Article 85p. 85

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

The cash rewards of informers shall be subject to income

tax, collected as a final withholding tax, at a rate of ten

percent (10%).

The

Provisions

of

the

foregoing

Subsections

notwithstanding, all public officials, whether incumbent

or retired, who acquired the information in the course of

the performance of their duties during their incumbency,

are prohibited from claiming informer's reward.

TITLE XI ALLOTMENT OF INTERNAL REVENUE

(As Last Amended by RA Nos. 9334, 9337 & 10026,

10963) [96]

CHAPTER I DISPOSITION AND ALLOTMENT OF

NATIONAL INTERNAL REVENUE IN GENERAL

SEC. 283. Disposition of National Internal Revenue. -

National Internal revenue collected and not applied as

herein above provided or otherwise specially disposed of

by law shall accrue to the National Treasury and shall be

available for the general purposes of the Government,

with the exception of the amounts set apart by way of

allotment as provided for under Republic Act No. 7160,

otherwise known as the Local Government Code of 1991.

In addition to the internal revenue allotment as provided

for in the preceding paragraph, fifty percent (50%) of the

national taxes collected under Sections 106, 108 and 116 of

this Code in excess of the increase in collections for the

immediately

preceding

year

shall

be

distributed

as

follows:

(a) Twenty percent (20%) shall accrue to the city or

municipality where such taxes are collected and

shall be allocated in accordance with Section 150 of

Republic Act No. 7160, otherwise known as the Local

Government Code of 1991; and

(b) Eighty percent (80%) shall accrue to the National

Government.

SEC. 284. Allotment for the Commission on Audit. -

One-half of one percent ( 1 / 2 of 1%) of the collections from

the

national

internal

revenue

taxes

not

otherwise

accruing to special accounts in the general fund of the

national government shall accrue to the Commission on

Audit as a fee for auditing services rendered to local

government units, excluding maintenance, equipment,

and other operating expenses as provided for in Section

21 of Presidential Decree No. 898.

The Secretary of Finance is hereby authorized to deduct

from the monthly internal revenue tax collections an

amount equivalent to the percentage as herein fixed, and

to remit the same directly to the Commission on Audit

under such rules and regulations as may be promulgated

by the Secretary of Finance and the Chairman of the

Commission on Audit.

SEC. 285. Allotment for the Bureau of Internal Revenue.

- An amount equivalent to five percent (5%) of the excess

of actual collections of national internal revenue taxes

over the collection goal shall accrue to the special fund of

the Bureau of Internal Revenue and shall be treated as

receipts automatically appropriated. Said amount shall be

utilized

as

incentive

bonus

for

revenue

personnel,

purchase of necessary equipment and facilities for the

improvement of tax administration, as approved by the

Commissioner: Provided, That the President may, upon

recommendation of the Commissioner, direct that the

excess be credited to a Special Account in the National

Treasury to be held in the reserve available for distribution

as incentive bonus in the subsequent years.

The Secretary of Finance is hereby authorized to transfer

from

the

Treasury

an

amount

equivalent

to

the

percentage as herein fixed and to remit the same directly

to the Bureau of Internal Revenue under such rules and

regulations as may be promulgated by the Secretary of

Finance.

CHAPTER II SPECIAL DISPOSITION OF CERTAIN

NATIONAL INTERNAL REVENUE TAXES

SEC.

286.

Disposition

of

Proceeds

of

insurance

Premium

Tax.

-

Twenty-five

percent

(25%)

of the

premium tax collected under Section 123 of this Code

shall accrue to the Insurance Fund as contemplated in

Section 418 of Presidential Decree No. 612 which shall be

used for the purpose of defraying the expenses of the

Insurance Commission. The Commissioner shall turn over

and deliver the said Insurance Fund to the Insurance

Commissioner as soon as the collection is made.

SEC. 287. Shares of Local Government Units in the

Proceeds from the Development and Utilization of the

National Wealth. - Local Government units shall have an

equitable

share

in

the

proceeds

derived

from

the

utilization

and

development

of

the

national wealth,

within their respective areas, including sharing the same

with the inhabitants by way of direct benefits.

(A)

Amount of Share of Local Government Units. -

Local government units shall, in addition to the

internal revenue allotment, have a share of forty

percent (40%) of the gross collection derived by the

national government from the preceding fiscal year

from excise taxes on mineral products, royalties, and

such other taxes, fees or charges, including related

surcharges, interests or fines, and from its share in

any

co-production,

joint

venture

or

production

sharing

agreement

in

the

utilization

and

development of the national wealth within their

territorial jurisdiction.

(B)

Share of the Local Governments from Any

Government Agency or Government-owned or -

Controlled Corporation. - Local Government Units

shall have a share, based on the preceding fiscal

year, from the proceeds derived by any government

agency

or

government-owned

or

controlled

corporation

engaged

in

the

utilization

and

development of the national wealth based on the

following formula, whichever will produce a higher

share for the local government unit:

(1)

One percent (1%) of the gross sales or

receipts of the preceding calendar year, or

(2)

Forty percent (40%) of the excise taxes on

mineral

products,

royalties, and such other

taxes,

fees

or

charges,

including

related

surcharges, interests or fines the government

agency or government-owned or -controlled

corporations would have paid if it were not

otherwise exempt.

(C) Allocation of Shares. - The share in the preceding

Section shall be distributed in the following manner:

(1)

Where the natural resources are located in

the province:

(a) Province - twenty percent (20%)

(b)

Component

city/municipality

-

forty-five percent (45%); and

(c) Barangay - thirty-five percent (35%)

Provided, however, That where the natural resources

are located in two (2) or more provinces, or in two (2)

or more component cities or municipalities or in two

(2) or more barangays, their respective shares shall

be computed on the basis of: (1) Population - seventy

percent (70%); and (2) Land area - thirty percent

(30%).

(2) Where the natural resources are located in a

highly urbanized or independent component

city:

(a) City - sixty - five percent (65%); and

(b) Barangay - thirty - five percent (35%)

© Compiled by RGL

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