BIR Ruling [DA-241-99]

April 15, 1999 BIR RULING [DA-241-99] Justice Milagros A. German Adviser on Legal Affairs and Senior Special Consultant Department of Agrarian Reform Elliptical Road, Diliman Quezon City Dear Justice German : Thank you for your letter dated March 2, 1999, concerning your inquiry as to whether you are still required to obtain a Community Tax Certificate, in view of your age and your employment at the Department of Agrarian Reform with an annual salary of P1.00. prll Since the Community Tax (formerly known as the Residence Tax), is a local tax levied and collected not by the Bureau, but by city and municipal governments, I endeavored to research the appropriate statute of provision of law governing the imposition of the Community Tax. On the matter of such imposition, Section 51(a), Article 18 (Community Tax) of the Revenue Code of Quezon City specifically states: "SEC. 51. Imposition of Tax . xxx xxx xxx a) Individuals liable to community tax Every resident of Quezon City eighteen (18) years of age or over, who has been regularly employed on a wage or salary basis for at least thirty (30) consecutive working days during any calendar year, who engages in business or occupation, who owns real property with an aggregate assessed valuation of one thousand pesos (P1,000.00) or more, or who is required by law to file an income tax return shall pay an annual community tax of five pesos (P5.00) and an additional tax of one peso (P1.00) for every one thousand pesos (P1,000.00) of income, regardless of whether from business or exercise of profession and/or one peso (P1.00) for every one thousand pesos (P1,000.00) of income from real property which in no case shall the additional tax exceed five thousand pesos (P5,000.00)." In light of said provisions, it is my humble opinion that you may need to obtain the appropriate Community Tax Certificate, notwithstanding your age and compensation income, particularly if you own real properties. If, however, you do not all under any of the categories specified in Section 51(a), you may opt to secure a Community Tax Certificate in accordance with Section 54 of the same Article, which states: "SEC. 54. Community Tax Certificate . A community tax certificate shall be issued to every person or corporation upon payment of the community tax. A community tax certificate shall also be issued to any person or corporation not subject to the community tax upon payment of one peso (P1.00)." LLpr I suggest, however, that you inquire from the Legal Office of the Quezon City Government, to confirm/check this opinion. I hope that I have been of help to you in this matter. I extend my sincerest good wishes for your continuing success in your service to the Department of Agrarian Reform. Very truly yours, (SGD.) ESTELITA C. AGUIRRE Deputy Commissioner