Issuance of Residence Tax Certificates by Local Governments and Instructions in Accomplishing the New Form Class "A"

December 7, 1972 REVENUE MEMORANDUM CIRCULAR NO. 68-72 SUBJECT : Issuance of Residence Tax Certificates by Local Governments and Instructions in Accomplishing the New Form Class "A" TO : All Internal Revenue Officials and Employees, Provincial and City Treasurers, and Others Concerned With reference to the provisions of the integrated reorganization plan under Presidential Decree No. 1 dated September 24, 1972, transferring the responsibilities for the issuance of residence certificates to local governments, the following information relative to the filling of the new form for Class "A" residence tax certificate as well as instructions contained in Department Memorandum Circular No. 35-72 dated November 28, 1972, are hereby given for the guidance of officials of the Bureau of Internal Revenue and local governments particularly provincial and city treasurers as well as the general public. Pertinent excerpts of the Residence Tax Law, Commonwealth Act No. 465, as amended, which are of general interest to the public are also quoted hereunder. Beginning January 1, 1973, all residence tax certificates will be issued by the local governments (city and municipal treasurers). They will be furnished initially by the Bureau of Internal Revenue. After this initial distribution by the BIR, local governments should obtain their residence tax certificate forms by accomplishing the corresponding requisitions addressed to the Bureau of Internal Revenue. Within five days after the end of the month a listing of the residence certificates issued by every issuing office should be submitted to the Commissioner of Internal Revenue showing in columnar form the date of issuance, the residence certificate number (which should be listed in numerical sequence) and the corresponding amount collected. The list or report of residence certificates issued shall be totalled and prepared in three (3) copies and distributed as follows: Original to the Provincial or City Auditor together with the duplicate copies of the residence certificates (for class B and C-1 certificates) Duplicate to the Chief Accountant of the Bureau of Internal Revenue together with the triplicate copies of the residence certificates (for class B and C-1 certificates) Triplicate to be retained for the files of the issuing office. RESIDENCE TAX (INDIVIDUALS) The new form is issued in duplicate, the original of which should be issued to the taxpayer. The blanks corresponding to the data enumerated hereunder must always be filled: name, taxpayer account number, address, place of birth, date of birth, sex, weight, civil status, occupation/profession. If unemployed the block for profession or occupation should be filled with a dash (-). SSS number, GSIS number, should be filled by all members thereof; otherwise, these columns should be filled with a dash (-). The thumbprint of the taxpayer should appear both on the original as well as on the duplicate. The issuing officer should instruct the taxpayer to attach a copy of his photograph to his residence tax certificate after the same has been issued to him. The certificate should be signed in the presence of the issuing officer. All taxpayers therefore getting the residence tax certificate Class "A" should bring with them their SSS No., GSIS No. and Taxpayer Account Number. Below are pertinent provisions regarding residence taxes for individuals under Commonwealth Act No. 465: "SECTION 1. Persons Liable to Residence Tax . Every inhabitant of the Philippines over eighteen years of age who has been regularly employed on a wage or salary basis for at least thirty consecutive working days during any calendar year at the rate of not less than fifty centavos a day, or who is engaged in business or occupation, or who owns real property with an aggregate assessed value of one thousand pesos or more, or who is required by law to file an income tax return shall pay an annual residence tax of fifty centavos . . ." "SECTION 5. Time for Payment ; Penalties for Delinquency . 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; and if a person so liable fails to pay the taxes on or before the last day of April, he shall be delinquent. As regards those who come to reside in the Philippines on or before the last day of June, and those who reach the age of eighteen years or otherwise lose the benefit of exemption on or before that day, liability shall attach upon the day of arrival or upon the day exemption ceases, and if arriving or becoming liable on or before the tenth day of April, they shall likewise be delinquent upon failure to pay the taxes on or before the last day of April, but such persons arriving or becoming liable after the tenth day of April, shall have twenty days within which to pay the taxes without becoming delinquent: Provided, That persons who come to reside in the Philippines or arrive at the age of eighteen years on or after the first day of July of any year or who ceases to belong to an exempt class on or after the same date, shall not be subject to the taxes for that year." "SECTION 6. Presentation of Residence Certificates upon certain Occasions . When a person liable to the taxes prescribed in this Act acknowledges any document before a notary public, takes the oath of office upon election or appointment to any position in the Government service, receives any license, certificate or permit from any public authority, pays any tax or fee, receives any money from any public fund, or transacts other official business, or receives any salary or wage from any person or corporation, it shall be the duty of such person or officer of such corporation with whom such transaction is had or business done or from whom any salary or wage is received to require the exhibition of the residence certificate showing the payment of the residence taxes by such persons: Provided, however, That the presentation of the residence certificate shall not be required in connection with the registration of a voter. When through its authorized officers any corporation liable to the taxes prescribed in this Act receives any license, certificate of permit from any public authority, pays any tax or fee, receives any money from any public fund, or transacts other official business, it shall be the duty of the public officials with whom such transaction is had or business done to require the exhibition of the residence certificate showing the payment of the residence taxes by such corporation. The certificate mentioned in the next two preceding paragraphs shall be the one issued for the current year, except during the month of January of each year and except also in the case of the payment of the residence tax at any time during the year, in which cases the exhibition of the certificate of the previous year shall suffice . (As amended by section 1, Republic Act No. 585)" Please give this matter as wide publicity as possible. aisa dc MISAEL P. VERA Commissioner of Internal Revenue