BIR Ruling

October 19, 1970 Mr. Manuel S. Rodriguez Acting Manager, General Accounts Department Government Service Insurance System Manila S i r : This refers to your letter dated September 11, 1970 requesting information as to whether or not the Government Service Insurance System (GSIS) may be allowed to pay income tax in the cities or municipalities where its branch or agency offices are situated. In reply thereto, I have the honor to inform you that pursuant to Revenue Memorandum Circular No. 19-66 dated April 11, 1966, implementing Section 46 of the Tax Code, a corporation, partnership or association should file its income tax return with, and pay the income tax due from it, 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 installments, 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. When 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 the 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. Since the GSIS has branch or agency offices in cities and/or municipalities other than the City of Manila where its principal office is located, it is given the option to apportion the second installment of its income tax among such cities and municipalities where it has branches, or agency offices. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue