BIR Ruling

February 19, 1969 Oriental Corrugated Fiberboard Box Co. (Chua Tee Corporation of Manila) 81 A. Bonifacio, Balong Bato Quezon City Attention: Mr . Sim Heai Kho Vice-President Gentlemen : With reference to your letter dated December 10, 1968, I have the honor to inform you that the procedure adopted by this Office in the computation of tax due from corporations under the amendment effected by Republic Act No. 5431 is almost identical to that outlined in your letter. In other words, corporations filing on a calendar year basis will pay a tax on the old rate of 22/30% on one-half () of the total net income for the calendar year 1968, while the second half should be taxed at the rate of 25/35%. In this connection, however, please be informed that the 22% should be applied on the first P50,000 of the first half of the net income and the excess over P50,000 should be taxed at the rate of 30%. In the case of income belonging to the second half, the first P50,000 should be taxed at 25% and the excess over P50,000 should be taxed at 35%. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue