BIR Ruling

September 26, 1972 Mr. Gampong Macarimbang Municipal Secretary Malabang, Lanao del Sur S i r : This refers to Resolution No. 10-72 dated January 8, 1972 of the Municipal Council of Malabang, Lanao del Sur, requesting information "why plantation owners and loggers operators were directly paying their taxes in Manila, which are due the Municipal Government of Malabang, Lanao del Sur." acd In reply thereto, I have the honor to inform you that the reason probably is that said taxpayers have their principal offices located in Manila. Please be informed that under Sections 46 and 51 of the Tax Code, as implemented by Revenue Memorandum Circular No. 19-66 dated April 11, 1966, a corporation, partnership or association should file its income tax return with, and pay the income tax due therefrom, to the Collection agent of the city or municipality where the principal office of its business is located and its books of accounts are kept. If the tax is payable in installment, i.e., the tax due is in excess of five hundred pesos, the first installment as well as the second installment should be paid to the collection agent of the city or municipality where the return is filed. Where a corporation, partnership or association has branches or factories in one or more cities or municipalities other than the city or municipality where the principal office of its business is located, it should file its return with, and pay the tax due to the collection agent of the latter. However, the corporation, partnership, or association may apportion the second installment among the cities and/or municipalities where it has branches or factories and pay to each of them the portion allocated to them. Such being case, the above taxpayers cannot be required to pay the full amount of the income tax due from them, or a portion thereof, to that municipality unless they have their principal place of business or branches or factories therein, as the case may be. cdt Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue