Presidential Decree No. 30, dated October 27, 1972

December 1, 1972 REVENUE REGULATIONS NO. 12-72 SUBJECT : Presi dential Decree No. 3 0, dated October 27, 1972, Proclaiming the addition of another supplement, to be known as "SUPPLEMENT B" To Title II (Income Tax) By Placing Corporations On A Tax Withholding System TO : All Internal Revenue Officers and Others Concerned SECTION 1. Scope . Pursuant to Presidential Decree No. 30, dated October 27, 1972, the subject matter of which is "Amending the National Internal Revenue Code, as amended, by adding another supplement, to be known as "Supplement B", to Title II (Income Tax), by placing corporations on a tax withholding system" and Article 9 of H. No. 5480, the following regulations relative to the enforcement of the provisions of the said decree and H. No. 5480 are hereby promulgated and shall be known as Revenue Regulations No. 12-72. SECTION 2. General Provisions . A return of net taxable income shall be filed for each quarter of the taxable year by every corporation subject to income tax under Section 24, Title II of the National Internal Revenue Code. SECTION 3. What should be declared . (a) The net taxable income for the quarter and the income tax due thereon, computed in accordance with the provisions of Title II of the National Internal Revenue Code, shall be declared in the quarterly return. Only the total gross income and deductions for the quarter shall be shown on the quarterly return to determine the net taxable income. (b) If the results of operations for the quarter would show no amount of tax due, a return should nevertheless be filed. SECTION 4. Computation of quarterly income tax . The income tax shall be computed in accordance with the provisions of Title II of the National Internal Revenue Code on the net taxable income for the quarter as follows: For the portion not exceeding P25,000.00 25% (Representing of the first P100,000.00) For the portion exceeding P25,000.00 35% SECTION 5. Filing of quarterly return and payment of income tax . (a) Within 60 days after the end of the first three quarters of the calendar or fiscal year, a return of the net taxable income for each of the quarters on BIR Form 1702Q shall be filed with, and the tax due thereon paid, to the Commissioner of Internal Revenue, Revenue Regional Director, Revenue District Officer, or the Collection Agent of the city or municipality where the corporation's principal office is located and where its books of accounts and other data from which the return is prepared are kept; in case of a corporation that has no office of any kind or agency in the Philippines, then the return shall be filed and the tax thereon paid with the Commissioner of Internal Revenue. (b) To enable corporations to declare a more realistic net income for the quarters that had elapsed in 1972, whereby losses incurred during the floods that occurred in the months of July, August and September, 1972 can be taken into account, thereby enabling the corporation to reflect more accurately the results of its operations during the quarters concerned, only one return shall be filed for all the quarters ending in any month of the year 1972 except the fourth quarter ending in December of the said calendar year which be included in the final return. For those corporations on a fiscal year basis, the return for the quarters that had elapsed shall be correspondingly adjusted to include the months of July, August and September, 1972. Payments shall, however, be made quarterly on the dates scheduled in this Revenue Regulations and Revenue Regulations No. 11A-72. aisa dc The filing of one return for two or three quarters in 1972 as the case may be, and the payments of the quarterly income tax thereon shall be made in accordance with the following schedules: Taxable Period Filing of PAYMENTS Calendar Year Return 1st 2nd 3rd Final First three quarters Jan 1 to Sept. 30, 1972 Jan 15/73 Jan 15/73 Feb 15/73 Mar 15/73 Final return Jan to Dec. 1972 Apr 15/73 Apr 15/73 Taxable Year Ending Jan 31/73 First three quarters Feb. 1 to Oct 31/72 Jan 15/73 Jan 15/73 Feb 15/73 Mar 15/73 Final Return, Taxable Year ending Jan. 31, 1973 May 15/73 May 15/73 Taxable Year Ending Feb 28/73 First three quarters Mar 1/72 to Nov 30/72 Jan 15/73 Jan 15/73 Feb 15/73 Apr 15/73 Final return, Taxable Year ending Feb. 28, 1973 June 15/73 June 15/73 Taxable Year Ending Mar 31/73 First three quarters April 1/72 to Dec 31/72 Jan 15/73 Jan 15/73 Mar 15/73 May 15/73 Final return, Taxable Year ending Mar 31/73 July 15/73 July 15/73 Taxable Year ending Apr 30/73 First two quarters May 1/72 to Oct 31/72 Jan 15/73 Jan 15/73 Mar 31/73 Third quarter Nov 1/72 to Jan 31/73 May 31/73 May 31/73 Final Return, Taxable Year ending April 30, 1973 Aug 15/73 Aug 15/73 Taxable Year ending May 31/73 2nd Install. (June 1/71 to May 31/72) Dec. 15/72 First two quarters: June 1/72 to Nov 30/72 Feb 15/73 Feb 15/73 April 30/73 Third quarter Dec 1/72 to Feb 28, 1973 June 30/73 June 30/73 Final return, taxable year ending May 31, 1973 Sept 15/73 Sept 15/73 Taxable Year ending June 30/73 2nd Install. (July 1/71 to June 3/72) First two quarters: Jan 15/73 Jul 1/72 to Dec 31/72 Mar 15/73 Mar 15/73 May 15/73 Third quarter Jan 1/73 to Mar 31, 1973 July 15/73 July 15/73 Final return, Taxable Year ending June 30/73 Oct 15/73 Oct 15/73 Taxable Year Ending July 31, 1973 1st quarter Aug. 1/72 to Oct 31, 1972 Jan 15/73 Jan 15/73 2nd Install. Aug 1/71 to July 31/72 Feb 15/73 2nd Quarter Nov 1/72 to Jan 31/73 Apr 1/73 Apr 1/73 3rd Quarter Feb 1/73 to Apr 30/73 June 29/73 June 29/73 Final return, taxable year ending July 31, 1973 Nov 15/73 Nov 15/73 Taxable year ending Aug 31/73 1st Install. Sept 1/71 to Aug 31/72 Dec 15/72 Dec 15/72 1st Quarter Sept 1 to Nov 30/72 Jan 29/73 Jan 29/73 2nd Install Sept 1/71 to Aug 31/72 Mar 15/73 2nd Quarter Dec 1/72 to Feb 28/73 Apr 29/73 Apr 29/73 3rd Quarter Mar 1/73 to May 31/73 July 30/73 July 30/73 Final return, taxable year ending Aug. 31, 1973 Dec 15/73 Dec 15/73 Taxable Year Ending Sept 30/73 1st Install. Oct 1/71 to Sept 30/72 Jan 15/73 Jan 15/73 1st quarter Oct 1/72 to Dec 31/72 Mar 1/73 Mar 1/73 2nd Install Oct 1/71 to Sept 30/72 Apr 15/73 2nd quarter Jan 1 to Mar 31/73 May 30/73 May 30/73 3rd quarter Apr 1 to June 30/73 Aug 29/73 Aug 29/73 Final return, taxable year ending Sept 30, 1973 Jan 15/74 Jan 15/74 Taxable Year ending Oct 31/73 Date of Filing and Payment 1st Install Nov 1/71 to Oct 31/72 Feb 15, 1973 1st Quarter Nov 1/72 to Jan 31/73 Apr 1, 1973 2nd Install. No. 1, 1971 to Oct 31, 1972 May 15, 1973 2nd Quarter Feb. 1 to April 30, 1973 June 29, 1973 3rd Quarter May 1 to July 31, 1973 Sept 29, 1973 Final return for taxable year ending Oct 31, 1973 Feb. 15, 1974 Taxable Period Calendar Year Date of Filing and Payment Taxable Year Ending November 30, 1973 1st Install Dec 1, 1971 to Nov 30, 1972 March 15, 1973 1st Quarter Dec 1, 1972 to Feb 28, 1973 April 29, 1973 2nd Install Dec 1, 1971 to Nov 30, 1972 June 15, 1973 2nd Quarter Mar 1, 1973 to May 31, 1973 July 30, 1973 3rd Quarter June 1, 1973 to August 31, 1973 October 30, 1973 Final return for taxable year ending Nov 30, 1973 March 15, 1974 (c) In the preceding schedules, no return need be filed for the payment of the 2nd installment pertaining to fiscal years ending October 31, 1972 and November 30, 1972. Payment is going to be made of the 2nd installment on May 15, 1973 corresponding to corporations whose fiscal year ends on October 31, 1972; and June 15, 1973 corresponding to corporations whose fiscal year ends on November 30, 1972. (d) Computation of the estimated income tax due on net taxable income for returns filed under paragraph (b) above shall be as follows: 1) Where one return is filed for three quarters: For the portion of net income not exceeding P75,000 (representing of the first P100,000) 25% For the portion exceeding P75,000 35% 2) Where one return is filed for two quarters: For the portion of net income not exceeding P50,000 (representing of the first P100,000) 25% For the portion exceeding P50,000 35% (e) The ratable portion of the tax due for one quarter computed above shall be paid as scheduled in this Revenue Regulations. (f) Illustrations [1] ILLUSTRATION I The result of operations of a corporation whose taxable year is on a calendar year basis is as follows: GROSS INCOME DEDUCTIONS NET INCOME 1st quarter (Jan 1 March 31) P50,000 P20,000 P30,000 2nd quarter (Apr 1 June 30) 70,000 25,000 45,000 3rd quarter (July 1 Sept 30) 30,000 15,000 15,000 P150,000 P60,000 P90,000 ======= ======= ======= The return to be filed on January 15, 1973 shall show the following: Gross Income for three quarters P150,000.00 Less: Total deductions for quarters 60,000.00 Net taxable income for three quarters P90,000.00 Tax due: P75,000 x 25% = P18,750 15,000 x 35% = 5,250 P24,000.00 ======== To be paid on filing of return for three quarters [Jan. 1 to Sept. 30, 1972] To be paid on January 15, 1973 (1/3 of P24,000) P8,000.00 To be paid on Feb. 15, 1973 8,000.00 To be paid on March 15, 1973 8,000.00 P24,000.00 ======== [2] ILLUSTRATION II If a corporation adopted as its fiscal year the period from May 1 to April 30, as its taxable year, the return shall show the following: Gross income for two quarters (May to Oct. 31, 1972) P120,000.00 Less: Total deductions for the two quarters 45,000.00 Net taxable income for two quarters P75,000.00 ========= Tax due: P50,000 x 25% = P12,500.00 25,000 x 35% = 8,750.00 P21,250.00 ======== To be paid on filing the return for two quarters on January 15, 1973 P10,625.00 Payable on March 31, 1973 10,625.00 P21,250.00 ======== The return for the third quarter, November 1, 1972 to January 31, 1973 shall be filed and the tax due thereon paid on May 31, 1973. SECTION 6. Filing of Final or Adjustment return and final payment of income tax . (a) A final or an adjustment return on BIR Form 1702 covering the total taxable income of the corporation for the preceding calendar or fiscal year shall be filed on or before the 15th day of the fourth month following the close of the calendar or fiscal year. The return shall include all the items of gross income and deductions for the whole taxable year. The amount to be paid shall be the balance of the total income tax shown on the final or adjustment return after deducting therefrom the total quarterly income taxes paid during the preceding three quarters of the same taxable year. Any excess of the total quarterly payments over the actual income tax shown on the adjustment return shall be credited or refunded to the corporation. (b) Corporations that have filed the quarterly returns herein required and paid the quarterly tax due thereon and have filed the final or adjustment return prescribed in this section shall be exempt from filing the return required in Section 46 of the National Internal Revenue Code. SECTION 7. Additions to tax in case of non-payment . Tax shown on the return . Where the amount shown by the taxpayer as tax on its return or part of such amount is not paid on or before the date prescribed for its payment, there shall be collected, as part of the tax, interest upon such unpaid amount at the rate of fifteen per centum per annum from the date prescribed for its payment until it is paid but not later than the fifteenth day of April or the fifteenth day of the fourth month following the close of the taxable year. SECTION 8. Interest on Deficiency . Interest upon the amount determined as a deficiency shall be assessed at the same time as the deficiency; shall be paid upon notice and demand from the Commissioner of Internal Revenue and shall be collected as part of the tax at the rate of fifteen (15) per centum per annum from the date prescribed for the payment of the tax to the date the deficiency is assessed: Provided, That the maximum amount that may be collected as interest on deficiency shall in no case exceed the amount corresponding to a period not later than the fifteenth day of April or the fifteenth day of the fourth month following the close of the taxable year. Provided, further, That no interest on deficiency quarterly tax shall be assessed at any time after final assessment of the actual income tax due for the taxable year. SECTION 9. Declaration under penalties of perjury . (a) The returns required under this regulations pursuant to Supplement B of Title II of the National Internal Revenue Code shall contain a written declaration that they are made under the penalties of perjury. (b) Any person who willfully files a return containing information which is not true and correct as to every material shall, upon conviction, be subject to the penalties prescribed for perjury under the Revised Penal Code. SECTION 10. Repealing Clause All regulations, rulings, or orders, or portions thereof, issued with the implementation of Presidential Decree No. 30, which are inconsistent with the provisions of these regulations are hereby revoked. SECTION 11. Effectivity . These regulations shall apply to income received beginning with taxable years starting after December 31, 1971. CESAR VIRATA Secretary of Finance Recommended by: MISAEL P. VERA Commissioner of Internal Revenue