Taxation

Pre-Colonial
No means of taxation at this time.
Spanish Period
The Spanish period brought about new income-generating methods generated by the
government, along with basic taxation systems.
Polo Y Servicio (Forced Labor)
It is labor forced upon men ranging from 16-60 years of age. This kind of labor is geared towards
community projects by the government. One can be exempted from work by paying a fee called falla,
worth one and a half real at the time.
Bandala System
Bandala is form of direct taxation where the natives of the Philippines were coerced to sell their crops to
the Spaniards at very low prices.
Encomienda System and Tributes
An Encomienda System is a land management system where a meritorious Spaniard or Encomendero is
given full authority to manage the Encomienda through the collection of tributes from the lands
inhabitants.
A tribute was the residence tax during the Spanish occupation; it may be paid in cash or kind, partly or
wholly. Part of the tribute goes to the Encomendero, and the rest go to the church and government.
Cedula
In the 19
th
century, the Tribute was replaced by the Cedula Personal or the personal identity paper,
equivalent to the present community tax certificate. The cedula had to be carried at all times during the
Spanish rule.
In the current Cedula system, Cedula remains to be the most basic form of identification. A Cedula
needs to be presented whenever formal transactions are made, especially transactions with the
government, such as; payment of tax, having a document notarized, receives a license, etc.
Community Tax
The Community Tax was imposed by the Americans Janurary 1 1940, when Commonwealth Act No. 465
was enacted. A base residence tax was imposed and a residence certificate would be issued. An artificial
body like a corporation could also be taxed.

Tax Laws
The 1987 Philippine Constitution sets limitations on the exercise of the power to tax. The rule of taxation
shall be uniform and equitable. The Congress shall evolve progressive system of taxation. (Article VI,
Section 28, Paragraph 1). The Philippines currently operates under the Republic Act No. 8424, known as
the Tax Reform Act of 1997 or the National Internal Revenue Code of 1997.

https://www.scribd.com/doc/62091972/Taxation-101-Basic-Principles-in-Philippine-Taxation-by-JR-
Lopez-Gonzales
http://businesstips.ph/the-tax-code-of-the-philippines-national-internal-revenue-code-of-1997/
http://www.bir.gov.ph/index.php/rulings-and-legal-matters/guide-to-philippines-tax-law-research.html
http://en.wikipedia.org/wiki/History_of_the_Philippines_(1521%E2%80%931898)#Taxation