BIR Ruling

August 24, 1970 2nd Indorsement Returned to the Chief, Accounting Division, the within papers bearing on the issue of whether or not the income taxes admittedly paid in the other municipalities of Misamis Oriental which are allegedly due to Cagayan de Oro City shall be credited in favor of the latter. A corporate taxpayer should file its income tax return with and pay the tax due thereon, 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, the first installment as well as the second installment necessarily should be paid to the Collection Agent of the city or municipality where the return is filed except in cases where it has branches in one or more cities or municipalities other than the city or municipality where the principal office of its business is located. In such case, the taxpayer should file its return with, and pay the tax representing the 1st installment, to the Collection Agent of the latter. The taxpayer may apportion the second installment among the cities and/or municipalities where it has branches and pay to each of them the portion allocated to them. (Revenue Memorandum Circular No. 19-66, April 11, 1966, implementing Sections 45, 46 and 51 of the Tax code) cdta Applying the foregoing rules, business firms having their principal offices and factories situated in Cagayan de Oro City should pay their income taxes to the Collection Agent of said City. Said business firms cannot be required to pay a portion of their income taxes in other cities or municipalities where they have no branches. Such being the case, if payments were, nevertheless, made by the business firms to cities or municipalities where they have no branches, such payments should be credited in favor of Cagayan de Oro City for purposes of income tax allotments. Be guided accordingly. MISAEL P. VERA Commissioner of Internal Revenue