Tax Liability of a Domestic Corporation on a Calendar Year and Fiscal Year Bases

April 21, 1987 BIR RULING NO. 107-87 24 000-00 107-87 Gentlemen : In reply to your letter dated April 9, 1987, I have the honor to inform you that Section 28 of Executive Order No. 37 provides, viz: "SEC. 28. Effectivity . The provisions of Section 21(c), 24(e)(1), 24(e)(4), 25(a)(6)(A), 25(a)(6)(D) and Section 103 of the National Internal Revenue Code, as amended by this Executive Order shall take effect on August 1, 1986. The other provisions of the National Internal Revenue Code, as amended by this Executive Order, shall take effect beginning with the calendar year 1986, except that in the case of corporations filing their income tax returns on a fiscal year basis the same shall take effect on fiscal years beginning on or after July 1, 1986." Such being the case, your opinion to the effect that if a domestic corporation is on a calendar year basis it shall apply the single 35% rate on its taxable income from January to December 1986; and if the domestic corporation is on a fiscal year basis, the 35% rate will apply only on the fiscal year which begin on or after July 1, 1986 is hereby confirmed. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner