Bank Tax Regulations

June 1, 1967 REVENUE REGULATIONS NO. 12-67 SUBJECT : Bank Tax Regulations TO : All Internal Revenue Officers and Others Concerned Pursuant to the provisions of Section 338, in relation to Section 4, both of Commonwealth Act No. 466, otherwise known as the National Internal Revenue Code, the following regulations relative to the collection of bank tax from all banks doing business in the Philippines, are hereby promulgated to supersede all precedents, rulings and regulations heretofore published on the same subject, and shall be known as Revenue Regulations No. 12-67 or the Bank Tax Regulations: aisadc "SEC. 249. Tax on banks . There shall be collected a tax of five per centum on the gross receipts derived by all banks doing business in the Philippines from interests, discounts, dividends, commissions, profits from exchange, royalties, rentals of property, real and personal, and all other items treated as gross income under section twenty-nine of this Code. "There shall be collected upon the amount of reserve deficiencies incurred by the bank, and for the period of their duration, as provided in section one hundred twenty-six of Act Numbered One thousand four hundred and fifty-nine, as amended by Act Numbered Three thousand six hundred and ten, one per centum per month. "Bank", as herein used, indicates every incorporated or other bank, and every person, association, or company having a place of business where credits are opened by the deposit or collection of money or currency subject to be paid or remitted upon draft, check, or order, or where money is advanced or loaned on stocks, bonds, bullion, bills of exchange, or promissory notes, are received for discount or for sale. (As amended by sec. 3, Republic Act No. 39.)" SECTION 1. Definition of terms : As used in these regulations the following terms shall be taken to mean as follows: (a) Bank . The term banks as herein used means every person, association, or company whether incorporated or not, having a place of business (1) Where credits are opened by the deposit or collection of money or currency subject to be paid or remitted upon draft, or (2) Where money is advanced or loaned on stocks, bonds, bullion, bills of exchange or promissory notes, or (3) Where stocks, bonds, promissory notes, bills of exchange, bullions are received for discount or for sale. (4) An institution organized and created for the safe investment of the savings of the poor classes and to assist the needy in time of need by loaning such savings to them at a low rate of interest and which, by its statutes and by-laws, provide for an annual interest of four per cent to the depositors, which is the limit to which depositors are entitled to participate in its profits or earnings, and which has a place of business where credits are opened by the deposit or collection of money or currency subject to be paid by order, is a profit-making institution, and is a bank within the definition of Section 249 of the Tax Code. (5) Savings banks which receive deposits and loan the same for the benefit of depositors are engaged in banking, within the meaning of the internal revenue act. (b) Gross Receipts . (1) The term "gross receipts", provided for in Section 249 of the Tax Code means actual receipts from interests, discounts, dividends, commissions, profits from exchange, royalties, rentals of property, real and personal, and all other items treated as gross income under section twenty-nine of the Tax Code. (2) Gross income includes gains, profits, and income derived from salaries, wages, or compensation for personal service of whatever kind and in whatever form paid, or from professions, vocations, trades, businesses, commerce, sales, or dealing in property, whether real or personal growing out of the ownership or use of or interest in such property; also from interests, rents, dividends, securities, or the transactions of any business carried on for gain or profit, or gains, profits, and income derived from any source whatever. (3) In connection with profits arising from exchange transactions, insurance premiums and cost of revenue stamps are deductible items in arriving at profits from exchange. (4) The basis of 5% is the actual gross receipts and/or gross income both from purely banking transactions and non-banking operations. The gross receipts means without deductions of whatever commissions or fees required of banks to contribute or pay to other government institutions or committees as required by banking and other laws. "SEC. 250. Time for payment of tax Increase of Tax case of delinquency . The tax imposed in the next preceding section shall be payable at the end of each calendar quarter and it shall be the duty of every bank, within twenty days after the end of each calendar quarter, to make a true and complete return of the amount of gross income derived during the preceding calendar quarter and pay the tax due thereon and if any such tax is not paid within the time prescribed herein, the amount of the tax shall be increased by twenty-five per centum, the increment to be a part of the tax. (As amended by sec. 4, Republic Act No. 39.)" SECTION 2. Time for Payment of Tax and Penalty in Case of Delinquency . The tax imposed in Sec. 249 of the Tax Code shall be paid not later than twenty days after the end of each calendar quarter, by filling out BIR Form No. _____ which is reproduced hereunder and which should be under oath. The same should be presented to the collection agent of the city or municipality where the principal office is located. Failure to pay within the time prescribed herein will subject the tax a surcharge of 25%. Failure to pay is penalized under Sec. 352 of the Tax Code, violation of which may be settled extrajudicially by way of compromise. SECTION 3. Effective date . These regulations shall take effect upon their promulgation in the Official Gazette. EDUARDO Z. ROMUALDEZ Secretary of Finance Recommended by: MISAEL P. VERA Commissioner of Internal Revenue ATTACHMENT REPUBLIC OF THE PHILIPPINES BANK TAX (GROSS RECEIPTS) BIR FORM NO. ______ Taxpayer Account No. _________ _______ Year STATEMENT OF QUARTERLY GROSS RECEIPTS DERIVED BY BANKS FROM INTERESTS, DISCOUNTS, DIVIDENDS, COMMISSIONS, PROFITS FROM EXCHANGE, ROYALTIES, RENTALS OF PROPERTIES REAL AND PERSONAL AND ALL OTHER ITEMS TREATED AS GROSS INCOME UNDER SECTION 29 OF COMMONWEALTH ACT NO. 466, AS AMENDED OF THE _____________________ (Name of the Bank) _____________________ (City/Municipality) _____________________ (Province) For the three (3) months ending _________ (Section 249, Title VIII, Commonwealth Act No. 466, as amended by Republic Act No. 39, effective October 1, 1946) (Note all amounts to be reduced to Philippine Currency) ____________________________________________________________________ Month of Month of Month of TOTAL ______________________________________________________________________________ Gross Receipts ___________ ___________ ___________ __________ Tax at 5 per cent (5%) ___________ ___________ ___________ __________ We swear (or affirm) that the foregoing statement of quarterly gross receipts of the _________________ City/Municipality of _____________________, Province of ________________, Philippines, subject to the bank tax provided for in section 249 of Commonwealth Act No. 466, as amended by Republic Act No. 39 for the three (3) months ending _______________, are true and correct. ________________________ ________________________ (President) (Treasurer) Res. Cert. No. A-_____ B-________ Res. Cert. No. A-_____ B-________ Issued at ____________ __________ Issued at ____________ __________ Date _______________ __________ Date _______________ __________ Res. Cert. No. C-_____ C1-_______ Sworn to before me this _________ day of Issued at ____________ __________ ___________________, 19______. Date _______________ __________ ___________________ ___________________ (Official Capacity) December 16, 1968 The Commissioner of Internal Revenue M a n i l a S i r : Returned herewith to that Office is Revenue Regulations No. 12-67 dated June 1, 1967, otherwise known as Bank Tax Regulations, duly signed. cdt Very truly yours, EDUARDO Z. ROMUALDEZ Secretary