The Revenue Code of the Municipality of Taguig

December 9, 2005 TAGUIG CITY ORDINANCE NO. 085-05 AN ORDINANCE AMENDING CERTAIN PROVISIONS OF THE MUNICIPAL ORDINANCE NO. 24 SERIES OF 1993 OTHERWISE KNOWN AS "THE REVENUE CODE OF TAGUIG" AND ADOPTING THE NEW RATES PRESCRIBED UNDER THIS ORDINANCE Sponsored by: Coun. Aurelio Paulo R. Bartolome Coun. Glen N. San Pedro Coun. Allan Paul C. Cruz Coun. Arnel M. Cerafica Coun. Henry M. Dueas, Jr. Coun. Elpidio M. Javier Coun. Ricardo J. Jordan Coun. Delio J. Santos Coun. Marisse Balina-Eron Coun. Baltazar T. Mariategue Liga Pres. Floro C. Hernandez SK Fed. Pres. Lord Kristine E. Valenzuela WHEREAS, the new Local Government Code under Section 151 in relation to section 142 empowers cities to levy taxes, fees and charges levied and collected by highly urbanized and independent component cities shall accrue to them and distributed in accordance with the provisions of the Revenue Code; WHEREAS, Ordinance No. 24-93 otherwise known as "The Revenue Code of the Municipality of Taguig" was ratified and approved in 1993 based on the country's then economic, social and political status; WHEREAS, despite previous revisions in the past, some of the major components of the existing Taguig Revenue Code had not undergone significant updating or modification up to the present to suit the changes in the economic, social, and political climate that the country has undergone for the past few years; WHEREAS, the city of Taguig has not only become a highly urbanized area but has also been earmarked as an upcoming center for industrial and commercial developments by the business community, thereby implying a need for structural reforms in order to meet the challenges and changes inherent to expansion and increased competitiveness; WHEREAS, there is a need to amend and update the prescribed rates in the Taguig Revenue Code to support and sustain the demands intrinsic to the City's continuing growth and progress; NOW THEREFORE BE IT RESOLVED, as it is hereby resolved, by the Sangguniang Panlungsod, in session assembled, to approve that Ordinance No. 24 Series of 1993 otherwise known as "The Revenue Code of Taguig" be amended as follows: TITLE III Tax on Business SECTION 74. Definitions . Advertising Agency includes all persons who are engaged in business of advertising for others by means of billboards, posters, placards, notices, signs, directories, pamphlets, leaflets, handbills, electric or neon lights, airplanes, balloons or media, whether in pictorial or reading form. Agricultural product includes the yield of the soil, such as corn, rice, wheat, rye, hay, coconuts, sugarcane, tobacco, root crops, vegetables, fruits, flowers, and their by-products; ordinary salt, all kinds of fish; poultry; and livestock and animal products, whether in their original form or not. The phrase whether in their original form or not refers to the transformation of said products by the farmer, fisherman, producer or owner through the application of processes to preserve or otherwise to prepare said products for the market such as freezing, drying, salting, smoking, or stripping for purposes of preserving or otherwise preparing said products for the market. Agricultural products as defined include those that have undergone not only simple but even sophisticated processes employing advanced technological means in packaging like dressed chicken or ground coffee in plastic bags or "styropor" or other packaging materials intended to process and prepare the products for the market. The term by-product shall mean those materials which in the cultivation of processing of an article remain over, and which are still of value and marketable like copra cake or molasses from sugar cane. CScaDH Amusement is pleasurable diversion and entertainment. It is synonymous to recreation, relaxation, avocation, pastime or fun. Amusement places include theaters, cinemas, concert halls, circuses and other places of amusement where one seeks admission to entertain oneself by seeing of viewing the shows or performances. They also include those places where one seeks admission to entertain himself by direct participation. Banks and other financial institution include banks, offshore banking, non-bank financial intermediaries, lending investors, finance and investment companies, investment houses, pawnshops, money shops, insurance companies, stock markets, stock brokers and dealers in securities and foreign exchange including pre-need companies, as defined under applicable law, or rules and regulations. Bar includes any place where intoxicating and fermented liquors or malt are sold, even without food, where services hired hostesses and/or waitresses are employed; and where customers may dance to music not rendered by a regular dance orchestra or musicians hired for the purposes; otherwise, the place shall be classified as a dance hall or night or day club. A cocktail lounge or beer garden is considered a bar even if there are no hostesses or waitresses to entertain customers. Boarding house includes any house where boarders are accepted for compensation by the week or by the month or where meals are served to boarders only. A pension inn (or pension house) shall be considered a boarding house unless by the nature of its services and facilities, it falls under another classification. Brewer includes all persons who manufacture fermented liquors of any description for sale or delivery to others, but does not include manufacturers of tuba, basi, tapuy, or similar domestic fermented liquors, whose daily production does not exceed two hundred (200) gauge liters. Business Agent (Agente de negocio) includes all persons who act as agents of others in the transaction of business with any public officer, as well as those who conduct collecting, advertising, employment, or private detective agencies. Business Centre is a place for business transaction; a place for transacting business as well as collecting, advertising, purchasing a product or service. Cabaret/Dance Hall includes any place or establishment where dancing is permitted to the public in consideration of any admission, entrance, or any other fee paid on, before, or after the dancing, and where professional hostesses or dancers are employed. Call Center telecommunication business dealing with customers' phone calls: a place that handles high-volume incoming telephone calls on behalf of a large organization. Functional areas within an organization or an outsourced separate facility that exists solely to answer inbound or place outbound telephone calls. Usually refers to a sophisticated voice operations center that provides a full range of high-volume, inbound or outbound call-handling service, including customer support operator service, directory assistance, multi-lingual customer support, credit service, card service, inbound and outbound telemarketing interactive voice response and web-based services. Calling means one's regular business, trade, profession, vocation or employment which does not require the passing of an appropriate government board or bar examination, such as professional actors and actresses, hostess, masseurs, commercial stewards and stewardess, etc. Capital investment is the capital in which a person puts in any undertaking on which he contributes to the common stock of a partnership, corporation or any other juridical entity or association. Carinderia refers to any public eating place where food already cooked are served at a price. Cockpit includes any place, compound, building or portion thereof where cockfights are held, whether or not money bets are made on the results of such cockfights. Collecting agency includes any person, other than a practicing attorney-at-law, engaged in the business of collecting or suing debts or liabilities placed in his hands, for said collection or suit, by subscribers or customers applying and paying therefore. Commercial broker includes all persons other than importers, manufacturers, producers or bonafide employees, who for compensation or profit, sell or bring about sales or purchases or merchandise for other persons, bring proposed buyers and sellers together or negotiate freights or other business for owners of vessels or other means of transportation for shippers, consignees of freight carried by vessels or other means of transportation. The term includes commission merchants. Construction Contractor shall refer to the principal contractor who has direct contract with the contractee for a specific domestic project. Contractor includes persons, natural or juridical, not subject to professional tax whose activity consists essentially of the sale of all kinds of services for a fee regardless of whether or not the performance of the service calls for the exercise or use of the physical or mental faculties of such contractor or his employees. As used in this Article, the term contractor shall include general engineering, general building and specialty contractors as defined under applicable laws, filling, demolition and salvage works contractors, proprietors or operators of mine drilling apparatus, proprietors or operators of computer services/rental, proprietors or operators or dockyards, persons engaged in the installation of water system, and gas or electric light, heat, or power, proprietors or operators of smelting plants; engraving, plating, and plastic lamination establishments; proprietors or operators of establishments for repairing, repainting, upholstering, washing or greasing of vehicles, heavy equipment, vulcanizing, recapping and battery charging; proprietors or operators of furniture shops and establishments for planting or surfacing and recutting of lumber, sawmills under contract to saw or cuts logs belonging to others; proprietors or operators of dry-cleaning or dyeing establishments, steam laundries, and laundries using washing machines, proprietors or owners of shops for the repair of any kind of mechanical and electrical devices, instrument, apparatus, or furniture and shoe repairing by machine or any mechanical contrivance, proprietors of tailor shops, dress shops, milliners and hatters, beauty parlors, barbershops, massage clinics, sauna Turkish and Swedish baths, slenderizing and building saloons and similar establishments; photographic studios; funeral parlors; proprietors or operators of arrastre and stevedoring, warehousing, or forwarding establishments; master plumbers, smiths, and house or sign painters; printers, bookbinders, lithographers, publishers except those engaged in the publication or printing of any newspaper, magazine, review or bulletin which appears at regular intervals with fixed prices for subscription and sale and which is not devoted principally to the publication of advertisements; business agents, private detective or watchman agencies, commercial and immigration brokers, and cinematographic film owners, lessors and distributors. Dealer means one whose business is to buy and sell merchandise, goods, and chattels as merchant. He stands immediately between the producer or manufacturer and consumer and depends for his profit not upon the labor he bestows upon his commodities but upon the skill and foresight with which he watches the market. Dealer in securities includes all persons who for their own account are engaged in the sale of stocks, bonds, exchange, bullion, coined money, bank notes, promissory notes, or other securities. It shall also include pre-need companies or those engaged in the sale of educational plans, health care plans, memorial plans, etc. Distributor A person or a firm, especially a wholesaler, who distributes merchandise to retailers, usually within a specified geographic area, who is also involved in the delivery of goods from the producers to the consumers, including such items as sales methods. Domestic Construction Project refers to a project bidded out and implemented within the territorial jurisdiction of the Philippines by any foreign or domestic contractor. E-Commerce , it is generally used to cover the "distribution, marketing, sale or delivery of goods and services by electronic means." Exhibit and Event Organizer is any person, company or entity who shall be responsible in organizing, arranging, sponsoring and in taking control and acting for any and all organizations, exhibits or institutions, including the officers, agents and/or employees thereof, on all aspects of the management of an exhibit. Exporter means any person who is engaged in the business of exporting articles or goods of any kind from the Philippines for sale or consumption abroad. General building contractor is a person whose principal contracting business is in connection with any structure built; being built, or to be built, for the support, shelter and enclosure of persons, animals, chattels or movable property of any kind, requiring in its construction the use of more than two unrelated building trades, or crafts, or to do or superintend the whole or any part thereof. Such structure includes sewers and sewerage disposal plants and systems, parks, playgrounds, and other recreational works, refineries, chemical plants and similar industrial plants requiring specialized engineering knowledge and skill, powerhouses, power plants and other utility plants and installation, mines and metallurgical plants, cement and concrete works in connection with the above mentioned fixed works. A person who merely furnishes materials or supplies without fabricating them into or consuming them in the performance of the work of the general building contractor does not necessarily fall within this definition. General engineering contractor is a person whose principal contracting business is in connection with fixed works requiring specialized engineering, knowledge and skill, including the following divisions or subjects; irrigation, drainage, water power, water supply, flood control, inland waterways, harbors, docks and wharves, shipyards and ports, dams, hydroelectric projects, levees, river control and reclamation works, railroads, highways, streets and roads, tunnels, airports and airways, waste reduction plants, bridges, overpasses, underpasses and other similar works, pipelines and other systems for the transmission of petroleum and other liquid or gaseous substances, land-levelling and earth-moving projects, excavating, grading, trenching, paving and surfacing works. Holding Company a controlling company that has one or more subsidiaries and confines its activities primarily to their management. Hotel includes any house or buildings or portion thereof in which any person or persons may be regularly harbored or received as transients or guests. A hotel shall be considered as living quarters and shall have the privilege to accept any number of guests and to serve food to the guests therein. Importer means any person who brings articles, good wares or merchandise of any kind of class into the Philippines from abroad for unloading therein, or which after entry are consumed herein or incorporated into the general mass of property in the Philippines. In case of tax-free articles, brought or imported into the Philippines by persons, entities or agencies exempt from tax which are subsequently sold, transferred, or exchanged in the Philippines to non-exempt private persons or entities, the purchaser or recipient shall be considered the importer thereof. Independent wholesaler means a person other than a manufacturer, producer or importer who buys commodities for resale to persons other than the end-users, regardless of the quantity of transaction. Information Technology may be defined as the collective term for various technologies involved in the processing and transmitting of information, which include computing, multimedia, telecommunications, microelectronics and their interdependencies. The term Information Technology (IT) offering services both in the domestic and international market shall include IT project management, applications systems development, applications services providers, web development management, database design and development, computer net-working and data communications, software development, and application (includes programming and adaptation of system software, middleware, application software, for business, media, e-commerce, education, entertainment and all other programs interdependent of this technology) and ICT facilities operations/management. Information Technology-Enabled Services refer to business lines that can be transformed through information technology. These include activities such as business process outsourcing and shared services, engineering and design, animation and content creation, knowledge management, remote education, market research, travel services, finance and accounting services, human resources services and other administrative services (includes call centers; purchasing, data encoding, transcribing and processing, directories) and all future programs interdependent of this technology. Information Communications Technology are support activities such as research and development of high-value-added ICT products and services, education and manpower development in ICT, incubation of IT services providers, provision for Internet Services and community access. These support activities also include content development for multi-media or Internet purposes, knowledge-based and computer enabled support services like engineering and architectural design services and consultancies, business process outsourcing like e-commerce, and all other future programs and activities interdependent of his technology. Investment Company and Investment House Investment companies are entities primarily engaged in investing, reinventing or trading in securities. An investment house is an enterprise engaged in guaranteed underwriting of securities of another person or enterprise, including securities of government and its instrumentalities. Joint Venture is a legal organization that takes the form of a short-term partnership in which the persons jointly undertake a transaction for mutual profit. Generally each person contributes assets and share risks. Like a partnership joint ventures can involved any type of business transaction and the "persons" involved can be individuals, group of individuals, companies or corporations. Lodging house includes any house or building, or portion thereof, in which any person or persons may be regularly harbored or received as transients for compensation. Manufacturer includes every person who, for the purpose of sale or distribution to others and not for his own use or consumption, by physical or chemical process, (1) alters the exterior texture of form, or inner substance of any raw material or manufactured or partially manufactured product in such manner as to prepare it for a special use or uses to which it could not have been put in its original condition; (2) alters the quality of any such raw material or manufactured or partially manufactured product so as to reduce it to marketable shape or prepare it for any use of industry; or (3) combines any raw material or manufactured or partially manufactured product with other materials or products of the same or different kind in such manner that the finished product of such process or manufacture can be put to a special use or uses to which such material, or manufactured or partially manufactured product in its original condition could not have been put. Motor vehicle means any vehicle propelled by any power other than muscular power using the public roads, but excluding road rollers, trolley cars, street-sweepers, sprinklers, lawnmowers, bulldozers, graders, forklifts, amphibian, trucks, and cranes if not used on public roads vehicles which run only on rails or tracks, and tractors, trailers and traction engines of all kinds used exclusively for agricultural purposes. Night or day club includes any place frequented at nighttime or daytime, as the case may be, where patrons are served food or drinks and are allowed to dance with their partners or with professional hostesses furnished by the management. Occupation means one's regular business or employment or an activity that principally takes up one's time, thought and energies. It includes any calling, business, trade, profession or vocation. Overseas Construction Project shall mean a construction project undertaken by a construction contractor outside the territorial boundaries of the Philippines, paid for in acceptable freely convertible foreign-currency, as well as construction contracts dealing in foreign-currency denominated fabrication works with attendant installation works outside of the Philippines. Partnership is a business entity in which two or more individuals carry on a continuing business for profit as legal co-owners. Peddler is a person who, either for him or for commission, travels from place to place within the city and sells his goods or offers to sell or deliver the same. Privately owned public market means those market establishments including shopping centers funded and operated by private persons, natural or juridical, under government permit. Profession means a calling which requires the passing of an appropriate government board or bar examinations, such as practice of law, medicine, public accountant, engineering, etc. Public market refers to any place, building, or structure of any kind designated as such by the local board or council, except public streets, plazas, parks and the like. Real Estate Brokers include any person, other than a real estate salesman as hereinafter defined, who for another, and for a compensation or in the expectation or promise of receiving compensation, (1) sells or offers for sale, buys or offers to buy, lists or solicits for prospective purchasers or negotiates the purchase, sale or exchange of real estate or interests therein; (2) or negotiates loans on real estate; (3) or leases or offers to lease or negotiates the sale, purchase or exchange of a lease, or rents or places for rent or collects rent from real estate or improvements thereon; (4) or shall be employed by or on behalf of the owner or owners of lots or other parcels of real estate at a state salary or commission, or otherwise to sell such real estate or any part thereof in lots or parcels. Real Estate salesman means any natural person regularly employed by a real estate broker to perform in behalf of such broker any or all of the functions of a real estate broker. One act of a character embraced within the above definition shall constitute the person performing or attempting to perform the same real estate broker. The foregoing definitions do not include a person who shall directly perform any acts aforesaid reference to his own property, where such acts are performed in the regular course of or as an incident to the management of such property; nor shall they apply to persons acting pursuant to a duly executed power-of-attorney from the owner authorizing final consumption by performance of a contract conveying a real estate by sale, mortgage or lease, nor shall they apply to any receiver, trustee or assignee in bankruptcy or insolvency or in any person acting pursuant to the order of any court, nor to a trustee selling under a deed of trust. ISAaTH Real Estate Dealer includes any person engaged in the business of buying, selling or exchanging real properties in his own account as a principal and holding himself out as a full or part time dealer in real estate. Real Estate Developer refers to any person engaged in the business of developing real properties into subdivisions, or building houses on subdivided lots, or constructing, improving and rehabilitating residential or commercial units, townhouses and other similar units for his own account and offering them for sales or lease. Real Estate Lessor is any person engaged in the business of leasing or renting out real properties on his own account as a principal and holding himself out as a lessor of real properties being rented out or offered for rent. Rectifier comprises every person who rectifies, purifies, or refines distilled spirits or wines by any person other than by original and continuous distillation from mash, wort, wash, sap, or syrup through continuous closed vessels and pipes until the manufacture thereof is complete. Every wholesale or retail liquor dealer who has in his possession any still or mast tub, or who keeps any other apparatus for the purpose of distilling spirits, or in any manner refining distilled spirits, shall also be regarded as a rectifier and as being engaged in the business of rectifying. Restaurant refers to any place that provides food to the public and accepts orders from them at a price. This term includes caterers. Retail means a sale where the purchaser buys the commodity for his own consumption, irrespective of the quantity of the commodity sold. Shopping center means a building, establishment or a place or parts thereof, leased to at least ten (10) different persons to be used principally by them separately for selling any article of commerce of whatever kind or nature. Social/sports club is a club of which the social features are the individual purposes of each organization and which conducts various kinds of entertainment, sporting contests and have elaborate entertainment, amusement or sports facilities. Software Development is the efficient application of software specification, design, and implementation technologies to produce a desired computer process. Specialty Contractor/Subcontractor is a person whose operations pertain to the performance of construction work requiring special skills and whose principal contracting business involves the use of specialized building trades or crafts. IADCES Theater or cinema house includes any edifice, building or enclosure where motion pictures are exhibited and/or where operatic or dramatic performances, presentations or plays, or other shows are held. Tiangge or "Privilege Store" refers to a store or outlet which does not have a fixed location and normally is set up in places like shopping malls, hospitals, office buildings, hotels, villages or subdivisions, churches, parks, sidewalks, streets and other public places for the purposes of selling a variety of goods/services for a short duration of time or on special events. Telecommunications The breakthrough in science and technology in the industry of long distance communications whereby electromagnetic impulses and signals are transmitted and received through air and sound waves, fiber optics, radio frequencies, i.e. , radio, radar, sonar, televisions, telegraphy, telephony, etc. Vessel includes every type of boat, craft, or other artificial contrivances used or capable of being used as a means of transportation on water. Wholesale means a sale where the purchaser buys or imports the commodities for resale to persons other than the end-user regardless of the quantity of the transaction. CHAPTER 12 Graduated Tax on Business SECTION 75. Imposition of Tax . There is hereby levied an annual tax on the following businesses at rates prescribed therefore: a) On manufacturers, producers, assemblers, re-packers, processors of any article of commerce of whatever kind of nature, and brewers, distillers, rectifiers and compounders of liquors, distilled spirits and wines or manufacturers of any article of commerce of whatever kind or nature, in accordance with the following schedule: Gross Sales/Receipts for the Amount of Tax Preceding Calendar Year Per Annum LESS than 50,000.00 EXEMPT 50,000.00 or more but less than 75,000.00 1,386.00 75,000.00 or more but less than 100,000.00 1,733.00 100,000.00 or more but less than 150,000.00 2,310.00 150,000.00 or more but less than 200,000.00 2,888.00 200,000.00 or more but less than 300,000.00 4,043.00 300,000.00 or more but less than 500,000.00 5,775.00 500,000.00 or more but less than 750,000.00 8,400.00 750,000.00 or more but less than 1,000,000.00 10,500.00 1,000,000.00 or more but less than 2,000,000.00 14,438.00 2,000,000.00 or more but less than 3,000,000.00 17,325.00 3,000,000.00 or more but less than 4,000,000.00 20,790.00 4,000,000.00 or more but less than 5,000,000.00 24,255.00 5,000,000.00 or more but less than 6,500,000.00 25,594.00 6,500,000.00 or more but less than 7,000,000.00 26,873.00 7,000,000.00 or more but less than 20,000,000.00 Plus 39% of 1% 20,000,000.00 or MORE Plus 25% of 1% The preceding rates shall apply only to amount of domestic sales of manufacturers, assemblers, repackers, processors, brewers, distillers, rectifiers and compounders of liquors, distilled spirits, and wines or manufacturers of any article of commerce of whatever kind or nature other than those enumerated in paragraph (c) of this Section. b) On wholesalers, distributors, importers, or dealers of any article of commerce of whatever kind or nature in accordance with the following schedule shown hereunder: Gross Sales/Receipts for the Amount of Tax Preceding Calendar Year Per Annum LESS than 50,000.00 EXEMPT 50,000.00 or more but less than 75,000.00 1,040.00 75,000.00 or more but less than 100,000.00 1,386.00 100,000.00 or more but less than 150,000.00 1,964.00 150,000.00 or more but less than 200,000.00 2,541.00 200,000.00 or more but less than 300,000.00 3,465.00 300,000.00 or more but less than 500,000.00 4,620.00 500,000.00 or more but less than 750,000.00 6,930.00 750,000.00 or more but less than 1,000,000.00 9,240.00 1,000,000.00 or more but less than 2,000,000.00 10,500.00 2,000,000.00 or more but less than 10,000,000.00 Plus 25% of 1% 10,000,000.00 or more but less than 50,000,000.00 Plus 18% of 1% 50,000,000.00 or MORE Plus 16% of 1% The business enumerated in paragraph (a) above shall no longer be subject to the taxes on wholesalers, distributors, or dealers provided in this Section. c) On exporters, shall be taxed either under subsection (a), (b), or (e), depending on how the business is conducted or operated as provided in this Code. The term exporter shall refer to those who are principally engaged in the business of exporting goods and merchandise, as well as manufacturers and producers whose goods or products are both sold domestically and abroad. For this purpose, the amount of export sales shall be excluded and declared separately from the total sales and shall be subject to the rate of ONE-HALF (1/2) of the rates prescribed under sub-sections (a), (b), and (e) respectively. Provided, however, export sales on software development, computer programs, computer designs and all other computer works and related by-products, in accordance to the customer specifications and design that are conceptualized, realized/materialized, developed and utilized, shall be subject to the business tax at the full rate prescribed under subsection (e), as provided in this Code. d) On manufacturers, millers, producers, wholesalers, distributors, dealers, or retailers of essential commodities enumerated hereunder at a rate of ONE-HALF (1/2) of the rates prescribed under subsections (a), (b), and (f) respectively, of this section: 1. Rice and corn; 2. Wheat or cassava flour, meat, dairy products, locally manufactured, processed or preserved food, sugar, salt and other agricultural, marine and fresh water products, whether in their original state or not; 3. Cooking oil and cooking gas; 4. Laundry soap, detergents, and medicine; 5. Agricultural implements, equipment and post-harvest facilities, fertilizers, pesticides, insecticides, herbicides and other farm inputs; 6. Poultry feeds and other animal feeds; 7. School supplies; and 8. Cement. e) On contractors and other independent contractors defined in SECTION 74 of this Code; and on owners or operators of business establishments rendering or offering services such as advertising agencies, rental of space of signs, signboards, billboard or advertisements, animal hospitals, assaying laboratories, belts and buckle shops, blacksmith shops, bookbinders, booking offices for film exchange, booking office for transportation on commission basis; breeding of game cocks and other sporting animals belonging to others; business management services; collecting agencies; escort services; feasibility studies, consultancy services; garages; garbage disposal contractors; gold and silversmith shops; inspection services for incoming and outgoing cargoes; interior decorating services; janitorial services; job placements or recruitment agencies; landscaping contractors; lathe machine shops; management consultants not subject to professional tax; medical and dental laboratories; mercantile agencies; messengerial services; operators of shoe shine stand; painting shops; perma-press establishments; rent-a-plant services; polo players; school for and/or horseback riding academy; real estate appraisers; real estate brokerages; photostatic; white/blue printing, photocopying, typing and mimeographing services; car rental, rental of heavy equipment, rental of bicycles and/or tricycles; furniture, shoes, watches, household appliances, boats, typewriters, etc.; roasting of pigs, fowls, animals; silkscreen or T-shirt printing shops; stables; travel agencies; vaciador shops; veterinary clinics; video rentals and/or coverage services; dancing school/speed reading/EDP; nursery, vocationally and other schools not regulated by the Department of Education (DepEd), day care centers; etc., the following rates shall apply: Gross Sales/Receipts for the Amount of Tax Preceding Calendar Year Per Annum LESS than 50,000.00 EXEMPT 50,000.00 or more but less than 75,000.00 924.00 75,000.00 or more but less than 100,000.00 1,386.00 100,000.00 or more but less than 150,000.00 2,079.00 150,000.00 or more but less than 200,000.00 2,772.00 200,000.00 or more but less than 250,000.00 3,812.00 250,000.00 or more but less than 300,000.00 4,851.00 300,000.00 or more but less than 400,000.00 6,468.00 400,000.00 or more but less than 500,000.00 8,663.00 500,000.00 or more but less than 750,000.00 9,713.00 750,000.00 or more but less than 1,000,000.00 10,763.00 1,000,000.00 or more but less than 2,000,000.00 12,075.00 2,000,000.00 or MORE Plus 65% of 1% For purposes of this Section, all general engineering, general building and specialty contractors with principal offices located outside Taguig but with multi-year projects located in the City of Taguig, shall secure the required city business permit and shall be subjected to pay the city taxes, fees and charges based on the total contract price payable in annual or quarterly installments within the project team. Upon completion of the project, the taxes shall be recomputed on the basis of the gross sales/receipts for the preceding calendar years and the deficiency tax, if there is any, shall be collected as provided in this Code, and shall retire the city business permits secured upon full completion of the projects undertaken in the City of Taguig. f) On retailers, shall be taxed as follows: Gross Sales/Receipts for the Amount of Tax Preceding Calendar Year Per Annum LESS than 50,000.00 BARANGAY LEVIED 50,000.00 or MORE Plus 1% Provided, however, that the barangay shall have the exclusive power to impose tax on retailers for fixed business establishments with gross sales or receipts of the preceding calendar year of fifty thousand pesos (Php50,000.00) or less at the rate not exceeding one percent (1%) on such gross sales or receipts. g) On owners and operators of hotels duly licensed and accredited by the City of Taguig, the rate of the tax on the gross receipts during the preceding calendar year derived from room occupancy shall be THIRTY PERCENT (30%) OF ONE PERCENT (1%). h) On owners or operators of cafes, cafeterias, ice cream and other refreshment parlors, restaurants, soda fountain bars, carinderias, and food caterers in accordance with the schedule shown hereunder. With gross sales/receipts for the preceding calendar year in the amount of: Gross Sales/Receipts for the Amount of Tax Preceding Calendar Year Per Annum LESS than 50,000.00 EXEMPT 50,000.00 or MORE Plus 50% of 1% i) On owners or operators of the following amusement and other recreational places in accordance with the following schedule: 1) Day and/or night clubs, cocktail or music lounges or bars, cabarets or dance hall, disco houses, beer garden or joints, gun clubs, off-track betting stations or off-frontations; race tracks, cockpits and other similar places, including the sales from food and non-alcoholic drinks during the preceding year, the following rates shall apply: Gross Sales/Receipts for the Amount of Tax Preceding Calendar Year Per Annum LESS than 2,000.00 40.00 2,000.00 or more but less than 3,750.00 75.00 3,750.00 or more but less than 4,500.00 90.00 4,500.00 or more but less than 6,125.00 122.50 6,125.00 or more but less than 7,250.00 145.00 7,250.00 or more but less than 8,750.00 175.00 8,750.00 or more but less than 10,275.00 205.00 10,275.00 or more but less than 12,125.00 242.50 12,125.00 or more but less than 15,250.00 305.00 15,250.00 or more but less than 16,750.00 335.00 16,750.00 or more but less than 18,250.00 365.00 18,250.00 or more but less than 20,625.00 412.00 20,625.00 or more but less than 23,375.00 467.00 23,375.00 or more but less than 27,000.00 540.00 27,000.00 or more but less than 30,000.00 600.00 30,000.00 or more but less than 33,000.00 660.00 33,000.00 or more but less than 35,875.00 717.50 35,875.00 or more but less than 40,625.00 812.50 40,625.00 or more but less than 45,000.00 910.00 45,000.00 or more but less than 50,000.00 1,000.00 50,000.00 or MORE Plus 1% 2) Swimming pools, pelota/squash courts, tennis courts, badminton courts, exclusive clubs such as country and sports clubs, resorts and other similar places, skating rink; billiard or pool hall, bowling alleys, circus, carnivals or the like; merry-go-rounds, roller coasters, ferris wheel, swing shooting galleries and similar contrivances; boxing stadia, boxing contest, race tracks, theaters and cinema houses, judo-karate clubs and other similar places at the rate as follows: Gross Sales/Receipts for the Amount of Tax Preceding Calendar Year Per Annum LESS than 50,000.00 EXEMPT 50,000.00 or more but less than 75,000.00 1,500.00 75,000.00 or more but less than 100,000.00 2,000.00 100,000.00 or more but less than 150,000.00 3,000.00 150,000.00 or more but less than 200,000.00 4,000.00 200,000.00 or more but less than 300,000.00 6,000.00 300,000.00 or more but less than 500,000.00 10,000.00 500,000.00 or more but less than 750,000.00 15,000.00 750,000.00 or more but less than 1,000,000.00 20,000.00 1,000,000.00 or more but less than 2,000,000.00 40,000.00 2,000,000.00 or MORE Plus 75% of 1% 3) The Gross receipts of owners or operators of amusement and recreational places derived from admission fees shall be excluded and declared separately from the total sales and shall be subject to the rate under SECTION 95 of this Code. Failure to make this separate declaration of amusement sales shall be subject to the business tax at the rate prescribed under subsection (i) of SECTION 75, as provided in this Code. j) On owners or operators of banks and other financial institutions which include offshore banking, non-bank, financial intermediaries, lending investors, finance & investment companies, investment house, pawnshops, money shops, insurance companies, stock markets, stock brokers, dealers in securities including pre-need companies, foreign exchange shall be taxed at the rate of EIGHT PERCENT (8%) OF ONE PERCENT (1%) of the gross receipts of the preceding calendar year derived from interests, commissions & discounts from lending activities, income from financial leasing, investments, dividends, insurance premium and profit from exchange or sale of property, provided, however, on gross sales/receipts derived from rental of property during the preceding calendar year shall be subject to the business tax at the rate prescribed under subsection (k) 1 of Section 75, as provided in this code. k) Real Estate Lessors and Real Estate Dealer shall pay the annual tax in accordance with the following schedule: 1) On lessors or sub-lessors of real estate including accessoria, appartelle, pension inns, lodging houses, apartments, condominiums, houses of lease, rooms and spaces for rent and parking facilities and similar places shall pay the tax in accordance with the schedule shown hereunder. With gross sales or receipts for the preceding calendar year in the amount of: Gross Sales/Receipts for the Amount of Tax Preceding Calendar Year Per Annum LESS than 1,000.00 EXEMPT 1,000.00 or more but less than 4,000.00 30.00 4,000.00 or more but less than 10,000.00 75.00 10,000.00 or more but less than 20,000.00 225.00 20,000.00 or more but less than 30,000.00 450.00 30,000.00 or more but less than 50,000.00 750.00 Tax Per Annum For every P1,000 in excess of P50,000 for real property 15.00 used for purposes other than residential For every P5,000 in excess of P50,000 for real property 10.00 used for residential purposes For newly started business, the initial tax shall be the 50.00 rate of 2) On dealers of real estate excluding subdivision operators and lessors of real estate shall pay the tax in accordance with the schedule shown hereunder. With gross sales or receipts for the preceding calendar year in the amount of: Gross Sales/Receipts for the Amount of Tax Preceding Calendar Year Per Annum LESS than 10,000.00 250.00 10,000.00 or more but less than 50,000.00 500.00 50,000.00 or more but less than 100,000.00 750.00 100,000.00 or more but less than 200,000.00 1,500.00 200,000.00 or more but less than 400,000.00 2,250.00 400,000.00 or more but less than 700,000.00 4,000.00 700,000.00 or more but less than 1,000,000.00 6,000.00 1,000,000.00 or more but less than 1,500,000.00 8,750.00 1,500,000.00 or more but less than 2,000,000.00 10,500.00 2,000,000.00 or more but less than 3,000,000.00 13,750.00 3,000,000.00 or more but less than 5,000,000.00 16,000.00 5,000,000.00 or more but less than 6,500,000.00 20,000.00 6,500,000.00 or more but less than 8,000,000.00 25,000.00 8,000,000.00 or more but less than 10,000,000.00 31,500.00 10,000,000.00 or MORE Plus 75% of 1% For newly started business, the initial tax shall be the minimum prescribed above. 3) On owners or operators of real estate development, shall be taxed at the rate prescribed under subsection (d) of the gross sales/receipts during the preceding calendar year. per square meter P0.50 This tax shall be based on the total area of the remaining lots titled in the name of the subdivision operator. l) On owners or operators of privately owned public markets, shopping centers, exhibit and event organizer, and business centers shall pay the following tax rates: Gross Sales/Receipts for the Amount of Tax Preceding Calendar Year Per Annum LESS than 5,000.00 185.00 5,000.00 or more but less than 10,000.00 375.00 10,000.00 or more but less than 20,000.00 750.00 20,000.00 or more but less than 30,000.00 1,125.00 30,000.00 or more but less than 40,000.00 1,500.00 40,000.00 or more but less than 50,000.00 1,875.00 50,000.00 or more but less than 60,000.00 2,000.00 60,000.00 or more but less than 70,000.00 2,625.00 70,000.00 or more but less than 80,000.00 3,000.00 80,000.00 or more but less than 90,000.00 3,375.00 90,000.00 or more but less than 100,000.00 3,750.00 100,000.00 or MORE Plus 3% m) On peddlers engaged in the sale of any merchandise or article of commerce, at a rate of not exceeding Fifty Pesos (P50.00) per peddler, annually. n) On owner or operators of Information Technologies which include software development, computer programming, Internet, call centers, E-commerce, design animation and other IT-related service activities shall be taxed at the rate prescribed under subsection (e) of the gross sales/receipts during the preceding calendar year. o) On Holding Company/ies, shall be taxed at the rate prescribed either under subsection (e) or (j), of the gross sales and/or receipts during the preceding calendar year. CHAPTER 13 Special Provisions SECTION 78. Related or Combined Business. a) The tax imposed herein shall be payable for every separate or distinct establishment or place where business subject to the tax is conducted and one line of business does not become exempt by being conducted with some other businesses for which such tax has been paid. The person conducting the same must pay the tax on business. b) In cases where a person conducts or operates two (2) or more of the related businesses mentioned in Section 75 which are subjected to the same rate of tax, the tax shall be computed on the combined total gross sales or receipts of the said two (2) or more related businesses. c) In cases where a person conducts or operates two (2) or more businesses mentioned in the aforesaid section which are subject to different rates of tax, the gross sales or receipts of each business shall be separately reported, and the tax thereon shall be computed on the basis of the appropriate schedule. SECTION 79. Situs of the Tax. (a) Definition of Terms (1) Principal Office the head or main office of the business appearing in the pertinent documents submitted to the Securities and Exchange Commission, or the Department of Trade and Industry, or other appropriate agencies as the case may be. The municipality or city specifically mentioned in the articles of incorporation or official registration of papers as being the official address of said principal office shall be considered as the situs thereof. In case there is a transfer or relocation of the principal office to other municipality or city, it shall be the duty of the owner, operator or manager of the business to give due notice of such transfer or relocation to the City Mayor within fifteen (15) days after such transfer or relocation is effected. (2) Branch or Sales Office a fixed place in a locality that conducts operations of the business as an extension of the principal office. Offices used only as display areas of the products where no stocks or items are stored for sale although orders for the products may be received thereat, are not considered branch or sales offices as herein contemplated. A warehouse that accepts orders and/or issues sales invoices independent of a branch with sales office shall be considered as a sales office. (3) Warehouse a building utilized for the storage of products for sale and from which these persons acting in behalf of the business withdraw goods or merchandise, for delivery to customers or dealers. A warehouse that does not accept orders and/or issue sales invoice as aforementioned shall not be considered a branch or sales office. (4) Plantation a tract of agricultural land planted with trees or seedlings whether fruit bearing or not, uniformly spaced or seeded by broadcast methods or normally arranged to allow highest production. For purposes of this Article, inland fishing ground shall be considered as plantation. (5) Experimental Farms agricultural lands utilized by a business or corporation to conduct studies, tests, researches or experiment involving agricultural agribusiness marine or aquatic, livestock, poultry dairy and other similar products for the purpose of improving the quality and quantity of goods or products. On site sales of commercial quantity made in experimental farms shall be similarly imposed the corresponding tax under Chapter III of this Code and allocated in paragraph (d) of Section 75. (b) Sales Allocation (1) All sales made by a branch or sales office or warehouse located in the City of Taguig shall be taxable herein. (2) In case the principal office and the factory are located in the City of Taguig, all sales recorded in the principal office and those on the other localities where there is no branch or sales office or warehouses shall be recorded in the principal office and taxable by the city. (3)(i) If the principal office is located in the city and the factory, project office plant or plantation is located in another locality, thirty percent (30%) of the sales recorded in the principal office shall be taxable by the City of Taguig. (ii) If the factory, project office, plant or plantation is located in the city and the principal office is located in another locality, seventy percent (70%) of the sales recorded in this city shall be taxable herein. This sales allocation in (i) and (ii) above shall not apply to experimental farms. (iii) If the plantation is located in the city and the factory is located in another locality, forty percent (40%) of the seventy percent (70%) sales determined in paragraph 3 (ii) of this section shall be taxable herein. On the other hand, if the factory is located in the city, and the plantation is located in another locality, sixty percent (60%) of the seventy percent (70%) sales determined in paragraph 3 (ii) above shall be taxable herein. (iv) If the factory, project office, plant or plantation is located in the city and the other factories, project offices, plants or plantations are located in other localities this city shall tax the sales in proportion to the volume of production in the factory, project office, plant or plantation located herein during the tax period. In the case of project offices or services and other independent contractors the term production shall refer to the cost of projects actually undertaken during the tax period. (4) All sales made by the factory, project office, or plant located in this city shall be recorded in the branch or sales office which is similarly located herein, and shall be taxable by the city along with the sales recorded in the principal office. (5) In the case of manufacturers or producers, which engage the services of an independent contractor to produce or manufacture some of their products, the foregoing rules on the situs of taxation shall apply. However, the factory or plant and warehouse of the contractor utilized for the production and storage of the manufacturers products shall be considered as the factory or plant and warehouse of the manufacturers. (6) (i) All route sales made in this city where a manufacturer, producer, wholesaler, maintains a branch or sales office or warehouse shall be recorded and shall be taxable herein. (ii) This city shall tax the sales of the products recorded and withdrawn by route trucks from the branch, sales office or warehouse located herein but sold in another locality where there is no branch, sales office, warehouse. CHAPTER 15 Administrative Provisions SECTION 82. Requirements. (a) Any person who shall establish, operate or conduct any business, trade or activity mentioned in this Article in the City of Taguig, shall first obtain a Mayor's permit and pay the fee therefore and the business tax imposed under this Article. (b) Issuance and posting of official receipt The City Treasurer shall issue an official receipt upon payment of the business tax. Issuance of the said official receipt shall not relieve the taxpayer from any requirement imposed by the different departments of this city. Every person issued an official receipt for the conduct of a business or undertaking shall keep the same conspicuously posted in plain view at the place of business or undertaking. If the individual has no fixed place of business or office, he shall keep the official receipt with him and present it when demanded by the City Mayor, City Treasurer, or any of their duly authorized representatives. (c) Issuance of invoices or receipts All persons subject to the taxes on business shall prepare and issue sale or commercial invoices and receipts serially numbered in duplicate, showing, among others, their names or styles if any, and business address. The original of each sales invoice or receipts shall be issued to the purchaser or customer and the duplicate to be kept and preserved by the person subject to the said tax, in his place of business for a period of five (5) years. The receipts or invoices issued pursuant to the requirements of the Bureau of Internal Revenue for determination of national internal revenue taxes shall be sufficient for purposes of this Code. (d) Sworn statement of gross receipts or sales Operators of business subject to the taxes on business shall submit a sworn statement of the capital investment before the start of their business operations and upon application for a Mayor's permit to operate the business. Upon payment of tax levied in this article, any person engaged in business subject to the business tax based on gross sales and/or receipts shall submit a sworn statement of his gross sales/receipts for the preceding calendar year in such manner and form as may be prescribed by the City Treasurer. Should the taxpayer fail to submit a sworn statement of gross sale or receipts, due among others for his failure to have a book of accounts, records and/or subsidiaries for his business, the City Treasurer or his/her authorized representatives may verify or assess the gross sales or receipts of the taxpayer under the best available evidence upon which the tax may be based. (e) Issuance of certification The City Treasurer may, upon presentation of satisfactory proof that the original official receipt has been lost, stolen or destroyed, issue a certification to the effect that the business tax has been paid indicating therein, the number of the official receipt issued, upon payment of a corresponding fee for such request. (f) Transfer of business to other location Any business for which the person conducting it has paid the city business tax may be transferred and continued in any other place within the territorial limits of this city without the payment of additional tax during the period for which the payment of the tax was made. (g) Retirement of Business Any person natural or juridical who discontinues, transfer to other locality/ies or close/retire his/her business operation(s) is subject to the taxes, fees and charges on business. Within the period of thirty (30) days of the discontinuance, transfer or closure/retirement of business, shall surrender to the City Treasurer the original business permit/license of the current year, official receipt issued for the payment of the business tax, and submit a sworn statement of the gross sales or receipts for the current year or quarter and the corresponding taxes must be collected. Any tax due must first be paid before any business or undertaking is finally terminated. The following documents should support the application for business retirement. 1. Audited Financial Statement for three (3) calendar years for verification of the gross sales or receipts of the business. In case there is a branch, sales office, factory, warehouse and/or project office outside Taguig, breakdown of gross sales or receipts, assessment and proof of payments or Certified True Copies of Official Receipts evidencing payments from other LGU's are also to be submitted to this office. 2. Original Mayor's Permit/License for the current year. 3. Board Resolution/Secretary's Certificate. 4. Affidavit of Non-Operation in case of no sales/operation. 5. In case of inconsistencies with the above submitted documents, the opening of the Books of Accounts will be required for examination before the business is completely retired. For purposes hereof, termination shall mean that business operations are stopped completely. Any change in ownership, management and/or name of the business shall not constitute termination as contemplated in this Article. Unless stated otherwise, assumption of the business by any new owner or manager or re-registration of the same business under a new name will only be considered by this city for record purposes in the course of the renewal of the permit or license to operate the business. The City Treasurer shall see to it that the payment of the taxes of a business is not avoided by simulating the termination or retirement thereof. For this purpose, the following procedural guidelines shall be strictly observed. (1) The City Treasurer shall assign every application for the termination or retirement of business to an inspector in his office who shall go to the address of the business on record to verify if it is really no longer operating. If the inspector finds that the business is simply placed under a new name, manager and/or new owner, the City Treasurer shall recommend to the Mayor the disapproval of the application for the termination or retirement of said business. Accordingly, the business continues to become liable for the payment of all the taxes, fees and charges imposed thereon under existing local tax ordinances; and (2) In case of new owner to whom the business was transferred, either by sale or from other forms of conveyance, said new owner shall be liable to pay the tax or fee for the transfer of the business to him if there is an existing ordinance prescribing such cancellation in his books. (h) Death of Licensee When any individual paying a business tax dies, and the business is continued by a person interested in his estate, no additional payment shall be required for the residue of the term for which the tax was paid. (i) General Building Contractor to submit list of Sub-Contractor All general building contractors are required to submit to the City Treasurer/Business Permits Office this list of their sub-contractors for projects located in the City of Taguig. The list must be comprehensive, signed under oath inclusive of the amount of contract price, duly notarized and must be accompanied by the respective sub-contract agreement. This ordinance shall take effect immediately upon its approval. Enacted this 09th day of December 2005 at the City Government of Taguig. CITY COUNCILORS COUN. ARNEL M. CERAFICA (SGD.) COUN. HENRY M. DUEAS, JR. (SGD.) COUN. ALLAN PAUL C. CRUZ (SGD.) COUN. RICARDO J. JORDAN (SGD.) COUN. ELPIDIO M. JAVIER (SGD.) COUN. AURELIO PAULO R. BARTOLOME (SGD.) COUN. GUEN N. SAN PEDRO COUN. ARVIN IAN V. ALIT (SGD.) COUN. DELIO J. SANTOS (SGD.) COUN. MARISSE BALINA-ERON (SGD.) COUN. BALTAZAR T. MARIATEGUE COUN. NOEL R. DIZON (SGD.) FLORO C. HERNANDEZ LIGA Pres. (SGD.) LORD KRISTINE E. VALENZUELA SK Fed. Pres. Attested by: (SGD.) ATTY. GEORGE A. ELIAS City Vice Mayor and Presiding Officer Certified by: (SGD.) ATTY. DANIEL B. VALDEZ City Council Secretary Approved by: (SGD.) HON. SIGFRIDO R. TIGA City Mayor