QUEZON CITY REVENUE CODE HIGHLIGHTS: TAXES ON BUSINESS

Relevant provisions on taxes and fees on registered businesses (for the full text of the provisions, please refer to
the Quezon City Revenue Code, as amended)

Article 18, Community Tax

Section 51 (b) Juridical Persons liable to the community tax
Every corporation, no matter how created or organized, whether domestic or resident foreign, engaged in or
doing business in the Philippines, with principal office in Quezon City, shall pay an annual community tax of
Php 500.00 and an annual additional tax in accordance with the following schedule:
1) On the assessed value of real property owned by the taxpayer: Php 2.00 for very Php 5,000.00
2) On gross receipts or earnings derived by it from its business during the preceding year: Php 2.00 for
every Php 5,000.00

Chapter 3, Article 8, Taxes on Business

Section 19. Imposition of Tax. There is hereby levied an annual tax on the following business undertakings at
the rates prescribed therein.

A. On Manufacturers, Assemblers, Repackers, or Processors of any article of commerce of whatever

kind or nature, in accordance with the following schedule:

with gross receipts or sales for the preceding calendar year in the amount of:
B. On Wholesalers, Distributors, or Dealers of any article of commerce, of whatever kind or
nature, in accordance with the following schedule:

with gross receipts or sales for the preceding calendar year in the amount of:

C. On Essential Commodities - the tax on business for exporters, manufacturers, millers,

producers, wholesalers, distributors, dealers or retailers of essential commodities enumerated
hereunder, shall be one-half of the rates prescribed under Sub-section (A), (B), and (D) of this
Section.

1) Rice and corn

2) wheat or cassava flour, meat, dairy products, local manufactured processed or preserved food,
sugar, salt, and other agricultural, marine and fresh water products, whether in the 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 and other animal feeds
7) school supplies
8) cement

Taxpayers dealing in essential and non-essential commodities shall present their separate books of
accounts for essential and non-essential items for verification, when paying taxes and/or fees therefore;
provided that, when the sales are not made separate or segregated in the books of accounts, the sales
shall be treated as sales for non-essential commodities.
D. On Retailers

With gross receipts of sales for the preceding calendar year in the amount of :

FROM TO LESS THAN ANNUAL TAX QUARTERLY TAX

Php 50,000 Php 400,000 2% 50% of 1%
Php 8,000 + 1% of
gross receipts in
Php 400,000 Php 100,000,000 25% of 1%
excess of Php
100,000,000
Php 1,004,000 +
75% of 1% of gross
18.75% of 1%
receipts in excess
Php 100,000,000 Php 500,000,000 of Php 100,000,000
Php 4,004,000 +
50% of 1% of gross
12.5% of 1%
receipts in excess
Php 500,000,000 and above of Php 500,000,000

E. On Contractors and Other Independent Contractors. This will include 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 such services call for the exercise or
use of physical or mental faculties of such contractor, or his employees, but not limited to the following:
1 barbershops
2 battery charging shops
3 beauty parlors
4 book binders
5 business agents, private detectives or watchman agencies
6 cinematographic film owners
7 commercial and immigration brokers
8 demolition and/or filing and salvage contractors
9 electric light or gas system installers or buildings
10 general building, general engineering, and specialty contractors
11 engraving establishments
12 funeral parlors
13 furniture shops and establishments for the planning or resurfacing of
lumber
14 heat or power systems installers
15 hospitals
16 house or sign painters
17 laundry shops
18 lithographers
19 parking lots
20 massage clinics, sauna, turkish and swedish baths; slendering and
body building establishments, and similar establishments
 21 mine drilling establishments
22 photographic studios
23 plastic lamination establishments
24 plumbing installers
25 proprietors or owners of shops for the repair of any kind of
mechanical and electrical devicces, instruments, apparaturs or
furntireu and shoe repair by machines or any mechanical
contrivance
26 repair, repainting, upholstering of vehicles or heavy equipment
27 sawmills
28 smelting plants
29 smyth shops
30 tailoring or dress shops
31 vulcanizing and recapping shops
32 warehousing or forwarding establishments
33 washing and greasing of vehicles or heavy equipemnt
34 water system instruments
35 management
36 photo developing service
37 advertising service
38 seminar, training and other teaching services (other than offered by
educational institutions)

In accordance with the following schedule: with gross receipts or sales for the preceding calendar year
in the amount of:
F. On Banks and other Financial Institutions - 25% of 1%, in the case of banks; and 60% of 1% in
the case of other financial institutions, of the gross receipts of the preceding calendar year derived from
interests, commissions and discounts from lending activities, income from financial leasing, dividends,
rentals or property and profit from exchange or sale of property.

G. On authorised franchise Car Dealers - 75% of 1% of gross receipts up to Php 100,000,000 nd Php
750,000 + 50% of 1% of gross receipts in excess of Php 100,000,000.

H. On Restaurants and Other Eating Establishments - 1.75% of the gross receipts of the preceding
year

I. On Proprietors, Lessors, and Operators of Hotels, Motels, Inns, Pension Houses, Boarding and
other Lodging Houses - 3% of the gross sales or receipts of the preceding calendar year.

J. On Amusement Places - 3% of the gross sales or receipts of the preceding calendar year, such as,
but not limited to the following:

1 bars, beer gardens, cocktail lounges, pub houses, cabarets or dance

halls and similar establishments, concert halls, day or night clubs,
KTV, videoke, karaoke and other sing-along establishments;
comedy bars, theaters and lounges
2 resorts and the like, billiard or pool halls,bowling establishments, golf
and driving ranges, skating rinks, tennis courts, gymnasiums, squash
courts, and off-fronton beting stations
3 circuses, carnivals, fun houses and the like, including those with
amusement devices or machines, merry-go-rounds, roller coasters,
ferris wheels, side shows, swings, shooting galleries and the like
coliseums, theaters and cinema houses
K. On Proprietors, Lessors, and Operators of Shopping Center and Private Markets –
3% of the gross sales or receipts of the preceding calendar year.

L. On Businesses Not Otherwise Specified in the preceding paragraphs - 2% of the gross sales or
receipts of the preceding calendar year, such as, but not limited to, the following:

1 dealers, distributors and retailers of fermented liquors, distilled

spirits, wines, tuba and the like, dealers, distributors and retailers of
imported wines; dealers, wholesalers and retailers of tobacco leaf
2 operators and owners of private cemeteries and memorial parks
3 real estate lessors (land, building, commercial, office, and residential)
4 sellers, dealers, agents, developers of real estate (land, subdivision,
building and other properties)
5 others
M. INITIAL TAX ON NEWLY ESTABLISHED BUSINESSES
In the case of newly started businesses, the initial tax for the year shall be 25% of 1% of the capital
investment or paid-up capital, but in no case shall be less than Php 100.00

Section 21. PAYMENT OF TAXES FOR SEVERAL BUSINESSES

The tax shall be payable for every separate or distinct establishment or place where the business subject
to the tax is conducted. One line of business does not become exempt by being conducted with some
other business for which tax has been paid.

Where a person conducts or operates two or more related businesses in the same place mentioned in
Section 19 (a), (b), (d), (e), (f), (g), (h), (I)or (j) which are subject to the same rate of tax, the
computation of the tax shall be based on the combined total sales of the said two or more related
businesses.

Article 12, Tax on the Business of Printing and Publication - 75% of 1% of the gross
receipts derived from the operation of the business for the preceding year.

Exemption: printing and publishing of books and/or reading materials prescribed by the Department of
Education as school texts or references. For this purpose, a certification of exemption issued by the
Quezon City School Board must be presented.

Article 13, Franchise Tax

Any person, corporation or partnership or association enjoying a franchise, whether issued by the
National Government or local government, and doing business in Quezon City, shall pay a franchise tax
at the rate of 57% of 1% of the gross receipts and sales derived from the operation of the business in
Quezon City during the preceding calendar year.

Article 17, Annual Fixed Tax on Delivery and Service Motor Vehicles
There is hereby imposed an annual fixed tax for every truck/van or any motor vehicle used in the
delivery and distribution of any product or for servicing business customers within Quezon City, in the
amount of Php 500 per truck/van or any motor vehicle. Motorized tricycles shall pay Php 250 and
motorcycles shall pay Php 100 annually.

Article 19, Tax on Transportation Business

Operators of motor vehicles for hire, with garage or terminal in Quezon Cty, shall pay the annual fixed
tax based on the following:

Buses, cargo trucks, and vans................................Php 400/unit

Taxis.......................................................................Php 200/unit
Jeepneys .................................................................Php 100/unit
Other vehicles for hire ...........................................Php 100/unit

Operators of taxis, jeepneys and other vehicles for hire, with less than 3 units, except buses, cargo trucks
and vans, shall be exempted from the above imposition, provided that all motorized tricycles for hire and
utility tricyces shall not be subjected to the above imposition.
Article 21, Mayor’s Permit Fees on Business
Section 67 (b)
Any person, natural or juridical, desiring to engage in any business, trade or activity within the city, are
required to pay the following application fees

Manufacturers, amusement places ........................Php 100.00

Others .....................................................................Php 50.00

Section 82. Rate of Business Permit Fee