Revised Residence Tax Regulations

May 2, 1967 REVENUE REGULATIONS NO. 20-67 SUBJECT : Revised Residence Tax Regulations TO : All Internal Revenue Officers and Others Concerned SECTION 1. Scope . By virtue of the authority contained in section 9 of Commonwealth Act No. 465, entitled "An Act to Impose a Residence Tax," the following rules and regulations relative to the manner in which the residence tax shall be collected and paid and the procedure to be followed by internal revenue officers and by persons and entities subject to the payment of the said tax are hereby promulgated and shall be known as Revenue Regulations No. 20-67 or "The Revised Residence Tax Regulations." cdta SECTION 2. Definition of Terms . For the purpose of these regulations, the following terms shall be given the interpretations indicated in the definitions appearing below: "Inhabitant" means any person, irrespective of his or her citizenship or nationality, who dwells or resides in the Philippines for a period exceeding three months. "Corporation" includes a duly incorporated company, partnership, joint stock company, joint account (cuenta en participacion), insurance company, or any other association no matter how created or organized and irrespective of the purpose of purposes thereof. "Resident foreign corporation" means a foreign corporation engaged in trade or business within the Philippines or having an agency or office or place of business therein. SEC. 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, and an additional tax which in no case shall exceed one thousand pesos, in accordance with the following schedule: (a) For every five thousand pesos worth of real property in the Philippines, in excess of ten thousand pesos, owned by such person during the preceding year, the valuation to be based upon the assessment rolls of the municipality where the property is situated, two pesos; (b) For every five thousand pesos of gross receipts or earnings, in excess of ten thousand pesos, derived by such person from his business in the Philippines during the preceding year, two pesos; and (c) For every one thousand pesos of salaries or gross receipts or earnings derived by such person from the exercise of any profession in the Philippines or from the pursuit of any occupation therein during the preceding year, one peso. For the purposes of the additional tax, dividends received by the taxpayer from any corporation shall not be considered as part of his gross receipts or earnings. In the case of husband or wife, the additional tax herein imposed shall be based upon the total property owned by them or upon the total gross receipts or earnings derived by them. SECTION 3. Individuals Liable for the Payment of the Basic Residence Tax . The basic annual residence tax payable by individuals is fifty centavos (P0.50). This tax is due from every inhabitant of the Philippines over eighteen years of age, regardless of sex, (a) 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 (P0.50) a day; or (b) who is engaged in business or occupation or (c) who owns real property with an aggregate assessed value of one thousand pesos (P1,000) or more; or (d) who is required by law to file an income tax return. Non-residents who are required to file income tax returns are not liable for the payment of the residence tax. Transient visitors, when their stay in the Philippines does not exceed three months, are not subject to the residence tax. Philippine foreign service officials and employees, during the time that they are staying outside the Philippines in pursuance of their assignments as well as Filipino citizens working outside the Philippines, not being inhabitants of this country, are not subject to the residence tax. The fact that a person is of old age does not of itself exempt him from the obligation of paying the basic residence tax. A person engaged in business or occupation is subject to the residence tax, whether or not such business or occupation is taxable under the National Internal Revenue Code. A person who owns real properties located in different places each having an assessed value of less than P1,000 is subject to the residence tax, if the aggregate assessed value of said properties is P1,000 or more. Both husband and wife are each subject to the basic residence tax, if they have the qualifications mentioned in this section. SECTION 4. Additional Residence Tax Due from Individuals . In addition to the basic annual residence tax of fifty centavos (P0.50), every inhabitant of the Philippines may be subject to an additional residence tax which in no case shall exceed one thousand pesos (P1,000). The amount of the said additional tax shall be in accordance with the following schedule: (a) Two pesos, for every P5,000 worth of real property in the Philippines, in excess of P10,000, owned by such person during the preceding year, the valuation to be based upon the assessment rolls of the municipality where the property is situated; (b) Two pesos, for every P5,000 of gross receipts or earnings, in excess of P10,000, derived by such person from his business in the Philippines during the preceding year, and (c) One peso, for every P1,000 of salaries or gross receipts or earnings derived by such person from the exercise of any profession in the Philippines or from the pursuit of any occupation therein during the preceding calendar year. SECTION 5. Fee for Optional Residence Certificate . Any person not subject to the annual basic and additional residence taxes may, at his option, secure a residence certificate for purposes of identification upon payment of the sum of twenty centavos (P0.20), in accordance with section 3 of Commonwealth Act No. 465. SEC. 2. Entities liable to residence tax . Every corporation, no matter how created or organized, whether domestic or resident foreign, engaged in or doing business in the Philippines shall pay any annual residence tax of five pesos and an annual additional tax which, in no case, shall exceed two thousand pesos, in accordance with the following schedule: (a) For every five thousand pesos worth of real property in the Philippines owned by it during the preceding year, the valuation to be based upon the assessment rolls of the municipality where the real property is situated, two pesos; and (b) For every five thousand pesos of gross receipt or earnings, derived by it from its business in the Philippines during the preceding year, two pesos; Provided, however , That dividends received by a corporation from another corporation shall not, for the purposes of the additional tax, be considered as part of the gross receipts or earnings of said corporations. The term "corporation" as used in this Act includes joint-stock company, partnership, joint account ( cuenta en participacion ), association, or insurance company, no matter how created or organized. The term "resident foreign" when applied to a corporation means a foreign corporation engaged in trade or business within the Philippines or having an office or place of business therein. cdta SECTION 6. Liability of Corporations to the Basic Residence Tax . The annual basic residence tax due from domestic and resident foreign corporations is five pesos (P5). A foreign corporation which has no office or establishment in the Philippines and transacts business therein only by soliciting orders through agents, when the said agents do not engage in business in the name of the foreign corporation, is not subject to the residence tax. A public corporation performing a governmental function is exempt from the residence tax. Likewise, a corporation which is not engaged in or doing business in the Philippines is not subject to the residence tax. A partnership, whether duly registered or not, is subject to the residence tax. SECTION 7. Additional Residence Tax Payable by Corporations . In addition to the basic residence tax of five pesos (P5), every corporation may be subject to the additional residence tax which in no case shall exceed two thousand pesos (P2,000). The amount of the said additional tax shall be based on the following schedule: (a) Two pesos, for every P5,000 worth of real property in the Philippines owned by it during the preceding year, the valuation to be based upon the assessment rolls of the municipality where the real property is situated; and (b) Two pesos, for every P5,000 of gross receipts or earnings derived by it from its business in the Philippines during the preceding year. aisadc SECTION 8. Return to be Filed by Persons and Corporations Subject to the Additional Residence Tax . Persons and corporations subject to the additional residence tax shall on or before the date on which payment of the said tax may be made without penalty, file in duplicate with the corresponding Revenue Collection Agent a return on B.I.R. Form No. 9.21. The said return shall be under oath and shall not be subject to the documentary stamp tax. (a) Return to be Filed by Individuals . The return to be filed by persons subject to the additional tax shall contain the following: (1) The assessed value of the real property owned by the taxpayer during the preceding calendar year; (2) The amount of gross receipts or earnings derived by the taxpayer during the preceding calendar year from any business; and (3) The amount of salaries derived from employment or gross receipts or earnings received from the exercise of any profession in the Philippines or from the pursuit of any occupation therein during the preceding calendar year. In the case of married persons, except when they are legally separated, only one consolidated return for the preceding calendar year shall be filed by either spouse declaring the salaries, assessed value of real property and/or gross receipts or earnings of both spouses. The additional residence tax shall be ascertained on the basis of their consolidated return. (b) Return to be Filed by Corporations . The return to be filed by corporations subject to the additional residence tax shall include the following: (1) The assessed value of the real property owned by the taxpayer during the preceding calendar year; and (2) The amount of gross receipts or earnings derived by the taxpayer during the preceding calendar year from any business. The return for corporations shall be filed by the president or manager thereof. llibris SECTION 9. Meaning of "Gross Receipts" or "Earnings" . The term "gross receipts" or "earnings", as used in section 1 of the Act, refers to the actual gross proceeds derived by a person from any business, profession and/or occupation in the Philippines during the preceding calendar year. As employed in section 2 of the Act, the term "gross receipts" or "earnings" means the actual gross proceeds received by a corporation from its business in the Philippines during the preceding calendar year. Accounts and notes receivable are not considered part of the gross receipts or earnings. The amounts realized from these accounts and notes receivable are, however, deemed part of such gross receipts or earnings and should be included in determining the amount of the additional residence tax. In the case of merchants, their gross receipts or earnings shall be understood to mean their cash sales, including amounts collected on account of credit sales. Notwithstanding the provisions of this section, merchants may, at their option, declare for residence tax purposes their gross sales during the preceding calendar year. However, collections in payment of accounts which have not been included as part of the gross sales should be likewise declared. The gross receipts or earnings of a person or corporation shall likewise include property received in lieu of money and the amount thereof shall be based on its fair market value at the time it is received. For purposes of the additional residence tax, dividends received by a person or corporation from any corporation and the share of each partner in the proceeds of the partnership shall not be considered part of the gross receipts or earnings of the recipient thereof. SEC. 3. Residence certificates . A residence certificate shall be issued to every person or corporation upon payment of the residence tax. A residence certificate shall also be issued to any person or corporation not liable to the payment of the residence tax upon payment of twenty centavos. The residence certificate for persons shall contain the full name, place and date of birth, citizenship, civil status, length of residence in the Philippines, length of residence in the city or municipality where the certificate is issued, occupation or calling, right hand thumb mark, signature of the person to whom such residence certificate is issued. It shall also contain the signature of the officer issuing it. SECTION 10. Classes of Residence Certificates . Residence certificates are classified as follows: Class A. To be issued to every person paying the basic residence tax of fifty centavos (P0.50); Class B. To be issued to every person paying the additional residence tax at the rates prescribed in section 1 of the Residence Tax Law; Class C. To be issued to every corporation paying the basic residence tax of five pesos (P5); Class C-1 To be issued to every corporation paying the additional residence tax in accordance with the schedule laid down in section 2 of the Residence Tax Law. Class D. To be issued to any person or corporation not subject to the residence tax, but desires to have a residence certificate. SECTION 11. Contents of Residence Certificate . (a) Issued to individuals . Class A and Class B residence certificates shall contain the full name, post-office address, place and date of birth, citizenship or nationality, civil status, length of residence in the Philippines, length of residence in the municipality where the certificate is issued, occupation or calling, right hand thumb mark and signature of the person to whom such certificate is issued. It shall also contain the signature of the officer issuing it. The amount of tax and surcharge, if any, shall likewise be stated in the residence certificate. The number of the Class B certificate, if any, issued to the taxpayer for the same year, shall also be stated. If the person applying for a residence certificate is a Filipino, his or her first given name shall be written first, then his or her paternal surname, followed by "y" and the maternal surname. In addition to the foregoing data, the class B residence certificate shall contain the number of the class A residence certificate issued to the taxpayer, the assessed value of real property, the amount of gross receipts or earnings derived from business, and/or the amount of salaries or earnings received from the exercise of a profession or the pursuit of any occupation in the Philippines for the preceding calendar year. (b) Residence Certificates Issued to Corporations . The Class C residence certificate shall contain the name and the nationality of the corporation, address of the principal or central office in the Philippines, nature or class of business, and signature of the president, manager of representative of the corporation. The Class C-1 residence certificate shall contain the name of the corporation, the number of the Class C residence certificate issued to it for the current year, the assessed value of real property owned by it in the Philippines during the preceding calendar year, and/or the amount of gross receipts or earnings derived from business in the Philippines during the same period, and the signature of the president, manager or representative of the corporation. Both residence certificates shall likewise contain the amount of the basic or additional residence tax, as the case may be, as well as the surcharge, if any. SECTION 12. Place of Payment of the Residence Tax . The residence tax shall be paid by the persons subject thereto in the office of the revenue collection agent of the city or municipality where they reside. However, this does not preclude any individual from payment of the residence tax in any place where he may be at the time he offers to pay the same. In the case of corporations, the residence tax shall be paid in the city or municipality where the principal office of the corporation is situated. Upon payment of the residence tax, a residence certificate shall be issued, which shall be valid throughout the Philippines. SEC. 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. cdll As regards corporations which may be established or organized on or before the thirtieth day of June, liability for the residence tax for that year shall attach, and if becoming liable on or before the tenth day of April, they shall be delinquent upon failure to pay the taxes on or before the last day of April, but those becoming liable after the tenth day of April, shall have twenty days within which to pay the taxes without becoming delinquent; Provided , That those which may be established or organized on or after the first day of July of any year, shall not be subject to the tax for such year. llibris SECTION 13. Time for Payment of the Residence Tax . Persons who are residing in the Philippines on January first of each year and are then liable to the residence tax may pay the said tax without surcharge on or before April 30th of the same year. As regards persons who come to reside in the Philippines on or before April 10th, and those who reach their eighteenth birthday or otherwise loss the benefit of exemption on or before that day, they shall likewise become delinquent upon their failure to pay the residence tax on or before the following April 30th. Persons who arrive in the Philippines, reach the age of eighteen years, or otherwise loss the benefit of exemption after April 10th but before July 1st of the same year, shall have twenty days within which to pay the taxes without incurring delinquency. Those who come to reside in the Philippines or arrive at the age of eighteen years on or after July 1st of any year or who cease to belong to an exempt class on or after the said date shall not be subject to the residence tax for that year. Corporations existing or organized on or before June 30th of each year shall be subject to the residence tax for that year. If existing or organized or before April 10th, they shall be delinquent upon their failure to pay the tax on or before April 30th following. Corporations organized after April 10th but before July 1st of any year shall have a period of 20 days after their organization within which to pay the residence tax without surcharge. Corporations which may be formed on or after July 1st of any year shall not be subject to the tax for that year. SECTION 14. Penalty for Delinquency . If the residence tax is not paid within the time prescribed in the foregoing section, there shall be added to the unpaid amount a surcharge of 5 per cent every month or fractional part thereof. However, the total surcharge shall in no case exceed 25 per cent of the tax due. In no case shall the delinquent taxpayer be proceeded against criminally for delinquency in the payment of the residence tax. SECTION 15 (a). Manner of Issuing Residence Certificates . Class A and Class C residence certificates shall be executed in duplicate, the original to be issued to the taxpayer and the duplicate to be retained in the office of the revenue collection agent. Class B and Class C-1 residence certificates shall be accomplished in quadruplicate; the original copy to be issued to the taxpayer, the duplicate copy to be sent to the City or Provincial Auditor, triplicate copy to the Chief Accountant, Bureau of Internal Revenue together with the monthly report of collection referred to in BIR Form No. 12.31 and 12.01 and the quadruplicate copy to be kept in the Office of the Collection Agent. Class D residence certificates shall be executed in duplicate. The original shall be issued to the person or corporation paying the tax and the duplicate shall be retained in the office of the revenue collection agent concerned. In making out and issuing residence certificates, the issuing officer shall use clear carbon paper and ball pens or fountain pens for writing. If fountain pens are not available, use indelible pencil. Necessary care should be taken to have a clear impression on all the copies of the residence certificates. The names of the taxpayers as well as the series numbers of the corresponding residence certificates shall be noted in the spaces left in the respective stubs, which shall serve as a numerical index of the residence certificates issued. (b) Placing of Signature and Thumbmarks . An individual who pays the basic residence tax shall sign the Class A residence certificate and place his right hand thumbmark thereon in the presence of the revenue collection agent who issues it. SECTION 16. Issuance of Residence Certificates in Other Offices . In order that employees need not come personally to the office of the revenue collection agent to get their residence certificates, heads of government and private offices may request that payment of the residence taxes and the issuance of residence certificates shall be done in their offices. The head of the office shall file a written request with the Regional Director concerned. If there are 50 persons or more who are required to pay the residence certificate, the Regional Director shall send a Revenue Collection Agent or Cash Clerk to accept payment of the residence tax and issue the corresponding residence certificate. SECTION 17. Monthly Report of Collections and Forwarding of Residence Certificates to the Commissioner of Internal Revenue . Within five (5) days from the close of every month, the revenue collection agent shall report to the Commissioner of Internal Revenue under BIR Form Nos. 12.31 and 12.01 the amounts collected from residence taxes during the month. The triplicate copies of Class B and C-1 residence certificates shall likewise be forwarded to the Commissioner of Internal Revenue. SECTION 18. Residence Certificate Folder to be Kept By Revenue Collection Agents . Every duplicate residence certificate and the triplicate of the certificate provided for in section 24 of these regulations shall be retained in the personal folder (Provincial Form No. 6) of every taxpayer. These folders shall be arranged in alphabetical order under the headings "active paid," "active delinquent" and "inactive." The folders for individual shall be kept separately from the folders for corporations. The "active paid" file shall include the folders of all persons and corporations that have paid the residence tax for all years for which the residence tax is due from them and of all such persons and corporations as may be found to be subject to tax for the first time during the current year. But if the liability is discovered after the expiration of the period fixed for the payment of the tax without penalty, the folders for such persons or corporations shall be filed in subdivision B of the "active delinquent" file as provided hereunder. The " active delinquent " file shall be divided into: Subdivision A, which shall include all persons and corporations that have not paid the residence tax for the current year in the city or municipality where the record is kept, but have paid the residence tax for some year in said city or municipality and regarding whose later payment in some other cities or municipalities no notice (B.I.R. Form No. 9.115-A) has been received, or regarding whose whereabouts or present residence investigation has been made to prove that such persons or corporations no longer reside in the city or municipality where the record is kept; and Subdivision B, which shall include all persons and corporations found to be subject to tax but have not paid such tax during the period fixed for the payment thereof without surcharge. The " inactive file " shall be divided into the following subdivisions: Subdivision A, which shall include the folders of all persons who formerly paid the residence tax in the city or municipality which the record is kept, but who have died. It shall likewise include the folders of corporations which formerly paid the residence tax in such city or municipality, but which are already dissolved. Subdivision B, which shall include the folders of persons who formerly paid the residence tax in the city or municipality where the record is kept but who have become exempt for any reason; folders of persons of corporations, who, after having paid the residence tax in the city or municipality where the record is kept, paid the residence tax for some succeeding year in another city or municipality (proof of the fact of said purchase must have been secured in the form of official notice on B.I.R. Form No. 9.15-A or presentation of the residence certificate); and lastly, the folders of persons and corporations who have become delinquent and who have been found after investigation to have transferred to some other city or municipality, the collection agent of which has been notified on B.I.R. Form No. 9.15-A. Subdivision C, which shall include folders of persons and corporations who have become delinquent and of whose present residence after a thorough investigation nothing can be learned. If any revenue collection agent find in his files folders of persons or corporations who are not delinquent for the current year but who appear to be delinquent for any previous years, these folders shall be kept in a fourth file under the heading "improperly paid." The folders, after being divided into files and subdivisions, shall be arranged alphabetically. The folder of a taxpayer shall be transferred from the "active paid" file to the proper subdivision in the "active delinquent" or the "inactive" file, as the case may be, upon the taxpayer becoming delinquent. The folder of a taxpayer shall be transferred from the "active delinquent" to the "active paid" file if the taxpayer shall satisfy the delinquency by the payment of the amount due. The folder of a taxpayer shall be transferred from the "inactive file" to the "active file" if the taxpayer returns to the city or municipality where the record is kept and pays the residence tax for the current year. The folder of a taxpayer shall be transferred from the "inactive file" to the "active delinquent file" when information is received that a taxpayer's exemption has ceased, or when a collection agent receives a notice (B.I.R. Form No. 9.15) of a taxpayer's return to the city or municipality where his folder is kept as inactive, or when information is received that the taxpayer having such folder has returned to reside in the city or municipality where his folder is carried as inactive. SECTION 19. Data to be Shown on Folders . The residence tax folder shall serve as residence tax record as well as for keeping the carbon copies of residence tax certificates issued and B.I.R. Forms Nos. 9.15-A and 9.16-A received from other municipalities or cities. It shall show not only the tax certificate number issued each taxpayer but also the basis of tax liability of such taxpayer, so far as such liability can be determined. The space provided in the folder for "Remarks" shall show the date of receipt or sending of B.I.R. Form No. 9.16-A and the name or the city or municipality from which received or to which sent; cross-reference to sworn statement taken or report of investigations made; reasons for classifying folders as inactive; and reasons for issuing the residence certificate for the current year when the folder shows no residence certificate for the previous year. If a taxpayer presents a residence certificate for the preceding year issued in another city or municipality in order to pay the residence tax for the current year, the date, class and number of the residence certificate so presented shall also be entered in the folder of the taxpayer. If a certificate has been issued to the taxpayer in accordance with section 24 of these regulations, the fact of such issuance as well as the date thereof shall likewise be entered in the taxpayer's folder. Certificates issued should be entered in the corresponding folders at the close of business each day or on the following day, but during the month of April, when it may be materially impossible to complete the entries in one day, a longer time will of course be necessary. The data showing the tax liability of each person or corporation shall be prepared as soon as possible after December 31 of each year and entered in the record before April 1 following. Such entries, however, should be tentatively written in pencil so that they may be corrected later on in case discrepancies are discovered. In the preparation of such data the real property tax register, the tax records of the municipal or city treasurer and the register of births should be conducted in fact, made the principal basis of the record. SECTION 20. Proof of Age . When a person paying the residence tax has no residence certificate for the previous year and claims that he or she has just arrived at the age of 18 years, and his or her name does not appear in the record of births of the local civil registrar, the said person should be required to present, if possible, some proof of his or her age, such as a certificate of birth. If, however, such proof be not available, the affidavit of such person may be accepted in lieu thereof. Such affidavit may be sworn to before any internal-revenue officer. This applies especially to cases where the appearance of the taxpayer is such as to lead the issuing officer to believe that he or she is more than 18 years of age. No documentary stamp is required on such affidavit. SECTION 21. Presentation of Previous Year's Residence Certificate when Purchasing a Current Year's Residence Certificate . Persons and corporations shall present their previous year's residence certificates when paying for the current year residence tax. When the taxpayer is unable to present his previous residence certificate but claims to have