BIR Ruling No. 217-61

1961 BIR RULING NO. 217-61 The Municipal Mayor Lingig, Surigao del Sur S i r : Reference is made to your letter of the 24th instant, stating that the management of Bislig Bay Lumber Co., whose income allegedly comes from timber cut within that locality, is willing to pay part of its income tax in your municipality; however, it is concerned about the complication that may arise if it does so. Accordingly, you now request information as follows: cdta "1. Will it be legal if the Co. pays part of its Income Tax to Lingig (second installment) as the First Installment was already paid in Bislig as they filed the Income Tax Return in Bislig" "2. Can the Municipality of Lingig enjoy the 20% as stated in Sec. 360 of the Tax Code as amended by Rep. Act No. 2343?" In answer thereto, I have the honor to inform you that, under the "pay-as-you-file" system of paying the income tax as provided for in Republic Act No. 2343, when the tax due is P500.00 or less, the same shall be paid in full at the place where the income tax return was filed. Likewise, when the tax due is in excess of P600.00 but the taxpayer does not elect to pay the same in installments, it shall be paid in full at the place where the return was filed. On the other hand, if the taxpayer elects to pay in installments, the first installment shall be paid at the place where the return was filed, while the second installment may be paid at any place. That being the case, your first query is answered in the affirmative. (See also B.I.R. Rulings Nos. 87, 88 & 96, all current series.) Pursuant to Section 360 of the Tax Code, as amended by Republic Act No. 2343, "whenever the total annual collection of income taxes within a municipality or province, as the case may be, exceeds the total collection of such taxes within such municipality or province during the fiscal year nineteen hundred fifty-nine, all the excess shall be apportioned as follows: twenty per cent to the municipality, ten per cent to the province and seventy per cent to the National Government". Such being the case, the Municipality of Lingig may enjoy the additional allotment of 20% mentioned in said law depending upon whether or not its total income tax collections for the fiscal year 1961 exceed those for the fiscal year 1959. cdti Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue