BIR Ruling

February 14, 1969 Negros Navigation, Co., Inc. Negros Navigation Bldg. Muelle Loney, Iloilo City P.O. Box 202 Attention: Mr . Antonio G . Hechanova General Manager Gentlemen : This refers to your letter dated December 26, 1968 requesting information on a query stated as follows: "The fiscal period of this Company begins January 1st and ends December 31st. In this connection, may we inquire, how should we compute the income tax due for 1968 in consonance with Republic Act No. 5423?" In reply thereto, I have the honor to inform you as follows: A corporation filing its income tax return on the calendar year basis, that is, an accounting period beginning January 1st to December 31st of the year, will pay a tax on the old rate of 22/30% on of the total net income for the calendar year 1968, while the second half should be taxed at the rate of 25/35%. The 22% should be applied on the first P50,000.00 of the first half of the net income and the excess over P50,000.00 should be taxed at the rate of 30%. In the case of the income belonging to the second half, the first P50,000.00 should be taxed at 25% and the excess over P50,000.00 should be taxed at 35%. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue