Refund or Tax Credit on Overpaid Occupation Tax

February 18, 1958 BIR RULING NO. 119-58 San Carlos Rural High School San Carlos, Pangasinan Sir/Madam : In reply to your query dated January 31, 1958, I have the honor to inform you that pursuant to Commonwealth Act No. 465, otherwise known as the Residence Tax Law, every inhabitant of the Philippines who is subject to the payment of Class A residence tax, Class B, of P1.00 for every P1,000.00 of salaries or gross receipts or earnings derived by such person from the exercise of a profession or from the pursuit of an occupation therein during the preceding year. It is clear that the additional tax of P1.00 is collectible only on every P1,000.00 of gross receipts or earnings. On gross earning of more than P1,000.00 but less than P2,000.0, such as P1,999.00, for instance, an additional tax of P1.00 only is due and collectible; and on a gross earning of P2,999.00, P2.00 only, and so on. Apparently, the Deputy Provincial Treasurer of San Carlos, that province committed an error in the computation of the tax. However, you may claim a refund or tax credit of any overpayment you may have made by filing with this office a written claim therefor within two years from the payment of the tax. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue