BIR Ruling

July 9, 1973 The General Manager Government Service Insurance System Arroceros St., Manila Attention: Mr . Manuel S . Rodriguez Manager, General Accounts Gentlemen : This refers to your letter dated January 18, 1973 requesting information as to the manner of payment of the second installment of the GSIS income tax due for the fiscal year ended June 30, 1972, particularly whether a portion of the income tax could still be credited to selected cities and municipalities as provided in Revenue Memorandum Circular No. 19-66. In reply thereto, I have the honor to inform you that under Section 5, Revenue Regulations No. 11-72, as amended by Revenue Regulations No. 12-72 dated December 1, 1972, the quarterly returns shall be filed with, and the income tax due thereon should be paid "to the Commissioner of Internal Revenue, Revenue Regional Director, Revenue District Officer, or to the Collection Agent of the city or municipality where the corporation's principal office is located and where its books of accounts and other data from which the return is prepared are kept . . . ." Accordingly, the payment of the portion of income tax due from a corporation, like the GSIS, in a place where it has a branch office or in different cities and municipalities where it has branches as provided in Revenue Memorandum Circular No. 19-66, which is the basis of the ruling of this Office dated September 28, 1971 adverted to, is no longer allowed. The GSIS, therefore, can no longer credit a portion of its income payments to selected cities and municipalities of its choice by preparing a list of amounts credited and submitting it to this Office, in compliance with the requests of local governments who would like to get a share of the income tax payments of the corporation. Be that as it may, taxpayers desirous of benefiting a particular city or municipality which is the situs of their business operations with their income tax payments need not concern themselves with the place of such payments because under Presidential Decree No. 144 dated March 3, 1973 which provides for a more equitable distribution of national internal revenue allotments to local governments, the place of payment is immaterial. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR"