Revenue Memorandum Circulars 01-02-80 Revenue Memorandum Circular No. 2-80 January 2, 1980 REVENUE MEMORANDUM CIRCULAR NO. 2-80 Subject : Publishing Pertinent Portions of Central Bank of the Philippines Circular No. 707, Series of 1979 To : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned there is published hereunder the provisions of Central Bank Circular No. 707, Series of 1979 applicable to the payment of national internal revenue taxes through the banking system: "The Monetary Board, in its Resolution No. 2063 dated November 23, 1979, approved the following amendments to Circulars No. 640 dated November 20, 1978, 217 February 8, 1966, 313 dated November 26, 1970 and 426 dated August 21, 1974 on the rules and regulations governing the collection of internal revenue taxes and customs duties, taxes and other levies: "Sec. 1. Section 2 of Circular No. 640 is hereby amended to read as follows: "Authorized agent banks which include head offices, branches and agencies of commercial banks, savings and mortgage banks, stock savings and loan associations, development banks, the Development Bank of the Philippines and the Land Bank of the Philippines shall accept payment from the taxpayer the full amount of internal revenue taxes stated in space number 9 of the Revenue Tax Receipt (RTR) issued by the Commissioner of Internal Revenue or his authorized deputy, in the form of cash, cashier's, treasurer's manager's or certified checks, and checks drawn by the taxpayers or advice by the taxpayer to its bank to debit its account and shall issue and validate the corresponding Confirmation Receipt (CR) on forms prescribed for this purpose. However, payments made through a debit to the account of the taxpayer shall involve amounts of P20,000.00 and above only and accordingly, in the preparation of the Revenue Tax Receipt (RTR), the Commissioner of Internal Revenue or his authorized deputy, shall, upon inquiry from the taxpayer, indicate thereon the name of the authorized agent bank to whom the "taxpayer shall pay. In turn, the authorized agent bank shall indicate in space number 12 of the Confirmation Receipt the remarks "Account debited." Such Confirmation Receipt forms shall be supplied to the Authorized Agent Banks by the Revenue Collection Office, Central Bank, and shall be treated as accountable forms by the Authorized Agent Banks. In the cities of Cebu, Davao, Bacolod, Iloilo and Cagayan de Oro, Confirmation Receipt forms (CR) shall be supplied to the branch offices of the Authorized Agent Banks by the Central Bank's Revenue Collection Regional Units in the said cities and shall be treated as accountable forms by said branches of Authorized Agent Banks. Authorized Agent Banks shall be required to submit a monthly Inventory Report of Confirmation Receipt (CR) to the Revenue Collection Office, Central Bank or its Revenue Collection Regional Units, not later than the 15th day of the succeeding month. However, in case of documentary, science and strip stamps, payment thereof shall be in the form of cash or cashier's manager's, treasurer's or certified checks. A check accepted for payment of taxes shall apply to only one Confirmation Receipt (CR). The Bureau of Internal Revenue shall be the sole agency to issue Revenue Tax Receipts (RTRs) to taxpayers and shall be fully accountable to the Central Bank for all Revenue Tax Receipt forms issued by them." aisa dc

All Internal Revenue Officers are enjoined to give these provisions of CB Circular No. 707 as wide a publicity as possible. EFREN I. PLANA Acting Commissioner Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 01-23-80 Revenue Memorandum Circular No. 3-80 January 23, 1980 REVENUE MEMORANDUM CIRCULAR NO. 3-80 Subject : Publishing the National Housing Authority RULES AND REGULATIONS IMPLEMENTING P.D. 1217, the subject matter of which is the grant of tax exemption benefits to domestic corporations, partnerships or landowners who invest funds in housing for the low-income groups. To : All Internal Revenue Officers and Others Concerned. "RULES AND REGULATIONS IMPLEMENTING PD - 1217 "WHEREAS, Presidential Decree 757 mandated the National Housing Authority, hereinafter referred to as the Authority, to harness and promote the participation of the private sector in housing; "WHEREAS, in support of this objective, encouragement and incentives have been granted by Presidential Decree 1217 to broaden the participation of the private sector; "WHEREAS, these incentives have been conceived to help the mass of the people to afford decent shelter and secure tenure; cdt "WHEREAS, Section 4 of Presidential Decree 1217 requires the Authority to define the low-income groups who shall through incentives granted to domestic corporations, partnerships and landowners, be the end-beneficiaries for the Decree; "WHEREAS, Section 5 of Presidential Decree 1217 specifies that the Authority certifies and approves projects eligible for benefits under the said Decree and therefore, consequently a need to define rules and regulations pertinent to such certification and approval; "NOW, THEREFORE, pursuant to the provisions of Presidential Decree 1217, the National Housing Authority hereby promulgates the following procedures, rules and regulations: "ARTICLE I DEFINITION OF TERMS "Sec. 1. Low Income Family. - For purpose of Presidential Decree 1217, the lowincome family is hereby defined as that family who, under the prevailing normal market conditions of construction and of money costs, needs government assistance and subsidy in the form of capital and/or interest in order to avail of housing opportunities. cdtai "By reason of the foregoing, until further revised by the Authority, a low-income family shall be understood to mean and to include that family whose average gross income, as evidenced by the joint income tax returns of the head and spouse for the last immediately preceding two (2) years, does not exceed P1,500 a month. Notwithstanding the above income categorization, the low-income family with networth of more than P100,000 shall not be eligible for the benefit under PD 1217. Income and networth for the purposes of eligibility under this Decree shall be determined at the time of application.

"Sec. 2. Housing Improvement. - A housing improvement is a physical development on land which is being utilized for residential purposes and which may take the form of among others, an apartment, a condominium unit, a house, a building, or parts thereof, the value of which improvement proportionately increases the valuation of the land on which the improvement is made. Further, it also includes all other structures necessary and incidental to the housing development undertaken in order to enhance the quality of housing the low income family as defined in Section 1. "Housing improvements shall also include improvement on land undertaken to make the area habitable such as water system, drainage, pipelines, roads, community facilities and open space development. casia "Sec. 3. Income. - Income for the purposes of Section 3 of Presidential Decree 1217 is defined as the gross income received and/or accrued by the domestic corporation, partnership or landowner as a result of undertaking a housing development which shall be rented, or sold under installment basis, less allowable deductions. "Such income shall be arrived upon after an adequate accounting system shall have been installed for every low-income housing development which shall be clearly separated from other taxable transactions in the books of account of the taxpayer. The accounting system intended for housing projects and development for the low-income families shall be in accordance with generally accepted accounting principle as it applies to transactions peculiar to the construction and housing industry, taking into consideration the following revenues and costs incurred in the pursuance of the project development as a whole: 'a. Land development costs such as roads, water, drainage, power and including common facilities; 'b. Direct housing costs such as the cost of construction of the dwelling unit; cd 'c. Indirect costs such as marketing, promotion overhead, fees and interests. "Such income or profit shall be exempt from income taxes upon the certification of the Authority that said income was derived from installment sales or from rentals to low income families. "In case the housing development shall be undertaken jointly by several proponents, income shall be distributed pro-rata according to the equity contributed by each proponent as expressly quantified in the project proposal and in the project accounting. The same pro-rata share in the income shall be exempt from income taxes upon the certification of the Authority to the extent that income was derived from installment sales or from rentals to low-income groups. "Income as above determined from projects eligible under this Decree and certified to as serving the low-income group by the Authority shall cover those income recognized during taxable years over the project life. casia "Sec. 4. Interests. - Interests earned due to the financing of houses for the lowincome groups shall be exempt from business and miscellaneous taxes as enumerated below, insofar as their gross receipts from such business are concerned: '4.1 Percentage tax of 3% on gross receipts earned due to financing houses for the low-income group and the corresponding privilege tax imposed by Secs. 209 and 192 (3) (dd) of the Tax Code, respectively, if a lending investors; '4.2 Percentage tax of 5% on gross receipts earned due to financing houses for the low-income group and the corresponding privilege tax imposed by Secs. 261 and 192 (3) (gg) of the Tax Code, respectively, if a financing company;

'4.3 Percentage tax of 5% on gross receipts earned due to financing houses for the low-income group and the corresponding privilege tax levied by Secs. 260 and 192 (3) (gg) of the Tax Code, respectively, if a banking institution. cdt "The foregoing exemptions from business and miscellaneous taxes may be availed of insofar as the receipts of the entities concerned arise from the business of financing or lending money or capital for housing projects and developments for the low-income group. In addition, the interest income earned on the credit extended by the entities concerned would also be exempt from income tax. "Sec. 5. Housing Project/Housing Development. - For purposes of Presidential Decree 1217, a housing project or a housing development refers to the provision of housing and facilities towards the development of new communities under the concepts of the Authority. The project may take the form of a single dwelling unit, an apartment, condominium, dormitory or subdivision development. "ARTICLE II PROCEDURE FOR ELIGIBILITY FOR THE EXEMPTIONS "Sec. 1. Coverage. - All housing projects, in order to avail of the benefits and incentives under Presidential Decree 1217 shall be certified to by the Authority as to its eligibility. Projects, developments and loans undertaken and/or obtained after the promulgation of PD 1217 shall be eligible for approval by the Authority for purposes of availing of the tax exemptions from the date of such approval. cda "Sec. 2. Certification. - A certification for service to the low-income groups to be used for tax exemptions purposes shall be issued by the Authority to the participant taxpayer. "The certificate shall clearly state the amount of housing improvement, income, or interest that is for the service of low-income groups and consequently eligible for the benefits of PD 1217. However, such amounts shall be subjects to the final verification of duly authorized representative of the BIR. "Prior to undertaking projects to be covered by the incentives and tax exemptions, a project study prepared in the preferred format set by the Authority shall be submitted for approval. "The certification shall be based on the duly approved project study and shall incorporate prior approval of the identified target market from the low-income group intended for the project. "The certification of the eligibility for tax exemption shall be issued to cover housing projects and development whose residential beneficiaries are solely the low-income families. casia "Sec. 3. Documents Required. - For the issuance of the certification, the following documents in standard 8-1/2 x 11 form shall be submitted to the Authority, appropriately covered by a letter of intent to qualify for the benefits under PD 1217. "A. For exemption from taxes on housing improvements '(1) TCT on property which was the subject of housing as defined in Section 2. '(2) Tax Declaration which covers the housing improvement for exemptions.

'(3) Tax Declaration which covers the period immediately preceding the improvements. '(4) Certificate of Acceptance and Occupancy indicating the households and their income groups together with Contract of Lease, Contract of Sale or Mortgage, whichever shall be applicable. Provided, however, that a certified xerox copy of the ITR of the households the last immediately preceding two (2) years and a Statement of Assets and Liabilities duly subscribed and under oath for the current year, shall be submitted and attached to the contracts. Provided, further, that the low-income beneficiary and/or the participant taxpayer shall not sublet, transfer, resell or dispose of in any mode the residential lot and housing unit, whether to another low-income family or otherwise, without prior approval of the Authority and the same will be provided for by the Contract of Lease or Sale. acd '(5) An Inspection Report on such improvements and beneficiaries to be submitted by a designated representative of the Authority based on compliance with the duly approved project study. "B. For exemption from taxes on income. '(1) Project study prepared in accordance with the guidelines and format set by the Authority. '(2) Project financial statements which shall indicate all project receipts including grants and equities, all applicable project costs and related expenditures, and cost allocation to reflect pro-rata distribution of costs and expenditures according to the provisions of Section 3 of this body of rules and regulations. Such project financial statements shall be based on a duly approved accounting system for the project and duly certified to and audited by an independent CPA acceptable to the Authority. '(3) Certificate of Acceptance and Occupancy indicating the names of households and their income groupings as evidenced by the following documents which shall be attached to the Certificate of Acceptance and Occupancy: Income Tax Returns of the family head of the occupants for the last immediately preceding two (2) years; Contract of Sale or Contract of Mortgage, whichever shall be applicable, and a Statement of Assets and Liabilities for the current year, duly subscribed and under oath. Provided, however, that the low-income beneficiary shall not sublet, transfer, resell or dispose of in any mode the residential lot and housing unit, whether to another low-income family or otherwise within the duration of the loan without prior approval of the Authority and the same will be provided for by the Contract of Lease or Sale. cdasia '(4) Income Tax Returns of the family head shall be filed at NHA every year thereafter after the approval of the application. "C. For exemption from taxes on interest earned '(1) Certification by an independent CPA of the amount of interests earned by the creditor in financing projects duly certified to by the Authority for purposes of this Decree or in extending loans directly to the low income groups to finance their long-term mortgages, based on the duly approved project study. '(2) Contract of Sales, Lease or Mortgage which is the subject of financing by the creditor supported by the Income Tax Returns of the low-income debtors for the last immediately preceding two years who benefited from the financing and the households Statement of Assets and Liabilities for the current year, duly subscribed and under oath.

"Sec. 4. Consideration in Housing Benefits. - All projects to avail of the benefits under the Decree shall serve the low-income groups, giving consideration to the following: cdasia 'a. Housing designs shall be oriented to the low-income groups, utilizing low-cost materials for its construction. 'b. Housing benefits shall be within the affordable level of expenditure for housing of the income groups benefitted. 'c. Sale or lease of the housing units shall only be made to eligible income groups as defined in Article I, Section 1. "Sec. 5. Validity of the Certification. - The tax exemption certification by the Authority shall be valid for taxable years covering the entire project life as described in the project study. "Applications for exemption certification shall be filed with the Authority within 45 days from the completion date of the construction period for tax exemptions on housing improvements and for project income. "Applications for exemption certification for interests shall be filed with the Authority within 45 days after the grant of the financing. "Sec. 6. Filing Fee. - Every application for tax exemption certification shall be accompanied by a processing fee made in favor of the Authority, according to the following schedule: aisa dc SCHEDULE OF FEES Description of Exemption Size of Project Fee

Real Estate Taxes on 250 units and below P250.00 Housing Improvement 251 - 750 units 1,000.00 751 units and above 3,000.00 Income Tax 250 units and below P500.00 251 - 750 units 2,500.00 751 units and above 5,000.00 Business and 250 units and below P250.00 Miscellaneous Taxes 251 - 750 units 350.00 751 units and above 500.00 "ARTICLE III BOOKS OF ACCOUNTS "An adequate accounting system shall be installed by the participating taxpayer and approved by the Authority to segregate the investments, service, sales, receipts, purchases, costs, expenses and profits or loss of taxable business from those of the taxexempt operations under the Decree. The accounting system shall be in accordance with generally accepted accounting principles as they apply to transactions peculiar to the construction and housing industry. aisa dc "Such books and records shall be subject to examination by the Authority and/or any authorized representative of the Bureau of Internal Revenue (BIR) at any time it may

deem proper to do so to determine proper compliance with the provisions of the Decree and the implementing regulations. "ARTICLE IV VIOLATIONS "Any violation or infraction of these rules and regulations, including misrepresentation in the development and implementation of the subdivision plans and project agreement will serve as sufficient basis for the suspension or the cancellation of the Certification for Tax Exemption. The Authority reserves the right to demand additional documents in order to clarify issues that may be brought up by applications. Inaccuracy or misleading statements in any of the documents submitted in the applications shall give the Authority the right to deny the application for certification of service to low-income groups. "This shall further be without prejudice to the rights of the Authority to institute under the existing laws, any civil or criminal action against the erring applicant/participant or beneficiary of PD 1217 arising from misrepresentation, tax evasion or defrauding the government of any taxes due. "ARTICLE V SUPPLEMENTARY RULES "Sec. 1. The Authority reserves the right to inspect the project records and other pertinent books and records of the participating taxpayer at any time it may deem proper to do so. This examination shall, however, be without prejudice to the inherent authority vested upon the Bureau of Internal Revenue to investigate the taxpayers concerned for internal revenue tax purposes. "Sec. 2. The Authority shall from time to time issue additional rules and regulations to supplement, complement or amend these rules and regulations. "ARTICLE VI EFFECTIVITY "These rules and regulations shall take effect immediately and any order, memorandum, or circular inconsistent herewith shall be deemed amended or revoked. cdasia "PROMULGATED, 20 March 1979." (SGD.) G.V. TOBIAS Maj. Gen. AFP (Ret.) General Manager "ATTESTED:" (SGD.) ALFREDO L. JUINIO Presiding Officer NHA Board of Directors "CONCURRED:" (SGD.) EFREN I. PLANA Acting Commissioner Bureau of Internal Revenue All Internal revenue officers and others charged with the enforcement of internal revenue laws are hereby enjoined to enforce the provisions of herein National Housing Authority Rules and Regulations accordingly and to give it a wide a publicity as possible. EFREN I. PLANA Acting Commissioner

Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 02-04-80 Revenue Memorandum Circular No. 4-80 February 4, 1980 REVENUE MEMORANDUM CIRCULAR NO. 4-80 Subject : Publishing Proclamation No. 1861 Announcing the Effectivity of the Revised Minimum Quarterly Gross Receipts for Purposes of the Percentage Tax on Common Carriers and Keepers of Garages. To : All Internal Revenue Officers and Others Concerned. For the information and guidance of all concerned, there is quoted hereunder Proclamation No. 1861, issued by the President on June 5, 1979, viz: "MALACAANG Manila "BY THE PRESIDENT "PROCLAMATION NO. 1861 "ANNOUNCING THE EFFECTIVITY OF THE REVISED MINIMUM QUARTERLY GROSS RECEIPTS FOR PURPOSES OF THE PERCENTAGE TAX ON COMMON CARRIERS AND KEEPERS OF GARAGES UNDER SECTION 207 OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED. "WHEREAS, Section 26 of Presidential Decree No. 1457 amending Section 207 of the National Internal Revenue Code by revising the minimum quarterly gross receipts for purposes of computing the two per centum percentage tax on common carriers; acd "WHEREAS, under Section 26 thereof, the amendment shall become effective only upon the order of the President taking into account the authorized increased rates of transportation fares collective by common carriers; "WHEREAS, considering the general transportation increase by common carriers as authorized since March 24, 1979 has rendered obsolete the present minimum gross receipts for common carrier's tax purposes and therefore necessitates the adjustment of the level of the said presumptive minimum gross receipts commensurate with the latest authorized increases in transportation fares; "NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by Section 26, Presidential Decree No. 1457, do hereby proclaim the applicability of the minimum quarterly gross receipts prescribed under Section 207, as amended by the said Presidential Decree, for purposes of computing the two per centum tax on common carriers and keepers of garages. cd i "IN WITNESS WHEREOF, I have hereunto set my hand and caused the seal of the Republic of the Philippines to be affixed. "DONE in the City of Manila, this 5th day of June, in the year of Our Lord, nineteen hundred and seventy-nine. (SGD.) FERDINAND E. MARCOS President of the Philippines

By the President: (SGD.) JACOBO C. CLAVE Presidential Executive Assistant" The following is the schedule of revised minimum quarterly gross receipts for each particular kind of carriers as provided for under Section 207 of the Tax Code, as amended. acd Autocalesa 1. Manila and other cities P1,200.00 2. Provincial 600.00 Jeepney for hire 1. Manila and other cities P2,400.00 2. Provincial 1,200.00 Public Utility Bus Not exceeding 30 passengers P3,600.00 Exceeding 30 but not exceeding 50 passengers 6,000.00 Exceeding 50 passengers 7,200.00 Taxis 1. Manila and other cities P3,600.00 2. Provincial 2,400.00 Car for hire (with chauffeur) 3,000.00 Car for hire (without chauffeur) 1,800.00 EFFECTIVITY Proclamation No. 1861 took effect upon its promulgation on June 5, 1979. ENFORCEMENT All internal revenue officers and others concerned are enjoined to be guided accordingly and to give this circular as wide a publicity as possible. cdtai EFREN I. PLANA Acting Commissioner Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 02-14-80 Revenue Memorandum Circular No. 5-80 February 14, 1980 REVENUE MEMORANDUM CIRCULAR NO. 5-80 Subject : Seminar-Workshop on Zero-Base Budgeting To : Regional Directors, RR 4-A, 4-B, 4-C, All Service Chiefs, Chiefs of Divisions and Others Concerned. The adoption of Zero-Base Budgeting in the Philippine Budget System has placed equal responsibility for budget preparation on heads of major operating units and budget and planning officers in both the central office and regional offices. National Budget Memorandum No. 8, otherwise known as the "Budget Call for CY 1981" requires the heads of all major operating units responsible for a major activity as

indicated in the General Appropriations Act to prepare the ZBB forms for submission to the Ministry of the Budget. aisa dc To cope with these changes, the Training and Information Service of the Ministry of the Budget will hold a Seminar-Workshop on Zero-Base Budgeting for Service Chiefs and Chiefs of Divisions of the Bureau on February 26-27, 1980 at the Training Room, 11th Floor, BIR Bldg. Your attendance to the said seminar-workshop is enjoined. aisa dc RUBEN B. ANCHETA Deputy Commissioner TAN-A5239-J1139-A-0 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 02-14-80 Revenue Memorandum Circular No. 6-80 February 14, 1980 REVENUE MEMORANDUM CIRCULAR NO. 6-80 Subject : Publication of Sections 45(b) and 86 (as amended by Batas Pambansa Blg. 41) and Section 72 (amended by Batas Pambansa Blg. 37) of the Tax Code. To : All internal revenue officers and others concerned. For the information and guidance of all concerned, Sections 45(b) and Section 86 of the National Internal Revenue Code as amended by Batas Pambansa Blg. 41 and Section 72 of the same Code as amended by Batas Pambansa Blg. 37 are reproduced below: "Sec. 45. Individual returns. . . . xxx xxx xxx "(b) Where to file. - Except in cases where the Commissioner otherwise permits, the return shall be filed with the Revenue District Officer, Collection Agent, or duly authorized Treasurer of the municipality in which such person has his legal residence or principal place of business in the Philippines, or if there be no legal residence or place of business in the Philippines, then with the Office of the Commissioner of Internal Revenue." cd "Sec. 86. Place of filing declaration and paying quarterly income tax. - Except in cases where the Commissioner otherwise permits, the declaration shall be filed with, and the tax thereon paid to, the Revenue District Officer, or the Collection Agent, or duly authorized Treasurer of the municipality where the individual is residing or in case of a corporation, in which is located its principal office and where its books of accounts and other data from which the return is prepared are kept; in case of an individual who has no legal residence in the Philippines, or a corporation that has no office of any kind or agency in the Philippines, then the returns shall be filed and the tax thereon paid with the Office of the Commissioner of Internal Revenue." "Sec. 72. Surcharge for failure to render returns; for rendering false and fraudulent returns; and for failure to file income tax returns in the proper revenue office. - cda In case of willful neglect to file the return or list required under this Title within the time prescribed by law, or in case a false or fraudulent return or list is willfully made, the Commissioner of Internal Revenue shall add to the tax or to the deficiency tax, in case any payment has been made on the basis of such return before the discovery of the falsity

or fraud, a surcharge of fifty per centum of the amount of such tax or deficiency tax. The Commissioner shall add to the tax twenty-five per centum of its amount: "(a) In case of any failure to make and file a return or list within the time prescribed by law or by the Commissioner or other internal revenue officer, not due to willful neglect, except that, when a return is voluntarily and without notice from the Commissioner or other officer filed after such time, and it is shown that the failure to file it was due to a reasonable cause, no such addition shall be made to the tax; cd i "(b) In case the return is filed with a person other than that mentioned in Sections 45(b) and 86 of this Code; and "(c) In case the tax imposed under Section 34(h) on capital gains realized from a deferred-payment sale where the vendor retained title to the property, or on gains on any installment payments, is not paid within the time prescribed in Section 51(a)(4) of this Code. "The amount so added to any tax shall be collected at the same time in the same manner and as part of the tax unless the tax has been paid before the discovery of the neglect, falsity, or fraud, in which case the amount so added shall be collected in the same manner as the tax." FEATURES OF THE AMENDMENT Before the amendment of the aforesaid sections of the Code, an individual taxpayer may file his income tax return with the Commissioner, the Regional Director, Revenue District Officer, Collection Agent, duly authorized treasurer of the province, city, municipality or authorized agent banks in the locality where the taxpayer resides or where he holds his principal office or place of business. cdt Under the amendment, an individual taxpayer is required to file his income tax return only with the Revenue District Officer, Collection Agent, or duly authorized municipal treasurer having jurisdiction over the individual taxpayer's legal residence or principal place of business. If the taxpayer has no legal residence or place of business in the Philippines, then his return may be filed with the Office of the Commissioner of Internal Revenue. Legal residence. The legal residence of an individual taxpayer shall be understood as the address where the taxpayer normally resides. Principal place of business. This term shall be understood to mean the place where the main business activity of the taxpayer is conducted. a) For individuals practicing their profession, this will mean the place where his main office is located; and b) For employees - the principal place of business will be their place of work. cdasia In the case of corporations, the adjustment income tax return, as well as the corporate quarterly income tax return, shall be filed with the Revenue District Officer, or Collection Agent, or duly authorized Municipal Treasurer having jurisdiction over the principal office and place where the books of accounts and other data of the corporation are kept. The filing of the income tax return in a place outside the jurisdiction of the internal revenue officer or municipal treasurers mentioned above is subject to the ad valorem penalty of 25% based on the tax due per return. As an exception to the foregoing rules, the following individuals may, under any of the conditions hereunder stated, file their income tax returns in places other than those indicated in Section 45(b) of the Tax Code.

1. Nonresident Filipino citizens as well as Filipino officials and employees of the Philippine Government assigned abroad, and Filipino citizens who are employed by United Nations and similar international organizations abroad may file their returns with the nearest BIR Attache or representative or with the nearest consular officer in the country in which they reside, or in which their place of assignment is located. Alternatively, they may mail their income tax returns and remit the tax due thereon directly to the Commissioner of Internal Revenue, Diliman, Quezon City, Philippines; casia 2. Members of the Armed Forces of the Philippines who are temporarily assigned in places other than their legal residence may file their income tax returns with the Revenue District Officer or Municipal Treasurer nearest their current place of assignment. All internal revenue officers and others charged with the enforcement of internal revenue laws are enjoined to be guided accordingly and to give this circular as a wide publicity as possible. aisa dc EFREN I. PLANA Acting Commissioner Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 01-23-80 Revenue Memorandum Circular No. 7-80 January 23, 1980 REVENUE MEMORANDUM CIRCULAR NO. 7-80 Subject : Treatment of receipts of operators of amusement apparatus. To : All Internal Revenue Officers and Others Concerned. It has been observed that there is at present a proliferation of places and/or establishments maintained by operators of amusement apparatus. For the privilege of using these apparatus, tickets are sold to patrons or sometimes they are simply coin-operated. While the owners and/or operators of such establishments are lessors of personal properties and, therefore, subject to the contractor's fixed and percentage taxes under Sections 192(1) and 205(17), respectively, of the National Internal Revenue Code, as amended, it has been noted that they have not been complying with applicable internal revenue laws and regulations. cdasia In order to maximize the collection of lawful taxes from this source, internal revenue officers and others concerned should see to it that the aforesaid taxes are paid and that the receipts and/or tickets issued by the aforesaid operators and/or owners are duly registered with this Bureau. It is desired that this circular be given as wide a publicity as possible. cda EFREN I. PLANA Acting Commissioner Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 02-26-80 Revenue Memorandum Circular No. 8-80 February 26, 1980 REVENUE MEMORANDUM CIRCULAR NO. 8-80

Subject : Loss of One (1) Set of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. 2700570. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of one (1) set of Revenue Tax Receipt, to wit: Serial No. : Quantity 2700570 : One (1) Set The above Revenue Tax Receipt was reported missing or lost sometime on December 5, 1979 while in the custody of Mrs. AMELIA M. SAAVEDRA, a Revenue Cash Clerk in the Office of the Collection Agent, Makati, Metro Manila. cdasia Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. cd i EFREN I. PLANA Acting Commissioner of Internal Revenue By: TOMAS C. TOLEDO Assistant Commissioner TAN-T4338-J2227-A-9 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 03-04-80 Revenue Memorandum Circular No. 9-80 March 4, 1980 March 4, 1980 REVENUE MEMORANDUM CIRCULAR NO. 9-80 Subject : Allowable Expenditures Out of the Tax Information Campaign Funds Allocated to the Revenue Regional and District Offices. To : All Regional Directors, Revenue District Officers, and Others Concerned. For the information and guidance of all concerned and to provide uniformity, for liquidation purposes, in determining what kind of expenses can be made out of tax information campaign funds given to revenue regional and district offices, there is quoted hereunder the Memorandum dated February 29, 1980 of the Revenue Regional Director, Revenue Region No. 4-A, Manila, duly approved by this Office: cda "MEMORANDUM for The Commissioner "In connection with the tax campaign, we would like to propose that the following expenses be allowed in the liquidation of the amount of campaign funds allocated to the region and to the revenue districts: "1. The cost of streamers, posters, and other campaign materials that may be developed by our district officers; "2. Rentals of chairs, vehicles, sound system, and other advertising materials that will be utilized in campaign meetings and in the different tax centers that we have established; "3. Snacks and merienda that may be served in tax information meetings with associations, or groups of teachers, professionals, and other taxpayers; and

"4. Meals to our employees who may be required to render overtime service on the last days of the filing. cd i "The permission of that office is being sought with respect to the foregoing expenses so that we will not have difficulties in liquidating the cash advances given to this Region. "Respectfully submitted: (SGD.) AQUILINO T. LARIN Regional Director "APPROVED: (SGD.) EFREN I. PLANA Acting Commissioner" Please be guided accordingly. EFREN I. PLANA Acting Commissioner Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 03-17-80 Revenue Memorandum Circular No. 12-80 March 17, 1980 REVENUE MEMORANDUM CIRCULAR NO. 12-80 Subject : Loss of Four (4) Booklets of Revenue Tax Receipts (CB RCO Form No. 02-02) bearing Serial Nos. 4102651 to 4102750, inclusive. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of four (4) booklets of Revenue Tax Receipts, to wit: Serial No. : Quantity 4102651-4102750 : Four (4) Booklets The above Revenue Tax Receipts were reported missing or lost sometime on March 15, 1980 while in the custody of MR. ERNESTO A. DOLLENTE Revenue Examiner II, Revenue District No. 25, South Manila. casia Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipts are found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. acd EFREN I. PLANA Acting Commissioner of Internal Revenue By: TOMAS C. TOLEDO Assistant Commissioner TAN-T4338-J2227-A-9 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 04-10-80 Revenue Memorandum Circular No. 13-80 April 10, 1980 REVENUE MEMORANDUM CIRCULAR NO. 13-80

Subject : Treatment of Tax Refunds and Tax Credits When Received. To : All Internal Revenue Officers and Others Concerned. 1. Refunds/Tax Credits under Section 295 of the Tax Code. Taxes previously claimed and allowed as deductions, but subsequently refunded or granted as tax credit pursuant to Section 295 of the Tax Code, should be declared as part of the gross income of the taxpayer in the year of receipt of the refund or tax credit. However, the following taxes, when refunded or credited, are not declarable for income tax purposes inasmuch as they are not allowable as deductions: a. Income tax imposed in Title III of the Tax Code; b. Income, war-profit and excess profits taxes imposed by authority of a foreign country; but this deduction shall be allowed in the case of a taxpayer who does not signify in his return his desire to have to any extent the benefits of paragraph (3) of this subsection (relating to credit for taxes of foreign countries); aisa dc c. Estate and gift taxes; d. Taxes assessed against local benefits of a kind tending to increase the value of the property assessed; e. Stock transaction tax; f. Energy tax; and g. Taxes which are not allowable as deductions under the law. 2. Special Tax Credits granted under R.A. 5186; R.A. 6135 and P.D. 535. These tax credits and their tax consequences are as follows: a. Sales, compensating and specific taxes are paid on supplies and raw materials imported by a registered export producer. Said taxes are given as tax credit to be used in the payment of taxes, duties, charges and fees due to the national government in connection with its operations. (Sec. 7(a), R.A. No. 6135) The tax credits granted should form part of the gross income to the enterprise in the year of receipt of tax credit as said taxes paid are considered allowable deductions for income taxes purposes. b. In some cases, a registered BOI and tourism enterprise assumes payment of taxes withheld and due from the foreign lender-remittee on interest payments on foreign loans. In such cases, the enterprise is given a tax credit for taxes withheld subject to certain conditions. (Sec. 7(f), R.A. No. 5186; Sec. 8(c), P.D. No. 535) Said taxes assumed by the registered enterprise represent necessary and ordinary expenses incurred by the enterprise; hence, deductible from its gross income. Therefore, the tax credits granted necessarily constitute taxable income of the enterprise. casia It is desired that this Circular be given as wide a publicity as possible. EFREN I. PLANA Acting Commissioner Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 03-28-80 Revenue Memorandum Circular No. 14-80 March 28, 1980 REVENUE MEMORANDUM CIRCULAR NO. 14-80 Subject : Loss of One (1) Set of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. 3660223. To : All Internal Revenue Officers, Employees, and Others Concerned.

Notice is hereby given of the loss of one (1) set of Revenue Tax Receipt, to wit: Serial No. : Quantity 3660223 : One (1) Set The above Revenue Tax Receipt was reported to the Regional Director, Revenue Region No. 4-A, Manila as missing or lost sometime on March 12, 1980 at the Harrison Plaza Filing Center while in the custody of Revenue Examiner BRENDA BALTAZAR and RTR Typist MARIA FE CAUINIAN. aisa dc Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. cdtai EFREN I. PLANA Acting Commissioner of Internal Revenue By: TOMAS C. TOLEDO Assistant Commissioner TAN-T4338-J2227-A-9 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 03-28-80 Revenue Memorandum Circular No. 15-80 March 28, 1980 REVENUE MEMORANDUM CIRCULAR NO. 15-80 Subject : Loss of One (1) Pad of Revenue Tax Receipts (CB RCO Form No. 02-02) bearing Serial Nos. 3762251 to 3742275, inclusive. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of one (1) pad of Revenue Tax Receipts, to wit: Serial No. : Quantity 3762251-3762275 : One (1) Pad The above Revenue Tax Receipts were reported missing by Mrs. FILIPINA SANTOS, Acting Accountable Forms Custodian of the Revenue Region No. 4-C, San Pablo City. cdasia Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. cdt EFREN I. PLANA Acting Commissioner of Internal Revenue By: TOMAS C. TOLEDO Assistant Commissioner TAN-T4338-J2227-A-9 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 04-10-80 Revenue Memorandum Circular No. 16-80 April 10, 1980 REVENUE MEMORANDUM CIRCULAR NO. 16-80

Subject : Publishing the press release reminding taxpayers of recent changes in our tax laws namely Presidential Decree No. 1351, Batas Pambansa Blg. 37 and Batas Pambansa Blg. 41 To : All Internal Revenue Officers and others concerned. For the information and guidance of all concerned, there is published hereunder the press release reminding taxpayers of the following changes in our tax laws which should be followed in preparing their income tax returns for 1979 on or before April 15. 1. Nondeductibility of net operating loss sustained in one line of business (including practice of profession) from gross income derived from other sources. The law disallows deduction of losses incurred in connection with an individual's business and such losses represent the excess over the business income, of allowable expenses and other deductions directly or proximately attributable to the production or earning of such business income. Thus, if in 1979 an individual derived income from salary and at the same time was engaged in the business of farming but his farming expenses exceeded his farming income, he cannot offset his net loss from farming against his salary income. However, if he commenced his farming business in 1979, he is entitled to carry over his net operating loss from farming in 1979 to the next two years beginning 1980. In other words, he can deduct the net loss incurred in 1979 from his farming income in 1980 and 1981. cdtai 2. Nondeductibility of certain payments if withholding of tax thereon when required is not remitted to the BIR. Under the law, a person making certain payments, including salaries and wages, is required to withhold tax at the prescribed rates. Failure of the payor to withhold the tax and remit the same to the BIR will disqualify him from deducting the payment (as an expense) from his gross income. 3. Documentary substantiation of entertainment expenses. Before the amendment, deductions for entertainment expenses could be allowed even in the absence of receipts or documentary proof. Under previous jurisprudence, if the taxpayer could show that by the nature of his business, he must necessarily incur entertainment expenses although its exact amount could not be determined, the court, as well as the BIR, could make "as close an approximation as it can, bearing heavily if it chooses upon the taxpayer whose inexactitude is of his own making." Under the amendment, an entertainment expense, although ordinary and necessary business expense, is presumed nondeductible unless the taxpayer proves the following elements: (a) the amount of such expenses or other items, (b) the date and place of entertainment, amusement or recreation, (c) the business purpose of the expense or other items, and (d) the business relationship to the taxpayer of the persons entertained or using the facility with official receipts or by adequate records or by sufficient evidence corroborating his own statement. This contemplates that no deduction shall be allowed on the basis of approximations (Cohan rule) of his unsupported claims. 4. Final capital gains tax. The final schedular capital gains tax at reduced rates of 10% on the first P100,000 and 20% on the excess over P100,000 capital gains realized from sales of real property took effect on September 7, 1979. Batas Pambansa Blg. 37 provides that if an individual realized capital gains from sales of real property before September 7, 1979, and has not reported such gain or a portion thereof, he has until

September 7, 1980 within which to declare the same and avail of the low final capital gain tax rates. However, capital gains realized from sales between January 1, 1979 and September 6, 1979 may, at the option of the seller, include the same in his 1979 income tax return if he does not avail of the privilege to have such gain taxed under the new law. If real property is sold to the government or government-owned or controlled corporations, the seller may pay either the final capital gains tax or the regular graduated income tax. In the latter case, he must include his capital gains in the usual manner in his annual income tax returns covering his other income. cd i 5. Place of filing. An individual is now required to file his income tax return only with the Revenue District Officer, Collection Agent, or duly authorized municipal treasurer having jurisdiction over the individual taxpayer's legal residence or principal place of business. If the taxpayer has no legal residence or place of business in the Philippines, then his return may be filed with the Office of the Commissioner of Internal Revenue. Legal residence. The legal residence of an individual taxpayer is the address where the taxpayer normally resides. Principal place of business. This term shall be understood to mean the place where the main business activity of the taxpayer is conducted. (a) For individuals practicing their profession, this is the place where his main office is located, and (b) For employees - the principal place of business is their place of work. In the case of corporations, the adjustment income tax return, as well as the corporate quarterly income tax return, shall be filed with the Revenue District Officer, or Collection Agent, or duly authorized Municipal Treasurer having jurisdiction over the principal office and place where the books of accounts of the corporation are kept. The filing of the income tax return in a place outside the jurisdiction of the internal revenue officer or municipal treasurers mentioned above is subject to a surcharge of 25% based on the tax due per return in addition to the compromise penalty. If there is no tax due per return, only the compromise penalty will be imposed. casia ENFORCEMENT All internal revenue officers and others concerned are enjoined to be guided accordingly and give this circular as wide a publicity as possible. EFREN I. PLANA Acting Commissioner PRESS RELEASE BIR REMINDS TAXPAYERS OF NEW TAX LAWS The Bureau of Internal Revenue is reminding taxpayers of these new changes in the tax laws which should be followed in preparing income tax returns for 1979 on or before April 15. 1. Nondeductibility of net operating loss sustained in one line of business (including practice of profession) from gross income derived from other sources. The law disallows deduction of losses incurred in connection with an individual's business and such losses represent the excess over the business income, of allowable expenses and other deductions directly or proximately attributable to the production or earning of such business income. Thus, if in 1979 an individual derived income from salary and at the same time was engaged in the business of farming but his farming expenses exceeded his

farming income, he cannot offset his net loss from farming against his salary income. However, if he commenced his farming business in 1979, he is entitled to carry over his net operating loss from farming in 1979 to the next two years beginning 1980. In other words, he can deduct the net loss incurred in 1979 from his farming income in 1980 and 1981. casia 2. Nondeductibility of certain payments if withholding of tax thereon when required is not remitted to the BIR. Under the law, a person making certain payments, including salaries and wages, is required to withhold tax at the prescribed rates. Failure of the payor to withhold the tax and remit the same to the BIR will disqualify him from deducting the payment (as an expense) from his gross income. 3. Documentary substantiation of entertainment expenses. Before the amendment, deductions for entertainment expenses could be allowed even in the absence of receipts or documentary proof. Under previous jurisprudence, if the taxpayer could show that by the nature of his business, he must necessarily incur entertainment expenses although its exact amount could not be determined, the court, as well as the BIR, could make "as close an approximation as it can, bearing heavily if it chooses upon the taxpayer whose inexactitude is of his own making." Under the amendment, an entertainment expense, although ordinary and necessary business expense, is presumed nondeductible unless the taxpayer proves the following elements: (a) the amount of such expenses or other items, (b) the date and place of entertainment, amusement or recreation, cdt (c) the business purpose of the expense or other items, and (d) the business relationship to the taxpayer of the persons entertained or using the facility with official receipts or by adequate records or by sufficient evidence corroborating his own statement. This contemplates that no deduction shall be allowed on the basis of approximations (Cohan rule) of his unsupported claims. 4. Final capital gains tax. The final schedular capital gains tax at reduced rates of 10% on the first P100,000 and 20% on the excess over P100,000 capital gains realized from sales of real property took effect on September 7, 1979. Batas Pambansa Blg. 37 provides that if an individual realized capital gains from sales of real property before September 7, 1979, and has not reported such gain or a portion thereof, he has until September 7, 1980 within which to declare the same and avail of the low final capital gain tax rates. However, capital gains realized from sales between January 1, 1979 and September 6, 1979 may, at the option of the seller, include the same in his 1979 income tax return if he does not avail of the privilege to have such gain taxed under the new law. cda If real property is sold to the government or government-owned or controlled corporations, the seller may pay either the final capital gains tax or the regular graduated income tax. In the latter case, he must include his capital gains in the usual manner in his annual income tax returns covering his other income. 5. Place of filing. An individual is now required to file his income tax return only with the Revenue District Officer, Collection Agent, or duly authorized municipal treasurer having jurisdiction over the individual taxpayer's legal residence or principal place of business. If the taxpayer has no legal residence or place of business in the

Philippines, then his return may be filed with the Office of the Commissioner of Internal Revenue. Legal residence. The legal residence of an individual taxpayer is the address where the taxpayer normally resides. Principal place of business. This term shall be understood to mean the place where the main business activity of the taxpayer is conducted. (a) For individuals practicing their profession, this is the place where his main office is located, and (b) For employees - the principal place of business is their place of work. acd In the case of corporations, the adjustment income tax return, as well as the corporate quarterly income tax return, shall be filed with the Revenue District Officer, or Collection Agent, or duly authorized Municipal Treasurer bearing jurisdiction over the principal office and place where the books of accounts of the corporation are kept. The filing of the income tax return in a place outside the jurisdiction of the internal revenue officer or municipal treasurers mentioned above is subject to a surcharge of 25% based on the tax due per return in addition to the compromise penalty. If there is no tax due per return, only the compromise penalty will be imposed. April 8, 1980 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 04-02-80 Revenue Memorandum Circular No. 17-80 April 2, 1980 REVENUE MEMORANDUM CIRCULAR NO. 17-80 Subject : Loss of One (1) Set of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. 3614904. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of one (1) set of Revenue Tax Receipt, to wit: Serial No. : Quantity 3614904 : One (1) Set The above Revenue Tax Receipt was reported to the Regional Director, Revenue Region No. 4-B, Quezon City as missing or lost sometime on March 11, 1980 by MR. EMELITO L. DIZON, Revenue Examiner I. casia Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. cdtai EFREN I. PLANA Acting Commissioner By: TOMAS C. TOLEDO Assistant Commissioner TAN-T4338-J2227-A-9 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 04-16-80 Revenue Memorandum Circular No. 18-80

April 16, 1980 REVENUE MEMORANDUM CIRCULAR NO. 18-80 Subject : Loss of One (1) Set and One (1) BIR Copy of Revenue Tax Receipts (CB RCO Form No. 02-02) bearing Serial Nos. 2348137 and 3284347 respectively. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of one (1) set and one (1) BIR copy of Revenue Tax Receipts, to wit: cda -----------------------------------Serial No. : Quantity : Accountable Officer : Date -----------------------------------: : : 2348137 : One (1) Set : CAROLINA L. YSALINA : : : Collection Agent of : : : Mandaue City: 1-21-80 : : : 3284347 : One (1) piece : : : BIR Copy : MELCHORA C. BELLEZA : : : Revenue Collector I : : : Office of the Collection : : : Agent, Cebu City : 3-27-80 : : : -----------------------------------The above Revenue Tax Receipts were reported by the respective accountable officers as missing or lost to the Regional Director, Revenue Region No. 7, Cebu City. Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipts are found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. cdasia EFREN I. PLANA Commissioner of Internal Revenue By: TOMAS C. TOLEDO Assistant Commissioner TAN-T4338-J2227-A-9 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 04-22-80 Revenue Memorandum Circular No. 19-80 April 22, 1980 REVENUE MEMORANDUM CIRCULAR NO. 19-80 Subject : Loss of One (1) Set of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. 2453850. To : All Internal Revenue Officers, Employees, And Others Concerned. Notice is hereby given of the loss of one (1) set of Revenue Tax Receipt, to wit: Serial No. : Quantity

2453850 : One (1) Set The above Revenue Tax Receipt was reported to the Regional Director, Revenue Region No. 4-B, Quezon City as missing or lost sometime on January, 1980 while in the custody of Mr. VICENTE ROSALES, Assistant Revenue District Officer of Malabon, Metro Manila. casia Internal Revenue Officer, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. casia EFREN I. PLANA Acting Commissioner of Internal Revenue By: TOMAS C. TOLEDO Assistant Commissioner TAN-T5338-J2227-A-9 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 04-22-80 Revenue Memorandum Circular No. 20-80 April 22, 1980 REVENUE MEMORANDUM CIRCULAR NO. 20-80 Subject : Loss of Two (2) Sets of Revenue Tax Receipts (CB RCO Form No. 02-02) bearing Serial Nos. 2897174 and 2897175. To : All Internal Revenue Officers, Employees, And Others Concerned. Notice is hereby given of the loss of two (2) sets of Revenue Tax Receipts, to wit: Serial No. : Quantity 2897174 : One (1) Set 2897175 : One (1) Set The above Revenue Tax Receipts were reported to the Regional Director, Revenue Region No. 4-B, Quezon City as missing or lost sometime on January 23, 1980 while in the custody of Mrs. ANGELITA C. PAAC, Revenue Collection Agent of Pasig, Metro Manila. aisa dc All Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipts are found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. acd EFREN I. PLANA Acting Commissioner of Internal Revenue By: TOMAS C. TOLEDO Assistant Commissioner TAN-T4338-J2227-A-9 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c.

04-21-80 Revenue Memorandum Circular No. 21-80 April 21, 1980 REVENUE MEMORANDUM CIRCULAR NO. 21-80 Subject : Loss of One (1) Set of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. 3614904. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of one (1) set of Revenue Tax Receipt, to wit: Serial No. : Quantity 3614904 : One (1) Set The above Revenue Tax Receipt was reported to the Regional Director, Revenue Region No. 4-B, Quezon City as missing or lost sometime on March 18, 1980 while in the custody of Mr. ABELARDO SANTOS, Collection Agent of Quezon City. casia Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. cdasia EFREN I. PLANA Acting Commissioner of Internal Revenue By: TOMAS C. TOLEDO Assistant Commissioner TAN-T4338-J2227-A-9 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 04-15-80 Revenue Memorandum Circular No. 22-80 April 15, 1980 REVENUE MEMORANDUM CIRCULAR NO. 22-80 Subject : Business Tax Liabilities of Travel Agencies To : All Internal Revenue Officers and Others Concerned: Reports reaching this Office reveal that newly established travel agencies provide themselves only with one privilege tax (PTR) as contractor upon payment of the annual fixed tax of P100 under Section 192(1), in relation to Section 205(16), of the Tax Code of 1977, as amended. cdtai It has been observed however, that these travel agencies, aside from following up travel papers of clients for which they are considered business agents subject to the contractor's tax, also negotiate for airlines the transportation of their clients. From this latter activity, the travel agencies receive commission which is subject to the 6% percentage tax as they are commercial brokers under Section 187(t), in relation to Section 208, of the Tax Code. Such being the case, aside from the fixed tax of P100, they are also subject to a fixed tax of P1,000, pursuant to Section 192(3) (bb) of said Code. In other words, a travel agency is subject to two (2) fixed taxes, one as a contractor for services rendered to its clients and another as broker for negotiating or bringing about the sale of airline tickets to its passengers.

In order to maximize the collection of taxes from travel agencies all revenue personnel concerned should see to it that the books of accounts of travel agencies are not registered unless they show proof of payment of both fixed taxes aforementioned. cd i It is desired that this Circular be given as wide as publicity as possible. EFREN I. PLANA Acting Commissioner Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 05-13-80 Revenue Memorandum Circular No. 23-80 May 13, 1980 REVENUE MEMORANDUM CIRCULAR NO. 23-80 Subject : Loss of One (1) Pad of Revenue Official Receipts (BIR Form No. 25.24) bearing Serial Nos. 2680251-2680300, inclusive. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of one (1) pad of Revenue Official Receipt, to wit: cda Serial No. : Quantity 2680251-2680300 : One (1) Pad The above Revenue Official Receipts were reported to the Regional Director, Revenue Region No. 1, Baguio City, as missing or lost by Mr. BENJAMIN B. LEBENG, Revenue Collection Agent of Tuba, Benguet, in his letter of April 2, 1980. Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Official Receipts are found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. cdtai RUBEN B. ANCHETA Acting Commissioner of Internal Revenue By: TOMAS C. TOLEDO Assistant Commissioner TAN-T4338-J2227-A-9 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 05-10-80 Revenue Memorandum Circular No. 24-80 May 10, 1980 REVENUE MEMORANDUM CIRCULAR NO. 24-80 Subject : Loss of One (1) Set of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. 2294487. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of One (1) set of Revenue Tax Receipt, to wit: Serial No. : Quantity 2294487 : One (1) Set The above Revenue Tax Receipt was reported to the Regional Director, Revenue Region No. 2, Tuguegarao, Cagayan as missing or lost sometime on March 14, 1980 by Mr.

RAFAEL M. GOZUM, Revenue Collector II, Office of the Collection Agent, Cauayan, Isabela. cdasia Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. casia RUBEN B. ANCHETA Acting Commissioner of Internal Revenue BY: TOMAS C. TOLEDO Assistant Commissioner TAN-T4338-J2227-A-9 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. no date Revenue Memorandum Circular No. 25-80 No date supplied 1980 REVENUE MEMORANDUM CIRCULAR NO. 25-80 Subject : Granting of tax exemption on the prizes to be awarded to foreign competitors in the Philippine Open Golf Championship to be held in Puerto Azul from February 21-24, 1980. To : All Internal Revenue Officers and Others Concerned. For the information and guidance of all concerned, there is reproduced hereunder the memorandum dated February 12, 1980 of Honorable Jacobo C. Clave, Presidential Executive Assistant, to Minister Cesar Virata. acd "February 12, 1980 "16-80 "MEMORANDUM "For : Minister Cesar E.A. Virata Ministry of Finance "From : The Presidential Executive Assistant "Please be advised that the President has approved the request of Dr. Rebecco E. Panlilio for tax exemption on the prizes to be awarded to foreign competitors in the Philippine Open Golf Championship which will be held in Puerto Azul from February 21-24, 1980. cdtai (Sgd.) JACOBO C. CLAVE Presidential Executive Assistant "Copy furnished: Dr. Rebecco E. Panlilio Philippine Village Hotel Pasay City, Metro Manila" All revenue officers and others concerned should give this circular as wide a publicity as possible. cdtai

RUBEN B. ANCHETA Acting Commissioner Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 06-13-80 Revenue Memorandum Circular No. 26-80 June 13, 1980 REVENUE MEMORANDUM CIRCULAR NO. 26-80 Subject : Loss of One (1) Set of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. A-3706780. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of one (1) set of Revenue Tax Receipt, to wit: Serial No. : Quantity A-3706780 : One (1) Set The above Revenue Tax Receipt was reported to the Regional Director, Revenue Region No. 11-A, Cotabato City, as missing or lost sometime on March, 1980, by PASCUAL G. BONILLA, Revenue Collection Agent of Koronadal, South Cotabato. aisa dc All Internal Revenue Officers, Employees and others concerned are requested to promptly notify this office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. aisa dc RUBEN B. ANCHETA Acting Commissioner of Internal Revenue By: ROMULO M. VILLA Assistant Commissioner TAN-V4656-0636-A-3 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 05-22-80 Revenue Memorandum Circular No. 27-80 May 22, 1980 REVENUE MEMORANDUM CIRCULAR NO. 27-80 Subject : Loss of One (1) Set of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. 4106578. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of one (1) set of Revenue Tax Receipt, to wit: Serial No. : Quantity 4106578 : One (1) Set The above Revenue Tax Receipt was reported to the Regional Director, Revenue Region No. 4-A, Manila, as missing or lost sometime on April 15, 1980 while in the custody of the issuing officer, Revenue Seizure Agent CESARIO A. RIVERA, JR. of Revenue District No. 25, South Manila. aisa dc Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. acd

RUBEN B. ANCHETA Acting Commissioner of Internal Revenue By: ROMULO M. VILLA Assistant Commissioner TAN-V4656-G0636-A-3 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 06-13-80 Revenue Memorandum Circular No. 28-80 June 13, 1980 REVENUE MEMORANDUM CIRCULAR NO. 28-80 Subject : Loss of Twenty-three (23) Sets of Revenue Tax Receipts (CB RCO Form No. 02-02) bearing Serial No. A-4139028 to A-4139050, inclusive. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of twenty-three (23) sets of Revenue Tax Receipts, to wit: Serial No. : Quantity A-4139028 to A-4139050 : Twenty-three (23) sets The above Revenue Tax Receipts were reported to the Regional Director, Revenue Region No. 3-A, San Fernando, Pampanga as missing or lost sometime on April 14, 1980 while in the custody of Mrs. ROSARIO B. RIGOR, Revenue Clerk I, Office of the Collection Agent, Angeles City. cdtai All Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipts are found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. cd RUBEN B. ANCHETA Acting Commissioner of Internal Revenue TAN-A5239-J1139-A-0 By: ROMULO M. VILLA Assistant Commissioner TAN-V4656-G0636-A-3 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 06-13-80 Revenue Memorandum Circular No. 29-80 June 13, 1980 REVENUE MEMORANDUM CIRCULAR NO. 29-80 Subject : Loss of Four (4) Copies of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. A-2782992. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of four (4) copies of Revenue Tax Receipt, to wit: ---------------------Serial No. : Quantity

---------------------A-2782992 : One (1) Central Bank's copy : One (1) BIR-DPC Copy : One (1) Agent Bank's Copy : One (1) Taxpayer's Copy -----------------------The above copies of Revenue Tax Receipt No. A-2782992 were reported missing or lost by Mr. SALVADOR T. AUSTRIA, Collection Agent of Limay, Bataan, while in his custody sometime on March 15, 1980. cdasia The Internal Revenue Officers, Employees and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. cd i RUBEN B. ANCHETA Acting Commissioner of Internal Revenue By: ROMULO M. VILLA Assistant Commissioner TAN-V4656-G0636-A-3 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 06-24-80 Revenue Memorandum Circular No. 30-80 June 24, 1980 REVENUE MEMORANDUM CIRCULAR NO. 30-80 Subject : Publishing the Procedures Prescribed for the availment of the Debit System as a mode of payment of National Internal Revenue Taxes through Banks. To : All Internal Revenue Officers and all others concerned. The Central Bank, in its Circular 707, Series of 1979 authorized the use of the Debit System as an additional mode of payment thru banks of national internal revenue taxes involving amounts of P20,000 and above. Under this system, taxpayers may request their banks to debit their accounts (savings or current) for the amount of their tax payments. This mode of payment was permitted to prevent the diversion and misappropriation of tax payments made by checks. acd The procedure for this System was prescribed in RMO No. 10-80 as follows: 1. The taxpayer or his representative files the tax return with or presents any other basic document to the authorized collection unit, which document shall be the basis for the preparation of the Revenue Tax Receipt (RTR); 2. The RTR Issuing Officer shall, in applicable cases, inform the taxpayer or his representative of the debit system as a mode of payment; 3. He shall address the RTR to the authorized Agent Bank specified by the taxpayer wherein he maintains an account; 4. The taxpayer shall advise his bank to debit his account for the amount of the tax indicated in the RTR; aisa dc 5. The authorized Agent Bank shall issue the Confirmation Receipt, validate the same and indicate in space No. 12 of the receipt the remarks "Account Debited";

6. All national internal revenue tax collections made under the debit system or any other mode of payment is booked and credited by the authorized Agent Bank to a Special Account due to "Central Bank-Internal Revenue Account." All Internal Revenue Officers are hereby urged to encourage taxpayers to avail of the debit system whenever applicable and to give the above procedures as wide a publicity as possible. RUBEN B. ANCHETA Acting Commissioner June 25, 1980 MEMORANDUM FOR The Commissioner Thru Asst. Commissioner Tomas C. Toledo Attached is a copy of the memorandum for the Commissioner of the then Chairman of the Committee on Specialized Accountable Forms dated February 2, 1977, recommending the payment of a special monthly allowance to the Revenue Laborers who are assigned at the Government Printing Office (GPO). The memorandum was recommended for approval by then Asst. Commissioner Lauro D. Abrahan, but Commissioner Plana failed to act thereon. cdt Considering that the six (6) Revenue Laborers are not civil service eligibles, they cannot therefore hope to be promoted to a higher position. Inasmuch as these people are entrusted with very delicate tasks which used to be a source of anomalies in the overprinting of documentary stamps, strips stamps and Revenue Official Receipts, they should therefore be given other incentives to boost their morale and prevent them from being tempted into committing irregularities. In view of the foregoing, I am therefore reiterating the previous recommendation for the grant of a special monthly allowance of two hundred pesos to the revenue personnel assigned at the Government Printing Office. It might be pertinent to mention that revenue personnel assigned at the APO-NEDA in the printing of Residence Certificates were given a monthly allowance of two hundred pesos which was charged to the Intelligence Fund, in lieu of transportation expenses aside from overtime pay. casia JOSE A. RESURRECCION Asst. Revenue Service Chief (Inspection) Chairman, Committee on Specialized Accountable Forms TAN-R2627-K1322-A-9 Recommending Approval: TOMAS C. TOLEDO Asst. Commissioner TAN-T4338-J227-A-9 APPROVED: RUBEN B. ANCHETA Acting Commissioner of Internal Revenue

TAN-3101-320-04 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 05-30-80 Revenue Memorandum Circular No. 31-80 May 30, 1980 REVENUE MEMORANDUM CIRCULAR NO. 31-80 Subject : Loss of 412,131 pieces of Internal Revenue Auxiliary Labels for Alcohol, JAM series. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of 412,131 pieces of Internal Revenue Auxiliary Labels for Alcohol, to wit: aisa dc ---------------------------Quantity : Inclusive Serial Numbers ---------------------------70,010 pcs. : JAM-OS 0485400001-0485470010 10 " : JAM-OS 0485472171-0485472180 10 " : JAM-OS 0485479291-0485479300 20,010 " : JAM-OS 0485479991-0485500000 5,670 ": JAM-OS 0487000001-0487005670 94,320 " : JAM-OS 0487005681-0487100000 40,000 " : JAM-OS 0487760001-0487800000 100,000 " : JAM-OS 0489100001-0489200000 10 " : JAM-OS 0490306111-0490306120 80 " : JAM-OS 0490310481-0490310560 2" : JAM-OS 0490310831-0490310832 10 " : JAM-OS 0490311061-0490311070 12 " : JAM-OS 0490314341-0490314352 2" : JAM-OS 0490314991-0490314992 3,930 ": JAM-OS 0490320001-0490323930 1 pc. : JAM-OS 0490325371 1" : JAM-OS 0490325381 1" : JAM-OS 0490325391 1" : JAM-OS 0490325401 40 pcs. : JAM-OS 0490327801-0490327840 5" : JAM-OS 0490327846-0490327850 5" : JAM-OS 0490327856-0490327860 1,570 ": JAM-OS 0490327991-0490329560 790 " : JAM-OS 0490330001-0490330790 180 " : JAM-OS 0490331241-0490331420 20 " : JAM-OS 0490331931-0490331950 130 " : JAM-OS 0490332001-0490332130 20 " : JAM-OS 0490332521-0490332540 10 pcs. : JAM-OS 0490332601-0490332610 10 " : JAM-OS 0490333171-0490333180 10 " : JAM-OS 0490334421-0490334430 10 " : JAM-OS 0490336131-0490336140

10 " : JAM-OS 0490345451-0490345460 10 " : JAM-OS 0490354001-0490354010 10 " : JAM-OS 0490358001-0490358010 8,890 ": JAM-OS 0490420271-0490429160 50 " : JAM-OS 0490440131-0490440180 6,240 ": JAM-OS 0490441411-0490447650 10,000 " : JAM-OS 0491800001-0491810000 10 " : JAM-OS 0491820001-0491820010 10,000 " : JAM-OS 0491840001-0491850000 10,000 " : JAM-OS 0491850001-0491860000 10,000 " : JAM-OS 0491860001-0491870000 31 " : JAM-OS 0491870001-0491870031 10,000 " : JAM-OS 0491880001-0491890000 10,000 " : JAM-OS 0491890001-0491900000 ---------------------------The above Internal Revenue Auxiliary Labels for Alcohol were part of a shipment received in bad order from Japan as reported to the Chief, Accountable Forms Division by the importer, JAMECCA Enterprises, Inc. in its letter of May 26, 1980. casia Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Internal Revenue Auxiliary Labels are found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. casia RUBEN B. ANCHETA Acting Commissioner of Internal Revenue By: ROMULO M. VILLA Assistant Commissioner TAN-V4656-0636-A-3 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 05-19-80 Revenue Memorandum Circular No. 32-80 May 19, 1980 REVENUE MEMORANDUM CIRCULAR NO. 32-80 Subject : Loss of One (1) Set of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. 3858937. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of one (1) set of Revenue Tax Receipt, to wit: -----------------------Serial No. : Quantity -----------------------3858937 : One (1) Set -----------------------The above Revenue Tax Receipt was reported to the Regional Director, Revenue Region No. 4-B, Quezon City as missing or lost sometime on March 17, 1980, by Mrs.

LORENZA C. DELUTA, Revenue Cash Clerk of the office of the Collection Agent of Paraaque, Metro Manila. casia Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. cd i RUBEN B. ANCHETA Acting Commissioner of Internal Revenue By: ROMULO M. VILLA Assistant Commissioner TAN-V4656-G0636-A-3 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 05-26-80 Revenue Memorandum Circular No. 33-80 May 26, 1980 REVENUE MEMORANDUM CIRCULAR NO. 33-80 Subject : Loss of One (1) Set of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. 3184725. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of one (1) set of Revenue Tax Receipt, to wit: Serial No. : Quantity 3184725 : One (1) Set The above Revenue Tax Receipt was reported to the Regional Director, Revenue Region No. 4-B, Quezon City as missing or lost sometime on January 25, 1980 while in the custody of Mrs. ELUCIDA P. CRUZ, Revenue Collection Agent of Malabon, Metro Manila. aisa dc Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. casia RUBEN B. ANCHETA Acting Commissioner of Internal Revenue By: ROMULO M. VILLA Assistant Commissioner TAN-C4656-G0636-A-3 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 07-31-80 Revenue Memorandum Circular No. 34-80 July 31, 1980 REVENUE MEMORANDUM CIRCULAR NO. 34-80 Subject : Determination of gross receipts for purposes of the caterer's tax under Section 206 of the Tax Code.

