Whether a Corporation is Liable for Community Tax in the Municipality Where Its Branch is Located

February 5, 1993 DILG LEGAL OPINION NO. 092-93 LEGAL SERVICE Ms. Ma. Luz Penases-Raval Legal-Counsel, Granexport Manufacturing Corporation 16th Floor, Cocobank Building Makati, Metro Manila Dear Ms. Raval : This has reference to your letter dated December 15, 1992, to the Department of Justice, requesting for legal opinion on whether or not a corporation is liable for community tax in the municipality where its branch is located, which letter was referred to this Office for the taking of appropriate action on the matter. In reply thereto, the Rules and Regulations Implementing the Local Government Code of 1991 (RA 7160), particularly Art. 246, par. (e), No. 3 thereof, expressly provides, that: "In case of branch, sales office or warehouse where sales are made and recorded, corresponding community tax shall be paid to the LGU where such branch, sales office or warehouse is located." A careful perusal of the foregoing would reveal that a corporation is not only liable for community tax in the city or municipality where its principal office is located but also to the cities or municipalities where it maintains branches. The clear language of the law leaves no room for interpretation. Premises considered, we hold the view that your corporation has to pay its community tax as often as the number of times it has branches nationwide. cdlex Hoping that we have enlightened you on the matter. Very truly yours, DIR. JACOB F. MONTESA Department Legal Counsel Department of Interior and Local Government cc: Mr. Asisclo O. Jimenez CIC Technical Staff Department of Justice Manila