Professional Documents
Culture Documents
MAterial 4 Tax On Corpo
MAterial 4 Tax On Corpo
A corporation may be liable for at most seven (7) types of income taxes, namely:
Definition
Under Section 22(B) of the NIRC, the term “corporation” shall include:
New a) One-person corporations;
b) partnerships, no matter how created or organized;
c) joint stock companies;
d) joint accounts (cuentas en participacion);
e) associations; or
f) insurance companies.
AND
1
Repealed by R.A. No. 11534 effective April 11, 2021.
2
Repealed by R.A. No. 11534 effective April 11, 2021.
3
To be exempt, the joint venture/consortium itself and all the co-venturers/consortium members
must be licensed as general contractors by the Philippine Contractors Accreditation Board
(PCAB) of the DTI.
1
operating or consortium agreement under a service contract with the
Government.
Classification of Corporations
JVs involving foreign contractors may also be exempt if (a) the foreign contractor is covered by
a special license as a contractor by the PCAB; and (b) project is certified by the appropriate
government office that the construction project is a foreign-financed or internationally-funded
project in which international bidding is allowed.
2
(c) “Capital Gains”
Source of
Corporate Taxable Tax Base Tax Rates
Taxpayer Income
New (b) Effective July 1, 2020, a domestic corporation shall be subject to a regular
corporate income tax rate of 25% on income included in its income tax
return (“ITR”).
(1) Net taxable income during the taxable year of not more than Five
Million Pesos (₱5,000,000); and
(2) Total net assets5 (excluding the land on which the entity’s office, plant,
and equipment are situated) during the taxable year of not more than
One Hundred Million Pesos (₱100,000,000).
4
Sec. 27(A), NIRC as amended by R.A. No. 11534.
5
Assets, net of depreciation and allowance for bad debts, if any (RMC No. 62-2021).
3
PASSIVE INCOME
DOMESTIC
Passive Income and RFC NRFC
Intercorporate Dividend
Payor Recipient Tax
1. Domestic corporation DC Not taxable
2. Domestic corporation RFC Not taxable
3. Domestic corporation NRF 15% FWT7
6
Before April 11, 2021, the final tax rate for RFCs was 7.5%.
7
The 15% FWT is imposed if the country in which the NRFC is domiciled allows a tax credit
against the corporation’s tax due equivalent to 10% which is the difference between the regular
rate of 25% and the 15% tax rate on dividends. If the foreign country does not allow such
credit in favor of the NRFC, then the tax rate on such dividends shall be 25%.
8
Requirements for income tax exemption of foreign-sourced dividends received by a DC:
(1) Such dividends are reinvested in the business operations of the DC in the Philippines
within the next taxable year from receipt thereof;
New (2) The use thereof shall be limited to funding the working capital requirements, capital
expenditures, dividend payments, investment in domestic subsidiaries, and infrastructure
projects, of the DC recipient; and
(3) The DC directly holds at least 20% in value of the outstanding shares of the foreign
corporation, and has held the same uninterruptedly for a minimum of 2 years (or for the
entire existence of the foreign corporation if the foreign corporation has been in existence
4
GR: Not taxable
EXC: If part of the dividend is sourced
5. Foreign corporation RFC within the Philippines, such part shall
be taxable and shall be included in the
ITR of the recipient
GR: Not taxable
EXC: If part of the dividend is sourced
6. Foreign corporation NRFC within the Philippines, such part shall
be taxable and shall be subject to a
25% FT.
Monthly Remittance (Form 0619F) Filed not later than the 10th day of the
month following the month when
withholding was made. Filed for the
first two (2) months of each calendar
quarter.
Quarterly Remittance (Form 1601- Filed not later than the last day of the
FQ) month following the close of the quarter
during which withholding was made.
Quarterly Remittance of FTs Filed not later than the last day of the
Withheld on Interest paid on month following the close of the
Deposits/Deposit quarter.
Substitutes/Trusts/Etc (Form
1602Q)
Annual Information Return of Filed on or before January 31 of the
FWTs (Form 1604-F) year following the calendar year in
which the income payments subject to
FWTs were paid or accrued.
for less than 2 years) at the time of the dividend distribution (Sec. 27(D)(4), NIRC as
amended by RA No. 11534 which took effect April 11, 2021; Rev. Reg. No. 5-2021).
9
These are also used to pay other final taxes that may be imposed on income payments received
by juridical entities.
5
Capital Gains Tax on Capital Gains
Form 1707 Filed within thirty (30) days after each transaction
Form 1707-A Filed on or before the 15th day of the 4th month
(Final following the close of the preceding taxable year.
Consolidated
Return)
Form No. Filed within five (5) banking days from the date of
2552 collection
Notes:
(1) Final tax on capital gains on the sale of shares of stock applies to all
corporate taxpayers.
(2) The exceptions for individual taxpayers also apply for corporate
taxpayers.
10
Before April 11, 2021, the net capital gain of foreign corporations was taxed as follows: 5%
on the first ₱100,000 plus 10% on the excess over ₱100,000.
11
Before January 1, 2018, the rate was ½ of 1% of the gross selling price.
6
(b) Tax rate and base –
(3) Seller is NRFC – Final tax of 25% on the capital gain realized
on the sale.12
12
BIR Forms filed by the payor: Monthly Remittance Form (BIR Form 0619F), Quarterly
Remittance Form (BIR Form 1601FQ); Annual Information Return (BIR Form 1604-F).
7
DOMESTIC COMPANIES SUBJECT TO SPECIAL TAX RATES
Hospitals which are non-profit are also subject to a special tax rate of 10%
of taxable net income within and without the Philippines. Provided,
beginning July 1, 2020 until June 30, 2023, the tax rate to be imposed New
shall be 1%.
Provided – the gross income from unrelated trade, business, or other activity
does not exceed 50% of the total gross income derived from all sources.
However, if it exceeds 50%, the normal tax rate will be applied on the entire
taxable income (i.e. 25%/20%).
8
Provided, however, that any income received from all other sources
within and without the Philippines in the case of domestic
contractors/subcontractors, shall be subject to the regular income tax
under the Tax Code.
Notes:
(a) The exemption from all other taxes under the ITH and 5% GIT
regimes does not include the following:
(b) On the other hand, the BIR has ruled that all income payments
received from its customers related to its registered activities,
by a PEZA-registered enterprise, whether availing the ITH or 5%
GIT incentive, are exempt from the withholding tax.
(c) Income derived by an entity registered with the PEZA from its
registered activities shall be subject to such treatment as may be
specified in its terms of registration, i.e. (a) the ITH where such
income shall be exempt from the regular income tax; or (b) the 5%
preferential GIT, if the same has been approved.
9
(2) Income of entities/individuals which are not registered (i.e.
income payments to entities in the Customs Territory, to
shareholders, and to non-registered creditors, etc.)
(3) Income of Service Enterprises or providers (e.g. those
providing customs brokerage, transportation, parcel, janitorial,
restaurant, banking, insurance services, etc.) which are
required by locator enterprises but which need not be
physically based inside the ECOZONE.
Effective July 1, 2020, domestic corporations which qualify for the SCIT
shall pay an income tax equivalent to 5% of gross income, in lieu of all
national and local taxes.
Note: To qualify for the SCIT, a domestic corporation must comply with
the requirements of Section 304 of the Tax Code.13
13
A registered business enterprise must:
(a) Be engaged in a project or activity included in the Strategic Investment Priority Plan;
(b) Meet the target performance metrics after the agreed time period;
(c) Install an adequate accounting system that shall identify the investments, revenues, costs,
and profits or losses of each registered project or activity; or establish a separate
corporation for each registered project or activity;
(d) Comply with the e-receipting and e-sales requirements of Section 237 of the Tax Code;
and
(e) Submit annual reports of beneficial ownership of the organization and related parties (Sec.
304, NIRC).
14
Export enterprise is one which results in:
(1) Direct exportation; and/or
10
(8) Microfinance NGO
11
RESIDENT FOREIGN CORPORATIONS SUBJECT TO SPECIAL TAX RATES
(1) International carriers doing business in the Philippines shall pay a
tax of two and one-half percent (2 ½ %) of Gross Philippine Billings
(“GPB”)
Rules:
(2) Provided, that for a flight or voyage which originates from the
Philippines, but transhipment of passenger takes place at any port
outside the Philippines on another carrier, only the aliquot portion of
the cost of the ticket corresponding to the leg flown from the
Philippines to the point of transhipment shall form part of the Gross
Philippine Billings.
(3) Where a passenger, his excess baggage, cargo, and/or mail originally
commencing his flight or voyage from a foreign port alights or is
discharged in any Philippine port, and thereafter boards or is loaded on
another airplane/vessel owned by the same international carrier, the
flight or voyage from the Philippines to any foreign port shall be
considered “originating from the Philippines” if the time intervening
between arrival to and departure from the Philippines exceeds forty-
eight (48) hours.
(a) If the failure to depart within 48 hours is due to reasons beyond the
control of the passenger such as when the next available flight or
voyage leaves beyond 48 hours, or such failure is due to force
majeure, the flight or voyage from the Philippines shall not be
considered “originating from the Philippines”;
Preferential Rates
12
Note: However, such carriers may earn compensation or commission
income from the sale of passage documents to cover off-line15
flights/voyages of its principal office, or on-line16 flights/voyages of
other carriers. Such income shall not be subject to the 2 ½% GPB tax,
but shall be subject to the regular rates of income tax.
New Note: Effective April 11, 2021, OBUs shall no longer enjoy the
abovementioned 10% preferential income tax rates. Instead, they
shall be taxed as any other resident foreign corporation.17
15
Off-line carriers refer to international carriers having no transportation operations to and from
the Philippines.
16
On-line carriers refer to international carriers having or maintaining transportation operations
to and from the Philippines.
17
Sec. 28(A), NIRC as amended by R.A. No. 11534.
13
(4) Service Contractors/Subcontractors Engaged in Petroleum
Operations
- Liable to an eight percent (8%) final tax on gross income derived from
such contract in petroleum operations
Note: Any income received from all other sources within the Philippines in
the case of foreign subcontractors shall be subject to the regular
income tax under the Tax Code.
Effective July 1, 2020, any corporation which qualifies for the SCIT shall
pay an income tax equivalent to 5% of gross income, in lieu of all national
and local taxes.
Note: To qualify for the SCIT, the corporation must comply with the
requirements of Section 304 of the Tax Code.18
18
A registered business enterprise must:
(a) Be engaged in a project or activity included in the Strategic Investment Priority Plan;
(b) Meet the target performance metrics after the agreed time period;
(c) Install an adequate accounting system that shall identify the investments, revenues, costs,
and profits or losses of each registered project or activity; or establish a separate
corporation for each registered project or activity;
(d) Comply with the e-receipting and e-sales requirements of Section 237 of the Tax Code;
and
(e) Submit annual reports of beneficial ownership of the organization and related parties (Sec.
304, NIRC).
19
Export enterprise is one which results in:
(1) Direct exportation; and/or
(2) Sale of its manufactured, assembled, or processed product or information technology/business
process outsourcing services to another registered export enterprise that will form part of the final
export product or export service of the latter,
14
NON- RESIDENT FOREIGN CORPORATIONS SUBJECT TO SPECIAL TAX
RATES
Note: Royalty is subject to the rate of 25% FT as it is not one of the items of
income subject to a special rate.
20
The final tax rate of 25% imposed on the income of a non-resident cinematographic film owner,
lessor, or distributor was not affected by the passage of the CREATE law.
15
EXEMPT CORPORATIONS21
(B) Mutual savings bank not having a capital stock represented by shares; and
cooperative banks without capital stock organized and operated for
mutual purposes and without profit;
(D) Cemetery company owned and operated exclusively for the benefit of its
members;
(G) Civic league or organization not organized for profit but operated
exclusively for the promotion of social welfare;
21
Sec. 30, NIRC.
16
OTHER EXEMPT CORPORATIONS
(P) Building and loan associations whose accounts are guaranteed by the
Home Guaranty Corporation.
(Q) Other organizations exempt from income tax in accordance with special
laws (exs. Philippine Red Cross; PDIC; Sports Facilities under the control
of the Philippine Sports Commission; Veterans’ Federation of the
Philippines; National Commission for Culture and the Arts, etc.)
The said income shall be taxable regardless of the disposition made of such
income.
22
For example, the lease of a portion of a school building for commercial purposes removes the
asset from the property tax exemption. In such case, the asset is not actually, directly, and
exclusively used for educational purposes. However, if the school actually, directly, and
exclusively uses for educational purposes the revenues/income earned from the lease of its
17
(b) The interest income from currency bank deposits and yield from
deposit substitute instruments of non-stock and non-profit
educational institutions, which income is used actually, directly, and
exclusively in pursuance of their purposes as an educational
institution, shall be exempt from the 20% final tax and from the 15%
tax on interest income under the expanded foreign currency deposit
system (“EFCDS”).23
building, such revenues shall be exempt from taxes. The tax exemption of the
revenues/income does not hinge on the use of the asset, but on the actual, direct, and exclusive
use of the revenues/income for educational purposes (CIR vs. De La Salle University, Inc.,
Supreme Court G.R. No. 196596, November 9, 2016).
23
Sec. 3, DOF Order No. 137-87; RMC Nos. 76-2003, 24-2016 and 64-2016.
24
RMC No. 12-2010.
18
For-Profit Corporations Enjoying Exemption from Tax
For new registered firms, the ITH incentive may be extended for an
extra year for each of the following cases, but in no case to exceed the
total period of eight (8) years for pioneer registered enterprises.
25
To qualify for BOI registration, the corporation, partnership, or association must be engaged
or is proposing to engage:
19
3) Corporations enjoying ITH under Sec. 294 of the Tax Code
New
ITH for 4 to 7 years depending on the location and industry priorities
specified in Section 296 of the Tax Code.
Note: To qualify for the ITH, the corporation must comply with the
requirements of Section 304 of the Tax Code.26
Registration
Upon approval of registration of the BMBE, the Negosyo Center shall issue
the Certificate of Authority which shall be renewable every two (2) years.
The DTI, through the Negosyo Center, may charge a fee therefor which
shall not be more than One Thousand Pesos (₱1,000) to be remitted to the
National Government.
26
A registered business enterprise must:
(a) Be engaged in a project or activity included in the Strategic Investment Priority Plan;
(b) Meet the target performance metrics after the agreed time period;
(c) Install an adequate accounting system that shall identify the investments, revenues, costs,
and profits or losses of each registered project or activity; or establish a separate
corporation for each registered project or activity;
(d) Comply with the e-receipting and e-sales requirements of Section 237 of the Tax Code;
and
(e) Submit annual reports of beneficial ownership of the organization and related parties
(Sec. 304, NIRC).
27
Entity or organization incorporated or organized under Philippine laws, i.e. domestic entity.
28
The term “services” excludes services rendered by juridical persons such as partnerships or
corporations engaged in consultancy, advisory, and similar services where the performance of
such services are essentially carried out through licensed professionals (DOF D.O. 17-04).
20
Tax Exemption
Income tax exemption from income arising from the operations of the
enterprise.
The LGUs are encouraged either to reduce the amount of local taxes, fees
and charges imposed or to exempt the BMBEs from local taxes, fees and
charges (Sec. 7, R.A. No. 9178).
21
PENALTY TAXES IMPOSED ON CORPORATIONS
2. Rate and Base – Two percent (2%) of gross income. The taxpayer shall
pay whichever is higher between the MCIT and the regular corporate
income tax (“RCIT”). Provided, that effective July 1, 2020 to June 30,
2023, the MCIT rate shall be one percent (1%). New
Gross income (sale of goods) – The term “gross income” shall mean
gross sales less sales returns, discounts and allowances, and cost of
goods sold. “Cost of goods sold” shall include all business expenses
directly incurred to produce the merchandise to bring them to their
present location and use.
Note: However, according to the regulations, the term “gross income” will
also include all items of gross income enumerated under Section 32,
whether or not derived from the taxpayer’s core business, except:30
3. Effectivity – The fourth (4th) taxable year immediately following the year
in which such corporation commenced its business.
4. Carry forward of excess minimum tax – Any excess of the MCIT over the
regular corporate income tax (“RCIT”) in a particular year shall be
29
Sec. 27 (E) (4), NIRC.
30
RR 12-2007.
22
carried forward and credited against the regular income tax for the three (3)
immediately succeeding taxable years.
The minimum corporate income tax (“MCIT”) shall apply only to domestic
corporations subject to the regular corporate income tax (25%/20%).31
Accordingly, the following shall not be subject to MCIT –
(d) Firms that are taxed under special income tax regimes such as the 5%
GIT incentive.
The minimum corporate income tax shall apply only to resident foreign
corporations which are subject to the regular income tax (25%).
Accordingly, the MCIT shall not apply to the following –
31
Except Real Estate Investment Trusts (REITs). REIT is the only domestic corporation which
is subject to the RCIT, but not subject to the MCIT.
23
(c) Firms that are taxed under special income tax regimes such as the 5%
GIT incentive.
1) Excess MCIT, if any, for the year is computed annually, that is, in the 4 th
quarterly (annual) return.
2) The quarterly tax shall be the higher of the RCIT or the MCIT.
3) IF the quarterly tax due is the MCIT, the excess MCIT from previous
taxable year(s) shall not be allowed to be credited. However, (1) creditable
withholding taxes, (2) quarterly income tax payments paid in the previous
quarter(s), and (3) excess tax credits of the prior year, are allowed as credits
against the quarterly MCIT due.
