An Act to Establish a Percentage Tax on the Business of the Merchants, Manufacturers, and Commission Merchants, and for Other Purposes
Act No. 3065, approved on March 16, 1923, establishes a percentage tax of 0.5% on the gross sales of merchants, manufacturers, and commission merchants in the Philippines, applicable to both domestic and foreign goods. This tax is based on the actual selling price of commodities at the time of sale or consignment, with provisions for refunds if unsold items are returned. Furthermore, the act stipulates that 10% of the collected taxes will be shared between provinces and municipalities. The law applies to transactions from its approval until December 31, 1924. All relevant administrative and penal provisions concerning internal revenue taxes also apply to this act.
Law Information
- Reference Number
- Act No. 3065
- Date Enacted
- Category
- Statutes
- Subcategory
- Acts
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
March 16, 1923
ACT NO. 3065
AN ACT TO ESTABLISH A PERCENTAGE TAX ON THE BUSINESS OF THE MERCHANTS, MANUFACTURERS, AND COMMISSION MERCHANTS, AND FOR OTHER PURPOSES
SECTION 1. All merchants, manufacturers, and commission merchants not otherwise specifically exempted according to the provisions of the present Internal Revenue Law shall in addition to similar taxes heretofore imposed pay an additional tax of one-half of one per centum on the gross value in money of the commodities, goods, wares, and merchandise sold, bartered, exchanged, or consigned abroad by them, such tax to be based on the actual selling price or value of the things in question at the time they are disposed of or consigned, whether consisting of raw material or of manufactured or partially manufactured products, and whether of domestic or foreign origin. The tax upon things consigned abroad shall be refunded upon satisfactory proof of the return thereof to the Philippine Islands unsold. CTaIHE
SECTION 2. All administrative, special, general, and penal provisions of law, including the laws in relation to the assessment, remission, collection, and refund of internal revenue taxes applicable to business subject to the merchant's sales tax are hereby extended and made applicable to all the provisions of this Act.
SECTION 3. Ten per centum of the tax collected under this Act shall be distributed among the provinces and municipalities in accordance with the provisions of section four hundred and ninety-six of the Administrative Code, five per centum accruing to the provinces and the other five to the municipalities.
SECTION 4. The tax established by this Act shall be in force and effect and be collected only upon business transacted from the date of the approval of this Act until December thirty-first, nineteen hundred and twenty-four.
SECTION 5. This Act shall take effect on its approval.
Approved, March 16, 1923.
Cite This Law
An Act to Establish a Percentage Tax on the Business of the Merchants, Manufacturers, and Commission Merchants, and for Other Purposes, Act No. 3065, Mar 16, 1923 (Philippines)
An Act to Establish a Percentage Tax on the Business of the Merchants, Manufacturers, and Commission Merchants, and for Other Purposes, Act No. 3065 (Phil. 1923)
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