Payment of Income Tax in Two Equal Installments

August 16, 1990 BIR RULING NO. 155-90 49 (a) (2) 000-00 155-90 Gentlemen : This refers to your letter dated July 9, 1990, in effect, requesting a ruling that some employees of the Securities and Exchange Commission be allowed to pay the second installment of their income tax for taxable year 1989 by means of payroll deduction up to December 31, 1990. In reply, I regret to inform you that your request has to be as it is hereby denied for lack of legal basis. Pursuant to Section 49 (a)(2) of the Tax Code, when the tax is in excess of P2,000.00, the taxpayer other than a corporation may elect to pay the tax in two equal installments in which case, the first installment shall be paid at the time the return is filed and the second installment on or before July 15 following the close of the calendar year. If any installment, is not paid on or before the date fixed for its payment the whole amount of the tax unpaid becomes due and payable together with the delinquency penalties. In other words, full payment of the second installment cannot be extended beyond July 15 following the close of the Calendar Year without incurring delinquency penalties. cdt Very truly yours, (SGD.) JOSE U. ONG Commissioner