purchased one in the same city or municipality where application for the current year's residence certificate is being made, and should verification shall be made in the records of the same city or municipality, said claim be verified from the folders, the residence certificate for the current year must be issued. If a person claim to have been exempt and can substantiate his or her claim by satisfactory documentary evidence, annotate such fact in the residence certificate for the current year. If the previous year's residence certificate or of exemption can not be substantiated by the records or if documentary evidence can not be presented, the person desiring to purchase a residence certificate for the current year shall state under oath that he or she purchased a residence certificate for the previous year, stating the city or municipality where it was purchased, the approximate date of purchase, and other data required in the residence certificate. If he or she was exempt, he shall state the reasons for the exemption. On the basis of the affidavit submitted, the revenue collection agent shall issue a residence certificate to the veracity of the affidavit shall be investigated either by personal verification or by forwarding the sworn statement to the chief revenue officer of this province who will send the same to the revenue collection agent of the city or municipality where the residence certificate was stated to have been purchased or where the exemption can be verified. If the statement is verified, the papers in the case will be filed in the office of the revenue collection agent who issued the new residence certificate. Should the investigation show that a previous year's residence certificate has not been purchased or that the person was not exempt, full report shall be made to the Commissioner of Internal Revenue. SECTION 22. Notifications to be Sent to Other Municipalities . The revenue collection agent issuing the residence certificate for the current year shall fill out B.I.R. Form No. 9.15-A. If a taxpayer presents a residence certificate for the previous year secured in some other city or municipality, these forms shall be sent to the city or deputy provincial treasurer where the residence certificate for the previous year was issued. This form will also be used in the case of death in a city or municipality of any taxpayer whose last residence certificate was not purchased in that city or municipality, erasing the words on this form beginning with "has this day," etc., and inserting in place thereof the words "died in this city or municipality on . . ., 19 . . ." Revenue collection agents shall secure the necessary data regarding deaths and residence certificate numbers of deceased persons to enable them to give advice to other collection agents as contemplated herein. B.I.R. Form No. 9.16-A shall be filed out by a revenue collection agent in case he finds that a taxpayer has transferred to some other city or municipality. This form shall be sent to the city or municipality to which the taxpayer has transferred. B.I.R. Forms Nos. 9.15-A and 9.16-A shall be filed separately in alphabetical order. SECTION 23. List of Delinquents . Immediately after the lapse of the period during which payment of the residence tax may be made without surcharge, the revenue collection agent shall prepare a list of all persons and corporations in the city or municipality who are delinquent in the payment of the residence tax. SECTION 24. Certificate to be Issued in Case of Loss or Destruction of a Residence Certificate . In case of loss or destruction of a residence certificate, the taxpayer may apply for a certificate as herein provided to the revenue collection agent of the city or municipality in which the taxpayer resides. The collection agent shall require him to make a sworn statement in duplicate in B.I.R. Form No. 25.09-A (or in lieu of such form, an ordinary affidavit may serve the purpose) and shall investigate as to the truth of the facts set forth therein, if the residence certificate alleged to have been lost or destroyed was issued by him; or forward the affidavit by indorsement to the revenue collection agent who issued the said residence certificate for appropriate investigation. If the facts stated in the affidavit are substantiated in the investigation made, the revenue collection agent who issued the residence certificate in question shall issue to the taxpayer, free of charge, a certificate in triplicate, which shall be in the following form: CERTIFICATE (Issued in accordance with section 24 of Revenue Regulations No. __________) This is to certify that on _______________ (date) this office issued to _______________, residing at ____________________________, Residence Certificate (s) No. (a) ____, in the amount (s) of P ______ (and P ________). _____________________ (Revenue Collection Agent) _____________________ (Signature of taxpayer) For purposes of the Residence Tax Law and these regulations, the certificate issued in accordance with this section may be used in lieu of the residence certificate alleged to have been lost or destroyed. Upon the issuance of the aforesaid certificate, the revenue collection agent shall forward to the Commissioner of Internal Revenue the original of the sworn statement executed by the taxpayer, a report of his findings thereon, and the duplicate of the certificate issued. The duplicate of the affidavit and the triplicate of the certificate shall be retained by the revenue collection agent. The triplicate of the certificate shall be placed in the issuing officers folder of the taxpayer. SEC. 7. Administrative remedies . All administrative, special and general provisions of law including laws in relation to the assessment, remission, collection, and refund or national internal-revenue taxes not inconsistent with the provisions of this Act, are extended and made applicable to all the provisions of this law, and to the taxes herein imposed. SECTION 25. Administrative Remedies in General . The provisions of the National Internal Revenue Code relative to the assessment, remission, collection, and refund of national internal revenue taxes not inconsistent with Commonwealth Act No. 465 are made applicable to the provisions thereof. In accordance with section 7 of the aforesaid Act, in relation to section 15 of Commonwealth Act No. 466, otherwise known as the National Internal Revenue Code, the Commissioner of Internal Revenue may assess the residence tax due from a person or corporation on the best evidence obtainable. Under the same section of the Residence Tax Law, in connection with section 309 of the same Code, the Commissioner of Internal Revenue may accept from persons and corporations money in pursuance of compromises in extrajudicial settlement of their violations of Commonwealth Act No. 465, and he may credit or refund taxes erroneously or illegally received or penalties imposed without authority, and may remit before payment any tax that appears unjustly assessed or excessive. The remedies to which the Government may resort to enforce the collection of internal revenue taxes are found in Title IX, sections 305-338 of the aforesaid National Internal Revenue Code. The remedy of criminal action is not, however, available in the collection of the residence tax and surcharge. SECTION 26. Manner of Accounting for Fines and Compromises . All amounts collected as fines or compromises for the violation of any provisions of Commonwealth Act No. 465 and these regulations shall be accounted for under Schedule E, paragraph E, by the issuance of miscellaneous tax-receipts bearing the corresponding internal revenue stamps. SEC. 8. To enable the National Government to properly finance the public elementary schools and meet the burden of their operation as provided in this Act, from and after July first, nineteen hundred and forty, the disposition of the proceeds of the taxes under Commonwealth Act Numbered Four hundred and sixty-five, known as the Residence Tax Law, shall be as follows: Of all the taxes collected and remitted to the Commissioner of Internal Revenue as provided in section eight of Commonwealth Act Numbered Four hundred and sixty-five, fifty per centum shall be allotted in the following proportions by the said Commissioner among the provinces, chartered cities, municipalities, and municipal districts on the basis of population as shown by the latest official census: One-half to the general funds of the provinces. A sub-province shall receive its proportionate share of the proceeds alloted to the province; and The other half to the general funds of the chartered cities, municipalities, and municipal districts. Out of the remaining fifty per centum of the proceeds of said taxes, chartered cities shall continue to receive the corresponding share in the school fund of cities, municipalities, and municipal districts to which they were entitled under the provisions of law in force prior to July first, nineteen hundred and forty. The balance shall accrue to the National Government. (Commonwealth Act No. 586) SECTION 27. Disposition of Proceeds . All collections of residence taxes shall be transmitted to the National Treasury and shall be alloted by the Commissioner of Internal Revenue in the following manner: 25% to provinces 25% to municipalities Cities are entitled to corresponding shares as municipalities and provinces (paragraph 2 of Section 366 NIRC). Out of the remaining fifty per centum of said taxes, municipalities and municipal districts shall continue to receive the corresponding share in the school fund of municipalities and municipal districts to which they were entitled under the provisions of law in force prior to July first, nineteen hundred and forty. The balance including the share of chartered cities in the school fund of cities to which they were entitled under the provisions of law in force prior to July first, nineteen hundred sixty-two shall accrue to the National Government. (Section 8, R.A. No. 4092 Approved, June 19, 1964) SECTION 28. Exemptions from the Residence Tax . The following persons are exempt from the payment of the residence taxes: a. Diplomatic and consular representatives and officers of foreign powers. b. Commissioned officers of the United States Army and Navy. c. Enlisted soldiers, sailors and marines of the United States Army and Navy. d. Civilian officers and employees of the military, naval or any other branch of the United States Government who are not Filipino citizens. Consequently, Filipino citizens working in said branches of the United States Government in the Philippines are subject to the residence taxes. e. Transient visitors when their stay in the Philippines does not exceed three months. f. Barrio captains and their substitutes, barrio councilors actually holding office. Aside from the said persons, it is understood that those who are not embraced in section 1 of the Residence Tax Law, as unemployed persons and paupers, are not subject to the residence tax. Persons who lose the benefit of exemption on or before June 30th of any year should pay the residence tax for that year. Persons who cease to be exempt from, or otherwise becomes liable to, the residence tax on or after July 1st of any year shall continue to enjoy the exemptions for the rest of the year. No exemption from the residence tax is established in favor of corporations or associations existing or organized on or before June 30th of any year. SEC. 6. Presentation of residence certificate upon certain occasions . When a person liable to the taxes prescribed in this Act acknowledges any document before a notary public, takes the oath 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 person: 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 or 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 transactions 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). SECTION 29. Presentation of Residence Certificate . The presentation of the residence certificate for the current year shall be required after January 31st of the same year when a person subject to the residence tax acknowledges any document before a notary public, takes the oath of office upon election or appointment to any government office or position, receives any license, certificate or permit from any public authority, pays any tax or fee (except the residence tax), receives money from any public fund, or transacts other official business or receives any salary or wage from any person or corporation. When any corporation subject to the residence tax, receives any license, certificate or permit from any public authority, pays any tax or fee (except the residence tax), receives any money from a public fund or transacts other official business at any time after the 31st day of January, it shall exhibit before the public officials with whom it is transacting business its residence certificate for the current year. During the month of January of each year and in no case of payment of the residence tax at any time during the year, the person or corporation concerned shall present his or its residence certificate for the previous year. The residence certificate shall not be presented when a person or corporation receives mail, purchases stamps, or money orders, or performs any similar acts. The presentation of residence certificates shall not be required in the registration of voters. In the case of persons and corporations subject to the additional tax, the residence certificates for both the basic and additional taxes shall be exhibited for purposes of this section. LLjur In case of loss or destruction of the residence certificate, the taxpayer may present in lieu thereof the secondary evidence mentioned in these regulations. SEC. 10. Unlawful use of residence certificate . Any person who uses, attempts to use, or is in possession of, with intent to defraud the revenues, deceive the courts, or mislead any revenue officer or other person, any residence certificate issued to any other person or corporation shall be fined in a sum not exceeding two hundred pesos or imprisonment for a term not exceeding six months. SEC. 11. Falsification or counterfeiting of residence certificate . Any person who makes, sells, or uses any false or counterfeit residence certificate or any die for printing or making such certificate which is in imitation of or purports to be a lawful residence certificate, or who alters the written or printed figures or letters contained therein, or who has in his possession any such false, counterfeit, or altered certificate for the purpose of using the same in the payment of revenue or in securing any exemption or privilege conferred by law, or who procures the commission of any such offense by another, shall for each offense be fined in a sum not less than two hundred pesos nor more than five thousand pesos and imprisoned for a term not less than two months nor more than five years. SEC. 12. Violation of this law or regulation . Any person who violates any provision of this law, or any regulation promulgated in accordance therewith, for which delinquency to specific penalty is provided by law, shall be punished by a fine of not more than three hundred pesos, or by imprisonment for not more than six months, or both: Provided , That delinquency in the payment of this residence tax shall be dealt with in accordance with sections five and seven thereof. SECTION 30. General Penal Provisions . (a) Penalty for unlawful possession or use of residence certificate . The penalty for the unlawful possession, use of attempt to use, of any residence certificate shall be a fine not exceeding P200 or imprisonment for not more than six months. In order that the possession or use of a residence certificate issued to any other person or corporation may be considered unlawful, such possession or use must be with intent to defraud the revenues, deceive the courts, or mislead any revenue officer or other person. (b) Penalty for Offenses Connected with the Falsification or Counterfeiting of Residence Certificate . Any person who falsifies or counterfeits a residence certificate, or sells or uses a false or counterfeit certificate or any die for printing or making such certificate, or who has in his possession any such false or counterfeit certificate for the purpose of using the same in the payment of revenue or in securing any exemption or privilege conferred by law, or who procures the commission of any such offense by another, shall for each offense be penalized with a fine of not less than two hundred pesos (P200) nor more than five thousand pesos (P5,000) or imprisonment for not less than two months nor more than five years, or with both such fine and imprisonment. (c) Penalty for Violation of the Residence Tax Law and Regulations in General . Any person who violates any provision of the Residence Tax Law or these regulations, for which delinquency no specific penalty is prescribed by law, shall be punished by a fine of not more than three hundred pesos (P300 or by imprisonment not exceeding six months, or by both such fine and imprisonment. However, persons and corporations delinquent in the payment of the residence tax shall be dealt with in accordance with section 14 of these regulations, in relation to sections 5 and 7 of the Residence Tax Law. cdlex SEC. 13. This Act shall take effect on January first, nineteen hundred and forty. SECTION 31. Date of Effectivity . These regulations shall take effect upon publication in the Official Gazette. EDUARDO Z. ROMUALDEZ Secretary of Finance Recommended by: MISAEL P. VERA Commissioner of Internal Revenue Republic of the Philippines Department of Finance Office of the Secretary Manila December 18, 1968 The Commissioner of Internal Revenue M a n i l a S i r : Returned herewith to that Office is Revenue Regulations No. 20-67 dated May 2, 1967, otherwise known as the Revised Residence Tax Regulations, duly signed. cdi Very truly yours, EDUARDO Z. ROMUALDEZ Secretary