2002 Ord No. 81 - Section 85 - Section 92 - City Taxes
Section 85. Imposition of tax. – There is hereby levied an annual tax on the following businesses at rates prescribed therefore:
(a) On Manufacturers, producers, assemblers, repackers, processors of any article
of commerce of whatever kind or nature and brewers, distillers, rectifiers and compounder of
liquor, distilled spirits and wines, in accordance with the following schedules:
With the gross sales or receipt for the Amount of Tax per
preceding Calendar Year in the Annum
amount of
less than PhP10,000 PhP273.00
PhP10,000.00 or more but less than 15,000 363.00
15,000.00 or more but less than 20,000 498.00
20,000.00 or more but less than 30,000 726.00
30,000.00 or more but less than 40,000 1,089.00
40,000.00 or more but less than 50,000 1,362.00
50,000.00 or more but less than 75,000 2,178.00
75,000.00 or more but less than 100,000 2,723.00
100,000.00 or more but less than 150,000 3,630.00 150,000.00 or more but less than 200,000 4,538.00
200,000.00 or more but less than 300,000 6,353.00
300,000.00 or more but less than 500,000 9,075.00
500,000.00 or more but less than 750,000 13,200.00
750,000.00 or more but less than 1,000,000 16,500.00
1,000,000.00 or more but less than 2,000,000 22,688.00
2,000,000.00 or more but less than 3,000,000 27,225.00
3,000,000.00 or more but less than 4,000,000 32,670.00
4,000,000.00 or more but less than 5,000,000 38,115.00
5,000,000.00 or more but less than 6,500,000 40,219.00
6,500,000.00 or more at the rate 61.88% of 1%
not exceeding sixty one point eighty eight percent (61.88%) of one percent (1%)
The preceding rates shall apply only to the amount of domestics sales of manufacturers, assemblers, repackers, processors, brewers, distillers, rectifiers and compounders of liquors, distilled spirits and wines or manufacturers of any article of commerce of whatever kind or nature other than those enumerated in paragraph ( c ) of this section.
(b) On the Wholesalers, distributors, importers, or dealers of any article of any commerce of whatever kind of nature in accordance with the following schedule:
With gross sales or receipts for the Amount of Tax per
preceding Calendar Year in the Annum
amount of
Less than PhP1,000 PhP30.00
PhP1,000 or more but less thanPhP2,000 55.00
2,000 or more but less than 3,000 83.00
3,000 or more but less than 4,000 119.00
4,000 or more but less than 5,000 165.00
5,000 or more but less than 6,000 200.00
6,000 or more but less than 7,000 237.00
7,000 or more but less than 8,000 273.00
8,000 or more but less than 10,000 309.00
10,000 or more but less than 15,000 363.00
15,000 or more but less than 20,000 454.00
20,000 or more but less than 30,000 545.00
30,000 or more but less than 40,000 726.00
40,000 or more but less than 50,000 1,089.00
50,000 or more but less than 75,000 1,634.00
75,000 or more but less than 100,000 2,178.00
100,000 or more but less than 150,000 3,086.00
150,000 or more but less than 200,000 3,993.00
200,000 or more but less than 300,000 5,445.00
300,000 or more but less than 500,000 7,260.00
500,000 or more but less than 750,000 10,890.00
750,000 or more but less than 1,000,000 14,520.00
1,000,000 or more but less than 2,000,000 1 6,500.00
2,000,000.00 or more at the rate not exceeding
eighty two point five percent (82.5%) of one (1%)
The business enumerated in subsection (a) above shall no longer be subject to the tax on wholesaler, distributors, or dealers provided in this subsection.
(c) On the exporter and on manufacturers, millers, producers, wholesalers, distributors, dealers, or retailers of essential commodities enumerated hereunder at a rate of one-half (1/2) of the rates prescribed under subsections (a), (b) and (c), respectively, of this Section:
(1) Rice and corn;
(2) Wheat or cassava flour, meat, dairy products, locally manufactured, processed or
or preserved food, sugar, salt and other agricultural, marine and fresh water
products, whether in their original state or not;
(3) Cooking oil and cooking gas;
(4) Laundry soap, detergents, and medicines;
(5) Agricultural implements, equipment and post-harvest facilities, fertilizers,
pesticides, insecticides and other farm inputs;
(6) Poultry feeds and other animals feeds;
(7) School Supplies; and
(8) Cement
Taxpayers dealing in essential and non-essential commodities, or both shall present their separate books of accounts for essential and non-essential items for certification when paying taxes and/or fees. Provided, that, when the sales are not made separate or segregated in their books of accounts, the sales shall be treated as sales for non- essential commodities.
For purposes of this Section, the term exporters shall refer to those who are principally engaged in the business of exporting goods and merchandise as well as manufacturers and producers whose goods or products are both sold domestically and abroad. The amount of export sales shall be excluded from the total sales and shall be subject to the rates not exceeding one-half (1/2) of the rates prescribed under paragraphs (a) (b) and (e) of this Section.
(d) On retailers, the rate of three point three percent (3.3%) per annum shall be imposed on gross sales not exceeding PhP400,000.00 while the rate of one point sixty five percent (1.65%) per annum shall be imposed on sales in excess of the first PhP400,000.00.
Barangays, however, shall have the exclusive power to levy taxes on gross sales or receipts of the preceding calendar year of PhP50,000.00 or less.
(e) On Contractors and other independent contractors defined in Sec. 3 (A) (1) (u) of chapter III of the Code; and on owners or operators of business establishments rendering or offering services such as but not limited to: advertising agencies; animal hospitals; assaying laboratories; belt and buckle shops; blacksmith shops; bookbinders; booking offices for film exchange; booking offices for transportation on commission basis; breeding of game cocks and other sporting animals belongings to others; business management services; collecting agencies; escort services; feasibility studies; consultancy services; garages; garbage disposal contractors; gold and silversmith shops; inspection services for incoming and outgoing cargoes; interior decorating services; janitorial services; job placement or recruitment agencies; landscaping contractors; lathe machine shops; management consultants not subject to professionals tax; medical and dental laboratories; mercantile agencies; messenger services; operators of shoe shine stands; painting shops; perma press establishment; rent-a-plant services; polo players; school for and/or horse-back riding academy; real estate appraisers; real estate brokerage; photostatic; white/blue printing, Xerox, typing and mimeographing services; rental of bicycles and or tricycles, furniture, shoes, watches, household appliances, boats, typewrites, etc; roasting of pigs, fowls, etc; shipping agencies; shipyard for repairing ships for others; shops for shearing animals; silkscreen or T-shirt printing shops; stables; travel agencies; vaciador shops; veterinary clinics; video rentals and/or coverage services; dancing schools/speed reading/EDP; nursery, vocational and other schools not regulated by the Department of Education, Culture and Sports, (DECS) day care centers; etc with the following schedule:
GROSS-SALE/RECEIPTS AMOUNT OF TAX PER FOR THE PRECEDING ANNUM CALENDAR YEAR
Less than PhP 5,000,00 PhP 45.00
PhP5,000 or more but less than PhP 10,000 101.00
10,000 or more but less than 15,000 173.00
15,000 or more but less than 20,000 273.00
20,000 or more but less than 30,000 454.00
30,000 or more but less than 40,000 636.00
40,000 or more but less than 50,000 908.00
50,000 or more but less than 75,000 1,452.00
75,000 or more but less than 100,000 2,178.00
100,000 or more but less than 150,000 3,267.00
150,000 or more but less than 200,000 4,356.00
200,000 or more but less than 250,000 5,990.00
250,000 or more but less than 300,000 7,623.00
300,000 or more but less than 400,000 10,164.00
400,000 or more but less than 500,000 13,613.00
500,000 or more but less than 750,000 15,263.00
750,000 or more but less than 1,000,000 16,913.00
1,000,000 or more but less than 2,000,000 18,975.00
2,000,000 or more At the rate not exceeding 82.5% of 1%
(f) On owners or operators of banks and other financial institution which include non-bank, financial intermediaries, lending investors, financial and investment companies, pawnshops, money shops, insurance companies, stock markets, stock brokers, dealers in securities including pre-need companies, foreign exchange shall be taxed at the rate of eighty two point five percent (82.5%) of one percent (1%) of the gross receipts of the preceding calendar year derived from interest, commissions, and discounts from lending activities, income from financial leasing, investments, dividends, insurance premium, rental of property and profit from exchange or sale of property.
(g) On owners or operators of hotels duly licensed and accredited by the City of Olongapo, the rate of the tax on the gross receipts during the preceding calendar year derived from room occupancy shall be three point three percent (3.3%).
(h) On owners or operators of cafes, cafeterias, ice cream and other refreshment parlor, restaurants, soda fountains, carinderias or food caterers shall be taxed at the rate of three point three percent (3.3%) of the gross receipts of the preceding year.
(i) BUSINESS TAX: On owners and operators of the following amusement and other recreational places in accordance with the following schedule:
(1) Day and night clubs, day or night clubs, cocktail or music lounges or bars, dance halls, disco houses, beer garden or joints, gun clubs and other similar places at the rate of three point three percent (3.3%) of the gross receipts including the sale food and non-alcoholic drinks during the preceding year.
(2) Swimming pools, pelota/squash courts, tennis courts, exclusive clubs such as country and sports clubs, resorts and other similar places, skating rink;
billiard or pool hall, bowling alleys, circuses, carnivals or the like; merry-go-rounds, roller coasters, ferries wheel, swing shooting galleries and similar contrivances; boxing stadia, boxing contests and race tracks; judo-karate clubs and other similar places, at the rate of three point three percent (3.3%) of the gross receipts during the preceding calendar year.
(3) The gross receipts of owners or operators of amusement and recreational places derived from admission fees and taxed under Article 7 of this Chapter shall no longer be subject to the business tax imposed in this subsection.
(j) Real Estate Dealers/Developers shall pay the annual tax in accordance with the following:
1. Lessors or sub-lessors of real estate including accessoria, apartels, pension
inns, lodging houses, apartments, condominiums, houses for lease, rooms and
spaces for rent, and similar places shall pay three point three percent (3.3%) of
the gross receipts of the preceding calendar year.
2. Real Estate Dealer/Developer shall pay the tax at the rate of three point three
percent (3.3%) of the gross receipts of the preceding calendar year.
(k) Owners or operators of privately-owned markets and shopping centers shall pay the tax at the rate of three point three percent (3.3%) on the gross sales or receipts of the preceding calendar year.
(l) Owners or operators of any business not specified above shall pay the tax at the rate of three point three percent (3.3%) on the gross sales and/or receipts of the preceding year.
(m) On E-Commerce, there shall be tax at the rate of three point three percent (3.3%) on the gross receipts of the preceding calendar year.
Section 86. Computation of Tax Newly-Started Business. In the case of a newly-started business under Section 85 (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), and (o) above, the tax shall be fixed by the quarter. The initial tax for the quarter in which the business starts t operate shall be eight point twenty five percent (8.25%) of one percent (1%) of the capital investment.
In the succeeding quarter or quarters, in cases where the business opens before the last quarter of the year , the tax shall be based on the gross sales or receipts for the preceding quarter of one-half (1/2) of the rates fixed therefore by the pertinent schedules in Sec. 85 (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), and (o) above.
In the succeeding calendar year, regardless of when the business started to operate, the tax shall be based on the gross sales or receipts for the preceding calendar year, for any fraction thereof, as provided in the same pertinent schedules.
Section 87. Computation and Payment of Tax on Business. – (a) The tax imposed herein shall be payable for every separate or distinct establishment or place where the business subject to the tax is conducted and one line of the business does not
become exempt by being conducted with some other business for which such task has been paid. The tax on a business must be paid by the person conducting the same.
(b) In the cases where a person conducts or operates two (2) or more of the related businesses mentioned in Section (3) (A) (2) which are subject to the same rate of tax, the tax shall be computed on the combined total gross sales or receipts of the said two (2) or more related businesses.
© In cases where a person conducts or operates two (2) or more businesses mentioned in the aforesaid section which are subject to different rates of tax, the gross sales or receipts of each business shall be separately reported, and the tax thereon shall be
computed on the basis of the appropriate schedules.
Section 88. Presumptive Income Level – For every tax period, the Treasurer’s Office shall prepare and stratify schedule of “presumptive income level” to approximate the gross receipts of each business classification.
Section 89. Situs of the Tax. – (a) Definition of terms –
(1) Principal Office – the head or main office of the business appearing in the pertinent document submitted to the Securities and Exchange Commission, or the Department of Trade and Industry, or other appropriate agencies as the case maybe.
The municipality or city specifically mentioned in the articles of incorporation or
official registration papers as being the official address of said principal office shall be considered as the situs thereof.
In case there is a transfer or relocation of the principal office to other municipality or city, it shall be the duty of the owner, operator or manager of the business to give due notice of such transfer or relocation to the City Mayor within fifteen (15) days after such transfer or relocation is effected.
(2) Branch or Sales Office – a fixed place in a locality which conducts operations of the business as an extension of the principal office. Offices used only as display areas of the products where no stocks or items are stored for sale, although orders for the products maybe received thereat, are not branch or sales offices as herein contemplated. A warehouse which accepts orders and/or issues sales invoices independent of a branch with sales office shall be considered as a sales office.
(3) Warehouse – a building utilized for the storage of products for sale and from which goods or merchandise are withdrawn for delivery to customers or dealers, or by persons acting in behalf of the business. A warehouse that does not accept orders and/or issue sales invoice as aforementioned shall not be considered a branch or sales office.
(4) Plantation – a tract of agricultural land planted to trees or seedlings whether fruit bearing or not, uniformly spaced or seeded by broadcast methods or normally arranged to allow highest production. For purposes of this Article, inland fishing ground shall be considered as plantation.
(5)Experimental Farms – agricultural lands utilized by a business or corporation
to conduct studies, test, researches or experiment involving agricultural, agribusiness
marine or aquatic, livestock, poultry dairy and other similar production for the purpose of improving the quality and quantity of goods or products.
On site sales of commercial quantity made in experimental farms shall be similarly imposed the corresponding tax under the Article A, Chapter III of this Code and
allocated in paragraph (h) of Section (3) (A) (5).
(b) Sales Allocation – (1) All sales made by a branch or sales office or ware house located in the City shall be taxable herein.
(1) In case the principal office and the factory are located in this City, all sales recorded in the principal office and those on the other localities where there is no branch or sales office or warehouse shall be recorded in the principal office and taxable by the City.
(2) (i) If the principal office is located in the City and the factory, project office, plants or plantation is located in other locality, thirty percent (30%) of the sales recorded in the principal office shall be taxable by the City of Olongapo.
(ii) If the factory, project office, plant or plantation is located in this City and the principal office is located in other in another locality, seventy percent (70%) of the sales recorded in this City shall be taxable herein.
(iii) If the plantation is located in the City and the factory is located in another locality, forty percent (40%) of the seventy percent (70%) sales determined in paragraph 3 (ii) of this section shall be taxable herein. On the other hand, if the factory is located in the City, and the plantation is located in other locality, sixty percent (60%) of the seventy percent (70%) sales determined in paragraph 3 (ii) above shall be taxable herein.
(iv) If the factory, project office, plant or plantation are located in the City and other factories, project office, plants or plantation are located in other localities, this City shall tax the sales in proportion to the volume of production in the factory, project office, plant or plantation located herein during the tax period.
In case of project offices, or services and other independent contractors the term production shall refer to the costs of projects actually undertaken during the tax period.
(3) All sales made by the factory, project office located in this City shall be recorded in the branch or sales office which is similarly located herein, and shall be taxable by this City. In case there is no branch or sales office or warehouse in this City, but the principal office is located herein, the sales made in the said factory shall be taxable by the City along with the sales recorded in the principal office.
(4) In the case of the manufacturers or producers which engage the services of an independent contractor to produce or manufacture some of the products, the foregoing rules on the situs of taxation shall apply. However, the factory or plant or warehouse of the contractor utilized for the production and storage of the manufacturer’s products shall
considered as the factory or plant and warehouse of the manufacturers.
(5) (i) All routes sales made in this City where a manufacturer, producer, and wholesaler maintains a branch or sales office or warehouse shall be recorded in the branch or sales office or warehouse and shall be taxable herein.
(ii) This City shall tax the sales of the products withdrawn by route trucks from the branch, sales office and warehouse, located in herein but sold in other locality.
Section 90. Accrual of Payment. – Unless specifically provided in this Article,
The taxes imposed herein shall accrue in the first day of January each year.
Section 91. Time of Payment. – All local taxes shall be paid to the City Treasurer In accordance with the following schedule:
1st quarter payment on or before the thirty-first (31st) day of January
2nd quarter payment on or before the twentieth (20th) day of April
3rd quarter payment on or before the twentieth (20th) day of July, and
4th quarter payment on or before the twentieth (20th) day of October
Section 92. Surcharge for Late Payment. – Failure to pay the tax prescribed in this Article within the time required shall subject the taxpayer to a surcharge of twenty five percent (25%) of the original amount of tax due, such surcharge to be paid at the same time and in the same manner as the tax due.
(a) On Manufacturers, producers, assemblers, repackers, processors of any article
of commerce of whatever kind or nature and brewers, distillers, rectifiers and compounder of
liquor, distilled spirits and wines, in accordance with the following schedules:
With the gross sales or receipt for the Amount of Tax per
preceding Calendar Year in the Annum
amount of
less than PhP10,000 PhP273.00
PhP10,000.00 or more but less than 15,000 363.00
15,000.00 or more but less than 20,000 498.00
20,000.00 or more but less than 30,000 726.00
30,000.00 or more but less than 40,000 1,089.00
40,000.00 or more but less than 50,000 1,362.00
50,000.00 or more but less than 75,000 2,178.00
75,000.00 or more but less than 100,000 2,723.00
100,000.00 or more but less than 150,000 3,630.00 150,000.00 or more but less than 200,000 4,538.00
200,000.00 or more but less than 300,000 6,353.00
300,000.00 or more but less than 500,000 9,075.00
500,000.00 or more but less than 750,000 13,200.00
750,000.00 or more but less than 1,000,000 16,500.00
1,000,000.00 or more but less than 2,000,000 22,688.00
2,000,000.00 or more but less than 3,000,000 27,225.00
3,000,000.00 or more but less than 4,000,000 32,670.00
4,000,000.00 or more but less than 5,000,000 38,115.00
5,000,000.00 or more but less than 6,500,000 40,219.00
6,500,000.00 or more at the rate 61.88% of 1%
not exceeding sixty one point eighty eight percent (61.88%) of one percent (1%)
The preceding rates shall apply only to the amount of domestics sales of manufacturers, assemblers, repackers, processors, brewers, distillers, rectifiers and compounders of liquors, distilled spirits and wines or manufacturers of any article of commerce of whatever kind or nature other than those enumerated in paragraph ( c ) of this section.
(b) On the Wholesalers, distributors, importers, or dealers of any article of any commerce of whatever kind of nature in accordance with the following schedule:
With gross sales or receipts for the Amount of Tax per
preceding Calendar Year in the Annum
amount of
Less than PhP1,000 PhP30.00
PhP1,000 or more but less thanPhP2,000 55.00
2,000 or more but less than 3,000 83.00
3,000 or more but less than 4,000 119.00
4,000 or more but less than 5,000 165.00
5,000 or more but less than 6,000 200.00
6,000 or more but less than 7,000 237.00
7,000 or more but less than 8,000 273.00
8,000 or more but less than 10,000 309.00
10,000 or more but less than 15,000 363.00
15,000 or more but less than 20,000 454.00
20,000 or more but less than 30,000 545.00
30,000 or more but less than 40,000 726.00
40,000 or more but less than 50,000 1,089.00
50,000 or more but less than 75,000 1,634.00
75,000 or more but less than 100,000 2,178.00
100,000 or more but less than 150,000 3,086.00
150,000 or more but less than 200,000 3,993.00
200,000 or more but less than 300,000 5,445.00
300,000 or more but less than 500,000 7,260.00
500,000 or more but less than 750,000 10,890.00
750,000 or more but less than 1,000,000 14,520.00
1,000,000 or more but less than 2,000,000 1 6,500.00
2,000,000.00 or more at the rate not exceeding
eighty two point five percent (82.5%) of one (1%)
The business enumerated in subsection (a) above shall no longer be subject to the tax on wholesaler, distributors, or dealers provided in this subsection.
(c) On the exporter and on manufacturers, millers, producers, wholesalers, distributors, dealers, or retailers of essential commodities enumerated hereunder at a rate of one-half (1/2) of the rates prescribed under subsections (a), (b) and (c), respectively, of this Section:
(1) Rice and corn;
(2) Wheat or cassava flour, meat, dairy products, locally manufactured, processed or
or preserved food, sugar, salt and other agricultural, marine and fresh water
products, whether in their original state or not;
(3) Cooking oil and cooking gas;
(4) Laundry soap, detergents, and medicines;
(5) Agricultural implements, equipment and post-harvest facilities, fertilizers,
pesticides, insecticides and other farm inputs;
(6) Poultry feeds and other animals feeds;
(7) School Supplies; and
(8) Cement
Taxpayers dealing in essential and non-essential commodities, or both shall present their separate books of accounts for essential and non-essential items for certification when paying taxes and/or fees. Provided, that, when the sales are not made separate or segregated in their books of accounts, the sales shall be treated as sales for non- essential commodities.
For purposes of this Section, the term exporters shall refer to those who are principally engaged in the business of exporting goods and merchandise as well as manufacturers and producers whose goods or products are both sold domestically and abroad. The amount of export sales shall be excluded from the total sales and shall be subject to the rates not exceeding one-half (1/2) of the rates prescribed under paragraphs (a) (b) and (e) of this Section.
(d) On retailers, the rate of three point three percent (3.3%) per annum shall be imposed on gross sales not exceeding PhP400,000.00 while the rate of one point sixty five percent (1.65%) per annum shall be imposed on sales in excess of the first PhP400,000.00.
Barangays, however, shall have the exclusive power to levy taxes on gross sales or receipts of the preceding calendar year of PhP50,000.00 or less.
(e) On Contractors and other independent contractors defined in Sec. 3 (A) (1) (u) of chapter III of the Code; and on owners or operators of business establishments rendering or offering services such as but not limited to: advertising agencies; animal hospitals; assaying laboratories; belt and buckle shops; blacksmith shops; bookbinders; booking offices for film exchange; booking offices for transportation on commission basis; breeding of game cocks and other sporting animals belongings to others; business management services; collecting agencies; escort services; feasibility studies; consultancy services; garages; garbage disposal contractors; gold and silversmith shops; inspection services for incoming and outgoing cargoes; interior decorating services; janitorial services; job placement or recruitment agencies; landscaping contractors; lathe machine shops; management consultants not subject to professionals tax; medical and dental laboratories; mercantile agencies; messenger services; operators of shoe shine stands; painting shops; perma press establishment; rent-a-plant services; polo players; school for and/or horse-back riding academy; real estate appraisers; real estate brokerage; photostatic; white/blue printing, Xerox, typing and mimeographing services; rental of bicycles and or tricycles, furniture, shoes, watches, household appliances, boats, typewrites, etc; roasting of pigs, fowls, etc; shipping agencies; shipyard for repairing ships for others; shops for shearing animals; silkscreen or T-shirt printing shops; stables; travel agencies; vaciador shops; veterinary clinics; video rentals and/or coverage services; dancing schools/speed reading/EDP; nursery, vocational and other schools not regulated by the Department of Education, Culture and Sports, (DECS) day care centers; etc with the following schedule:
GROSS-SALE/RECEIPTS AMOUNT OF TAX PER FOR THE PRECEDING ANNUM CALENDAR YEAR
Less than PhP 5,000,00 PhP 45.00
PhP5,000 or more but less than PhP 10,000 101.00
10,000 or more but less than 15,000 173.00
15,000 or more but less than 20,000 273.00
20,000 or more but less than 30,000 454.00
30,000 or more but less than 40,000 636.00
40,000 or more but less than 50,000 908.00
50,000 or more but less than 75,000 1,452.00
75,000 or more but less than 100,000 2,178.00
100,000 or more but less than 150,000 3,267.00
150,000 or more but less than 200,000 4,356.00
200,000 or more but less than 250,000 5,990.00
250,000 or more but less than 300,000 7,623.00
300,000 or more but less than 400,000 10,164.00
400,000 or more but less than 500,000 13,613.00
500,000 or more but less than 750,000 15,263.00
750,000 or more but less than 1,000,000 16,913.00
1,000,000 or more but less than 2,000,000 18,975.00
2,000,000 or more At the rate not exceeding 82.5% of 1%
(f) On owners or operators of banks and other financial institution which include non-bank, financial intermediaries, lending investors, financial and investment companies, pawnshops, money shops, insurance companies, stock markets, stock brokers, dealers in securities including pre-need companies, foreign exchange shall be taxed at the rate of eighty two point five percent (82.5%) of one percent (1%) of the gross receipts of the preceding calendar year derived from interest, commissions, and discounts from lending activities, income from financial leasing, investments, dividends, insurance premium, rental of property and profit from exchange or sale of property.
(g) On owners or operators of hotels duly licensed and accredited by the City of Olongapo, the rate of the tax on the gross receipts during the preceding calendar year derived from room occupancy shall be three point three percent (3.3%).
(h) On owners or operators of cafes, cafeterias, ice cream and other refreshment parlor, restaurants, soda fountains, carinderias or food caterers shall be taxed at the rate of three point three percent (3.3%) of the gross receipts of the preceding year.
(i) BUSINESS TAX: On owners and operators of the following amusement and other recreational places in accordance with the following schedule:
(1) Day and night clubs, day or night clubs, cocktail or music lounges or bars, dance halls, disco houses, beer garden or joints, gun clubs and other similar places at the rate of three point three percent (3.3%) of the gross receipts including the sale food and non-alcoholic drinks during the preceding year.
(2) Swimming pools, pelota/squash courts, tennis courts, exclusive clubs such as country and sports clubs, resorts and other similar places, skating rink;
billiard or pool hall, bowling alleys, circuses, carnivals or the like; merry-go-rounds, roller coasters, ferries wheel, swing shooting galleries and similar contrivances; boxing stadia, boxing contests and race tracks; judo-karate clubs and other similar places, at the rate of three point three percent (3.3%) of the gross receipts during the preceding calendar year.
(3) The gross receipts of owners or operators of amusement and recreational places derived from admission fees and taxed under Article 7 of this Chapter shall no longer be subject to the business tax imposed in this subsection.
(j) Real Estate Dealers/Developers shall pay the annual tax in accordance with the following:
1. Lessors or sub-lessors of real estate including accessoria, apartels, pension
inns, lodging houses, apartments, condominiums, houses for lease, rooms and
spaces for rent, and similar places shall pay three point three percent (3.3%) of
the gross receipts of the preceding calendar year.
2. Real Estate Dealer/Developer shall pay the tax at the rate of three point three
percent (3.3%) of the gross receipts of the preceding calendar year.
(k) Owners or operators of privately-owned markets and shopping centers shall pay the tax at the rate of three point three percent (3.3%) on the gross sales or receipts of the preceding calendar year.
(l) Owners or operators of any business not specified above shall pay the tax at the rate of three point three percent (3.3%) on the gross sales and/or receipts of the preceding year.
(m) On E-Commerce, there shall be tax at the rate of three point three percent (3.3%) on the gross receipts of the preceding calendar year.
Section 86. Computation of Tax Newly-Started Business. In the case of a newly-started business under Section 85 (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), and (o) above, the tax shall be fixed by the quarter. The initial tax for the quarter in which the business starts t operate shall be eight point twenty five percent (8.25%) of one percent (1%) of the capital investment.
In the succeeding quarter or quarters, in cases where the business opens before the last quarter of the year , the tax shall be based on the gross sales or receipts for the preceding quarter of one-half (1/2) of the rates fixed therefore by the pertinent schedules in Sec. 85 (a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l), (m), (n), and (o) above.
In the succeeding calendar year, regardless of when the business started to operate, the tax shall be based on the gross sales or receipts for the preceding calendar year, for any fraction thereof, as provided in the same pertinent schedules.
Section 87. Computation and Payment of Tax on Business. – (a) The tax imposed herein shall be payable for every separate or distinct establishment or place where the business subject to the tax is conducted and one line of the business does not
become exempt by being conducted with some other business for which such task has been paid. The tax on a business must be paid by the person conducting the same.
(b) In the cases where a person conducts or operates two (2) or more of the related businesses mentioned in Section (3) (A) (2) which are subject to the same rate of tax, the tax shall be computed on the combined total gross sales or receipts of the said two (2) or more related businesses.
© In cases where a person conducts or operates two (2) or more businesses mentioned in the aforesaid section which are subject to different rates of tax, the gross sales or receipts of each business shall be separately reported, and the tax thereon shall be
computed on the basis of the appropriate schedules.
Section 88. Presumptive Income Level – For every tax period, the Treasurer’s Office shall prepare and stratify schedule of “presumptive income level” to approximate the gross receipts of each business classification.
Section 89. Situs of the Tax. – (a) Definition of terms –
(1) Principal Office – the head or main office of the business appearing in the pertinent document submitted to the Securities and Exchange Commission, or the Department of Trade and Industry, or other appropriate agencies as the case maybe.
The municipality or city specifically mentioned in the articles of incorporation or
official registration papers as being the official address of said principal office shall be considered as the situs thereof.
In case there is a transfer or relocation of the principal office to other municipality or city, it shall be the duty of the owner, operator or manager of the business to give due notice of such transfer or relocation to the City Mayor within fifteen (15) days after such transfer or relocation is effected.
(2) Branch or Sales Office – a fixed place in a locality which conducts operations of the business as an extension of the principal office. Offices used only as display areas of the products where no stocks or items are stored for sale, although orders for the products maybe received thereat, are not branch or sales offices as herein contemplated. A warehouse which accepts orders and/or issues sales invoices independent of a branch with sales office shall be considered as a sales office.
(3) Warehouse – a building utilized for the storage of products for sale and from which goods or merchandise are withdrawn for delivery to customers or dealers, or by persons acting in behalf of the business. A warehouse that does not accept orders and/or issue sales invoice as aforementioned shall not be considered a branch or sales office.
(4) Plantation – a tract of agricultural land planted to trees or seedlings whether fruit bearing or not, uniformly spaced or seeded by broadcast methods or normally arranged to allow highest production. For purposes of this Article, inland fishing ground shall be considered as plantation.
(5)Experimental Farms – agricultural lands utilized by a business or corporation
to conduct studies, test, researches or experiment involving agricultural, agribusiness
marine or aquatic, livestock, poultry dairy and other similar production for the purpose of improving the quality and quantity of goods or products.
On site sales of commercial quantity made in experimental farms shall be similarly imposed the corresponding tax under the Article A, Chapter III of this Code and
allocated in paragraph (h) of Section (3) (A) (5).
(b) Sales Allocation – (1) All sales made by a branch or sales office or ware house located in the City shall be taxable herein.
(1) In case the principal office and the factory are located in this City, all sales recorded in the principal office and those on the other localities where there is no branch or sales office or warehouse shall be recorded in the principal office and taxable by the City.
(2) (i) If the principal office is located in the City and the factory, project office, plants or plantation is located in other locality, thirty percent (30%) of the sales recorded in the principal office shall be taxable by the City of Olongapo.
(ii) If the factory, project office, plant or plantation is located in this City and the principal office is located in other in another locality, seventy percent (70%) of the sales recorded in this City shall be taxable herein.
(iii) If the plantation is located in the City and the factory is located in another locality, forty percent (40%) of the seventy percent (70%) sales determined in paragraph 3 (ii) of this section shall be taxable herein. On the other hand, if the factory is located in the City, and the plantation is located in other locality, sixty percent (60%) of the seventy percent (70%) sales determined in paragraph 3 (ii) above shall be taxable herein.
(iv) If the factory, project office, plant or plantation are located in the City and other factories, project office, plants or plantation are located in other localities, this City shall tax the sales in proportion to the volume of production in the factory, project office, plant or plantation located herein during the tax period.
In case of project offices, or services and other independent contractors the term production shall refer to the costs of projects actually undertaken during the tax period.
(3) All sales made by the factory, project office located in this City shall be recorded in the branch or sales office which is similarly located herein, and shall be taxable by this City. In case there is no branch or sales office or warehouse in this City, but the principal office is located herein, the sales made in the said factory shall be taxable by the City along with the sales recorded in the principal office.
(4) In the case of the manufacturers or producers which engage the services of an independent contractor to produce or manufacture some of the products, the foregoing rules on the situs of taxation shall apply. However, the factory or plant or warehouse of the contractor utilized for the production and storage of the manufacturer’s products shall
considered as the factory or plant and warehouse of the manufacturers.
(5) (i) All routes sales made in this City where a manufacturer, producer, and wholesaler maintains a branch or sales office or warehouse shall be recorded in the branch or sales office or warehouse and shall be taxable herein.
(ii) This City shall tax the sales of the products withdrawn by route trucks from the branch, sales office and warehouse, located in herein but sold in other locality.
Section 90. Accrual of Payment. – Unless specifically provided in this Article,
The taxes imposed herein shall accrue in the first day of January each year.
Section 91. Time of Payment. – All local taxes shall be paid to the City Treasurer In accordance with the following schedule:
1st quarter payment on or before the thirty-first (31st) day of January
2nd quarter payment on or before the twentieth (20th) day of April
3rd quarter payment on or before the twentieth (20th) day of July, and
4th quarter payment on or before the twentieth (20th) day of October
Section 92. Surcharge for Late Payment. – Failure to pay the tax prescribed in this Article within the time required shall subject the taxpayer to a surcharge of twenty five percent (25%) of the original amount of tax due, such surcharge to be paid at the same time and in the same manner as the tax due.
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