Penalty for "Delinquent Payment" of Residence Tax

November 7, 1960 BIR RULING NO. 479-60 Mrs. Gregoria B. Reyes 6-A Dakota St. Sumilang, Pasig Rizal M a d a m : Reference is made to your letters dated September 22 and October 22, 1960, both bearing on the imposition of a penalty of thirteen centavos (P0.13) by the municipal treasurer of Pasig, Rizal on your son's "delinquent payment" of his residence tax for the year 1960. LLjur You stated in your letters that your son who became thirteen years of age only last October 10, 1960, paid his residence tax for the year 1960 eighteen days ahead of his eighteenth birthday. You also stated that "due to certain circumstances your son was obliged to possess a residence certificate at present". However, you did not state in your letters what information your son gave the municipal treasurer concerned which might have prompted him to impose the penalty of thirteen centavos; neither did you inclose in any of your letters a copy of the residence of certificate your son allegedly bought which may serve as our guide in resolving your question. Inasmuch as the facts brought out in your two letters are not sufficient to warrant a ruling on that particular case of your son, the following information is, however, given for your guidance: Liability for the residence taxes accrues on the first day of January of each year as regards persons then resident of the Philippines and liable to the taxes. If a person so liable fails to pay the taxes on or before the last day of April, he shall be delinquent, in which case, there shall be added to the unpaid amount a surcharge of five per centum every month or fractional part thereof, but in no case shall the total surcharge exceed twenty-five per centum. Persons who arrive at the age of eighteen years on or after the first day of July of any year, shall not be subject to the residence taxes for that year. In accordance with the foregoing rule, a person who became eighteen years of age only last October 10, 1960 is not liable to the residence taxes for said year. A person liable to the residence taxes for the year 1960 who pays the same only in the later part of September 1960 shall, in the case of the residence tax "A", be subject to a surcharge of five centum every month or fractional part thereof, beginning with the month of May, or a total of P0.125 or thirteen centavos. LLphil Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue