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Act
Approved June 14, 1948

Republic Act No. 261

An act to amend section one hundred eighty-nine of commonwealth act numbered four hundred sixty-six, otherwise known as the national internal revenue code, as amended

An Act to Amend Section One Hundred Eighty-Nine of Commonwealth Act Numbered Four Hundred Sixty-Six, Otherwise Known as the National Internal Revenue Code, as Amended

In plain language

This law amends Section 189 of the National Internal Revenue Code to impose a two percent percentage tax on proprietors or operators of rope factories, sugar centrals, rice mills, coconut oil mills, corn mills, and desiccated coconut factories, with specific exemptions for exported coconut oil by-products and provisions for tax deductions for refined sugar producers and material costs.

  • Imposes a two percent percentage tax on proprietors/operators of rope factories, sugar centrals, rice mills, coconut oil mills, corn mills, and desiccated coconut factories.
  • Exempts coconut oil and its by-products if exported in original state or as part of manufactured goods.
  • Provides for tax on the share of raw material producers in contracts where the factory receives a share of finished products.
  • Allows refined sugar factories to deduct the cost of raw sugar from the tax base.
  • Allows deduction of the cost of materials used in manufacturing from the gross selling price or value of the manufactured articles.
tax
percentage tax
internal revenue
republic act
amendment
rope factory
sugar central
rice mill
coconut oil mill
corn mill
desiccated coconut factory

REPUBLIC ACT No. 261

An Act to Amend Section One Hundred Eighty-Nine of Commonwealth Act Numbered Four Hundred Sixty-Six, Otherwise Known as the National Internal Revenue Code, as Amended

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1

Section one hundred eighty-nine of Commonwealth Act Numbered Four hundred and sixty-six, as amended, is hereby amended so as to read as follows:

> "Sec. 189. Percentage tax upon proprietors or operators of rope factories, sugar centrals, rice mills, coconut oil mills, corn mills, and desiccated coconut factories. Proprietors or operators of rope factories, sugar centrals, rice mills, coconut oil mills, corn mills, and desiccated coconut factories shall pay a tax equivalent to two per centum of the gross value in money of all the rope, sugar, rice, coconut oil, ground or milled corn, and desiccated coconut manufactured or milled by them, including the by-products of the raw materials from which the said articles are produced or manufactured, such tax to be based on the actual selling price or market value of these articles at the time they leave the factory or mill warehouse: Provided, However, That this tax shall not apply to coconut oil and the by-products of copra from which it is produced or manufactured, if such oil and by-products shall be removed for exportation and are actually exported without returning to the Philippines, whether so exported in their original state, or as an ingredient or part of any manufactured article or product. > > "In case the raw materials are manufactured or milled in pursuance of a contract where the factory, central, or mill receives a share of the finished products, the tax on the share pertaining to the planter or owner of the raw materials shall be charged to the planter or owner and withheld by the proprietor or operator of the factory, central, or mill and paid by him to the Collector of Internal Revenue. > > "A proprietor or operator of a refined sugar factory shall be subject to the tax imposed by this section but shall be permitted to deduct from the actual selling price or market value of the refined sugar the total cost, as duly established, of the raw sugar upon which the tax under this section has previously been paid. > > "Where articles are manufactured out of materials subject to tax under this section, the total cost, as duly established, of the said materials shall be deductible from the gross selling price or gross value in money of the manufactured articles."

Section 2

This Act shall take effect upon its approval.

Approved: June 14, 1948.

For information and research only, and not legal advice. This text may not reflect later amendments. For certified copies, refer to the Official Gazette or the issuing agency.