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RULE XXX
Local Government Taxation
PART ONE
General ProvisionsARTICLE 217. co!e. " T#e $ollo%in& r'les an( re&'lations s#all &overn t#e exercise )*
!rovinces+ cities+ m'nici!alities+ an( )aran&a*s o$ t#eir taxin& an( ot#er reven'e,raisin& !o%ers. ac(
ARTICLE 21-. Po%er to Create o'rces o$ Reven'e. " Consistent %it# t#e )asic !olic* o$ locala'tonom*+ eac# LGU s#all exercise its !o%er to create its o%n so'rces o$ reven'e an( to lev* taxes+
$ees+ or c#ar&es+ s')ect to t#e !rovisions o$ t#is R'le. 'c# taxes+ $ees+ or c#ar&es s#all accr'e
excl'sivel* to t#e LGU.ARTICLE 21/. 0'n(amental Princi!les. " T#e $ollo%in& $'n(amental !rinci!les s#all &overn
t#e exercise o$ t#e taxin& an( ot#er reven'e,raisin& !o%ers o$ LGUs
a3 Taxation s#all )e 'ni$orm in eac# LGU. T#e 'ni$ormit* re4'ire( is onl* %it#in t#e territorial 'ris(iction o$ a !rovince+ a cit*+ a m'nici!alit*+ or a )aran&a*5
)3 Taxes+ $ees+ c#ar&es+ or ot#er im!ositions s#all
13 6e e4'ita)le an( )ase(+ as $ar as !ractica)le+ on t#e tax!a*ers a)ilit* to !a*5
23 6e levie( an( collecte( onl* $or !')lic !'r!oses583 Not )e 'n'st+ excessive+ o!!ressive+ or con$iscator*5
93 Not )e contrar* to la%+ !')lic !olic*+ national economic !olic*+ or in restraint o$ tra(e5
c3 Collection o$ local taxes+ $ees+ c#ar&es+ or ot#er im!ositions s#all in no case )e let to an* !rivate !erson5
(3 T#e reven'e collecte( !'rs'ant to t#e !rovisions o$ t#is R'le s#all in're solel* to t#e )ene$it o$+
an( )e s')ect to (is!osition )*+ t#e LGU lev*in& t#e tax+ $ee+ c#ar&e+ or ot#er im!osition 'nlessot#er%ise s!eci$icall* !rovi(e( in t#is R'le5 an(
e3 Eac# LGU s#all+ as $ar as !ractica)le+ evolve a !ro&ressive s*stem o$ taxation.
ARTICLE 22:. ;e$inition o$ Terms. " a3 A&ric'lt'ral Pro('ct incl'(es t#e *iel( o$ t#e soil+
s'c# as corn+ rice+ %#eat+ r*e+ #a*+ cocon'ts+ s'&arcane+ to)acco+ root cro!s+ ve&eta)les+ $r'its+ $lo%ers+an( t#eir )*,!ro('cts5 or(inar* salt5 all <in(s o$ $is#5 !o'ltr*5 an( livestoc< an( animal !ro('cts+
%#et#er in t#eir ori&inal $orm or not.
T#e !#rase %#et#er in t#eir ori&inal $orm or not re$ers to t#e trans$ormation o$ sai( !ro('cts )* t#e$armer+ $is#erman+ !ro('cer or o%ner t#ro'&# t#e a!!lication o$ !rocesses to !reserve or ot#er%ise to
!re!are sai( !ro('cts $or t#e mar<et s'c# as $ree=in&+ (r*in&+ saltin&+ smo<in&+ or stri!!in& $or
!'r!oses o$ !reservin& or ot#er%ise !re!arin& sai( !ro('cts $or t#e mar<et.To )e consi(ere( an a&ric'lt'ral !ro('ct %#et#er in its ori&inal $orm or not+ its trans$ormation m'st
#ave )een 'n(erta<en )* t#e $armer+ $is#erman+ !ro('cer or o%ner.
A&ric'lt'ral !ro('cts as (e$ine( incl'(e t#ose t#at #ave 'n(er&one not onl* sim!le )'t evenso!#isticate( !rocesses em!lo*in& a(vance( tec#nolo&ical means in !ac<a&in& li<e (resse( c#ic<en or
&ro'n( co$$ee in !lastic )a&s or st*ro!or or ot#er !ac<a&in& materials inten(e( to !rocess an( !re!are
t#e !ro('cts $or t#e mar<et.
T#e term )*,!ro('cts s#all mean t#ose materials %#ic# in t#e c'ltivation or !rocessin& o$ an articleremain over+ an( %#ic# are still o$ val'e an( mar<eta)le+ li<e co!ra ca<e $rom co!ra or molasses $rom
s'&ar cane5
)3 Am'sement is a !leas'ra)le (iversion an( entertainment. It is s*non*mo's to relaxation+avocation+ !astime+ or $'n5
c3 Am'sement Places incl'(e t#eaters+ cinemas+ concert #alls+ circ'ses an( ot#er !laces o$
am'sement %#ere one see<s a(mission to entertain onesel$ )* seein& or vie%in& t#e s#o% or !er$ormance5
(3 6'siness means tra(e or commercial activit* re&'larl* en&a&e( in as a means o$ liveli#oo( or
%it# a vie% to !ro$it5 c(asia
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e3 6an<s an( Ot#er 0inancial Instit'tions incl'(e non,)an< $inancial interme(iaries+ len(in&
investors+ $inance an( investment com!anies+ !a%ns#o!s+ mone* s#o!s+ ins'rance com!anies+ stoc<
mar<ets+ stoc< )ro<ers an( (ealers in sec'rities an( $orei&n exc#an&e+ as (e$ine( 'n(er a!!lica)le la%+
or r'les an( re&'lations t#ere'n(er5$3 Ca!ital Investment is t#e ca!ital %#ic# a !erson em!lo*s in an* 'n(erta<in&+ or %#ic# #e
contri)'tes to t#e ca!ital o$ a !artners#i!+ cor!oration+ or an* ot#er 'ri(ical entit* or association in a
!artic'lar taxin& 'ris(iction5&3 C#ar&es re$ers to !ec'niar* lia)ilit*+ as rents or $ees a&ainst !ersons or !ro!ert*5
#3 Contractor incl'(es !ersons+ nat'ral or 'ri(ical+ not s')ect to !ro$essional tax 'n(er Article
22- o$ t#is R'le+ %#ose activit* consists essentiall* o$ t#e sale o$ all <in(s o$ services $or a $ee+re&ar(less o$ %#et#er or not t#e !er$ormance o$ t#e service calls $or t#e exercise or 'se o$ t#e !#*sical
or mental $ac'lties o$ s'c# contractor or #is em!lo*ees.
As 'se( in t#is Article+ t#e term contractor s#all incl'(e &eneral en&ineerin&+ &eneral )'il(in& an(s!ecialt* contractors as (e$ine( 'n(er a!!lica)le la%s5 $illin&+ (emolition an( salva&e %or<s
contractors5 !ro!rietors or o!erators o$ mine (rillin& a!!arat's5 !ro!rietors or o!erators o$ (oc<*ar(s5
!ersons en&a&e( in t#e installation o$ %ater s*stem+ an( &as or electric li&#t+ #eat+ or !o%er+ !ro!rietors
or o!erators o$ smeltin& !lants5 en&ravin&+ !latin&+ an( !lastic lamination esta)lis#ments5 !ro!rietors or o!erators o$ esta)lis#ments $or re!airin&+ re!aintin&+ '!#olsterin&+ %as#in& or &reasin& o$ ve#icles+
#eav* e4'i!ment+ v'lcani=in&+ reca!!in& an( )atter* c#ar&in&5 !ro!rietors or o!erators o$ $'rnit're
s#o!s an( esta)lis#ments $or !lanin& or s'r$acin& an( rec'ttin& o$ l'm)er+ an( sa%mills 'n(er contractto sa% or c't lo&s )elon&in& to ot#ers5 !ro!rietors or o!erators o$ (r*,cleanin& or (*ein& esta)lis#ment+
steam la'n(ries+ an( la'n(ries 'sin& %as#in& mac#ines5 !ro!rietors or o%ners o$ s#o!s $or t#e re!air o$
an* <in( o$ mec#anical an( electrical (evices+ instr'ments+ a!!arat's+ or $'rnit're an( s#oe re!airin& )* mac#ine or an* mec#anical contrivance5 !ro!rietors or o!erators o$ esta)lis#ments or lots $or
!ar<in& !'r!oses5 !ro!rietors or o!erators o$ tailor s#o!s+ (ress s#o!s+ milliners an( #atters+ )ea't*
!arlors+ )ar)ers#o!s+ massa&e clinics+ sa'na+ T'r<is# an( %e(is# )at#s+ slen(eri=in& an( )o(*,
)'il(in& saloons an( similar esta)lis#ment5 !#oto&ra!#ic st'(ios5 $'neral !arlors5 !ro!rietors oro!erators o$ #otels+ motels+ an( lo(&in& #o'ses5 !ro!rietors or o!erators o$ arrastre an( steve(orin&+
%are#o'sin&+ or $or%ar(in& esta)lis#ments+ master !l'm)ers+ smit#s+ an( #o'se or si&n !ainters5
!rinters+ )oo<)in(ers+ lit#o&ra!#ers5 !')lis#ers exce!t t#ose en&a&e( in t#e !')lication or !rintin& o$an* ne%s!a!er+ ma&a=ine+ revie% or )'lletin %#ic# a!!ears at re&'lar intervals %it# $ixe( !rices $or
s')scri!tion an( sale an( %#ic# is not (evote( !rinci!all* to t#e !')lication o$ a(vertisements5
)'siness a&ents+ !rivate (etective or %atc#man a&encies+ commercial an( immi&ration )ro<ers+ an(cinemato&ra!#ic $ilm o%ners+ lessors an( (istri)'tors5
i3 Cor!oration incl'(es !artners#i!s+ no matter #o% create( or or&ani=e(+ oint,stoc< com!anies+
oint acco'nts c'entas en !artici!acion3+ associations or ins'rance com!anies )'t (oes not incl'(e&eneral !ro$essional !artners#i!s an( a oint vent're or consorti'm $orme( $or t#e !'r!ose o$
'n(erta<in& constr'ction !roects or en&a&in& in !etrole'm+ coal+ &eot#ermal+ an( ot#er ener&*
o!erations or consorti'm a&reement 'n(er a service contract %it# t#e &overnment. General !ro$essional
!artners#i!s are !artners#i!s $orme( )* !ersons $or t#e sole !'r!ose o$ exercisin& t#eir common !ro$ession+ no !art o$ t#e income o$ %#ic# is (erive( $rom en&a&in& in an* tra(e or )'siness.
T#e term resi(ent $orei&n %#en a!!lie( to a cor!oration means a $orei&n cor!oration not ot#er%ise
or&ani=e( 'n(er t#e la%s o$ t#e P#ili!!ines )'t en&a&e( in tra(e or )'siness %it#in t#e P#ili!!ines53 Co'ntr*si(e an( 6aran&a* 6'siness Enter!rise re$ers to an* )'siness entit*+ association+ or
coo!erative re&istere( 'n(er t#e !rovisions o$ RA >-1:+ ot#er%ise <no%n as ?a&na Carta 0or
Co'ntr*si(e An( 6aran&a* 6'siness Enter!rises @ala<alan 2:35<3 ;ealer means one %#ose )'siness is to )'* an( sell merc#an(ise+ &oo(s an( c#attels as a
merc#ant. e stan(s imme(iatel* )et%een t#e !ro('cer or man'$act'rer an( t#e cons'mer an( (e!en(s
$or #is !ro$it not '!on t#e la)or #e )esto%s '!on #is commo(ities )'t '!on t#e s<ill an( $oresi&#t %it#
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%#ic# #e %atc#es t#e mar<et5
l3 0ee means a c#ar&e $ixe( )* la% or or(inance $or t#e re&'lation or ins!ection o$ a )'siness or
activit*. It s#all also incl'(e c#ar&es $ixe( )* la% or a&enc* $or t#e services o$ a !')lic o$$icer in t#e
(isc#ar&e o$ #is o$$icial ('ties5m3 0ranc#ise is a ri&#t or !rivile&e+ a$$ecte( %it# !')lic interest %#ic# is con$erre( '!on !rivate
!ersons or cor!orations+ 'n(er s'c# terms an( con(itions as t#e &overnment an( its !olitical
s')(ivisions ma* im!ose in t#e interest o$ !')lic %el$are+ sec'rit*+ an( sa$et*5n3 Gross ales or Recei!ts incl'(e t#e total amo'nt o$ mone* or its e4'ivalent re!resentin& t#e
contract !rice+ com!ensation or service $ee+ incl'(in& t#e amo'nt c#ar&e( or materials s'!!lie( %it#
t#e services an( (e!osits or a(vance !a*ments act'all* or constr'ctivel* receive( ('rin& t#e taxa)le4'arter $or t#e services !er$orme( or to )e !er$orme( $or anot#er !erson excl'(in& (isco'nts i$
(etermina)le at t#e time o$ sales+ sales ret'rn+ excise tax+ an( val'e a((e( tax BAT35
o3 ?an'$act'rer incl'(es ever* !erson %#o+ )* !#*sical or c#emical !rocess+ alters t#e exteriortext're or $orm or inner s')stance o$ an* ra% materials or man'$act're( or !artiall* man'$act're(
!ro('ct in s'c# manner as to !re!are it $or s!ecial 'se or 'ses to %#ic# it co'l( not #ave )een !'t in its
ori&inal con(ition+ or %#o )* an* s'c# !rocess+ alters t#e 4'alit* o$ an* s'c# ra% material or
man'$act're( or !artiall* man'$act're( !ro('cts so as to re('ce it to mar<eta)le s#a!e or !re!are it $or an* o$ t#e 'se o$ in('str*+ or %#o )* an* s'c# !rocess+ com)ines an* s'c# ra% material or
man'$act're( or !artiall* man'$act're( !ro('cts %it# ot#er materials or !ro('cts o$ t#e same or o$
(i$$erent <in(s an( in s'c# manner t#at t#e $inis#e( !ro('cts o$ s'c# !rocess or man'$act're can )e !'tto a s!ecial 'se or 'ses to %#ic# s'c# ra% material or man'$act're( or !artiall* man'$act're( in t#eir
ori&inal con(ition co'l( not #ave )een !'t+ an( %#o in a((ition+ alters s'c# ra% material or
man'$act're( or !artiall* man'$act're( !ro('cts+ or com)ines t#e same to !ro('ce s'c# $inis#e( !ro('cts $or t#e !'r!ose o$ t#eir sale or (istri)'tion to ot#ers an( not $or #is o%n 'se or cons'm!tion5
!3 ?ar&inal 0armer or 0is#erman re$ers to in(ivi('al en&a&e( in s')sistence $armin& or $is#in&
%#ic# s#all )e limite( to t#e sale+ )arter or exc#an&e o$ a&ric'lt'ral or marine !ro('cts !ro('ce( )*
#imsel$ an( #is imme(iate $amil*+ an( %#ose ann'al net income $rom s'c# $armin& o$ $is#in& (oes notexcee( 0i$t* T#o'san( Pesos P:+:::.::3 or t#e !overt* line esta)lis#e( )* NE;A $or t#e !artic'lar
re&ion or localit*+ %#ic#ever is #i&#er5
43 ?otor Be#icle means an* ve#icle !ro!elle( )* an* !o%er ot#er t#an m'sc'lar !o%er 'sin& t#e !')lic roa(s+ )'t excl'(in& roa( rollers+ trolle* cars+ street,s%ee!ers+ s!rin<lers+ la%n mo%ers+
)'ll(o=ers+ &ra(ers+ $or<li$ts+ am!#i)ian tr'c<s+ an( cranes i$ not 'se( on !')lic roa(s+ ve#icle %#ic#
r'n onl* on rails or trac<s+ an( tractors+ trailers+ an( traction en&ines o$ all <in(s 'se( excl'sivel* $ora&ric'lt'ral !'r!oses5
r3 ?'nici!al Daters incl'(e not onl* streams+ la<es+ an( ti(al %aters %it#in t#e m'nici!alit*+ not
)ein& t#e s')ect o$ !rivate o%ners#i! an( not com!rise( %it#in t#e national !ar<s+ !')lic $orest+tim)er lan(s+ $orest reserves or $is#er* reserves+ )'t also marine %aters incl'(e( )et%een t%o lines
(ra%n !er!en(ic'larl* to t#e &eneral coastline $rom !oints %#ere t#e )o'n(ar* lines o$ t#e
m'nici!alit* or cit* to'c# t#e sea at lo% ti(e an( a t#ir( line !arallel %it# t#e &eneral coastline an(
$i$teen 13 <ilometers $rom it. D#ere t%o 23 m'nici!alities are so sit'ate( on t#e o!!osite s#ores t#att#ere is less t#an $i$teen 13 <ilometers o$ marine %aters )et%een t#em+ t#e t#ir( line s#all )e e4'all*
(istant $rom o!!osite s#ores o$ t#e res!ective m'nici!alities5
s3 O!erator incl'(es t#e o%ner+ mana&er+ a(ministrator+ or an* ot#er !erson %#o o!erates or isres!onsi)le $or t#e o!eration o$ a )'siness esta)lis#ment or 'n(erta<in&5
t3 Pe((ler means an* !erson %#o+ eit#er $or #imsel$ or on commission+ travels $rom !lace to !lace
an( sells #is &oo(s or o$$ers to sell an( (eliver t#e same. D#et#er a !e((ler is a %#olesale !e((ler orretail !e((ler o$ a !artic'lar commo(it* s#all )e (etermine( $rom t#e (e$inition o$ %#olesale (ealer or
retail (ealer as !rovi(e( in t#is R'le5
'3 Persons mean ever* nat'ral or 'ri(ical )ein&+ s'sce!ti)le o$ ri&#ts an( o)li&ations or o$ )ein&
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t#e s')ect to le&al relations5
v3 Resi(ents re$er to nat'ral !ersons %#o #ave t#eir #a)it'al resi(ence in t#e !rovince+ cit*+ or
m'nici!alit* %#ere t#e* exercise t#eir civil ri&#ts an( $'l$ill t#eir civil o)li&ations+ an( to 'ri(ical
!ersons $or %#ic# t#e la% or an* ot#er !rovision creatin& or reco&ni=in& t#em $ixes t#eir resi(ence in a !artic'lar !rovince+ cit*+ or m'nici!alit*. In t#e a)sence o$ s'c# la%+ 'ri(ical !ersons are resi(ents o$
t#e !rovince+ cit* or m'nici!alit* %#ere t#e* #ave t#eir le&al resi(ence or !rinci!al !lace o$ )'siness or
%#ere t#e* con('ct t#eir !rinci!al )'siness or occ'!ation5%3 Retail means a sale %#ere t#e !'rc#aser )'*s t#e commo(it* $or #is o%n cons'm!tion+
irres!ective o$ t#e 4'antit* o$ t#e commo(it* sol(5
x3 Bessel incl'(es ever* t*!e o$ )oat+ cra$t+ or ot#er arti$icial contrivance 'se(+ or ca!a)le o$ )ein&'se(+ as a means o$ trans!ortation on %ater5
*3 D#ar$a&e means a $ee assesse( a&ainst t#e car&o o$ a vessel en&a&e( in $orei&n or (omestic
tra(e )ase( on 4'antit*+ %ei&#t+ or meas're receive( an(or (isc#ar&e( )* vessel5 an(=3 D#olesale means a sale %#ere t#e !'rc#aser )'*s or im!orts t#e commo(ities $or resale to
!ersons ot#er t#an t#e en( 'ser re&ar(less o$ t#e 4'antit* o$ t#e transaction.
ARTICLE 221. Common Limitations on t#e Taxin& an( Ot#er Reven'e,Raisin& Po%ers o$ Local
Government Units. " Unless ot#er%ise !rovi(e( in t#is R'le+ t#e exercise o$ t#e taxin& an( ot#erreven'e,raisin& !o%ers o$ !rovinces+ cities+ m'nici!alities+ an( )aran&a*s s#all not exten( to t#e lev*
o$ t#e $ollo%in&
a3 Income tax+ exce!t %#en levie( on )an<s an( ot#er $inancial instit'tions as !rovi(e( in Article282$3 o$ t#is R'le5
)3 ;oc'mentar* stam! tax5
c3 Taxes on estates+ in#eritance+ &i$ts+ le&acies an( ot#er ac4'isitions mortis ca'sa+ exce!t asot#er%ise !rovi(e( in Article 229 o$ t#is R'le5
(3 C'stoms ('ties+ re&istration $ees o$ vessel an( %#ar$a&e on %#arves+ tonna&e ('es+ an( all ot#er
<in(s o$ c'stoms $ee+ c#ar&es an( ('es exce!t %#ar$a&e on %#arves constr'cte( an( maintaine( )* t#e
LGU concerne(5e3 Taxes+ $ee+ an( c#ar&es an( ot#er im!ositions '!on &oo(s carrie( into or o't o$+ or !assin&
t#ro'&# t#e territorial 'ris(ictions o$ LGUs in t#e &'ise o$ c#ar&es $or %#ar$a&e+ tolls $or )ri(&es or
ot#er%ise+ or ot#er taxes+ $ees or c#ar&es in an* $orm %#atsoever '!on s'c# &oo(s or merc#an(ise5$3 Taxes+ $ee+ or c#ar&es on a&ric'lt'ral an( a4'atic !ro('cts %#en sol( )* mar&inal $armers or
$is#ermen5
&3 Taxes on )'siness enter!rises certi$ie( )* t#e 6oar( o$ Investments as !ioneer or non,!ioneer$or a !erio( o$ six >3 an( $o'r 93 *ears+ res!ectivel*+ $rom t#e (ate o$ re&istration5
#3 Excise taxes on articles en'merate( 'n(er t#e National Internal Reven'e Co(e NIRC3+ as
amen(e(+ an( taxes+ $ees or c#ar&es on !etrole'm !ro('cts5i3 Percenta&e or Bal'e A((e( Tax BAT3 on sales+ )arters+ or exc#an&es or similar transactions on
&oo(s or services+ exce!t as ot#er%ise !rovi(e( #erein5
3 Taxes on t#e &ross recei!ts o$ trans!ortation contractors an( !ersons en&a&e( in t#e
trans!ortation o$ !assen&ers or $rei&#t )* #ire an( common carriers )* air+ lan( or %ater+ exce!t on t#eo!eration an( $ranc#isin& o$ tric*cles5
<3 Taxes on !remi'ms !ai( )* %a* o$ reins'rance or retrocession5
l3 Taxes+ $ees+ or c#ar&es $or t#e re&istration o$ motor ve#icles an( $or t#e iss'ance o$ all <in(s o$licences or !ermits $or t#e (rivin& t#ereo$+ exce!t tric*cles5
m3 Taxes+ $ees+ or ot#er c#ar&es on P#ili!!ine !ro('cts act'all* ex!orte(+ exce!t as ot#er%ise
!rovi(e( in Article 282c3 o$ t#is R'le5n3 Taxes+ $ees+ or c#ar&es+ on co'ntr*si(e an( )aran&a* )'siness enter!rises an( coo!eratives ('l*
re&istere( 'n(er RA >-1:+ an( RA >/8-+ ot#er%ise <no%n as t#e Coo!eratives Co(e o$ t#e P#ili!!ines+
res!ectivel*5 an(
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o3 Taxes+ $ees or c#ar&es o$ an* <in( on t#e National Government+ its a&encies an(
instr'mentalities+ an( LGUs.
ARTICLE 222. Local Taxin& A't#orit*. " T#e !o%er to im!ose a tax+ $ee+ or c#ar&e or to
&enerate reven'e 'n(er t#e Co(e s#all )e exercise( )* t#e san&&'nian o$ t#e LGU concerne( t#ro'&#an a!!ro!riate tax or(inance or reven'e meas're.
PART TDO
ProvincesARTICLE 228. Taxin& an( Ot#er Reven'e,Raisin& Po%ers o$ Provinces. " Exce!t as ot#er%ise
!rovi(e( in t#is R'le+ t#e !rovince ma* lev* onl* t#e taxes+ $ees an( c#ar&es as #erein !rovi(e( $or.
ARTICLE 229. Tax on Trans$er o$ Real Pro!ert* O%ners#i!. " a3 T#e !rovince ma* im!ose atax on t#e sale+ (onation+ )arter+ or on an* ot#er mo(e o$ trans$errin& o%ners#i! or title o$ real !ro!ert*
at t#e rate o$ not more t#an $i$t* !ercent :F3 o$ one !ercent 1F3 o$ t#e total consi(eration involve(
in t#e ac4'isition o$ t#e !ro!ert* or o$ t#e $air mar<et val'e in case t#e monetar* consi(erationinvolve( in t#e trans$er is not s')stantial+ %#ic#ever is #i&#er. T#e sale+ trans$er+ or ot#er (is!osition o$
real !ro!ert* !'rs'ant to RA >>7 s#all )e exem!t $rom t#is tax. c(t
T#e $air mar<et val'e as 'se( #erein s#all )e t#at re$lecte( in t#e !revailin& sc#e('le o$ $air mar<et
val'es enacte( )* t#e san&&'nian concerne(.)3 0or t#is !'r!ose+ t#e re&istrar o$ (ee(s o$ t#e !rovince concerne( s#all+ )e$ore re&isterin& an*
(ee(+ re4'ire t#e !resentation o$ t#e evi(ence o$ !a*ment o$ t#is tax. T#e !rovincial assessor s#all
li<e%ise ma<e t#e same re4'irement )e$ore cancellin& an ol( tax (eclaration an( iss'in& a ne% one in !lace t#ereo$. Notaries !')lic s#all $'rnis# t#e !rovincial treas'rer %it# a co!* o$ an* (ee( trans$errin&
o%ners#i! or title to an* real !ro!ert* %it#in t#irt* 8:3 (a*s $rom t#e (ate o$ notari=ation.
It s#all )e t#e ('t* o$ t#e seller+ (onor+ trans$eror+ exec'tor+ or a(ministrator to !a* t#e tax #ereinim!ose( %it#in sixt* >:3 (a*s $rom t#e (ate o$ t#e exec'tion o$ t#e (ee( or $rom t#e (ate o$ t#e
!ro!ert* o%ners (eat#.
ARTICLE 22. Tax on 6'siness o$ Printin& an( P')lication. " T#e !rovince ma* im!ose a tax
on t#e )'siness o$ !ersons en&a&e( in t#e !rintin& an(or !')lication o$ )oo<s+ car(s+ !osters+ lea$lets+#an()ills+ certi$icates+ recei!ts+ !am!#lets+ an( ot#er !rinte( materials o$ similar nat're+ at a rate not
excee(in& $i$t* !ercent :F3 o$ one !ercent 1F3 o$ t#e &ross ann'al recei!ts $or t#e !rece(in&
calen(ar *ear.In t#e case o$ a ne%l* starte( )'siness+ t#e tax s#all not excee( one,t%entiet# 12:3 o$ one !ercent
1F3 o$ t#e ca!ital investment. In t#e s'ccee(in& calen(ar *ear+ re&ar(less o$ %#en t#e )'siness starte(
to o!erate+ t#e tax s#all )e )ase( on t#e &ross recei!ts $or t#e !rece(in& calen(ar *ear+ or an* $ractiont#ereo$ as !rovi(e( in t#is R'le.
T#e recei!ts $rom t#e !rintin& an(or !')lis#in& o$ )oo<s or ot#er rea(in& materials !rescri)e( )*
;EC as sc#ool texts or re$erences s#all )e exem!t $rom t#e tax #erein im!ose(.ARTICLE 22>. 0ranc#ise Tax. " a3 Not%it#stan(in& an* exem!tion &rante( )* an* la% or
ot#er s!ecial la%+ t#e !rovince ma* im!ose a tax on )'sinesses eno*in& a $ranc#ise+ at a rate not
excee(in& $i$t* !ercent :F3 o$ one !ercent 1F3 o$ t#e &ross ann'al recei!ts+ %#ic# s#all incl'(e
)ot# cas# sales an( sales on acco'nt reali=e( ('rin& t#e !rece(in& calen(ar *ear %it#in its territorial 'ris(iction+ excl'(in& t#e territorial limits o$ an* cit* locate( in t#e !rovince.
)3 T#e !rovince s#all not im!ose t#e tax on )'siness eno*in& $ranc#ise o!eratin& %it#in t#e
territorial 'ris(iction o$ an* cit* locate( %it#in t#e !rovince.c3 T#e term )'sinesses eno*in& $ranc#ise s#all not incl'(e #ol(ers o$ certi$icates o$ !')lic
convenience $or t#e o!eration o$ !')lic 'tilit* ve#icles $or reason t#at s'c# certi$icates are not
consi(ere( as $ranc#ises.(3 In t#e case o$ a ne%l* starte( )'siness+ t#e tax s#all not excee( one,t%entiet# 12:3 o$ one
!ercent 1F3 o$ t#e ca!ital investment. In t#e s'ccee(in& calen(ar *ear+ re&ar(less o$ %#en t#e )'siness
starte( to o!erate+ t#e tax s#all )e )ase( on t#e &ross recei!ts $or t#e !rece(in& calen(ar *ear+ or an*
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$raction t#ereo$+ as !rovi(e( in t#is Article.
T#e ca!ital investment to )e 'se( as )asis o$ t#e tax o$ a ne%l* starte( )'siness as #erein !rovi(e(
s#all )e (etermine( in t#e $ollo%in& manner
13 In t#e localit* %#ere t#e !rinci!al o$$ice o$ t#e )'siness is locate(+ t#e !ai(,'! ca!ital state( int#e articles o$ incor!oration+ in case o$ cor!orations+ or in an* similar (oc'ment in case o$ ot#er t*!es
o$ )'siness or&ani=ations or enter!rises+ s#all )e consi(ere( as t#e ca!ital investment.
23 D#ere t#ere is a )ranc# or sales o$$ice %#ic# commences )'siness o!erations ('rin& t#e same*ear as t#e !rinci!al o$$ice )'t %#ic# is locate( in anot#er !rovince or in a cit* o'tsi(e t#e !rovince+
t#e !ai(,'! ca!ital re$erre( to a)ove s#all )e re('ce( )* t#e amo'nt o$ t#e ca!ital investment ma(e $or
t#e sai( )ranc# or sales o$$ice %#ic# s#all )e taxa)le instea( )* t#e !rovince or cit* %#ere it is locate(.83 D#ere t#e ne%l* starte( )'siness is a )ranc# or sales o$$ice commencin& )'siness o!erations at
a *ear later t#an t#at o$ t#e !rinci!al o$$ice+ ca!ital investment s#all mean t#e total $'n(s investe( in t#e
)ranc# or sales o$$ice.ARTICLE 227. Tax on an(+ Gravel+ an( Ot#er 'arr* Reso'rces. " a3 T#e !rovince ma* lev*
an( collect not more t#an ten !ercent 1:F3 o$ $air mar<et val'e in t#e localit* !er c')ic meter o$
or(inar* stones+ san(+ &ravel+ eart#+ an( ot#er 4'arr* reso'rces+ s'c# as )'t not limite( to marl+ mar)le+
&ranite+ volcanic cin(ers+ )asalt+ t'$$ an( roc< !#os!#ate+ extracte( $rom !')lic lan(s or $rom t#e )e(so$ seas+ la<es+ rivers+ streams+ cree<s+ an( ot#er !')lic %aters %it#in its territorial 'ris(iction.
)3 T#e !ermit to extract san(+ &ravel+ an( ot#er 4'arr* reso'rces s#all )e iss'e( excl'sivel* )* t#e
&overnor+ !'rs'ant to t#e or(inance o$ t#e san&&'nian& !anlala%i&an.c3 T#e !rocee(s o$ t#e tax on san(+ &ravel+ an( ot#er 4'arr* reso'rces s#all )e (istri)'te( as
$ollo%s
13 Province " T#irt* !ercent 8:F323 Com!onent cit* or m'nici!alit* %#ere t#e san(+ &ravel+ an( ot#er 4'arr* reso'rces are extracte(
" T#irt* !ercent 8:F3
83 6aran&a* %#ere t#e san(+ &ravel+ an( ot#er 4'arr* reso'rces are extracte( " 0ort* !ercent
9:F3ARTICLE 22-. Pro$essional Tax. " a3 T#e !rovince ma* lev* an ann'al !ro$essional tax on
eac# !erson en&a&e( in t#e exercise or !ractice o$ #is !ro$ession re4'irin& &overnment examination at
s'c# amo'nt an( reasona)le classi$ication as t#e san&&'nian& !anlala%i&an ma* (etermine )'t s#all inno case excee( T#ree 'n(re( Pesos P8::.::3.
)3 Ever* !erson le&all* a't#ori=e( to !ractice #is !ro$ession s#all !a* t#e !ro$essional tax to t#e
!rovince %#ere #e !ractice #is !ro$ession or %#ere #e maintains #is !rinci!al o$$ice in case #e !ractices#is !ro$ession in several !laces+ !rovi(e(+ #o%ever+ t#at s'c# !erson %#o #as !ai( t#e corres!on(in&
!ro$essional tax s#all )e entitle( to !ractice #is !ro$ession in an* !art t#e P#ili!!ines %it#o't )ein&
s')ecte( to an* ot#er national or local tax+ license+ or $ee $or t#e !ractice o$ s'c# !ro$ession.c3 An* in(ivi('al or cor!oration em!lo*in& a !erson s')ect to !ro$essional tax s#all re4'ire
!a*ment )* t#at !erson o$ t#e tax on #is !ro$ession )e$ore em!lo*ment an( ann'all* t#erea$ter.
(3 T#e !ro$essional tax s#all )e !a*a)le ann'all*+ on or )e$ore t#e t#irt*,$irst 81st3 (a* o$
Han'ar*. An* !erson $irst )e&innin& to !ractice a !ro$ession a$ter t#e mont# o$ Han'ar* m'st+ #o%ever+ !a* t#e $'ll tax )e$ore en&a&in& t#erein. A line o$ !ro$ession (oes not )ecome exem!t even i$
con('cte( %it# some ot#er !ro$ession $or %#ic# t#e tax #as )een !ai(. Pro$essionals excl'sivel*
em!lo*e( in t#e &overnment s#all )e exem!t $rom t#e !a*ment o$ t#is tax.e3 An* !erson s')ect to t#e !ro$essional tax s#all %rite in (ee(s+ recei!ts+ !rescri!tions+ re!orts+
)oo<s o$ acco'nt+ !lans an( (esi&ns+ s'rve*s an( ma!s+ as t#e case ma* )e+ t#e n'm)er o$ t#e o$$icial
recei!t iss'e( to #im.$3 T#e !ro$essionals s')ect to tax #erein im!ose( are onl* t#ose %#o #ave !asse( t#e )ar
examinations+ or an* )oar( or ot#er examinations con('cte( )* t#e Pro$essional Re&'lation
Commission PRC3. 0or exam!le+ a la%*er %#o is also a Certi$ie( P')lic Acco'ntant CPA3 m'st !a*
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t#e !ro$essional tax im!ose( on la%*ers an( t#at $ixe( $or CPAs+ i$ #e is to !ractice )ot# !ro$essions.
0or t#e !'r!ose o$ collectin& t#e tax+ t#e !rovincial treas'rer or #is ('l* a't#ori=e( re!resentative s#all
re4'ire $rom s'c# !ro$essionals t#eir c'rrent re&istration car(s iss'e( )* com!etent a't#orit* )e$ore
acce!tin& !a*ment o$ t#eir !ro$essional tax $or t#e c'rrent *ear. T#e PRC s#all li<e%ise re4'ire t#e !ro$essionals !resentation o$ !roo$ o$ !a*ment )e$ore re&istration o$ !ro$essionals or rene%al o$ t#eir
licenses.
ARTICLE 22/. Am'sement Tax. " a3 T#e !rovince ma* lev* an am'sement tax to )e collecte($rom t#e !ro!rietors+ lessees+ or o!erators o$ t#eaters+ cinemas+ concert #alls+ circ'ses+ )oxin& sta(ia+
an( ot#er !laces o$ am'sement at a rate o$ not more t#an t#irt* !ercent 8:F3 o$ t#e &ross recei!ts $rom
a(mission $ees.)3 In t#e case o$ t#eaters or cinemas+ t#e tax s#all $irst )e (e('cte( an( %it##el( )* t#eir
!ro!rietors+ lessees+ or o!erators an( !ai( to t#e !rovincial treas'rer )e$ore t#e &ross recei!ts are
(ivi(e( )et%een sai( !ro!rietors+ lessees+ or o!erators an( t#e (istri)'tors o$ t#e cinemato&ra!#ic$ilms.
c3 T#e #ol(in& o$ o!eras+ concerts+ (ramas+ recitals+ !aintin&s an( art ex#i)itions+ $lo%er s#o%s+
m'sical !ro&rams+ literar* an( oratorical !resentations exce!t !o!+ roc< or similar concerts s#all )e
exem!te( $rom t#e !a*ment o$ t#e am'sement tax+ s')ect to t#e &'i(elines iss'e( )* ;O0.(3 T#e san&&'nian& !anlala%i&an ma* !rescri)e t#e time+ manner+ terms an( con(itions+ incl'(in&
t#e iss'ance )* !ro!rietor+ lessee+ or o!erator o$ t#e t#eater or am'sement !lace o$ a(mission tic<ets
$or t#e !a*ment o$ tax. In case o$ $ra'( or $ail're to !a* t#e tax+ t#e san&&'nian& !anlala%i&an ma*im!ose s'c# s'rc#ar&es+ interests+ an( !enalties as it ma* (eem a!!ro!riate.
e3 T#e !rocee(s $rom t#e am'sement tax s#all )e s#are( e4'all* )* t#e !rovince an( t#e
m'nici!alit* %#ere s'c# am'sement !laces are locate(.ARTICLE 28:. Ann'al 0ixe( Tax $or Ever* ;eliver* Tr'c< or Ban o$ ?an'$act'rers or
Pro('cers+ D#olesalers o$ + ;ealers or Retailers in+ Certain Pro('cts. " a3 T#e !rovince ma* lev* an
ann'al $ixe( tax $or ever* tr'c<+ van+ or an* motor ve#icle 'se( )* man'$act'rers+ !ro('cers+
%#olesalers+ (ealers or retailers in t#e (eliver* or (istri)'tion o$ (istille( s!irits+ $ermente( li4'ors+so$t(rin<s+ ci&ars an( ci&arettes+ an( ot#er !ro('cts as ma* )e (etermine( )* t#e san&&'nian&
!anlala%i&an+ to sales o'tlets+ or cons'mers+ %#et#er (irectl* or in(irectl*+ %it#in t#e !rovince in an
amo'nt not excee(in& 0ive 'n(re( Pesos P::.::3.)3 T#e man'$act'rers+ !ro('cers+ %#olesalers+ (ealers+ an( retailers re$erre( to in t#e imme(iatel*
!rece(in& !ara&ra!# a3 #ereo$ s#all )e exem!t $rom t#e tax on !e((lers !rescri)e( in Article 282 &3
o$ t#is R'le.PART TREE
?'nici!alities
ARTICLE 281. co!e o$ Taxin& an( Ot#er Reven'e,Raisin& Po%ers o$ ?'nici!alities. " Unless !rovi(e( in t#is R'le+ m'nici!alities ma* lev* taxes+ $ees+ an( c#ar&es not ot#er%ise levie( )* t#e
!rovince.
ARTICLE 282. Tax on 6'siness. " T#e m'nici!alit* ma* im!ose taxes on t#e $ollo%in&
)'sinessesa3 On man'$act'rers+ assem)lers+ re!ac<ers+ !rocessors+ )re%ers+ (istillers+ recti$iers+ an(
com!o'n(ers o$ li4'ors+ (istille( s!irits+ an( %ines or man'$act'rers o$ an* article o$ commerce o$
%#atever <in( or nat're+ in accor(ance %it# t#e $ollo%in& sc#e('leGross alesRecei!ts Amo'nt o$
0or t#e Prece(in& Calen(ar ear Tax Per Ann'm
Less t#an P1:+:::.:: P1>.::P1:+:::.:: or more )'t less t#an 1+:::.:: 22:.::
1+:::.:: or more )'t less t#an 2:+:::.:: 8:2.::
2:+:::.:: or more )'t less t#an 8:+:::.:: 99:.::
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8:+:::.:: or more )'t less t#an 9:+:::.:: >>:.::
9:+:::.:: or more )'t less t#an :+:::.:: -2.::
:+:::.:: or more )'t less t#an 7+:::.:: 1+82:.::
7+:::.:: or more )'t less t#an 1::+:::.:: 1+>:.::1::+:::.:: or more )'t less t#an 1:+:::.:: 2+2::.::
1:+:::.:: or more )'t less t#an 2::+:::.:: 2+7:.::
2::+:::.:: or more )'t less t#an 8::+:::.:: 8+-:.::8::+:::.:: or more )'t less t#an ::+:::.:: +::.::
::+:::.:: or more )'t less t#an 7:+:::.:: -+:::.::
7:+:::.:: or more )'t less t#an 1+:::+:::.:: 1:+:::.::1+:::+:::.:: or more )'t less t#an 2+:::+:::.:: 18+7:.::
2+:::+:::.:: or more )'t less t#an 8+:::+:::.:: 1>+::.::
8+:::+:::.:: or more )'t less t#an 9+:::+:::.:: 1/+-::.::9+:::+:::.:: or more )'t less t#an +:::+:::.:: 28+1::.::
+:::+:::.:: or more )'t less t#an >+::+:::.:: 29+87.::
>+::+:::.:: ? or more at a rate not excee(in&
t#irt* seven an( a #al$ !ercent 87 12F3
o$ one !ercent 1F3
T#e !rece(in& rates s#all a!!l* onl* to amo'nt o$ (omestic sales o$ man'$act'rers+ assem)lers+re!ac<ers+ !rocessors+ )re%ers+ (istillers+ recti$iers an( com!o'n(ers o$ li4'ors+ (istille( s!irits+ an(
%ines or man'$act'rers o$ an* article o$ commerce %#atever <in( or nat're ot#er t#an t#ose
en'merate( in !ara&ra!# c3 o$ t#is Article.)3 On %#olesalers+ (istri)'tors+ or (ealers in an* article o$ commerce o$ %#atever <in( or nat're in
accor(ance %it# t#e $ollo%in& sc#e('les
Gross alesRecei!ts Amo'nt o$
0or t#e Prece(in& Calen(ar ear Tax Per Ann'mLess t#an P1+:::.:: P1-.::
P1+:::.:: or more )'t less t#an 2+:::.:: 88.::
2+:::.:: or more )'t less t#an 8+:::.:: :.::8+:::.:: or more )'t less t#an 9+:::.:: 72.::
9+:::.:: or more )'t less t#an +:::.:: 1::.::
+:::.:: or more )'t less t#an >+:::.:: 121.::>+:::.:: or more )'t less t#an 7+:::.:: 198.::
7+:::.:: or more )'t less t#an -+:::.:: 1>.::
-+:::.:: or more )'t less t#an 1:+:::.:: 1-7.::1:+:::.:: or more )'t less t#an 1+:::.:: 22:.::
1+:::.:: or more )'t less t#an 2:+:::.:: 27.::
2:+:::.:: or more )'t less t#an 8:+:::.:: 88:.::
8:+:::.:: or more )'t less t#an 9:+:::.:: 99:.::9:+:::.:: or more )'t less t#an :+:::.:: >>:.::
:+:::.:: or more )'t less t#an 7+:::.:: //:.::
7+:::.:: or more )'t less t#an 1::+:::.:: 1+82:.::1::+:::.:: or more )'t less t#an 1:+:::.:: 1+-7:.::
1:+:::.:: or more )'t less t#an 2::+:::.:: 2+92:.::
2::+:::.:: or more )'t less t#an 8::+:::.:: 8+8::.::8::+:::.:: or more )'t less t#an ::+:::.:: 9+9::.::
::+:::.:: or more )'t less t#an 7:+:::.:: >+>::.::
7:+:::.:: or more )'t less t#an 1+:::+:::.:: -+-::.::
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1+:::+:::.:: or more )'t less t#an 2+:::+:::.:: 1:+:::.::
P2+:::+:::.:: or more at a rate not excee(in& $i$t*
!ercent :F3 o$ one
!ercent 1F3T#e )'sinesses en'merate( in !ara&ra!# a3 a)ove s#all no lon&er )e s')ect to t#e tax on %#olesalers+
(istri)'tors+ or (ealers !rovi(e( in t#is Article.
c3 On ex!orters+ an( on man'$act'rers+ millers+ !ro('cers+ %#olesalers+ (istri)'tors+ (ealers orretailers o$ essential commo(ities en'merate( #ere'n(er at a rate not excee(in& one,#al$ 123 o$ t#e
rates !rescri)e( in !ara&ra!#s a3+ )3 an( (3 o$ t#is Article
13 Rice an( corn523 D#eat or cassava $lo'r+ meat+ (air* !ro('cts+ locall* man'$act're(+ !rocesse( or !reserve(
$oo(+ s'&ar+ salt an( ot#er a&ric'lt'ral+ marine+ an( $res# %ater !ro('cts+ %#et#er in t#eir ori&inal state
or not583 Coo<in& oil an( coo<in& &as5
93 La'n(r* soa!+ (eter&ents+ an( me(icine5
3 A&ric'lt'ral im!lements+ e4'i!ment an( !ost,#arvest $acilities+ $ertili=ers+ !estici(es+
insectici(es+ #er)ici(es+ an( ot#er $arm in!'ts5 c(tai>3 Po'ltr* $ee(s an( ot#er animal $ee(s5
73 c#ool s'!!lies5 an(
-3 Cement.0or !'r!oses o$ t#is Article+ t#e term ex!orters s#all re$er to t#ose %#o are !rinci!all* en&a&e( in t#e
)'siness o$ ex!ortin& &oo(s an( merc#an(ise+ as %ell as man'$act'rers an( !ro('cers %#ose &oo(s or
!ro('cts are )ot# sol( (omesticall* an( a)roa(. T#e amo'nt o$ ex!ort sales s#all )e excl'(e( $rom t#etotal sales an( s#all )e s')ect to t#e rates not excee(in& one #al$ 123 o$ t#e rates !rescri)e( 'n(er
!ara&ra!#s a3+ )3 an( (3 o$ t#is Article.
(3 On retailers+
Gross alesRecei!ts Rate o$ Tax0or t#e Prece(in& ear Per Ann'm
P9::+:::.:: or less 2F
more t#an P9::+:::.:: 1FT#e rate o$ t%o !ercent 2F3 !er ann'm s#all )e im!ose( on sales not excee(in& 0o'r 'n(re(
T#o'san( Pesos P9::+:::.::3+ %#ile t#e rate o$ one !ercent 1F3 !er ann'm s#all )e im!ose( on sales
in excess o$ t#e $irst 0o'r 'n(re( T#o'san( Pesos P9::+:::.::3.6aran&a*s+ #o%ever+ s#all #ave t#e excl'sive !o%er to lev* taxes+ as !rovi(e( 'n(er Article 29: a3 o$
t#is R'le+ on &ross sales or recei!ts o$ t#e !rece(in& calen(ar *ear o$ 0i$t* T#o'san( Pesos
P:+:::.::3 or less+ in t#e case o$ cities+ an( T#irt* T#o'san( Pesos P8:+:::.::3 or less+ in t#e caseo$ m'nici!alities.
e3 On contractors an( ot#er in(e!en(ent contractors+ in accor(ance %it# t#e $ollo%in& sc#e('le
Gross alesRecei!ts Amo'nt o$
0or t#e Prece(in& Calen(ar ear Tax Per Ann'mLess t#an P+:::.:: P27.:
P+:::.:: or more )'t less t#an 1:+:::.:: >1.>:
1:+:::.:: or more )'t less t#an 1+:::.:: 1:9.:1+:::.:: or more )'t less t#an 2:+:::.:: 1>.::
2:+:::.:: or more )'t less t#an 8:+:::.:: 27.::
8:+:::.:: or more )'t less t#an 9:+:::.:: 8-.::9:+:::.:: or more )'t less t#an :+:::.:: :.::
:+:::.:: or more )'t less t#an 7+:::.:: --:.::
7+:::.:: or more )'t less t#an 1::+:::.:: 1+82:.::
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1::+:::.:: or more )'t less t#an 1:+:::.:: 1+/-:.::
1:+:::.:: or more )'t less t#an 2::+:::.:: 2+>9:.::
2::+:::.:: or more )'t less t#an 2:+:::.:: 8+>8:.::
2:+:::.:: or more )'t less t#an 8::+:::.:: 9+>2:.::8::+:::.:: or more )'t less t#an 9::+:::.:: >+1>:.::
9::+:::.:: or more )'t less t#an ::+:::.:: -+2:.::
::+:::.:: or more )'t less t#an 7:+:::.:: /+2:.::7:+:::.:: or more )'t less t#an 1+:::+:::.:: 1:+2:.::
1+:::+:::.:: or more )'t less t#an 2+:::+:::.:: 11+::.::
2+:::+:::.:: or more at a rate not excee(in& $i$t* !ercent :F3 o$
one !ercent 1F3
$3 On )an<s an( ot#er $inancial instit'tions+ at a rate not excee(in& $i$t* !ercent :F3 o$ one !ercent 1F3 on t#e &ross recei!ts o$ t#e !rece(in& calen(ar *ear (erive( $rom interest+ commissions
an( (isco'nts $rom len(in& activities+ income $rom $inancial leasin&+ (ivi(en(s+ rentals on !ro!ert* an(
!ro$it $rom exc#an&e or sale o$ !ro!ert*+ ins'rance !remi'm.
All ot#er income an( recei!ts o$ )an<s an( $inancial instit'tions not ot#er%ise en'merate( a)ove s#all )e excl'(e( $rom t#e taxin& a't#orit* o$ t#e LGU concerne(.
&3 On !e((lers en&a&e( in t#e sale o$ an* merc#an(ise or article o$ commerce+ at a rate not
excee(in& 0i$t* Pesos P:.::3 !er !e((ler ann'all*.;eliver* tr'c<s+ vans+ or motor ve#icles 'se( )* man'$act'rers+ !ro('cers+ %#olesalers+ (ealers or
retailers en'merate( in Article 281 o$ t#is R'le s#all )e exem!t $rom t#e !e((lers tax im!ose( in t#is
R'le.#3 On an* )'siness+ not ot#er%ise s!eci$ie( in t#e !rece(in& !ara&ra!#s %#ic# t#e san&&'nian
concerne( ma* (eem !ro!er to tax !rovi(e( t#at on an* )'siness s')ect to t#e excise tax+ BAT+ or
!ercenta&e tax 'n(er t#e NIRC+ as amen(e(+ t#e rate o$ tax s#all not excee( t%o !ercent 2F3 o$ &ross
sales or recei!ts o$ t#e !rece(in& calen(ar *ear an( !rovi(e( $'rt#er+ t#at in line %it# existin& national !olic*+ an* )'siness en&a&e( in t#e !ro('ction+ man'$act're+ re$inin&+ (istri)'tion or sale o$ oil+
&asoline+ an( ot#er !etrole'm !ro('cts s#all not )e s')ect to an* local tax im!ose( in t#is Article.
T#e san&&'nian concerne( ma* !rescri)e a sc#e('le o$ &ra('ate( tax rates )'t in no case to excee( t#erates !rescri)e( in t#is Article.
ARTICLE 288. 0ees an( C#ar&es. " T#e m'nici!alit* ma* im!ose an( collect s'c# reasona)le
$ees an( c#ar&es on )'sinesses an( occ'!ations an(+ exce!t as reserve( to t#e !rovince in Article 22-o$ t#is R'le+ on t#e !ractice o$ an* !ro$ession or callin& )e$ore an* !erson ma* en&a&e in s'c# )'siness
or occ'!ation+ or !ractice s'c# !ro$ession or callin& !rovi(e( t#at s'c# $ees or c#ar&es s#all onl* )e
commens'rate to t#e cost o$ iss'in& t#e license or !ermit an( t#e ex!enses inc'rre( in t#e con('ct o$t#e necessar* ins!ection or s'rveillance.
No s'c# $ee or c#ar&e s#all )e )ase( on ca!ital investment or &ross sales or recei!ts o$ t#e !erson or
)'siness lia)le t#ere$or.
ARTICLE 289. 0ees $or ealin& an( Licensin& o$ Dei&#ts an( ?eas'res. " a3 T#e m'nici!alit*ma* lev* $ees $or t#e sealin& an( licensin& o$ %ei&#ts an( meas'res at s'c# reasona)le rates as s#all )e
!rescri)e( )* t#e san&&'nian& )a*an.
)3 T#e san&&'nian& )a*an s#all enact an a!!ro!riate or(inance !rescri)in& t#e necessar*re&'lations $or t#e 'se o$ %ei&#ts an( meas'res %#ic# s#all )e in accor(ance %it# s'c# &'i(elines as
ma* )e !rescri)e( )* t#e ;e!artment o$ cience an( Tec#nolo&*. T#e or(inance enacte( $or t#e
!'r!ose s#all also !rescri)e t#e !enalties $or violations+ $ra'('lent !ractices+ an( 'nla%$'l !ossessionor 'se o$ instr'ments o$ %ei&#ts an( meas'res incl'(in& t#e criminal !enalt* t#ere$or in accor(ance
%it# Article 27/ o$ t#is R'le !rovi(e(+ #o%ever+ t#at t#e san&&'nian& )a*an concerne( ma* a't#ori=e
t#e m'nici!al treas'rer to settle an o$$ense not involvin& t#e commission o$ $ra'( )e$ore a case t#ere$or
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is $ile( in co'rt+ '!on !a*ment o$ a com!romise !enalt* o$ not less t#an T%o 'n(re( Pesos P2::.::3.
c(tai
c3 T#e or(inance o$ t#e san&&'nian& )a*an ma* also em)o(* s'c# sanctions as ma* )e (eeme(
a!!ro!riate relative to t#e 'se o$ an* %ei&#t or meas're not !ro!erl* seale( or license( in accor(ance%it# !ara&ra!# )3 o$ t#is Article+ s'c# as t#e con$iscation o$ sai( ille&al %ei&#t or meas're+ or t#e
revocation o$ t#e !ermit or license o$ t#e )'siness+ an(or t#e $ilin& o$ a!!ro!riate c#ar&es a&ainst t#e
o%ner or o!erator o$ t#e )'siness.ARTICLE 28. 0is#er* Rentals+ 0ees+ an( C#ar&es. " a3 ?'nici!alities s#all #ave t#e
excl'sive a't#orit* to &rant $is#er* !rivile&es in t#e m'nici!al %aters an( im!ose rentals+ $ees+ or
c#ar&es t#ere$or in accor(ance %it# t#e !rovisions o$ t#is Article.)3 T#e san&&'nian& )a*an ma*
13 Grant $is#er* !rivile&es to erect $is# corrals+ o*ster+ m'ssel+ or ot#er a4'atic )e(s or )an&'s $r*
areas+ %it#in a (e$inite =one o$ t#e m'nici!al %aters+ as (etermine( )* t#e san&&'nian& )a*an. T#esan&&'nian& )a*an ma* re4'ire t#e con('ct o$ a !')lic )i((in& !rovi(e( t#at ('l* re&istere(
or&ani=ations an( coo!eratives o$ mar&inal $is#ermen s#all #ave t#e !re$erential ri&#t to s'c# $is#er*
!rivile&es %it#o't )ein& re4'ire( to 'n(er&o t#e )i((in& an( !rovi(e( $'rt#er t#at in t#e a)sence o$
s'c# or&ani=ations an( coo!eratives or $ail're to exercise t#eir !re$erential ri&#t+ ot#er !arties ma* !artici!ate in t#e sai( !')lic )i((in& in con$ormit* %it# t#is !rovision.
23 Grant t#e !rivile&e to &at#er+ ta<e or catc# )an&'s $r*+ !ra%n $r* or <a%a&,<a%a& or $r* o$ ot#er
s!ecies an( $is# $rom t#e m'nici!al %aters )* nets+ tra!s or ot#er $is#in& &ears to mar&inal $is#ermen$ree o$ an* rental+ $ee+ c#ar&e+ or an* ot#er im!osition %#atsoever.
83 Iss'e licenses $or t#e o!eration o$ $is#in& vessels o$ t#ree 83 tons or less $or %#ic# !'r!ose t#e
san&&'nian& )a*an s#all !rom'l&ate r'les an( re&'lations re&ar(in& t#e iss'ances o$ s'c# licenses to4'ali$ie( a!!licants 'n(er existin& la%s !rovi(e(+ #o%ever+ t#at t#e san&&'nian& )a*an concerne(
s#all+ )* a!!ro!riate or(inance+ !enali=e t#e 'se o$ ex!losives+ noxio's or !oisono's s')stances+
electricit*+ m'ro,ami+ an( ot#er (eleterio's met#o(s o$ $is#in& an( !rescri)e a criminal !enalt* t#ere$or
in accor(ance %it# t#e !rovisions o$ t#is R'le an( !rovi(e( $'rt#er t#at t#e san&&'nian& )a*anconcerne( s#all #ave t#e a't#orit* to !rosec'te an* violation o$ t#e !rovisions o$ a!!lica)le $is#er*
la%s.
ARTICLE 28>. Rates o$ Tax in ?'nici!alities Dit#in t#e ?etro!olitan ?anila Area. " a3 T#em'nici!alities %it#in ??A ma* lev* t#e taxes on )'sinesses en'merate( in Article 282 o$ t#is R'le at
rates %#ic# s#all not excee( )* $i$t* !ercent :F3 t#e maxim'm rates !rescri)e( $or sai( )'sinesses.
)3 T#e sai( m'nici!alities %it#in ??A+ !'rs'ant to Article 27 o$ t#is R'le+ ma* lev* an( collectt#e taxes %#ic# ma* )e im!ose( )* t#e !rovince 'n(er Article 229+ 22+ 22>+ 227+ 22-+ 22/+ an( 28: o$
t#is R'le at rates not excee(in& t#ose !rescri)e( t#erein.
PART 0OUR Cities
ARTICLE 287. co!e o$ Taxin& an( Ot#er Reven'e,Raisin& Po%ers o$ Cities. " T#e cit* ma*
a3 Lev* an( collect an* o$ t#e taxes+ $ees+ c#ar&es an( ot#er im!ositions t#at t#e !rovince an( t#e
m'nici!alit* ma* im!ose. T#e rates o$ taxes t#at t#e cit* ma* lev* ma* excee( t#e maxim'm ratesallo%e( $or t#e !rovince or m'nici!alit* )* not more t#an $i$t* !ercent :F3 exce!t t#e rates o$
!ro$essional an( am'sement taxes5 an(
)3 Lev* an( collect a !ercenta&e tax on an* )'siness not ot#er%ise s!eci$ie( 'n(er !ara&ra!#s a3to &3+ Article 288 o$ t#is R'le+ at rates not excee(in& t#ree !ercent 8F3 o$ t#e &ross sales or recei!ts
o$ t#e !rece(in& calen(ar *ear.
ARTICLE 28-. Uni$orm Tax Rates. " T#e rates o$ t#e $ollo%in& taxes s#all )e 'ni$orm $or t#ecit* an( t#e !rovince
a3 Pro$essional tax 'n(er Article 22- o$ t#is R'le %#ic# s#all not excee( T#ree 'n(re( Pesos
P8::.::35 an(
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)3 Am'sement tax on !ai( a(mission 'n(er Article 22/ o$ t#is R'le+ t#e rate o$ %#ic# s#all not )e
more t#an t#irt* !ercent 8:F3 o$ t#e &ross recei!ts $rom a(mission $ees.
ARTICLE 28/. #arin& o$ Tax on an(+ Gravel+ an( Ot#er 'arr* Reso'rces. " T#e !rocee(s
o$ t#e tax on san(+ &ravel+ an( ot#er 4'arr* reso'rces in #i&#l*,'r)ani=e( cities s#all )e (istri)'te( as$ollo%s
i&#l* 'r)ani=e( cit* " ixt* !ercent >:F3
6aran&a* %#ere t#e san(+&ravel+ an( ot#er 4'arr*
reso'rces are extracte( " 0ort* !ercent 9:F3
PART 0IBE6aran&a*s
ARTICLE 29:. co!e o$ Taxin& an( Ot#er Reven'e,Raisin& Po%ers o$ 6aran&a*s. " T#e
)aran&a*s ma* lev* t#e $ollo%in& taxes+ $ees+ an( c#ar&es+ %#ic# s#all excl'sivel* accr'e to t#em.a3 Taxes on stores or retailers %it# $ixe( )'siness esta)lis#ments %it# &ross sales or recei!ts o$ t#e
!rece(in& calen(ar *ear o$ 0i$t* T#o'san( Pesos P:+:::.::3 or less+ in t#e case o$ a )aran&a* %it#in
a cit*+ an( T#irt* T#o'san( Pesos P8:+:::.::3 or less+ in t#e case o$ a )aran&a* %it#in a m'nici!alit*+
at rates not excee(in& one !ercent 1F3 on s'c# &ross sales or recei!ts.)3 ervice $ees or c#ar&es $or services ren(ere( in connection %it# t#e re&'lation or t#e 'se o$
)aran&a*,o%ne( !ro!erties or service $acilities s'c# as !ala*+ co!ra+ or to)acco (r*ers.
c3 0ee $or t#e iss'ance o$ a )aran&a* clearance $or an* )'siness or activit* locate( or con('cte(%it#in t#e territorial 'ris(iction o$ t#e )aran&a* )e$ore t#e cit* or m'nici!alit* ma* iss'e a license or
!ermit to sai( )'siness or activit*. casia
T#e a!!lication $or )aran&a* clearance s#all )e acte( '!on %it#in seven 73 %or<in& (a*s $rom t#e$ilin& t#ereo$. In t#e event t#at a clearance is not iss'e( or t#e a!!lication is (enie( %it#in t#e sai(
!erio(+ t#e cit* or m'nici!alit* ma* iss'e t#e license or !ermit to t#e a!!licant.
T#e iss'ance o$ a )aran&a* clearance s#all not )e re4'ire( ('rin& C 1//2 in t#e case o$ existin&
)'sinesses or activities a!!l*in& onl* $or rene%al o$ t#eir res!ective !ermits or licenses %it# t#e cit* or m'nici!alit* concerne(.
(3 Ot#er $ees an( c#ar&es on
13 Commercial )ree(in& o$ $i&#tin& coc<s.0or !'r!oses o$ im!osin& )aran&a* $ees an( c#ar&es on t#e commercial )ree(in& o$ $i&#tin& coc<s+
commercial )ree(in& s#all mean an ann'al sale o$ more t#an $ive 3 $i&#tin& coc<s o$ a ('l* re&istere(
)ree(er.23 Coc<$i&#ts an( coc<!its
83 Places o$ recreation %#ic# c#ar&e a(mission $ees.
Places o$ recreation s#all incl'(e !laces o$ am'sement %#ere one see<s a(mission to entertain #imsel$ )* seein& or vie%in& t#e s#o% or !er$ormance or t#ose %#ere one am'ses #imsel$ )* (irect
!artici!ation.
93 6ill)oar(s+ si&n)oar(s+ neon si&ns+ an( o't(oor a(vertisements at rates not less t#an t#e
$ollo%in&i3 6ill)oar(s or si&n)oar(s $or a(vertisement o$ )'siness+ !er s4'are meter or $raction t#ereo$
in&le,0ace( " Ten Pesos P1:.::3
;o')le,0ace( " T%ent* Pesos P2:.::3ii3 6ill)oar(s or si&ns $or !ro$essionals+ !er s4'are meter or $raction t#ereo$ Ei&#t Pesos P-.::3
iii3 6ill)oar(s+ si&ns+ or a(vertisements $or )'siness an( !ro$essions !ainte( on an* )'il(in& or
str'ct'res or ot#er%ise se!arate( or (etac#e( t#ere$rom+ !er s4'are meter t#ereo$ Nine Pesos P/.::3iv3 A(vertisement $or )'siness or !ro$essions )* means o$ sli(es in movies !a*a)le )* t#e
a(vertisers One 'n(re( Pesos P1::.::3
v3 A(vertisements )* means o$ ve#icles+ )alloons+ <ites+ etc. !er (a* or $raction t#ereo$ 0ort*
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Pesos P9:.::35 !er %ee< or $raction t#ereo$ ixt* Pesos P>:.::35 an( !er mont# or $raction t#ereo$
Ei&#t* Pesos P-:.::3. 0or t#e 'se o$ electric or neon li&#ts in )ill)oar(s 'n(er items i3 to iv3 a)ove+
t#e amo'nt o$ Ten Pesos P1:.::3 !er s4'are meter or $raction t#ereo$ s#all )e im!ose( in a((ition to
t#e a)ove !rescri)e( rates.vi3 i&ns+ si&n)oar(s+ )ill)oar(s+ a(vertisements+ incl'(in& stic<o'ts+ streamers+ li&#te( si&ns+ an(
ot#er electronic me(ia+ !osters+ !rivile&e !anels+ stone si&ns+ !lacar(s+ !rice stri!s+ )'ntin&s+ an( t#e
li<e+ )elon&in& to man'$act'rers or !ro('cers or !ro$essionals+ )'t (is!la*e( at t#e !lace %#ere a )'siness or !ro$ession is con('cte(+ or (is!la*e( on (eliver* or ot#er service an( !')lic 'tilit*
ve#icles+ s#all )e exem!t $rom s'c# $ees or c#ar&es !rovi(e( in !ara&ra!#s i3 an( ii3 a)ove an( ot#er
im!ositions t#at ma* )e im!ose( )* t#e )aran&a*.vii3 Privile&e !anels s#all )e s')ect to one #al$ 123 o$ t#e rates #erein !rescri)e(.
viii3 0or !'r!oses o$ t#is Article+ t#e ne% rates to )e a(o!te( )* t#e )aran&a* s#all a!!l* onl* to
)ill)oar(s+ !rivile&e !anels+ si&ns+ an( o't(oor a(vertisements %#ic# s#all )e constr'cte( or installe(a$ter t#e e$$ectivit* o$ t#e Co(e.
PART IX
!ecial Provisions
ARTICLE 291. Retirement o$ 6'siness. " a3 An* !erson nat'ral or 'ri(ical+ s')ect to t#e taxon )'sinesses 'n(er Article 282 o$ t#is R'le s#all+ '!on termination o$ t#e )'siness+ s')mit a s%orn
statement o$ t#e &ross sales or recei!ts $or t#e calen(ar *ear. c(tai
0or !'r!oses #ereo$+ termination s#all mean t#at )'siness o!erations are sto!!e( com!letel*. An*c#an&e in o%ners#i!+ mana&ement an(or name o$ t#e )'siness s#all not constit'te termination as
contem!late( in t#is Article. Unless state( ot#er%ise+ ass'm!tion o$ t#e )'siness )* an* ne% o%ner or
mana&er or re,re&istration o$ t#e same )'siness 'n(er a ne% name %ill onl* )e consi(ere( )* t#e LGUconcerne( $or recor( !'r!oses in t#e co'rse o$ t#e rene%al o$ t#e !ermit or license to o!erate t#e
)'siness.
T#e local treas'rer concerne( s#all see to it t#at t#e !a*ment o$ taxes o$ a )'siness is not avoi(e( )*
sim'latin& t#e termination or retirement t#ereo$. 0or t#is !'r!ose+ t#e $ollo%in& !roce('ral &'i(eliness#all )e strictl* o)serve(
13 T#e local treas'rer s#all assi&n ever* a!!lication $or t#e termination or retirement o$ )'siness to
an ins!ector in #is o$$ice %#o s#all &o to t#e a((ress o$ t#e )'siness on recor( to veri$* i$ it is reall* nolon&er o!eratin&. I$ t#e ins!ector $in(s t#at t#e )'siness is sim!l* !lace( 'n(er a ne% name+ mana&er
an(or ne% o%ner+ t#e local treas'rer s#all recommen( to t#e ma*or t#e (isa!!roval o$ t#e a!!lication
$or t#e termination or retirement o$ sai( )'siness. Accor(in&l*+ t#e )'siness contin'es to )ecome lia)le$or t#e !a*ment o$ all t#e taxes+ $ees an( c#ar&es im!ose( t#ereon 'n(er existin& local tax or(inances5
an(
23 In t#e case o$ a ne% o%ner to %#om t#e )'siness %as trans$erre( )* sale or ot#er $orm o$conve*ance+ sai( ne% o%ner s#all )e lia)le to !a* t#e tax or $ee $or t#e trans$er o$ t#e )'siness to #im
i$ t#ere is an existin& or(inance !rescri)in& s'c# trans$er tax.
)3 I$ it is $o'n( t#at t#e retirement or termination o$ t#e )'siness is le&itimate+ an( t#e tax ('e
t#ere$rom )e less t#an t#e tax ('e $or t#e c'rrent *ear )ase( on t#e &ross sales or recei!ts+ t#e(i$$erence in t#e amo'nt o$ t#e tax s#all )e !ai( )e$ore t#e )'siness is consi(ere( o$$iciall* retire( or
terminate(.
c3 T#e !ermit iss'e( to a )'siness retirin& or terminatin& its o!erations s#all )e s'rren(ere( to t#elocal treas'rer %#o s#all $ort#%it# cancel t#e same an( recor( s'c# cancellation in #is )oo<s.
ARTICLE 292. Relate( or Com)ine( 6'sinesses. " a3 T#e con('ct or o!eration o$ t%o or more
relate( )'sinesses !rovi(e( in Article 282 o$ t#is R'le )* an* one !erson+ nat'ral or 'ri(ical+ s#allre4'ire t#e iss'ance o$ a se!arate !ermit or license to eac# )'siness.
)3 I$ a !erson con('cts or o!erates t%o 23 or more relate( )'sinesses %#ic# are s')ect to t#e
same rate o$ im!osition+ t#e tax s#all )e com!'te( on t#e )asis o$ t#e com)ine( total &ross sales or
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recei!ts o$ t#e sai( t%o 23 or more relate( )'sinesses.
c3 I$+ #o%ever+ t#e )'sinesses o!erate( )* one !erson are &overne( )* se!arate tax sc#e('les or
t#e rates o$ t#e taxes are (i$$erent+ t#e taxa)le &ross sales or recei!ts o$ eac# )'siness s#all )e re!orte(
in(e!en(entl* an( t#e tax t#ereon s#all )e com!'te( on t#e )asis o$ t#e a!!ro!riate sc#e('le.ARTICLE 298. it's o$ t#e Tax. " a3 ;e$inition o$ Terms "
13 Princi!al O$$ice " t#e #ea( or main o$$ice o$ t#e )'siness a!!earin& in t#e !ertinent (oc'ments
s')mitte( to t#e ec'rities an( Exc#an&e Commission+ or t#e ;e!artment o$ Tra(e an( In('str*+ orot#er a!!ro!riate a&encies+ as t#e case ma* )e.
T#e cit* or m'nici!alit* s!eci$icall* mentione( in t#e articles o$ incor!oration or o$$icial re&istration
!a!ers as )ein& t#e o$$icial a((ress o$ sai( !rinci!al o$$ice s#all )e consi(ere( as t#e sit's t#ereo$.In case t#ere is a trans$er or relocation o$ t#e !rinci!al o$$ice to anot#er cit* or m'nici!alit*+ it s#all )e
t#e ('t* o$ t#e o%ner+ o!erator or mana&er o$ t#e )'siness to &ive ('e notice o$ s'c# trans$er or
relocation to t#e local c#ie$ exec'tives o$ t#e cities or m'nici!alities concerne( %it#in $i$teen 13 (a*sa$ter s'c# trans$er or relocation is e$$ecte(.
23 6ranc# or ales O$$ice " a $ixe( !lace in a localit* %#ic# con('cts o!erations o$ t#e )'siness
as an extension o$ t#e !rinci!al o$$ice. O$$ices 'se( onl* as (is!la* areas o$ t#e !ro('cts %#ere no
stoc<s or items are store( $or sale+ alt#o'&# or(ers $or t#e !ro('cts ma* )e receive( t#ereat+ are not )ranc# or sales o$$ices as #erein contem!late(. A %are#o'se %#ic# acce!ts or(ers an(or iss'es sales
invoices in(e!en(ent o$ a )ranc# %it# sales o$$ice s#all )e consi(ere( as a sales o$$ice.
83 Dare#o'se " a )'il(in& 'tili=e( $or t#e stora&e o$ !ro('cts $or sale an( $rom %#ic# &oo(s ormerc#an(ise are %it#(ra%n $or (eliver* to c'stomers or (ealers+ or )* !ersons actin& in )e#al$ o$ t#e
)'siness. A %are#o'se t#at (oes not acce!t or(ers an(or iss'e sales invoices as a$orementione( s#all
not )e consi(ere( a )ranc# or sales o$$ice.93 Plantation " a tract o$ a&ric'lt'ral lan( !lante( to trees or see(lin&s %#et#er $r'it )earin& or
not+ 'ni$orml* s!ace( or see(e( )* )roa(cast met#o(s or normall* arran&e( to allo% #i&#est
!ro('ction. 0or !'r!oses o$ t#is Article+ inlan( $is#in& &ro'n( s#all )e consi(ere( as !lantation.
3 Ex!erimental 0arms " a&ric'lt'ral lan(s 'tili=e( )* a )'siness or cor!oration to con('ctst'(ies+ tests+ researc#es or ex!eriments involvin& a&ric'lt'ral+ a&ri)'siness+ marine+ or a4'atic+
livestoc<+ !o'ltr*+ (air* an( ot#er similar !ro('cts $or t#e !'r!ose o$ im!rovin& t#e 4'alit* an(
4'antit* o$ &oo(s or !ro('cts.On,site sales o$ commercial 4'antit* ma(e in ex!erimental $arms s#all )e similarl* im!ose( t#e
corres!on(in& tax 'n(er Article 282 an( allocate( in !ara&ra!# )3 o$ t#is Article.
)3 ales Allocation " 13 All sales ma(e in a localit* %#ere t#ere is a )ranc# or sales o$$ice or %are#o'se s#all )e
recor(e( in sai( )ranc# or sales o$$ice or %are#o'se an( t#e tax s#all )e !a*a)le to t#e cit* or
m'nici!alit* %#ere t#e same is locate(.23 In cases %#ere t#ere is no s'c# )ranc#+ sales o$$ice+ or %are#o'se in t#e localit* %#ere t#e sale
is ma(e+ t#e sale s#all )e recor(e( in t#e !rinci!al o$$ice alon& %it# t#e sales ma(e )* sai( !rinci!al
o$$ice an( t#e tax s#all accr'e to t#e cit* or m'nici!alit* %#ere sai( !rinci!al o$$ice is locate(.
83 In cases %#ere t#ere is a $actor*+ !roect o$$ice+ !lant or !lantation in !'rs'it o$ )'siness+ t#irt* !ercent 8:F3 o$ all sales recor(e( in t#e !rinci!al o$$ice s#all )e taxa)le )* t#e cit* or m'nici!alit*
%#ere t#e !rinci!al o$$ice is locate( an( sevent* !ercent 7:F3 o$ all sales recor(e( in t#e !rinci!al
o$$ice s#all )e taxa)le )* t#e cit* or m'nici!alit* %#ere t#e $actor*+ !roect o$$ice+ !lant or !lantation islocate(. LGUs %#ere onl* ex!erimental $arms are locate( s#all not entitle( to t#e sales allocation
!rovi(e( in t#is s')!ara&ra!#.
93 In case o$ a !lantation locate( in a localit* ot#er t#an t#at %#ere t#e $actor* is locate(+ t#esevent* !ercent 7:F3 sales allocation s#all )e (ivi(e( as $ollo%s
i3 ixt* !ercent >:F3 to t#e cit* or m'nici!alit* %#ere t#e $actor* is locate(5 an(
ii3 0ort* !ercent 9:F3 to t#e cit* or m'nici!alit* %#ere t#e !lantation is locate(.
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3 In cases %#ere t#ere are t%o 23 or more $actories+ !roect o$$ices+ !lants or !lantations locate(
in (i$$erent localities+ t#e sevent* !ercent 7:F3 sales allocation s#all )e !rorate( amon& t#e localities
%#ere s'c# $actories+ !roect o$$ices+ !lants+ an( !lantations are locate( in !ro!ortion to t#eir res!ective
vol'mes o$ !ro('ction ('rin& t#e !erio( $or %#ic# t#e tax is ('e. In t#e case o$ !roect o$$ices o$service an( ot#er in(e!en(ent contractors+ t#e term !ro('ction s#all re$er to t#e cost o$ !roects
act'all* 'n(erta<en ('rin& t#e tax !erio(.
>3 T#e sales allocation in !ara&ra!# )3 #ereo$ s#all )e a!!lie( irres!ective o$ %#et#er or not salesare ma(e in t#e localit* %#ere t#e $actor*+ !roect o$$ice+ !lant or !lantation is locate(. In case o$ sales
ma(e )* t#e $actor*+ !roect o$$ice+ !lant or !lantation+ t#e sale s#all )e covere( )* s')!ara&ra!#s 13
or 23 a)ove.73 In case o$ man'$act'rers or !ro('cers %#ic# en&a&e t#e services o$ an in(e!en(ent contractor to
!ro('ce or man'$act're some o$ t#eir !ro('cts+ t#ese r'les on sit's o$ taxation s#all a!!l* exce!t t#at
t#e $actor* or !lant an( %are#o'se o$ t#e contractor 'tili=e( $or t#e !ro('ction an( stora&e o$ t#eman'$act'rers !ro('cts s#all )e consi(ere( as t#e $actor* or !lant an( %are#o'se o$ t#e man'$act'rer.
c3 Port o$ Loa(in& " T#e cit* or m'nici!alit* %#ere t#e !ort o$ loa(in& is locate( s#all not lev*
an( collect t#e tax im!osa)le in Article 282 o$ t#is R'le 'nless t#e ex!orter maintains in sai( cit* or
m'nici!alit* its !rinci!al o$$ice+ a )ranc#+ sales o$$ice or %are#o'se+ $actor*+ !lant+ or !lantation in%#ic# case+ t#e r'le on t#e matter s#all a!!l* accor(in&l*.
(3 ales ma(e )* ro'te tr'c<s+ vans+ or ve#icles "
13 0or ro'te sales ma(e in a localit* %#ere a man'$act'rer+ !ro('cer+ %#olesaler+ retailer or (ealer#as a )ranc# or sales o$$ice or %are#o'se+ t#e sales are recor(e( in t#e )ranc#+ sales o$$ice or
%are#o'se an( t#e tax ('e t#ereon is !ai( to t#e LGU %#ere s'c# )ranc#+ sales o$$ice or %are#o'se is
locate(.23 0or ro'te sales ma(e in a localit* %#ere a man'$act'rer+ !ro('cer+ %#olesaler+ retailer or (ealer
#as no )ranc#+ sales o$$ice or %are#o'se+ t#e sales are recor(e( in t#e )ranc#+ sales o$$ice or %are#o'se
$rom %#ere t#e ro'te tr'c<s %it#(ra% t#eir !ro('cts $or sale+ an( t#e tax ('e on s'c# sales is !ai( to
t#e LGU %#ere s'c# )ranc#+ sales o$$ice or %are#o'se is locate(.83 6ase( on s')!ara&ra!#s 13 an( 23 a)ove+ LGUs %#ere ro'te tr'c<s (eliver merc#an(ise
cannot im!ose an* tax on sai( tr'c<s exce!t t#e ann'al $ixe( tax a't#ori=e( to )e im!ose( )* t#e
!rovince in Article 28: o$ t#is R'le on ever* (eliver* tr'c< or van or an* motor ve#icle 'se( )*man'$act'rers+ !ro('cers+ %#olesalers+ (ealers+ or retailers in t#e (eliver* or (istri)'tion o$ (istille(
s!irits+ $ermente( li4'ors+ so$t (rin<s+ ci&ars an( ci&arettes+ an( ot#er !ro('cts as ma* )e (etermine(
)* t#e san&&'nian& !anlala%i&an+ an( )* t#e cit*+ !'rs'ant to Article 228 o$ t#is R'le.93 In a((ition to t#is ann'al $ixe( tax+ cities ma* also collect $rom same man'$act'rers+ !ro('cers+
%#olesalers+ retailers+ an( (ealers 'sin& ro'te tr'c<s a ma*ors !ermit $ee %#ic# s#all )e im!ose( in a
local tax or(inance !'rs'ant to Article 288 in relation to Article 222 o$ t#is R'le.PART EBEN
Common Reven'e,Raisin& Po%ers
ARTICLE 299. Common Reven'e,Raisin& Po%ers. " Provinces+ cities+ m'nici!alities+ an(
)aran&a*sa3 ?a* im!ose an( collect $ees an( service or 'ser c#ar&es $or an* service ren(ere( )* LGUs in
an amo'nt reasona)l* commens'rate to s'c# service !rovi(e( t#at no service c#ar&e s#all )e )ase( on
ca!ital investments or &ross sales or recei!ts o$ t#e !ersons or )'siness lia)le t#ere$or. c(asia)3 #all exercise t#e !o%er to collect c#ar&es $or services ren(ere( )* LGUs in connection %it#
t#e o!eration o$ !')lic 'tilities o%ne(+ o!erate(+ an( maintaine( )* t#em at rates to )e $ixe( )* t#e
san&&'nian concerne(.LGUs ma* !rescri)e t#e terms an( con(itions+ t#ro'&# an a!!ro!riate or(inance enacte( )* t#eir
san&&'nians+ $or t#e 'se o$ an* !')lic roa(+ !ier or %#ar$+ %ater%a*+ )ri(&e+ or $err* or
telecomm'nication s*stem+ $'n(e( an( constr'cte( )* t#em+ an( $ix reasona)le toll $ees an( service
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c#ar&es $or t#e 'se t#ereo$ !rovi(e( t#at t#e $ollo%in& !ersons s#all )e exem!te( $rom t#e !a*ment o$
sai( toll $ees an( c#ar&es
13 O$$icers an( enliste( men o$ t#e Arme( 0orces o$ t#e P#ili!!ines an( mem)ers o$ t#e P#ili!!ine
National Police on mission523 Post O$$ice !ersonnel (eliverin& mail5
83 Persons %#o are !#*sicall* #an(ica!!e(5 an(
93 ;isa)le( citi=ens %#o are sixt*,$ive >3 *ears or ol(er.c3 T#e collection o$ toll $ees an( c#ar&es ma* )e (iscontin'e( )* t#e san&&'nian concerne( %#en
!')lic sa$et* an( %el$are so re4'ires.
PART EIGTComm'nit* Tax
ARTICLE 29. Comm'nit* Tax. " Cities or m'nici!alities ma* lev* an ann'al comm'nit* tax
in lie' o$ t#e resi(ence tax $ormerl* levie( an( collecte( in ection 8- o$ P; 281+ as amen(e(.Accor(in&l*+ all cities an( m'nici!alities s#all enact $or t#e !'r!ose+ a tax or(inance to ta<e e$$ect as o$
Han'ar* 1+ 1//2.
0or !'r!oses o$ enactment o$ a local tax or(inance lev*in& a comm'nit* tax+ t#e con('ct o$ a !')lic
#earin& !rovi(e( in Article 279 o$ t#is R'le s#all no lon&er )e re4'ire(.ARTICLE 29>. Lev* or Im!osition. " T#e lev* or im!osition o$ comm'nit* tax )* a cit* or
m'nici!alit* s#all )e &overne( )* t#e $ollo%in& r'les an( &'i(elines
a3 In(ivi('als lia)le to t#e !a*ment o$ comm'nit* tax " 13 Ever* in#a)itant o$ t#e P#ili!!ines ei&#teen 1-3 *ears o$ a&e or over %#o #as )een re&'larl*
em!lo*e( on a %a&e or salar* )asis $or at least t#irt* 8:3 consec'tive %or<in& (a*s ('rin& an*
calen(ar *ear523 An in(ivi('al %#o is en&a&e( in )'siness or occ'!ation5
83 An in(ivi('al %#o o%ns real !ro!ert* %it# an a&&re&ate assesse( val'e o$ One T#o'san( Pesos
P1+:::.::3 or more5
93 An in(ivi('al %#o is re4'ire( )* la% to $ile an income tax ret'rn.)3 Rate o$ comm'nit* tax !a*a)le )* in(ivi('als "
13 T#e rate o$ comm'nit* tax t#at ma* )e levie( an( collecte( $rom sai( in(ivi('als s#all )e 0ive
Pesos P.::3 !l's an a((itional tax o$ One Peso P1.::3 $or ever* One T#o'san( Pesos P1+:::.::3 o$income re&ar(less o$ %#et#er $rom )'siness+ exercise o$ !ro$ession+ or $rom !ro!ert* )'t %#ic# in no
case s#all excee( 0ive T#o'san( Pesos P+:::.::3.
23 In case o$ #'s)an( an( %i$e+ eac# o$ t#em s#all )e lia)le to !a* t#e )asic tax o$ 0ive PesosP.::3+ )'t t#e a((itional tax im!osa)le on t#e #'s)an( an( %i$e s#all )e One Peso P1.::3 $or ever*
One T#o'san( Pesos P1+:::.::3 o$ income $rom t#e total !ro!ert* o%ne( )* t#em an(or t#e total
&ross recei!ts or earnin&s (erive( )* t#em.c3 H'ri(ical !ersons lia)le to t#e !a*ment o$ comm'nit* tax " Ever* cor!oration+ no matter #o%
create( or or&ani=e(+ %#et#er (omestic or resi(ent $orei&n+ en&a&e( in or (oin& )'siness in t#e
P#ili!!ines s#all !a* comm'nit* tax o$ 0ive 'n(re( Pesos P::.::3 an( an a((itional tax+ %#ic#+ in
no case+ s#all excee( Ten T#o'san( Pesos P1:+:::.::3 in accor(ance %it# t#e $ollo%in& sc#e('le13 0or ever* 0ive T#o'san( Pesos P+:::.::3 %ort# o$ real !ro!ert* in t#e P#ili!!ines o%ne( )*
t#e 'ri(ical entit* ('rin& t#e !rece(in& *ear+ )ase( on t#e assesse( val'e 'se( $or t#e !a*ment o$ t#e
real !ro!ert* tax 'n(er existin& la%s " T%o !esos P2.::35 an(23 0or ever* 0ive T#o'san( Pesos P+:::.::3 o$ &ross recei!ts or earnin&s (erive( $rom t#e
)'siness in t#e P#ili!!ines ('rin& t#e !rece(in& *ear " T%o !esos P2.::3.
T#e (ivi(en(s receive( )* a cor!oration $rom anot#er cor!oration s#all+ $or t#e !'r!ose o$ t#ea((itional tax+ )e consi(ere( as !art o$ t#e &ross recei!ts or earnin&s o$ sai( cor!oration.
(3 Exem!tions " T#e $ollo%in& are exem!t $rom t#e !a*ment o$ comm'nit* tax
13 ;i!lomatic an( cons'lar re!resentatives5 an(
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23 Transient visitors %#en t#eir sta* in t#e P#ili!!ines (oes not excee( t#ree 83 mont#s.
e3 Place o$ Pa*ment "
13 Comm'nit* tax s#all )e !ai( in t#e cit* or m'nici!alit* %#ere t#e resi(ence o$ t#e in(ivi('al is
locate(+ or in t#e cit* or m'nici!alit* %#ere t#e !rinci!al o$$ice o$ t#e 'ri(ical entit* is locate(.23 It s#all )e 'nla%$'l $or an* cit* or m'nici!al treas'rer to collect comm'nit* tax o'tsi(e t#e
territorial 'ris(iction o$ t#e cit* or t#e m'nici!alit*.
83 In case o$ )ranc#+ sales o$$ice or %are#o'se %#ere sales are ma(e an( recor(e(+ corres!on(in&comm'nit* tax s#all )e !ai( to t#e LGU %#ere s'c# )ranc#+ sales o$$ice or %are#o'se is locate(.
93 An* !erson+ nat'ral or 'ri(ical+ %#o !a*s comm'nit* tax to a cit* or m'nici!alit* ot#er t#an
t#e cit* or m'nici!alit* %#ere #is resi(ence+ or !rinci!al o$$ice in t#e case o$ 'ri(ical !ersons+ islocate( s#all remain lia)le to !a* s'c# tax to t#e cit* or m'nici!alit* concerne(.
$3 Time $or Pa*ment "
13 Comm'nit* tax s#all accr'e on t#e $irst 1st3 (a* o$ Han'ar* o$ eac# *ear an( s#all )e !ai( notlater t#an t#e last (a* o$ 0e)r'ar* o$ eac# *ear.
23 I$ a !erson reac#es t#e a&e o$ ei&#teen 1-3 *ears or ot#er%ise loses t#e )ene$it o$ exem!tion on
or )e$ore t#e last (a* o$ H'ne+ #e s#all )e lia)le $or t#e !a*ment o$ comm'nit* tax on t#e (a* #e
reac#es s'c# a&e or '!on t#e (a* t#e exem!tion en(s. I$ a !erson reac#es t#e a&e o$ ei&#teen 1-3 *earsor loses t#e )ene$it o$ exem!tion on or )e$ore t#e last (a* o$ ?arc#+ #e s#all #ave t%ent* 2:3 (a*s
%it#in %#ic# to !a* t#e comm'nit* tax %it#o't )ecomin& (elin4'ent.
83 Persons %#o come to resi(e in t#e P#ili!!ines or reac# t#e a&e o$ ei&#teen 1-3 *ears on or a$ter t#e $irst 1st3 (a* o$ H'l* o$ an* *ear+ or %#o cease to )elon& to an exem!t class on or a$ter t#e same
(ate+ s#all not )e s')ect to comm'nit* tax $or t#at *ear.
93 Cor!orations esta)lis#e( an( or&ani=e( on or )e$ore t#e last (a* o$ H'ne s#all )e lia)le $or t#e !a*ment o$ comm'nit* tax $or t#at *ear. Cor!orations esta)lis#e( an( or&ani=e( on or )e$ore t#e last
(a* o$ ?arc# s#all #ave t%ent* 2:3 (a*s %it#in %#ic# to !a* t#e comm'nit* tax %it#o't )ecomin&
(elin4'ent. Cor!orations esta)lis#e( an( or&ani=e( on or a$ter t#e $irst (a* o$ H'l* s#all not )e s')ect
to comm'nit* tax $or t#at *ear.&3 Penalties $or t#e !a*ment " I$ t#e tax is not !ai( %it#in t#e !rescri)e( !erio(+ t#ere s#all )e
a((e( to t#e 'n!ai( amo'nt an interest o$ t%ent*,$o'r !ercent 29F3 !er ann'm $rom t#e ('e (ate 'ntil
it is !ai(.ARTICLE 297. Comm'nit* Tax Certi$icate. " A comm'nit* tax certi$icate s#all )e iss'e( to
ever* !erson or cor!oration '!on !a*ment o$ comm'nit* tax. A comm'nit* tax certi$icate ma* also )e
iss'e( to an* !erson or cor!oration not s')ect to comm'nit* tax '!on !a*ment o$ One Peso P1.::3.ARTICLE 29-. Presentation o$ Comm'nit* Tax Certi$icate. " a3 D#en an in(ivi('al s')ect to
comm'nit* tax ac<no%le(&es an* (oc'ment )e$ore a notar* !')lic+ ta<es t#e oat# o$ o$$ice '!on
election or a!!ointment to an* !osition in t#e &overnment service5 receives an* license+ certi$icate+ or !ermit $rom an* !')lic a't#orit*5 !a*s an* tax or $ee5 receives an* mone* $rom an* !')lic $'n(5
transacts ot#er o$$icial )'siness5 or receives an* mone* $rom an* !')lic $'n(5 transacts ot#er o$$icial
)'siness5 or receives an* salar* or %a&e $rom an* !erson or cor!oration+ it s#all )e t#e ('t* o$ an*
!erson+ o$$icer+ or cor!oration %it# %#om s'c# transaction is ma(e or )'siness (one or $rom %#om an*salar* or %a&e is receive( to re4'ire s'c# in(ivi('al to ex#i)it t#e comm'nit* tax certi$icate.
T#e !resentation o$ comm'nit* tax certi$icate s#all not )e re4'ire( $or t#e re&istration o$ a voter.
)3 D#en+ t#ro'&# its a't#ori=e( o$$icers+ an* cor!oration s')ect to comm'nit* tax receives an*license+ certi$icate+ or !ermit $rom an* !')lic a't#orit*+ !a*s an* tax or $ee+ receives mone* $rom
!')lic $'n(s+ or transacts ot#er o$$icial )'siness+ it s#all )e t#e ('t* o$ t#e !')lic o$$icial %it# %#om
s'c# transaction is ma(e or )'siness (one+ to re4'ire s'c# cor!oration to ex#i)it t#e comm'nit* taxcerti$icate.
c3 T#e comm'nit* tax certi$icate re4'ire( in t#e t%o !rece(in& !ara&ra!#s s#all )e t#e one iss'e(
$or t#e c'rrent *ear+ exce!t $or t#e !erio( $rom Han'ar* 'ntil t#e $i$teent# 1t#3 o$ A!ril eac# *ear+ in
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%#ic# case+ t#e certi$icate iss'e( $or t#e !rece(in& *ear s#all s'$$ice.
ARTICLE 29/. Printin& o$ Comm'nit* Tax Certi$icates an( ;istri)'tion o$ Procee(s. " T#e
6'rea' o$ Internal Reven'e 6IR3 s#all ca'se t#e !rintin& o$ comm'nit* tax certi$icates an( (istri)'te
t#e same to t#e cities an( m'nici!alities t#ro'&# t#e cit* an( m'nici!al treas'rers in accor(ance %it# !rescri)e( re&'lations. To $acilitate (istri)'tion+ t#e 6IR ma* sen( on consi&nment to t#e !rovincial
treas'rers )lan< $orms o$ t#e comm'nit* tax certi$icates an( t#e m'nici!al treas'rers o$ t#e !rovince
s#all sec're t#ro'&# t#e !rovincial treas'rer+ t#eir res!ective re4'irements. T#e cit* or m'nici!altreas'rer concerne( s#all remit to t#e National Treas'rer+ $or t#e acco'nt o$ t#e 6IR+ t#e s#are o$ t#e
National Government in t#e !rocee(s o$ t#e tax+ re!resentin& t#e cost o$ !rintin& an( (istri)'tion+
%it#in ten 1:3 (a*s a$ter t#e en( o$ eac# 4'arter. In cases %#ere t#e certi$icates %ere sec're( orre4'isitione( $rom t#e !rovincial treas'rer+ t#e m'nici!al treas'rers s#all remit !a*ments to t#e
!rovincial treas'rer %#o s#all+ in t'rn+ e$$ect t#e remittance to t#e National Treas'rer as re4'ire(.
ARTICLE 2:. Collection o$ Comm'nit* Tax )* t#e 6aran&a* Treas'rer. " T#e tax or(inancelev*in& t#e comm'nit* tax s#all a't#ori=e t#e cit* or m'nici!al treas'rer to (e!'ti=e t#e )aran&a*
treas'rers to collect t#e comm'nit* tax in t#eir res!ective 'ris(ictions. 'c# (e!'tation s#all )e
limite( to t#e comm'nit* tax !a*a)le )* in(ivi('al tax!a*ers an( s#all )e exten(e( onl* to )aran&a*
treas'rers %#o are !ro!erl* )on(e( in accor(ance %it# a!!lica)le la%s.ARTICLE 21. Allocation o$ Procee(s o$ Comm'nit* Tax. " T#e !rocee(s o$ comm'nit* tax
act'all* an( (irectl* collecte( )* t#e cit* or m'nici!al treas'rer s#all accr'e entirel* to t#e &eneral
$'n( o$ t#e cit* or m'nici!alit* concerne(. T#e !rocee(s o$ comm'nit* tax collecte( t#ro'&# t#e )aran&a* treas'rers s#all )e a!!ortione( as $ollo%s
a3 0i$t* !ercent :F3 s#all accr'e to t#e &eneral $'n( o$ t#e cit* or m'nici!alit* concerne(5 an(
)3 0i$t* !ercent :F3 s#all accr'e to t#e )aran&a* %#ere t#e tax is collecte(.ARTICLE 22. A't#orit* to Use 6lan< 0orms o$ Resi(ence Certi$icates. " T#e cit* an(
m'nici!al treas'rers s#all )e a't#ori=e( to 'se $or t#e *ear 1//2 )lan< $orms o$ resi(ence certi$icates
still in t#eir stoc<+ !en(in& t#e (istri)'tion )* t#e 6IR o$ t#e ne% $orm $or t#e comm'nit* tax
certi$icate !rovi(e( t#ata3 T#e %or( resi(ence s#all )e cancelle( an( in its !lace+ t#e %or( comm'nit* s#all )e
s'!erim!ose(5 ac(
)3 T#e maxim'm amo'nt o$ a((itional tax !a*a)le )* in(ivi('al an( cor!orate tax!a*ers s#all )ec#an&e( $rom P8+:::.:: to P+:::.:: an( $rom P>+:::.:: to P1:+:::.::+ res!ectivel*+ in accor(ance
%it# t#e sc#e('le !rovi(e( in Article 29> o$ t#is R'le.
c3 Corres!on(in& re!orts as to 4'antit* an( serial n'm)ers o$ ol( )lan< $orms 'se( ('rin&Calen(ar ear 1//2 s#all )e s')mitte( )* t#e cit* an( m'nici!al treas'rers to t#e 6IR !'rs'ant to
a!!lica)le r'les an( re&'lations.
PART NINECollection o$ Taxes
ARTICLE 28. Tax Perio( an( ?anner o$ Pa*ment. " Unless ot#er%ise !rovi(e( in t#is R'le+
t#e tax !erio( o$ all local taxes+ $ees+ an( c#ar&es s#all )e t#e calen(ar *ear. 'c# taxes+ $ees+ an(
c#ar&es ma* )e !ai( in 4'arterl* installments as ma* )e !rovi(e( in t#e tax or(inance.ARTICLE 29. Accr'al o$ Tax. " Unless ot#er%ise !rovi(e( #erein+ local taxes+ $ees+ an(
c#ar&es s#all accr'e on t#e $irst 1st3 (a* o$ Han'ar* o$ eac# *ear as re&ar(s tax s')ects t#en lia)le
t#ere$or+ )'t an entirel* ne% tax+ $ee or c#ar&e+ or c#ar&es in t#e rates o$ existin& taxes+ $ees+ or c#ar&es+s#all accr'e on t#e $irst (a* o$ t#e 4'arter next $ollo%in& t#e e$$ectivit* o$ t#e or(inance im!osin& s'c#
ne% levies or rates.
ARTICLE 2. Time o$ Pa*ment. " Unless ot#er%ise s!eci$icall* !rovi(e( in t#is R'le+ alllocal taxes+ $ees+ an( c#ar&es ('e an( accr'in& to t#e LGUs s#all )e !ai( %it#in t#e $irst t%ent* 2:3
(a*s o$ Han'ar* or o$ eac# s')se4'ent 4'arter+ as t#e case ma* )e. T#e san&&'nian concerne( ma*+ $or
a 'sti$ia)le reason or ca'se+ exten( t#e time $or !a*ment o$ s'c# taxes+ $ees+ or c#ar&es %it#o't
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s'rc#ar&es or !enalties+ )'t onl* $or a !erio( not excee(in& six >3 mont#s.
ARTICLE 2>. 'rc#ar&es an( Penalties on Un!ai( Taxes+ 0ees+ or C#ar&es. " T#e san&&'nian
ma* im!ose a s'rc#ar&e not excee(in& t%ent*,$ive !ercent 2F3 o$ t#e amo'nt o$ taxes+ $ees+ or
c#ar&es not !ai( on time an( an interest at t#e rate not excee(in& t%o !ercent 2F3 !er mont# o$ t#e'n!ai( taxes+ $ees+ or c#ar&es incl'(in& s'rc#ar&es+ 'ntil s'c# amo'nt is $'ll* !ai( )'t in no case s#all
t#e total interest on t#e 'n!ai( amo'nt or !ortion t#ereo$ excee( t#irt*,six 8>3 mont#s.
ARTICLE 27. Interests on Ot#er Un!ai( Reven'es. " D#ere t#e amo'nt o$ an* ot#er reven'e('e an LGU+ exce!t vol'ntar* contri)'tions or (onations+ is not !ai( on t#e (ate $ixe( in t#e or(inance+
or in t#e contract+ ex!resse( or im!lie(+ or '!on t#e occ'rrence o$ t#e event %#ic# #as &iven rise to its
collection+ t#ere s#all )e collecte( as !art o$ t#at amo'nt an interest t#ereon at t#e rate not excee(in&t%o !ercent 2F3 !er mont# $rom t#e (ate it is ('e 'ntil it is !ai(+ )'t in no case s#all t#e total interest
on t#e 'n!ai( amo'nt or a !ortion t#ereo$ excee( t#irt*,six 8>3 mont#s.
ARTICLE 2-. Collection o$ Local Reven'es. " All local taxes+ $ees+ an( c#ar&es s#all )ecollecte( )* t#e !rovincial+ cit*+ m'nici!al+ or )aran&a* treas'rer+ or t#eir ('l* a't#ori=e( (e!'ties.
T#e !rovincial+ cit*+ or m'nici!al treas'rer ma* (esi&nate t#e )aran&a* treas'rer as #is (e!'t* to
collect local taxes+ $ees+ or c#ar&es. In case a )on( is re4'ire( $or t#e !'r!ose+ t#e !rovincial+ cit*+ or
m'nici!al &overnment s#all !a* t#e !remi'm t#ereon in a((ition to t#e !remi'ms o$ )on( t#at ma* )ere4'ire( 'n(er t#ese R'les.
ARTICLE 2/. Examination o$ 6oo<s o$ Acco'nts an( Pertinent Recor(s o$ 6'sinessmen. " a3
0or !'r!oses o$ im!lementin& t#is Article+ onl* t#e treas'rer o$ t#e LGU im!osin& t#e tax+ $ee+ orc#ar&e+ ma* examine t#e )oo<s o$ acco'nts an( !ertinent recor(s o$ )'sinessmen in or(er to ascertain+
assess+ an( collect t#e correct amo'nt o$ taxes+ $ees+ an( c#ar&es.
)3 T#e !rovincial+ cit*+ m'nici!al+ or )aran&a* treas'rer ma*+ )* #imsel$ or t#ro'&# an* o$ #is(e!'ties ('l* a't#ori=e( in %ritin&+ examine t#e )oo<s+ acco'nts+ an( ot#er !ertinent recor(s o$ an*
!erson+ !artners#i!+ cor!oration+ or association s')ect to local taxes+ $ees+ an( c#ar&es.
c3 T#e examination s#all )e ma(e ('rin& re&'lar )'siness #o'rs not o$tener t#an once a *ear $or
ever* tax !erio(+ %#ic# s#all )e t#e *ear imme(iatel* !rece(in& t#e examination+ an( s#all )e certi$ie( )* t#e examinin& o$$icial. 'c# certi$ication s#all )e ma(e o$ recor( in t#e )oo<s o$ acco'nts o$ t#e
tax!a*er examine(.
(3 In case t#e examination is ma(e )* a ('l* a't#ori=e( (e!'t* o$ t#e local treas'rer+ t#e %rittena't#orit* o$ t#e (e!'t* concerne( s#all s!eci$icall* state t#e name+ a((ress+ an( )'siness o$ t#e
tax!a*er %#ose )oo<s+ acco'nts+ an( !ertinent recor(s are to )e examine(+ t#e (ate an( !lace o$ s'c#
examination+ an( t#e !roce('re to )e $ollo%e( in con('ctin& t#e same.e3 0or t#is !'r!ose+ t#e recor(s o$ t#e reven'e (istrict o$$ice o$ t#e 6IR s#all )e ma(e availa)le to
t#e local treas'rer+ #is (e!'t* or ('l* a't#ori=e( re!resentative.
$3 T#e ecretar* o$ 0inance s#all !rescri)e t#e necessar* $orms to )e 'se( an( s'c# &'i(elines%#ic# ma* )e (eeme( necessar* $or t#e !ro!er an( e$$ective im!lementation o$ t#is Article.
PART TEN
Civil Reme(ies $or Collection o$ Reven'es
ARTICLE 2>:. A!!lication. " T#e !rovisions o$ Part Ten o$ t#is R'le an( t#e reme(ies #erein !rovi(e( ma* )e availe( o$ $or t#e collection o$ an* (elin4'ent local tax+ $ee+ c#ar&e+ or ot#er reven'es.
ARTICLE 2>1. Local Governments Lien. " Local taxes+ $ees+ c#ar&es+ an( ot#er reven'es
constit'te a lien+ s'!erior to all liens+ c#ar&es or enc'm)rances in $avor o$ an* !erson+ en$orcea)le )*a!!ro!riate a(ministrative or '(icial action+ not onl* '!on an* !ro!ert* or ri&#ts t#erein %#ic# ma* )e
s')ect to t#e lien )'t also '!on !ro!ert* 'se( in )'siness+ occ'!ation+ !ractice o$ !ro$ession or callin&+
or exercise o$ !rivile&e %it# res!ect to %#ic# t#e lien is im!ose(. T#e lien ma* onl* )e extin&'is#e('!on $'ll !a*ment o$ t#e (elin4'ent local taxes+ $ees+ an( c#ar&es incl'(in& relate( s'rc#ar&es an(
interests.
ARTICLE 2>2. Civil Reme(ies. " T#e civil reme(ies $or t#e collection o$ local taxes+ $ees+ or
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c#ar&es+ an( relate( s'rc#ar&es an( interests res'ltin& $rom (elin4'encies s#all )e
a3 6* a(ministrative action t#ro'&# (istraint o$ &oo(s+ c#attels+ or e$$ects+ an( ot#er !ersonal
!ro!ert* o$ %#atever c#aracter+ incl'(in& stoc<s an( ot#er sec'rities+ (e)ts+ cre(its+ )an< acco'nts+ an(
interest in an( ri&#ts to !ersonal !ro!ert*+ an( )* lev* '!on real !ro!ert* an( interest in or ri&#ts to real !ro!ert*5 an(
)3 6* '(icial action.
Eit#er o$ t#ese t%o 23 reme(ies or )ot# ma* )e !'rs'e( conc'rrentl* or sim'ltaneo'sl*at t#e (iscretion o$ t#e LGU concerne(.
ARTICLE 2>8. ;istraint o$ Personal Pro!ert*. " T#e reme(* )* (istraint s#all !rocee( as
$ollo%sa3 ei='re " U!on $ail're o$ t#e !erson o%in& an* local tax+ $ee+ or c#ar&e to !a* t#e same at t#e
time re4'ire(+ t#e local treas'rer or #is (e!'t* ma*+ '!on %ritten notice+ sei=e or con$iscate an*
!ersonal !ro!ert* )elon&in& to t#at !erson or an* !ersonal !ro!ert* s')ect to t#e lien in s'$$icient4'antit* to satis$* t#e tax+ $ee+ or c#ar&e in 4'estion+ to&et#er %it# an* increment t#ereto inci(ent to
(elin4'enc* an( t#e ex!enses o$ sei='re. In s'c# case+ t#e local treas'rer or #is (e!'t* s#all iss'e a
('l* a't#enticate( certi$icate )ase( '!on t#e recor(s o$ #is o$$ice s#o%in& t#e $act o$ (elin4'enc* an(
t#e amo'nts o$ t#e tax+ $ee+ or c#ar&e an( !enalt* ('e. 'c# certi$icate s#all serve as s'$$icient %arrant$or t#e (istraint o$ !ersonal !ro!ert* a$orementione(+ s')ect to t#e tax!a*ers ri&#t to claim exem!tion
'n(er t#e !rovisions o$ a!!lica)le la%s. ;istraine( !ersonal !ro!ert* s#all )e sol( at !')lic a'ction in
t#e manner !rovi(e( in t#is R'le.)3 Acco'ntin& o$ (istraine( &oo(s " T#e o$$icer exec'tin& t#e (istraint s#all ma<e or ca'se to )e
ma(e an acco'nt o$ t#e &oo(s+ c#attels+ or e$$ects (istraine(+ a co!* o$ %#ic# si&ne( )* #imsel$ s#all )e
le$t eit#er %it# t#e o%ner or !erson $rom %#ose !ossession t#e &oo(s+ c#attels+ or e$$ects are ta<en+ orat t#e (%ellin& or !lace o$ )'siness o$ t#at !erson an( %it# someone o$ s'ita)le a&e an( (iscretion+ to
%#ic# list s#all )e a((e( a statement o$ t#e s'm (eman(e( an( a note o$ t#e time an( !lace o$ sale.
c3 P')lication " T#e o$$icer s#all $ort#%it# ca'se a noti$ication to )e ex#i)ite( in not less t#an
t#ree 83 !')lic an( cons!ic'o's !laces in t#e territor* o$ t#e LGU %#ere t#e (istraint is ma(e+s!eci$*in& t#e time an( !lace o$ sale+ an( t#e articles (istraine(. T#e time o$ sale s#all not )e less t#an
t%ent* 2:3 (a*s a$ter notice to t#e o%ner or !ossessor o$ t#e !ro!ert* as a)ove s!eci$ie( an( t#e
!')lication or !ostin& o$ t#e notice. One !lace $or t#e !ostin& o$ t#e notice s#all )e at t#e o$$ice o$ t#ec#ie$ exec'tive o$ t#e LGU in %#ic# t#e !ro!ert* is (istraine(.
(3 Release o$ (istraine( !ro!ert* '!on !a*ment !rior to sale " I$ at an* time !rior to t#e
cons'mmation o$ t#e sale+ all t#e !ro!er c#ar&es are !ai( to t#e o$$icer con('ctin& t#e sale+ t#e &oo(sor e$$ects (istraine( s#all )e restore( to t#e o%ner.
e3 Proce('re o$ sale " At t#e time an( !lace $ixe( in t#e notice+ t#e o$$icer con('ctin& t#e sale
s#all sell t#e &oo(s or e$$ects so (istraine( at !')lic a'ction to t#e #i&#est )i((er $or cas#. Dit#in $ive3 (a*s a$ter t#e sale+ t#e local treas'rer s#all ma<e a re!ort o$ t#e !rocee(in&s in %ritin& to t#e local
c#ie$ exec'tive concerne(.
#o'l( t#e !ro!ert* (istraine( )e not (is!ose( o$ %it#in one #'n(re( an( t%ent* 12:3
(a*s $rom t#e (ate o$ (istraint+ t#e same s#all )e consi(ere( as sol( to t#e LGU concerne( $or t#eamo'nt o$ t#e assessment ma(e t#ereon )* t#e committee on a!!raisal an( to t#e extent o$ t#e same
amo'nt+ t#e tax (elin4'encies s#all )e cancelle(.
T#e committee on a!!raisal s#all )e com!ose( o$ t#e cit* or m'nici!al treas'rer asc#airman+ %it# a re!resentative o$ COA an( t#e cit* or m'nici!al assessor+ as mem)ers.
$3 ;is!osition o$ !rocee(s " T#e !rocee(s o$ t#e sale s#all )e a!!lie( to satis$* t#e tax+ incl'(in&
t#e s'rc#ar&es+ interests+ an( ot#er !enalties inci(ent to (elin4'enc*+ an( t#e ex!enses o$ t#e (istraintan( sale. T#e )alance over an( a)ove %#at is re4'ire( to !a* t#e entire claim s#all )e ret'rne( to t#e
o%ner o$ t#e !ro!ert* sol(. T#e ex!enses c#ar&ea)le '!on t#e sei='re an( sale s#all em)race onl* t#e
act'al ex!enses o$ sei='re an( !reservation o$ t#e !ro!ert* !en(in& t#e sale+ an( no c#ar&e s#all )e
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im!ose( $or t#e services o$ t#e local o$$icer or #is (e!'t*. D#ere t#e !rocee(s o$ t#e sale are
ins'$$icient to satis$* t#e claim+ ot#er !ro!ert* ma*+ in li<e manner+ )e (istraine( 'ntil t#e $'ll amo'nt
('e+ incl'(in& all ex!enses+ is collecte(.
ARTICLE 2>9. Lev* on Real Pro!ert*. " A$ter t#e ex!iration o$ t#e time re4'ire( to !a* t#e(elin4'ent tax+ $ee+ or c#ar&e+ real !ro!ert* ma* )e levie( on+ )e$ore+ sim'ltaneo'sl*+ or a$ter t#e
(istraint o$ !ersonal !ro!ert* )elon&in& to t#e (elin4'ent tax!a*er. T#e !rovincial+ cit* or m'nici!al
treas'rer+ as t#e case ma* )e+ s#all !re!are a ('l* a't#enticate( certi$icate s#o%in& t#e name o$ t#etax!a*er an( t#e amo'nt o$ t#e tax+ $ee+ or c#ar&e+ an( !enalt* ('e $rom #im. 'c# certi$icate s#all
o!erate %it# t#e $orce o$ a le&al exec'tion t#ro'&#o't t#e P#ili!!ines. Lev* s#all )e e$$ecte( )* %ritin&
'!on sai( certi$icate t#e (escri!tion o$ t#e !ro!ert* '!on %#ic# lev* is ma(e. At t#e same time+ %rittennotice o$ t#e lev* s#all )e maile( to or serve( '!on t#e local assessor an( re&istrar o$ (ee(s o$ t#e
!rovince or cit* %#ere t#e !ro!ert* is locate( %#o s#all annotate t#e lev* on t#e tax (eclaration an(
certi$icate o$ title o$ t#e !ro!ert*+ res!ectivel*+ an( t#e (elin4'ent tax!a*er or+ i$ #e )e a)sent $rom t#eP#ili!!ines+ to #is a&ent or t#e mana&er o$ t#e )'siness in res!ect to %#ic# t#e lia)ilit* arose+ or i$ t#ere
)e none+ to t#e occ'!ant o$ t#e !ro!ert* in 4'estion.
In case t#e lev* on real !ro!ert* is not iss'e( )e$ore or sim'ltaneo'sl* %it# t#e %arrant o$ (istraint on
!ersonal !ro!ert*+ an( t#e !ersonal !ro!ert* o$ t#e tax!a*er is not s'$$icient to satis$* #is (elin4'enc*+t#e !rovincial+ cit* or m'nici!al treas'rer+ as t#e case ma* )e+ s#all %it#in t#irt* 8:3 (a*s a$ter
exec'tion o$ t#e (istraint+ !rocee( %it# t#e lev* on t#e tax!a*ers real !ro!ert*.
A re!ort on an* lev* s#all+ %it#in ten 1:3 (a*s a$ter recei!t o$ t#e %arrant+ )e s')mitte( )* t#e lev*in&o$$icer to t#e san&&'nian concerne(.
ARTICLE 2>. Penalt* $or $ail're to Iss'e an( Exec'te Darrant. " Dit#o't !re'(ice to
criminal !rosec'tion 'n(er t#e Revise( Penal Co(e an( ot#er a!!lica)le la%s+ an* local treas'rer %#o$ails to iss'e or exec'te t#e %arrant o$ (istraint or lev* a$ter t#e ex!iration o$ t#e time !rescri)e(+ or
%#o is $o'n( &'ilt* o$ a)'sin& t#e exercise t#ereo$ )* com!etent a't#orit*+ s#all )e a'tomaticall*
(ismisse( $rom t#e service a$ter ('e notice an( #earin&.
ARTICLE 2>>. A(vertisement an( ale. " Dit#in t#irt* 8:3 (a*s a$ter lev*+ t#e local treas'rers#all !rocee( to !')licl* a(vertise $or sale or a'ction t#e !ro!ert* or a 'sa)le !ortion t#ereo$ as ma* )e
necessar* to satis$* t#e claim an( cost o$ sale5 an( s'c# a(vertisement s#all cover a !erio( o$ at least
t#irt* 8:3 (a*s. It s#all )e e$$ecte( )* !ostin& a notice at t#e main entrance o$ t#e cit* or m'nici!al#all+ an( in !')lic an( cons!ic'o's !laces in t#e )aran&a* %#ere t#e real !ro!ert* is locate(+ an( )*
!')lication once a %ee< $or t#ree 83 %ee<s in a ne%s!a!er o$ &eneral circ'lation in t#e !rovince+ cit*
or m'nici!alit* %#ere t#e !ro!ert* is locate(. T#e a(vertisement s#all contain t#e amo'nt o$ taxes+ $eesor c#ar&es+ an( !enalties ('e t#ereon+ an( t#e time an( !lace o$ sale+ t#e name o$ t#e tax!a*er a&ainst
%#om t#e taxes+ $ees+ or c#ar&es are levie(+ an( a s#ort (escri!tion o$ t#e !ro!ert* to )e sol(. At an*
time )e$ore t#e (ate $ixe( $or t#e sale+ t#e tax!a*er ma* sta* t#e !rocee(in&s )* !a*in& t#e taxes+ $ees+c#ar&es+ !enalties+ an( interests. I$ #e $ails to (o so+ t#e sale s#all !rocee( an( s#all )e #el( eit#er at t#e
main entrance o$ t#e !rovincial ca!itol+ cit* or m'nici!al #all+ or on t#e !ro!ert* to )e sol(+ or at an*
ot#er !lace as (etermine( )* t#e local treas'rer con('ctin& t#e sale an( s!eci$ie( in t#e notice o$ sale.
Dit#in t#irt* 8:3 (a*s a$ter t#e sale+ t#e local treas'rer or #is (e!'t* s#all ma<e a re!ort o$ t#e sale tot#e san&&'nian concerne(+ an( %#ic# s#all $orm !art o$ #is recor(s. A$ter cons'ltation %it# t#e
san&&'nian+ t#e local treas'rer s#all ma<e an( (eliver to t#e !'rc#aser a certi$icate o$ sale+ s#o%in& t#e
!rocee(in&s o$ t#e sale+ (escri)in& t#e !ro!ert* sol(+ statin& t#e name o$ t#e !'rc#aser an( settin& o'tt#e exact amo'nt o$ all taxes+ $ees+ c#ar&es+ an( relate( s'rc#ar&es+ interests+ or !enalties !rovi(e( t#at
an* excess in t#e !rocee(s o$ t#e sale over t#e claim an( cost o$ sales s#all )e t'rne( over to t#e o%ner
o$ t#e !ro!ert*. T#e local treas'rer ma*+ )* a ('l* a!!rove( or(inance+ a(vance an amo'nt s'$$icient to(e$ra* t#e costs o$ collection )* means o$ t#e reme(ies !rovi(e( in t#is R'le+ incl'(in& t#e
!reservation or trans!ortation+ in case o$ !ersonal !ro!ert*+ an( t#e a(vertisement an( s')se4'ent sale+
in cases o$ !ersonal an( real !ro!ert* incl'(in& im!rovements t#ereon.
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ARTICLE 2>7. Re(em!tion o$ Pro!ert* ol(. " Dit#in one 13 *ear $rom t#e (ate o$ sale+ t#e
(elin4'ent tax!a*er or #is re!resentative s#all #ave t#e ri&#t to re(eem t#e !ro!ert* '!on !a*ment to
t#e local treas'rer o$ t#e total amo'nt o$ taxes+ $ees+ or c#ar&es+ an( relate( s'rc#ar&es+ interest+ or
!enalties $rom t#e (ate o$ (elin4'enc* to t#e (ate o$ sale+ !l's interest o$ not more t#an t%o !ercent2F3 !er mont# on t#e !'rc#ase !rice $rom t#e (ate o$ !'rc#ase to t#e (ate o$ re(em!tion. 'c#
!a*ment s#all invali(ate t#e certi$icate o$ sale iss'e( to t#e !'rc#aser an( t#e o%ner s#all )e entitle( to
a certi$icate o$ re(em!tion $rom t#e !rovincial+ cit*+ or m'nici!al treas'rer or #is (e!'t*.T#e !rovincial+ cit*+ or m'nici!al treas'rer or #is (e!'t*+ '!on s'rren(er )* t#e !'rc#aser o$ t#e
certi$icate o$ sale !revio'sl* iss'e( to #im+ s#all $ort#%it# ret'rn to t#e latter t#e entire !'rc#ase !rice
!ai( )* #im !l's t#e interest o$ not more t#an t%o !ercent 2F3 !er mont# #erein !rovi(e( $or+ t#e !ortion o$ t#e cost o$ sale an( ot#er le&itimate ex!enses inc'rre( )* #im+ an( sai( !ro!ert* t#erea$ter
s#all )e $ree $rom t#e lien o$ s'c# taxes+ $ees+ or c#ar&es+ relate( s'rc#ar&es+ interests+ an( !enalties.
T#e o%ner s#all not )e (e!rive( o$ t#e !ossession o$ sai( !ro!ert* an( s#all )e entitle( to t#e rentalsan( ot#er income t#ereo$ 'ntil t#e ex!iration o$ t#e time allo%e( $or its re(em!tion.
ARTICLE 2>-. 0inal ;ee( o$ Conve*ance to P'rc#aser. " In case t#e tax!a*er $ails to re(eem
t#e !ro!ert* as !rovi(e( #erein+ t#e local treas'rer s#all exec'te a (ee( conve*in& to t#e !'rc#aser so
m'c# o$ t#e !ro!ert* as #as )een sol(+ $ree $rom liens o$ an* taxes+ $ees+ c#ar&es+ relate( s'rc#ar&es+interests+ an( !enalties. T#e (ee( s#all s'ccinctl* recite all t#e !rocee(in&s '!on %#ic# t#e vali(it* o$
t#e sale (e!en(s.
ARTICLE 2>/. P'rc#ase o$ Pro!ert* )* t#e Local Government Units $or Dant o$ 6i((er. " Incase t#ere is no )i((er $or t#e real !ro!ert* a(vertise( $or sale as !rovi(e( #erein+ or i$ t#e #i&#est )i(
is $or an amo'nt ins'$$icient to !a* t#e taxes+ $ees+ or c#ar&es+ relate( s'rc#ar&es+ interests+ !enalties+
an( costs+ t#e local treas'rer con('ctin& t#e sale s#all !'rc#ase t#e !ro!ert* in )e#al$ o$ t#e LGUconcerne( to satis$* t#e claim an( %it#in t%o 23 (a*s t#erea$ter s#all ma<e a re!ort o$ #is !rocee(in&s
%#ic# s#all )e re$lecte( '!on t#e recor(s o$ #is o$$ice. It s#all )e t#e ('t* o$ t#e re&istrar o$ (ee(s
concerne( '!on re&istration %it# #is o$$ice o$ an* s'c# (eclaration o$ $or$eit're to trans$er t#e title o$
t#e $or$eite( !ro!ert* to t#e LGU concerne( %it#o't t#e necessit* o$ an or(er $rom a com!etent co'rt.Dit#in one 13 *ear $rom t#e (ate o$ s'c# $or$eit're+ t#e tax!a*er or an* o$ #is re!resentative+ ma*
re(eem t#e !ro!ert* )* !a*in& to t#e local treas'rer t#e $'ll amo'nt o$ t#e taxes+ $ees+ c#ar&es+ an(
relate( s'rc#ar&es+ interests+ or !enalties+ an( t#e costs o$ sale. I$ t#e !ro!ert* is not re(eeme( as !rovi(e( #erein+ t#e o%ners#i! t#ereo$ s#all )e $'ll* veste( on t#e LGU concerne(.
ARTICLE 27:. Resale o$ Real Estate Ac4'ire( $or Pa*ment o$ Taxes+ 0ees+ or C#ar&es. " T#e
san&&'nian concerne( ma*+ )* a ('l* a!!rove( or(inance+ an( '!on notice o$ not less t#an t%ent* 2:3(a*s+ sell an( (is!ose o$ t#e real !ro!ert* ac4'ire( 'n(er t#e !rece(in& Article at !')lic a'ction. T#e
!rocee(s o$ t#e sale s#all accr'e to t#e &eneral $'n( o$ t#e LGU concerne(.
ARTICLE 271. Collection o$ ;elin4'ent Taxes+ 0ees+ C#ar&es+ or Ot#er Im!ositions t#ro'&#H'(icial Action. " T#e LGU concerne( ma* en$orce t#e collection o$ (elin4'ent taxes+ $ees+ c#ar&es+
or ot#er im!ositions )* civil action in an* co'rt o$ com!etent 'ris(iction. T#e civil action s#all )e $ile(
)* t#e local treas'rer %it#in t#e !erio( !rescri)e( in Article 2-9 o$ t#is R'le.
ARTICLE 272. 0'rt#er ;istraint or Lev*. " T#e reme(ies )* (istraint an( lev* ma* )e re!eate(i$ necessar* 'ntil t#e $'ll amo'nt ('e+ incl'(in& all ex!enses+ is collecte(. ac(
ARTICLE 278. Personal Pro!ert* Exem!t $rom ;istraint or Lev*. " T#e $ollo%in& !ro!ert*
s#all )e exem!t $rom (istraint an( t#e lev*+ attac#ment or exec'tion t#ereo$ $or (elin4'enc* in t#e !a*ment o$ an* local tax+ $ee+ or c#ar&e+ incl'(in& relate( s'rc#ar&es an( interests
a3 Tools an( im!lements necessaril* 'se( )* t#e (elin4'ent tax!a*er in #is tra(e or em!lo*ment5
)3 One 13 #orse+ co%+ cara)ao+ or ot#er )east o$ )'r(en+ s'c# as t#e (elin4'ent tax!a*er ma*select+ an( necessaril* 'se( )* #im in #is or(inar* occ'!ation5
c3 is necessar* clot#in&+ an( t#at o$ all #is $amil*5
(3 o'se#ol( $'rnit're an( 'tensils necessar* $or #o'se<ee!in& an( 'se( $or t#at !'r!ose )* t#e
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(elin4'ent tax!a*er+ s'c# as #e ma* select+ o$ a val'e not excee(in& Ten T#o'san( Pesos P1:+:::.::35
e3 Provisions+ incl'(in& cro!s+ act'all* !rovi(e( $or in(ivi('al or $amil* 'se s'$$icient $or $o'r 93
mont#s5
$3 T#e !ro$essional li)raries o$ (octors+ en&ineers+ la%*ers an( '(&es5&3 One 13 $is#in& )oat an( net+ not excee(in& t#e total val'e o$ Ten T#o'san( Pesos P1:+:::.::3+
)* t#e la%$'l 'se o$ %#ic# a $is#erman earns #is liveli#oo(5 an(
#3 An* material or article $ormin& !art o$ a #o'se or im!rovement o$ an* real !ro!ert*.PART ELEBEN
?iscellaneo's Provisions
ARTICLE 279. Po%er to Lev* Ot#er Taxes+ 0ees+ or C#ar&es. " LGUs ma* exercise t#e !o%erto lev* taxes+ $ees+ or c#ar&es on an* )ase or s')ect not ot#er%ise s!eci$icall* en'merate( in t#is R'le
or taxe( 'n(er t#e !rovisions o$ t#e NIRC+ as amen(e(+ or ot#er a!!lica)le la%s !rovi(e( t#at t#e
taxes+ $ees+ or c#ar&es s#all not )e 'n'st+ excessive+ o!!ressive+ con$iscator*+ or contrar* to (eclare(national !olic* !rovi(e( $'rt#er t#at t#e or(inance lev*in& s'c# taxes+ $ees+ or c#ar&es s#all not )e
enacte( %it#o't an* !rior !')lic #earin& con('cte( $or t#e !'r!ose.
ARTICLE 27. Proce('re $or A!!roval an( E$$ectivit* o$ Tax Or(inances an( Reven'e
?eas'res. " T#e !roce('re $or a!!roval o$ local tax or(inances an( reven'e meas'res s#all )e inaccor(ance %it# t#e !rovisions o$ t#is R'le !rovi(e( t#at !')lic #earin&s s#all )e con('cte( $or t#e
!'r!ose !rior to t#e enactment t#ereo$ !rovi(e( $'rt#er t#at an* 4'estion on t#e constit'tionalit* or
le&alit* o$ tax or(inances or reven'e meas'res ma* )e raise( on a!!eal %it#in t#irt* 8:3 (a*s $rom t#ee$$ectivit* t#ereo$ to t#e ecretar* o$ H'stice %#o s#all ren(er a (ecision %it#in sixt* >:3 (a*s $rom
t#e (ate o$ recei!t o$ t#e a!!eal !rovi(e( $'rt#ermore t#at s'c# a!!eal s#all not #ave t#e e$$ect o$
s's!en(in& t#e e$$ectivit* o$ t#e or(inance an( t#e accr'al an( !a*ment o$ t#e tax+ $ee+ or c#ar&e levie(t#erein an( !rovi(e( $inall* t#at %it#in t#irt* 8:3 (a*s a$ter recei!t o$ t#e (ecision or t#e la!se o$ t#e
sixt*,(a* !erio( %it#o't t#e ecretar* o$ H'stice actin& '!on t#e a!!eal+ t#e a&&rieve( !art* ma* $ile
a!!ro!riate !rocee(in&s %it# a co'rt o$ com!etent 'ris(iction.
All tax or(inances or reven'e meas'res s#all )e n'm)ere( consec'tivel* t#ro'&#o't t#e calen(ar *earan( contin'o'sl* $rom *ear to *ear+ 'sin& t#e last t%o 23 (i&its o$ t#e calen(ar *ear in %#ic# it is
enacte(+ $ollo%e( )* its (enominate( n'm)er. 0or exam!le+ an or(inance is !asse( in Han'ar*+ 1//2+
an( it is t#e $irst or(inance $or t#at *ear. T#e or(inance s#all )e (enominate( an( n'm)ere( as TaxOr(inance No. /2,::1. T#e next s#all )e Tax Or(inance No. /2,::2+ Tax Or(inance No. /2,::8+ an( so
$ort#.
ARTICLE 27>. P')lication o$ Tax Or(inances an( Reven'e ?eas'res. " a3 Dit#in ten 1:3(a*s a$ter t#eir a!!roval+ certi$ie( tr'e co!ies o$ all !rovincial+ cit*+ an( m'nici!al tax or(inances or
reven'e meas'res s#all )e !')lis#e( in $'ll $or t#ree 83 consec'tive (a*s in a ne%s!a!er o$ local
circ'lation !rovi(e( t#at in !rovinces+ cities+ an( m'nici!alities %#ere t#ere are no ne%s!a!ers o$ localcirc'lation+ t#e same ma* )e !oste( in at least t%o 23 cons!ic'o's an( !')licl* accessi)le !laces.
I$ t#e tax or(inance or reven'e meas're contains !enal !rovisions as a't#ori=e( in Article 27/ o$ t#is
R'le+ t#e &ist o$ s'c# tax or(inance or reven'e meas're s#all )e !')lis#e( in a ne%s!a!er o$ &eneral
circ'lation %it#in t#e !rovince %#ere t#e san&&'nian concerne( )elon&s. In t#e a)sence o$ an*ne%s!a!er o$ &eneral circ'lation %it#in t#e !rovince+ !ostin& o$ s'c# or(inance or meas're s#all )e
ma(e in accessi)le an( cons!ic'o's !')lic !laces in all m'nici!alities an( cities o$ t#e !rovince to
%#ic# t#e san&&'nian enactin& t#e or(inance or reven'e meas're )elon&s.In case t#e e$$ectivit* o$ an* tax or(inance or reven'e meas're $alls on an* (ate ot#er t#an t#e
)e&innin& o$ t#e 4'arter+ t#e same s#all )e consi(ere( as $allin& at t#e )e&innin& o$ t#e next ens'in&
4'arter an( t#e taxes+ $ees+ or c#ar&es ('e s#all )e&in to accr'e t#ere$rom.)3 T#e con('ct o$ !')lic #earin&s s#all )e &overne( )* t#e $ollo%in& !roce('re
13 Dit#in ten 1:3 (a*s $rom $ilin& o$ an* !ro!ose( tax or(inance or reven'e meas're+ t#e same
s#all $irst )e !')lis#e( $or t#ree 83 consec'tive (a*s in a ne%s!a!er o$ local circ'lation or s#all )e
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!oste( sim'ltaneo'sl* in at least $o'r 93 cons!ic'o's !')lic !laces %it#in t#e territorial 'ris(iction o$
t#e LGU concerne(.
23 In a((ition to t#e re4'irement $or !')lication or !ostin&+ t#e san&&'nian concerne( s#all ca'se
t#e sen(in& o$ %ritten notices o$ t#e !ro!ose( or(inance+ enclosin& a co!* t#ereo$+ to t#e intereste( ora$$ecte( !arties o!eratin& or (oin& )'siness %it#in t#e territorial 'ris(iction o$ t#e LGU concerne(.
83 T#e notice or notices s#all s!eci$* t#e (ate or (ates an( ven'e o$ t#e !')lic #earin& or #earin&s.
T#e initial !')lic #earin& s#all )e #el( not earlier t#an ten 1:3 (a*s $rom t#e sen(in& o't o$ t#e noticeor notices+ or t#e last (a* o$ !')lication+ or (ate o$ !ostin& t#ereo$+ %#ic#ever is later.
93 At t#e !')lic #earin& or #earin&s+ all a$$ecte( or intereste( !arties s#all )e accor(e( an
o!!ort'nit* to a!!ear an( !resent or ex!ress t#eir vie%s+ comments an( recommen(ations+ an( s'c# !')lic #earin& or #earin&s s#all contin'e 'ntil all iss'es #ave )een !resente( an( $'ll* (eli)erate( '!on
an(or a consens's is o)taine(+ %#et#er $or or a&ainst t#e enactment o$ t#e !ro!ose( tax or(inance or
reven'e meas're.3 T#e secretar* o$ t#e san&&'nian concerne( s#all !re!are t#e min'tes o$ s'c# !')lic #earin& an(
s#all attac# to t#e min'tes t#e !osition !a!ers+ memoran(a+ an( ot#er (oc'ments s')mitte( )* t#ose
%#o !artici!ate(.
c3 No tax or(inance or reven'e meas're s#all )e enacte( or a!!rove( in t#e a)sence o$ a !')lic#earin& ('l* con('cte( in t#e manner !rovi(e( in t#is Article.
ARTICLE 277. 0'rnis#in& o$ Co!ies o$ Tax Or(inances an( Reven'e ?eas'res. " Co!ies o$ all
!rovincial+ cit*+ m'nici!al+ an( )aran&a* tax or(inances an( reven'e meas'res s#all )e $'rnis#e( t#eres!ective local treas'rers concerne( $or !')lic (issemination. casia
ARTICLE 27-. Existin& Tax Or(inances or Reven'e ?eas'res. " a3 All existin& tax or(inances
or reven'e meas'res o$ !rovinces+ cities+ m'nici!alities+ an( )aran&a*s im!osin& taxes+ $ees+ or c#ar&ess#all contin'e to )e in $orce an( e$$ect a$ter t#e e$$ectivit* o$ t#e Co(e+ exce!t t#ose im!osin& levies on
tax )ases or tax s')ects %#ic# are no lon&er %it#in t#e taxin& an( reven'e,raisin& !o%ers o$ t#e LGU
concerne( an( %#ere t#e rates levie( in t#e tax or(inance are #i&#er t#an t#e taxes+ $ees+ or c#ar&es
!rescri)e( in t#is R'le in %#ic# case+ t#e lo%er rates s#all )e collecte(.)3 In case o$ $ail're o$ t#e san&&'nian to amen( or revo<e tax or(inances or reven'e meas'res
inconsistent %it#+ or in violation o$ t#e !rovisions o$ t#is R'le+ t#e same s#all )e (eeme( rescin(e(
'!on t#e e$$ectivit* o$ t#e Co(e an( t#ese R'les.ARTICLE 27/. Penalties $or Biolation o$ Tax Or(inances. " T#e san&&'nian o$ an LGU is
a't#ori=e( to !rescri)e im!risonment or $ines or ot#er !enalties $or violation o$ tax or(inances )'t in
no case s#all s'c# im!risonment )e less t#an one 13 mont# nor more t#an six >3 mont#s or s'c# $ine )e less t#an One T#o'san( Pesos P1+:::.::3 nor more t#an 0ive T#o'san( Pesos P+:::.::3+ or )ot#
s'c# im!risonment or $ine+ at t#e (iscretion o$ t#e co'rt. T#e san&&'nian )aran&a* ma* !rescri)e a $ine
o$ not less t#an One 'n(re( Pesos P1::.::3 nor more t#an One T#o'san( Pesos P1+:::.::3.ARTICLE 2-:. Attem!t to En$orce Boi( or 's!en(e( Tax Or(inances an( Reven'e ?eas'res.
" En$orcement o$ an* tax or(inance or reven'e meas're a$ter ('e notice o$ t#e (isa!!roval or
s's!ension t#ereo$ s#all )e a s'$$icient &ro'n( $or a(ministrative (isci!linar* action a&ainst t#e local
o$$icials an( em!lo*ees res!onsi)le t#ere$or. An* attem!t to en$orce an* tax or(inance or reven'emeas're (eeme( rescin(e( )* o!eration o$ la%+ or t#e e$$ectivit* o$ %#ic# #as )een s's!en(e(+ or t#e
!assa&e o$ %#ic# #as )een (eclare( ille&al+ s#all s')ect t#e local o$$icials an( em!lo*ees res!onsi)le
t#ere$or to a(ministrative (isci!linar* action.ARTICLE 2-1. A't#orit* to A('st Rates o$ Taxes. " LGUs s#all )e a't#ori=e( to a('st t#e tax
rates !rescri)e( in t#is R'le not o$tener t#an once ever* $ive 3 *ears+ )'t in no case s#all s'c#
a('stments excee( ten !ercent 1:F3 o$ t#e rates $ixe( in t#is R'les.ARTICLE 2-2. A't#orit* to Grant Tax Exem!tion Privile&es or Incentives. " a3 D#ile
san&&'nians ma* &rant tax exem!tion+ tax incentive+ or tax relie$+ s'c# &rant s#all not a!!l* to
re&'lator* $ees %#ic# are levie( 'n(er t#e !olice !o%er o$ LGUs. Tax exem!tions s#all )e con$erre(
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t#ro'&# t#e iss'ance o$ a tax exem!tion certi$icate+ %#ic# s#all )e non,trans$era)le.
)3 T#e san&&'nians &rantin& tax exem!tions+ tax incentives an( tax relie$s ma* )e &'i(e( )* t#e
$ollo%in&
13 On t#e &rant o$ tax exem!tions or tax relie$si3 Tax exem!tion or tax relie$ ma* )e &rante( in cases o$ nat'ral calamities+ civil (ist'r)ance+
&eneral $ail're o$ cro!s+ or a(verse economic con(itions s'c# as s')stantial (ecrease in t#e !rices o$
a&ric'lt'ral or a&ri,)ase( !ro('cts5ii3 T#e &rant o$ exem!tion or relie$ s#all )e t#ro'&# an or(inance.
iii3 An* exem!tion or relie$ &rante( to a t*!e or <in( o$ )'siness s#all a!!l* to all )'sinesses
similarl* sit'ate(5 an(iv3 An* exem!tion or relie$ &rante( s#all ta<e e$$ect onl* ('rin& t#e next calen(ar *ear $or a !erio(
not excee(in& t%elve 123 mont#s as ma* )e !rovi(e( in t#e or(inance. In t#e case o$ s#are( reven'es+
t#e exem!tion or relie$ s#all onl* exten( to t#e LGU &rantin& s'c# exem!tion or relie$.23 On t#e &rant o$ tax incentives
i3 T#e tax incentive s#all )e &rante( onl* to ne% investments in t#e localit* an( t#e or(inance
s#all !rescri)e t#e terms an( con(itions t#ere$or5
ii3 T#e &rant o$ t#e tax incentive s#all )e $or a (e$inite !erio( not excee(in& one 13 calen(ar *ear5iii3 T#e &rant o$ tax incentives s#all )e )* or(inance !asse( !rior to t#e $irst 1st3 (a* o$ Han'ar* o$
an* *ear5 an(
iv3 An* tax incentive &rante( to a t*!e or <in( o$ )'siness s#all a!!l* to all )'sinesses similarl*sit'ate(.
ARTICLE 2-8. Dit#(ra%al o$ Tax Exem!tion Privile&es or Incentives. " Unless ot#er%ise
!rovi(e( in t#is R'le+ )e&innin& Han'ar* 1+ 1//2+ all local tax exem!tion !rivile&es or incentives&rante( to an( !resentl* eno*e( )* an* !erson+ %#et#er nat'ral or 'ri(ical+ incl'(in& GOCCs+ are
consi(ere( %it#(ra%n+ exce!t t#e $ollo%in&
a3 Local %ater (istricts5
)3 Coo!eratives ('l* re&istere( 'n(er RA >/8-+ ot#er%ise <no%n as t#e Coo!erative Co(e o$ t#eP#ili!!ines5
c3 Non,stoc< an( non,!ro$it #os!itals an( e('cational instit'tions5
(3 6'siness enter!rises certi$ie( )* t#e 6oar( o$ Investments 6OI3 as !ioneer or non,!ioneer $or a !erio( o$ six >3 an( $o'r 93 *ears+ res!ectivel*+ $rom t#e (ate o$ re&istration5
e3 6'siness entit*+ association+ or coo!eratives re&istere( 'n(er RA >-1:5 an(
$3 Printer an(or !')lis#er o$ )oo<s or ot#er rea(in& materials !rescri)e( )* ;EC as sc#ool textsor re$erences+ inso$ar as recei!ts $rom t#e !rintin& an(or !')lis#in& t#ereo$ are concerne(.
Unless ot#er%ise re!eale( )* la%+ )'siness an( economic enter!rises o!eratin& %it#in
ex!ort !rocessin& =ones a(ministere( )* t#e Ex!ort Processin& Jone A't#orit* s#all contin'e to eno*t#e tax exem!tion !rivile&es an( tax incentives &rante( in P; >>+ as amen(e(.
PART TDELBE
Tax!a*ers Reme(ies
ARTICLE 2-9. Perio( o$ Assessment an( Collection. " a3 Local taxes+ $ees+ or c#ar&es s#all )eassesse( %it#in $ive 3 *ears $rom t#e (ate t#e* )ecome ('e. No action $or t#e collection o$ s'c#
taxes+ $ees+ or c#ar&es+ %#et#er a(ministrative or '(icial+ s#all )e instit'te( a$ter t#e ex!iration o$ s'c#
!erio( !rovi(e( t#at taxes+ $ees or c#ar&es %#ic# #ave accr'e( )e$ore t#e e$$ectivit* o$ t#e Co(e ma* )e assesse( %it#in a !erio( o$ t#ree 83 *ears $rom t#e (ate t#e* )ecame ('e.
)3 In case o$ $ra'( or intent to eva(e t#e !a*ment o$ taxes+ $ees+ or c#ar&es+ t#e same ma* )e
assesse( %it#in ten 1:3 *ears $rom (iscover* o$ t#e $ra'( or intent to eva(e !a*ment.c3 Local taxes+ $ees+ or c#ar&es ma* )e collecte( %it#in $ive 3 *ears $rom t#e (ate o$ assessment
)* a(ministrative or '(icial action. No s'c# action s#all )e instit'te( a$ter t#e ex!iration o$ sai( !erio(
!rovi(e( t#at taxes+ $ees+ or c#ar&es assesse( )e$ore t#e e$$ectivit* o$ t#e Co(e ma* )e collecte( %it#in
8/2/2019 LGC Local Tax IRR
http://slidepdf.com/reader/full/lgc-local-tax-irr 26/26
a !erio( o$ t#ree 83 *ears $rom t#e (ate o$ assessment.
(3 T#e r'nnin& o$ t#e !erio(s o$ !rescri!tion !rovi(e( in t#e !rece(in& !ara&ra!#s s#all )e
s's!en(e( $or t#e time ('rin& %#ic#
13 T#e treas'rer is le&all* !revente( $rom ma<in& t#e assessment o$ collection523 T#e tax!a*er re4'ests re,investi&ation an( exec'tes a %aiver in %ritin& )e$ore ex!iration o$ t#e
!erio( %it#in %#ic# to assess or collect5 an(
83 T#e tax!a*er is o't o$ t#e co'ntr* or ot#er%ise cannot )e locate(.ARTICLE 2-. Protest on Assessment. " D#en t#e local treas'rer or #is ('l* a't#ori=e(
re!resentative $in(s t#at correct taxes+ $ees+ or c#ar&es #ave not )een !ai(+ #e s#all iss'e a notice o$
assessment statin& t#e nat're o$ t#e tax+ $ee+ or c#ar&e t#e amo'nt o$ (e$icienc*+ t#e s'rc#ar&es+interests+ an( !enalties. Dit#in sixt* >:3 (a*s $rom recei!t o$ t#e notice o$ assessment+ t#e tax!a*er
ma* $ile a %ritten !rotest %it# t#e local treas'rer contestin& t#e assessment5 ot#er%ise+ t#e assessment
s#all )ecome $inal an( exec'tor*. T#e local treas'rer s#all (eci(e t#e !rotest %it#in sixt* >:3 (a*s$rom t#e time o$ its $ilin&. I$ t#e local treas'rer $in(s t#e !rotest to )e %#oll* or !artl* meritorio's+ #e
s#all iss'e a notice cancellin& %#oll* or !artiall* t#e assessment. I$ t#e local treas'rer $in(s t#e
assessment to )e %#oll* or !artl* correct+ #e s#all (en* t#e !rotest %#oll* or !artl* %it# notice to t#e
tax!a*er.T#e tax!a*er s#all #ave t#irt* 8:3 (a*s $rom recei!t o$ t#e (enial o$ t#e !rotest or $rom t#e la!se o$ t#e
sixt*,(a* !erio( !rescri)e( in t#is Article %it#in %#ic# to a!!eal %it# t#e co'rt o$ com!etent
'ris(iction5 ot#er%ise+ t#e assessment )ecomes concl'sive an( 'na!!eala)le.ARTICLE 2->. Claim $or Re$'n( or Tax Cre(it. " All tax!a*ers entitle( to a re$'n( or tax cre(it
!rovi(e( in t#is R'le s#all $ile %it# t#e local treas'rer a claim in %ritin& ('l* s'!!orte( )* evi(ence o$
!a*ment e.&.+ o$$icial recei!ts+ tax clearance+ an( s'c# ot#er !roo$ evi(encin& over!a*ment3 %it#int%o 23 *ears $rom !a*ment o$ t#e tax+ $ee+ or c#ar&e. No case or !rocee(in& s#all )e entertaine( in an*
co'rt %it#o't t#is claim in %ritin&+ an( a$ter t#e ex!iration o$ t%o 23 *ears $rom t#e (ate o$ !a*ment o$
s'c# tax+ $ee+ or c#ar&e+ or $rom t#e (ate t#e tax!a*er is entitle( to a re$'n( or tax cre(it.
T#e tax cre(it &rante( a tax!a*er s#all not )e re$'n(a)le in cas# )'t s#all onl* )e a!!lie( to $'t're taxo)li&ations o$ t#e same tax!a*er $or t#e same )'siness. I$ a tax!a*er #as !ai( in $'ll t#e tax ('e $or t#e
entire *ear an( #e s#all #ave no ot#er tax o)li&ation !a*a)le to t#e LGU concerne( ('rin& t#e *ear+ #is
tax cre(its+ i$ an*+ s#all )e a!!lie( in $'ll ('rin& t#e $irst 4'arter o$ t#e next calen(ar *ear on t#e tax('e $rom #im $or t#e same )'siness o$ sai( calen(ar *ear.
An* 'na!!lie( )alance o$ t#e tax cre(it s#all )e re$'n(e( in cas# in t#e event t#at #e terminates
o!eration o$ t#e )'siness involve( %it#in t#e localit*.ARTICLE 2-7. A't#orit* o$ t#e ecretar* o$ 0inance. " T#e ecretar* o$ 0inance s#all+ in
cons'ltation %it# t#e lea&'es o$ LGUs+ $orm'late an( !rescri)e+ $rom time to time+ !roce('res an(
&'i(elines as ma* )e necessar* $or t#e !ro!er+ e$$icient+ an( e$$ective im!lementation o$ t#is R'le.
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