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Act
Approved March 28, 1951

Republic Act No. 600

An act to prescribe a graduated scale for the income tax on corporations by amending sections twenty-four and fifty-four of commonwealth act numbered four hundred and sixty-six, otherwise known as the national internal revenue code, as amended, and for other purposes.

AN ACT TO PRESCRIBE A GRADUATED SCALE FOR THE INCOME TAX ON CORPORATIONS BY AMENDING SECTIONS TWENTY-FOUR AND FIFTY-FOUR OF COMMONWEALTH ACT NUMBERED FOUR HUNDRED AND SIXTY-SIX, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES.

In plain language

This act prescribes a graduated corporate income tax scale, amending Sections 24 and 54 of the National Internal Revenue Code, with rates of 20% for net income up to 100,000 pesos and 28% for amounts above, special rates for foreign corporations and certain institutions, and a 24% withholding tax on foreign corporations not engaged in trade within the Philippines.

  • Amended Section 24 to impose 20% and 28% rates on corporations
  • Amended Section 54 to impose 24% withholding tax on foreign corporations
  • Effective period from Jan 1 1951 to Dec 31 1953
taxation
corporate
income tax
Philippines

[ REPUBLIC ACT NO. 600, March 28, 1951 ]

AN ACT TO PRESCRIBE A GRADUATED SCALE FOR THE INCOME TAX ON CORPORATIONS BY AMENDING SECTIONS TWENTY-FOUR AND FIFTY-FOUR OF COMMONWEALTH ACT NUMBERED FOUR HUNDRED AND SIXTY-SIX, OTHERWISE KNOWN AS THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES.

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1

Section twenty-four of Commonwealth Act Numbered Four hundred and sixty-six, as amended, is hereby further amended to read as follows:

"Section 24.Rate of tax on corporations. - There shall be levied, assessed, collected, and paid annually upon the total net income received in the preceding taxable year from all sources by every corporation organized in, or existing under the laws of the Philippines, no matter how created or organized, but not including duly registered general copartnerships (compaias colectivas), a tax upon such income equal to the sum of the following:

Twentyper centumupon the amount by which such total net income does not exceed one hundred thousand pesos; and

Twenty-eightper centumupon the amount by which such total net income exceeds one hundred thousand pesos; and a like tax shall be levied, assessed, collected, and paid annually upon the total net income received in the preceding taxable year from all sources within the Philippines by every corporation organized, authorized, or existing under the laws of any foreign country:*Provided,* however,That Building and Loan Associations operating as such in accordance with sections one hundred and seventy-one to one hundred and ninety of the Corporation Law, as amended, as well as private educational institutions, shall pay a tax of twelveper centumand tenper centum, respectively, on their total net income:And provided, further,That in the case of dividends received by a domestic or resident foreign corporation from a domestic corporation liable to tax under this Chapter, only twenty-fiveper centumthereof shall be returnable for purposes of the tax imposed by this section."

Section 2

Section fifty-four of Commonwealth Act Numbered Four hundred and sixty-six, as amended, is further amended to read as follows:

"Section 54.Payment of corporation income tax at source. - In the case of foreign corporations subject to taxation under this Title not engaged in trade or business within the Philippines and not having any office or place of business therein, there shall be deducted and withheld at the source in the same manner and upon the same items as is provided in section fifty-three a tax equal to twenty-fourper centumthereof, and such tax shall be returned and paid in the same manner and subject to the same conditions as provided in that section."

Section 3

The provisions of this Act shall apply to income received from January first, nineteen hundred and fifty-one to December thirty-first, nineteen hundred and fifty-three, after the expiration of which later date the provisions of Republic Act Numbered Five hundred and ninety amending sections twenty-four and fifty-four of the National Internal Revenue Code, as amended, shall be in full force and effect.

Approved, March 28, 1951.

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.