BIR Ruling

April 2, 1973 Mr. Dennis D. Tanrea First Vice-President Talakag Timber, Inc. Rm. 806 Citizens Bank Bldg. 411 Rosario St., Manila S i r : This refers to your request for information as to the place of filing income tax return and payment of the income tax due thereon. aisa dc You represented that the Talakag Timber, Inc. is a domestic corporation engaged in the logging and veneer manufacturing business with a veneer plant in the province of Bukidnon; that while its logging area is in Malaybalay, Bukidnon, the logs are collected and exported from Opol, Misamis, Occidental; and that the corporation's books of accounts are kept in its principal office which is located in Manila. In reply I have the honor to inform you that Article 3 of Supplement "B", Title II of the Tax Code which was made a part of the law of the land by Presidential Decree No. 30 dated October 27, 1972, and Section 5 of Revenue Regulations No. 12-72 dated December 1, 1972 implementing said Decree, provides that the quarterly returns shall be filed with, and the tax due thereon paid, to the Commissioner of Internal Revenue, Regional Director, Revenue District Officer, or 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; in case of a corporation that has no office of any kind or agency in the Philippines, then the return shall be filed and the tax thereon paid with the Commissioner of Internal Revenue. From the aforesaid provisions of the law and the regulations, it is clear that the previous practice of allowing corporate taxpayers to pay the second installment of their income tax in cities or municipalities where they have branches or factories is no longer allowed. In this connection, you are advised that the place of payment of income tax is immaterial under the revised system of distribution of national internal revenue allotments to local governments prescribed by Presidential Decree No. 144 dated March 3, 1973. In view thereof, and considering that it is in the city of Manila where its principal office is located and where its records or books of accounts are kept, the quarterly returns of Talakag Timber, Inc. should be filed with, and the income tax due thereon should be paid to the Collection Agent, Office of the Regional Director, Revenue Region No. 7, DBP Building, Escolta, Manila. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue