- Amending Sec. 227 of the NIRC Re: New Rate Structure on Franchise Operators
- Executive Order No. 72
November 25, 1986
EXECUTIVE ORDER NO. 72
FURTHER AMENDING SECTION 227 OF THE NATIONAL INTERNAL REVENUE CODE, AS AMENDED, AND FOR OTHER PURPOSES
WHEREAS, there is a need to rationalize the taxes and exemptions on franchises by prescribing a new rate structure on franchise operators and withdrawing income tax exemptions; cdtai
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order:
SECTION 1. Section 227 of the
"Section 227. Tax on franchises. Any provision of general or special law to the contrary notwithstanding, there shall be levied, assessed and collected in respect to all franchises, upon the gross receipts from the business covered by the law granting the franchise, a tax in accordance with the schedule prescribed hereunder:
(a) On electric utilities, city gas and water supplies Two (2%) per cent
(b) On telephone and/or telegraph systems, and radio broadcasting stations Three (3%) per cent
(c) On other franchises Five (5%) per cent
The grantee shall file the return with, and pay the tax due therein to, the Commissioner of Internal Revenue or his duly authorized representative in accordance with the provisions of Section 162 of this Code, and the return shall be subject to audit by the Bureau of Internal Revenue, any provision of any existing law to the contrary notwithstanding."
SECTION 2. Any provision of general or special law to the contrary notwithstanding, all grantees of franchises shall be subject to income tax levied under Title II of the
SECTION 3. Section 1 of cd i
SECTION 4. This Executive Order shall take effect immediately.
DONE in the City of Manila, this 25th day of November, in the year of Our Lord, Nineteen Hundred and Eighty-Six.
Published in the Official Gazette, Vol. 82 No. 50 page 5860 on December 15, 1986.