4) If the quarterly tax due is the RCIT, the (1) excess MCIT from previous
taxable year(s), (2) creditable taxes withheld, (3) quarterly income tax
payments paid in previous quarter(s), and (4) excess tax credits of the prior
year, are allowed as credits against the quarterly RCIT due.
24
II. IMPROPERLY ACCUMULATED EARNINGS TAX (Repealed by R.A. No.
11534 effective April 11, 2021)
The IAET is imposed upon corporations which are formed or availed of for the
purpose of avoiding the income tax with respect to its stockholders or the
stockholders of any other corporation by permitting earnings and profits to
accumulate instead of being divided or distributed.33
The IAET is an additional tax to the regular corporate income tax imposed on
corporations under Title II of the Tax Code.34
Note: A branch of a foreign corporation is not liable for the IAET the same
being a resident foreign corporation.
These are corporations where at least fifty percent (50%) in value of the
outstanding capital stock or at least fifty percent (50%) of the total combined
voting power of all classes of stock entitled to vote is owned directly or
indirectly by or for not more than twenty (20) individuals.36
32
Sec. 6, Rev. Reg. No. 5-2021.
33
Sec. 29 (B) (1), NIRC).
34
Sec. 29 (A), NIRC).
35
Sec. 4, Rev. Regs. No. 2-2001.
36
Ibid.
25
Corporations Not Subject to IAET
(1) Dealings between the corporation and its shareholders, such as withdrawals
by the shareholders as personal loans;
(2) Expenditure of funds by the corporation for the personal benefit of the
shareholders;
(4) Advances in substantial sums made yearly to corporate officers who are at
the same time the stockholders;38
37
Ibid.
38
Basilan Estates vs. Commissioner, GRL-22492, September 5, 1967.
26
(b) Allowance for the increase in the accumulation of earnings up to 100% of
the paid-up capital of the corporation as of the balance sheet date, inclusive
of accumulations taken from other years;
(e) Earnings reserved for compliance with any loan covenant or pre-existing
obligation established under a legitimate business agreement;
The rate of the IAET is 10%. It is based upon the improperly accumulated
taxable income for each taxable year.
Formula –
Equals: IAET
39
Sec. 3, RR 2-2001.
40
Includes additional paid-in capital (Cebu Air, Inc. vs. CIR, CTA Case No. 9106, September
27, 2018).
27
Notes:
1) Once the profit has been subjected to IAET, the same shall no longer be
subjected to IAET in later years even if not declared as dividend.
The dividends must be declared and paid or issued not later than one (1)
year following the close of the taxable year. Otherwise, the IAET, if any,
should be paid within fifteen (15) days thereafter.41
BIR Form 1704 (IAET Return) shall be filed within 15 days after the close
of the year immediately succeeding a taxpayer’s covered taxable year.
41
Sec. 6, RR 2-2001.
28
SPECIAL INCOME TAXES
The Tax Code presently has two types of special income taxes, namely the branch
profits remittance tax, and the gross income tax.
(b) Rate and Base – Fifteen percent (15%) final tax on the total profits
applied or earmarked for remittance (gross of the BPRT), except those
activities which are registered with the –
(c) Income not treated as branch profits – Income which are not connected
with the trade or business in the Philippines shall not be treated as
“branch profits.”
Ex. Dividends from marketable securities
(d) Tax treaties. The 15% rate may be reduced by international treaties to
which the Philippines is a signatory.
(e) Forms to be filed. The same forms filed for the monthly remittance of
final taxes (BIR Form 0619F), for the quarterly remittance of final taxes
(BIR Form 1601-FQ) and the annual information return for FWTs (BIR
Form 1604-F) shall be filed in paying the BPRT. See pages 4 and 5 for
the deadlines for filing such forms.
II. GROSS INCOME TAX (“GIT”) – repealed by R.A. No. 11534 effective April
11, 2021.
(b) Requisite conditions – The option was available after the following
conditions were satisfied:
29
2) A ratio of forty percent (40%) of income tax collection to total tax
revenues;
(c) Additional requisite – The option was available only to firms whose ratio
of cost of sales to gross sales or receipts from all sources does not exceed
fifty-five percent (55%)
(d) Period of irrevocability – The election of the gross income tax option by
the corporation was irrevocable for three (3) consecutive taxable years
during which the corporation was qualified under the scheme.
(e) Rate and base – Fifteen percent (15%) of gross income where gross
income shall be equivalent to gross sales less sales returns, discounts, and
allowances, and cost of goods sold.
30
Summary of Changes in the Corporate Income Tax Rates under R.A. No.
11534 (CREATE)
2% July 1, 2023
DCs with net taxable income 20% July 1, 2020 1% July 1, 2020 to
≤ ₱5 Million AND total assets June 30, 2023
≤ ₱100 Million (excluding
land on which the office, 2% July 1, 2023
plant, equipment are situated)
2% July 1, 2023
2% July 1, 2023
31
Expanded Withholding Rates:
32
- If gross income of payee exceeds ₱720,000 15%
(14) Income Payments made by Credit Card Companies 0.5%
(15) Income Payments made by the Government and government-owned
and controlled corporations (GOCCs)
- To its local/resident suppliers of goods other than those covered by 1%
other rates of withholding tax
- To its local/resident suppliers of services other than those covered by 2%
other rates of withholding tax
(16) Income Payments made by Top Withholding Agents42, 43
- To their local/resident suppliers of goods other than those covered by 1%
other rates of withholding tax
- To their local/resident suppliers of services other than those covered by 2%
other rates of withholding tax
(17) Commissions, Rebates, Discounts and Other Similar Considerations
Paid/Granted to Independent and/or Exclusive Sales
Representatives and Marketing Agents and Sub-Agents of
Companies, including Multi-Level Marketing Companies
- If gross income of payee for the current year did not exceed ₱720,000 10%
- If gross income of payee exceeds ₱720,000 15%
(18) Payments by Pre-Need Companies to Funeral Parlors 1%
(19) Tolling Fees Paid to Refineries 5%
(20) Income Payments Made To Suppliers of Agricultural Products in 1%
Excess of Cumulative Amount of ₱300,000 Within the Same Taxable
Year
(21) Income Payments on Purchases of Minerals, Mineral Products, and 5%
Quarry Resources, such as but not limited to silver, gold, marble,
granite, gravel, sand, boulders, and other mineral products except
purchases by the Bangko Sentral ng Pilipinas
(22) Income Payments on Purchases of Minerals, Mineral Products, and 1%
Quarry Resources by the Bangko Sentral ng Pilipinas from Gold
Miners/Suppliers under P.D. No. 1899, as amended by R.A. No.
7076
(23) On Gross Amount of Refund Given by MERALCO to Customers 15%
with Active Contracts as Classified by MERALCO
42
Under RR No. 31-2020, top withholding agents shall refer to those taxpayers whose gross
sales/receipts or gross purchases during the preceding year taxable year shall fall under the
minimum thresholds determined according to the existing group classifications of Revenue
District Offices where they are duly registered, as follows:
43
Top withholding agents (TWAs) are obligated to withhold 1% or 2% on (a) their purchases of
goods and services, respectively, from regular suppliers, and (b) casual purchases worth
₱10,000 and above.
Regular suppliers are defined as suppliers with whom the taxpayer-buyer has at least six (6)
transactions, regardless of amount, either in the previous year or current taxable year.
33
(24) On Gross Amount of Interest on the Refund of Meter Deposit 10%
Whether Paid Directly to the Customers or Applied Against the
Customer's Billings of Residential and General Service Customers
Whose Monthly Electricity Consumption Exceeds 200 KWH as
Classified by MERALCO
(25) On Gross Amount of Interest on the Refund of Meter Deposit
Whether Paid Directly to the Customers or Applied Against the
Customer's Billings of Non-Residential Customers Whose Monthly 15%
Electricity Consumption Exceeds 200 KWH as Classified by
MERALCO
(26) On Gross Amount of Interest on the Refund of Meter Deposit
Whether Paid Directly to the Customers or Applied Against the
Customer's Billings of Residential and General Service Customers 10%
Whose Monthly Electricity Consumption Exceeds 200 KWH as
Classified by Other Electric Distribution Utilities (DUs)
(27) On Gross Amount of Interest on the Refund of Meter Deposit
Whether Paid Directly to the Customers or Applied Against the
Customer's Billings of Non-Residential Customers Whose Monthly 15%
Electricity Consumption Exceeds 200 KWH as Classified by Other
Electric Distribution Utilities (DUs)
(28) Income Payments Made by Political Parties and Candidates of 5%
Local and National Elections on all their Purchases of Goods and
Services Related to Campaign Expenditures, and Income Payments
made by Individuals or Juridical Persons for their Purchases of
Goods and Services Intended to be Given as Campaign
Contributions to Political Parties and Candidates