To : All Internal Revenue Officers and Others Concerned: It has been observed that in restaurants, refreshment parlors and other eating places, proprietors or operators thereof issued invoices or receipts wherein the caterer's tax imposed by Section 206 of the Tax Code is billed as separate item as follows: Food P100.00 3% tax on P100.00 3.00 ---Total amount paid P103.00 ======= Our attention has been called to the effect that under the above example, said proprietor or operator considers only the amount of P100.00 as his gross receipts upon which the caterer's tax is based. Such determination of the gross receipts is erroneous. (Araas Annotation and Jurisprudence on the National Internal Revenue Code of 1977, Vol. II, p. 301) aisa dc The caterer's tax imposed by Section 206 of the Tax Code, like the contractor's tax imposed in Section 205 of the same Code, being as excise tax is directly imposed on and collectible from the person exercising the privilege as operator or proprietor of restaurants, refreshment parlors and other eating places. While the burden of the tax may be shifted to the customer, said proprietor or operator is not relieved from payment of the tax on his gross receipts. Such being the case, and considering that the caterer's tax is based on gross receipts which means the entire amount received, said tax even if shifted to the customer, still forms part of the caterer's taxable gross receipts. Thus, under the above example, the amount of P103.00 actually received by the proprietor or operator shall be the basis of the 3% tax and not only on the P100.00. This Circular is being issued to clarify, emphasize and reiterate the position of this Office. cdasia It is requested that this Circular be given as wide a publicity as possible. RUBEN B. ANCHETA Acting Commissioner Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 07-28-80 Revenue Memorandum Circular No. 35-80 July 28, 1980 REVENUE MEMORANDUM CIRCULAR NO. 35-80 Subject : Loss of one (1) Set of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. 1347927. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of one (1) set of Revenue Tax Receipt, to wit: Serial No. : Quantity 1347927 : One (1) set The above Revenue Tax Receipt was reported to the Assistant Regional Director, Revenue Region No. 8, Tacloban City as missing or lost sometime on March 17, 1980 while in the custody of Mr. FIME U. LEGION, Revenue Collection Agent of Catarman, Northern Samar. cdtai All Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipt is found,

taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. aisa dc RUBEN B. ANCHETA Acting Commissioner of Internal Revenue By: ROMULO M. VILLA Assistant Commissioner TAN-V4656-G0636-A-3 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 07-29-80 Revenue Memorandum Circular No. 36-80 July 29, 1980 REVENUE MEMORANDUM CIRCULAR NO. 36-80 Subject : Loss of One (1) Set of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. 3858937. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of one (1) set of Revenue Tax Receipt, to wit: Serial No. : Quantity 3858937 : One (1) Set The above Revenue Tax Receipt was reported to the Regional Director, Revenue Region No. 4-B, Quezon City as missing or lost sometime on March 17, 1980 while in the custody of Mrs. LORENZA C. DELUTA, Revenue Cash Clerk of the Office of the Collection Agent of Paraaque, Metro Manila. casia All Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. cd i RUBEN B. ANCHETA Acting Commissioner of Internal Revenue By: ROMULO M. VILLA Assistant Commissioner TAN-V4656-G0636-A-3 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 08-06-80 Revenue Memorandum Circular No. 37-80 August 6, 1980 REVENUE MEMORANDUM CIRCULAR NO. 37-80 Subject : Prescribing a uniform exchange rate for U.S. dollars and other foreign currencies to Philippine pesos for internal revenue tax purposes for the calendar year 1980. To : All Internal Revenue Officers and Others Concerned.

For the purpose of establishing a uniform rate of exchange of U.S. dollars or other foreign currencies to Philippine pesos for internal revenue tax purposes for the calendar year 1980, the following schedule of exchange rates are hereby prescribed for reference and guidance of all concerned: 1. For income tax purposes, the following rules shall govern: (a) In the case of resident citizens and alien individuals as well as domestic corporations deriving income in foreign currency, whether from within or without the Philippines, the conversion rate shall be at P7.50 to U.S. $1.00; cd (b) In the case of a non-resident citizen whose income tax liability is computed in terms of U.S. dollars and who chooses to pay his income tax liability in Philippine pesos, the conversion shall be at the guiding rate of exchange quoted by the Central Bank at the time he makes the payment; (c) For purposes of branch profit remittance tax, conversion shall be at P7.50 to U.S. $1.00; (d) In the case of International Carriers, whether regularly operating in the Philippines or not, including tramp vessels and off-line international airlines, the conversion shall be at P7.50 to U.S. $1.00; cdasia (e) For purposes of withholding taxes at source provided for under Sections 53 and 54 of the Tax Code of 1977, the conversion shall be at P7.50 to U.S. $1.00; (f) For purposes of the withholding tax on wages, the conversion shall be at P7.50 to U.S. $1.00. 2. For percentage tax purposes, the following rules shall govern: (a) In the case of International Carriers, whether regularly operating in the Philippines or not, including tramp vessels and off-line international airlines, the conversion shall be at P7.50 to U.S. $1.00; (b) In the case of transactions involving computation of advance sales tax or compensation tax, the rate of exchange used by the Bureau of Customs at the time of payment of such taxes shall prevail; cdt (c) For purposes of other percentage taxes, the conversion shall be at P7.50 to U.S. $1.00. 3. For other tax purposes, the conversion shall be at P7.50 to U.S. $1.00. 4. Where the currency involved is other than U.S. dollars, the foreign currency shall first be converted to U.S. dollars at the prevailing rate of exchange between the two currencies. The resulting amount shall then be converted to Philippine pesos in accordance with the above promulgated rules. ENFORCEMENT AND PUBLICITY All Internal Revenue Officers and others charged with the enforcement of internal revenue laws are enjoined to enforce the provision of this Circular accordingly and to give it as wide a publicity as possible. acd RUBEN B. ANCHETA Acting Commissioner TAN-A5239-J1139-A-0 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 08-06-80 Revenue Memorandum Circular No. 38-80 August 6, 1980

REVENUE MEMORANDUM CIRCULAR NO. 38-80 Subject : Loss of One (1) Central Bank Copy of Revenue Tax Receipt (CB RCO Form No. 02-02) bearing Serial No. 1346379. To : All Internal Revenue Officers, Employees, and Others Concerned. Notice is hereby given of the loss of one (1) copy of Revenue Tax Receipt, to wit: cd Serial No. : Quantity 1346379 : One (1) Piece - Central Bank : Copy The above Revenue Tax Receipt was reported to the Regional Director, Revenue Region No. 8, Tacloban City, as missing or lost while in the custody of FIME U. LEGION, Collection Agent of Catarman, Northern Samar, last January 16, 1980. Internal Revenue Officers, Employees, and others concerned are requested to promptly notify this Office in case the above-mentioned Revenue Tax Receipt is found, taking necessary steps in the meantime to prevent the improper or fraudulent disposition or use thereof. casia RUBEN B. ANCHETA Acting Commissioner By: ROMULO M. VILLA Deputy Commissioner TAN-V4656-G0636-A-3 Copyright 1996 C D T e c h n o l o g i e s A s i a, I n c. 08-22-80 Revenue Memorandum Circular No. 39-80 August 22, 1980 August 22, 1980 REVENUE MEMORANDUM CIRCULAR NO. 39-80 Subject : Publishing Revenue Regulations No. 5-80 dated June 10, 1980, further amending Section 6 of Revenue Regulations No. 7-76, as amended by Revenue Regulations No. 2-80. To : For the information and guidance of all concerned, there is published hereunder the full text of Revenue Regulations No. 7-76, as amended: "Republika Ng Pilipinas Ministri ng Pananalapi KAWANIHAN NG RENTAS INTERNAS Lungsod ng Quezon September 2, 1976 REVENUE REGULATIONS NO. 7-76 Subject : Rules and Regulations Relative to the Purchases and Sales of Tax-Free Articles by the Armed Forces of the Philippines Commissary and Exchange Service. All Internal Revenue Officers & Others

To

:

Concerned: Pursuant to the provisions of Section 338 of the National Internal Revenue Code, as amended, in relation to Presidential Decree No. 83 dated December 20, 1972, the following rules and regulations governing the purchases of the Armed Forces of the Philippines Commissary and Exchange Service, hereinafter known as AFPCES, of taxfree articles or commodities from local manufacturers, producers or suppliers, and the sales thereof to persons entitled to commissary and PX privileges under Letter of Instructions No. 31 dated October 23, 1972, are hereby promulgated. cdtai A. On Articles Subject to Sales Tax: Sec. 1. As envisioned in Presidential Decree No. 83, the AFPCES shall be the only agency or unit of the Armed Forces of the Philippines which is authorized to purchase tax-free articles or commodities from local manufacturers, producers or suppliers for sale to persons entitled to commissary or PX privileges under Letter of Instructions No. 31, as amended. Sec. 2. No purchase order for tax free articles or commodities originating from AFPCES shall be filled by any manufacturer, producer or supplier unless the same is approved by the authorized official of AFPCES whose full name, rank, branch of service and serial number are indic