reside therein.

(2) A citizen of the Philippines who leaves the

Philippines during the taxable year to reside abroad,

either as an immigrant or for employment on a

permanent basis.

(3) A citizen of the Philippines who works and

derives

income

from

abroad

and

whose

employment thereat requires him to be physically

present abroad most of the time during the taxable

year.

(4) A citizen who has been previously considered as

nonresident

citizen

and

who

arrives

in

the

Philippines at any time during the taxable year to

reside permanently in the Philippines shall likewise

be treated as a nonresident citizen for the taxable

year in which he arrives in the Philippines with

respect to his income derived from sources abroad

until the date of his arrival in the Philippines.

(5)

The

taxpayer

shall

submit

proof

to

the

Commissioner to show his intention of leaving the

Philippines

to reside permanently abroad or to

return to and reside in the Philippines as the case

may be for purpose of this Section.

(F) The term ' resident alien ' means an individual whose

residence is within the Philippines and who is not a

citizen thereof.

(G) The term ' nonresident alien ' means an individual

whose residence is not within the Philippines and who is

not a citizen thereof.

(H) The term ' resident foreign corporation ' applies to a

foreign corporation engaged in trade or business within

the Philippines.

(I) The term ' nonresident foreign corporation ' applies to

a foreign corporation not engaged in trade or business

within the Philippines.

(J)

The

term

' fiduciary '

means

a

guardian, trustee,

executor,

administrator,

receiver,

conservator

or

any

person acting in any fiduciary capacity for any person.

(K) The term ' withholding agent ' means any person

required to deduct and withhold any tax under the

provisions of Section 57.

(L) The term ' shares of stock ' shall include shares of stock

of a corporation, warrants and/or options to purchase

shares of stock, as well as units of participation in a

partnership (except general professional partnerships),

joint

stock companies, joint accounts, joint ventures

taxable as corporations, associations and recreation or

amusement clubs (such as golf, polo or similar clubs), and

mutual fund certificates.

(M) The term ' shareholder ' shall include holders of a

share/s of stock, warrant/s and/or option/s to purchase

shares of stock of a corporation, as well as a holder of a

unit of participation in a partnership (except general

professional partnerships) in a joint stock company, a

joint account, a taxable joint venture, a member of an

association, recreation or amusement club (such as golf,

polo or similar clubs) and a holder of a mutual fund

certificate,

a

member

in

an

association,

joint-stock

company, or insurance company.

(N) The term ' taxpayer ' means any person subject to tax

imposed by this Title.

(O) The terms ' including ' and ' includes ', when used in a

definition contained in this Title, shall not be deemed to

exclude other things otherwise within the meaning of the

term defined.

(P) The term ' taxable year ' means the calendar year, or

the fiscal year ending during such calendar year, upon

the basis of which the net income is computed under this

Title. 'Taxable year' includes, in the case of a return made

for a fractional part of a year under the provisions of this

Title or under rules and regulations prescribed by the

Secretary

of

Finance,

upon

recommendation of the

commissioner, the period for which such return is made.

(Q) The term ' fiscal year ' means an accounting period of

twelve (12) months ending on the last day of any month

other than December.

(R) The terms ' paid or incurred ' and ' paid or accrued '

shall

be

construed

according

to

the

method

of

accounting upon the basis of which the net income is

computed under this Title.

(S)

The

term

' trade

or

business '

includes

the

performance of the functions of a public office.

(T) The term ' securities ' means shares of stock in a

corporation and rights to subscribe for or to receive such

shares. The term includes bonds, debentures, notes or

certificates, or other evidence or indebtedness, issued by

any corporation, including those issued by a government

or political subdivision thereof, with interest coupons or in

registered form.

(U) The term ' dealer in securities ' means a merchant of

stocks or securities, whether an individual, partnership or

corporation,

with

an

established

place

of

business,

regularly engaged in the purchase of securities and the

resale thereof to customers; that is, one who, as a

merchant, buys securities and re-sells them to customers

with a view to the gains and profits that may be derived

therefrom.

(V) The term ' bank ' means every banking institution, as

defined in Section 2 of Republic Act No. 337,

[6] as

© Compiled by RGL

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