2005 Ord No. 81 - Article 8 - Article 15 - Tax on Business of printing

Article 8.Tax on Business of Printing and Publication

Section 96. Imposition of Tax. – There is hereby levied a tax at the rate of eighty two point five percent (82.5%) of one percent (1%) of the gross annual receipt for the preceding calendar year on the business of the persons engaged in printing and/or publication of newspapers and magazines placing of advertisement, obituaries, legal, notices, books, cards, posters, leaflets, handbills, certificates, receipt, pamphlets, and other printing materials of similar character/nature.

In case of a newly-started business, the tax shall be eight point twenty five percent (8.25%) of one percent (1%) of the capital investment.

In the succeeding calendar year, regardless of when the business started to operate, the tax shall be based on the gross receipts of the preceding calendar year, or any fraction thereof.

Section 97. Exemption. – The receipts from the printing and/or publishing of books or other reading materials prescribed by the Department of Education, Culture and Sport (DECS) as school texts or references shall be exempt from the tax herein imposed.

Section 98. Time of Payment. – The tax 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 99. Surcharge for the Late Payment. – Failure to pay the levied tax on time shall be subject to a surcharge of twenty five percent (25%) of the original amount of tax due, such surcharge to be paid at he same time and in the same manner as the tax due.

Section 100. Interest on Unpaid Tax. – In addition to the surcharge for the late payment, there shall be imposed upon the unpaid amount of an interest of two percent (2%) per month form the due date until the tax is fully paid but in no case shall the interest on the unpaid amount or portion thereof exceed thirty sic(36) months.

Section 101. Penalty. – Any violation of the provision of this Article shall be punishable by a fine of not less than One Thousands Pesos (PhP1,000.00) but not more than Five Thousands Pesos (PhP5,000.00) or imprisonment of not less than one (1) month but not more than six (6) months, or both, at the discretion of the court.

Article 9. Franchise Tax

Section 102. Definition of Franchise. – It is a right or privilege, involving public interest which is conferred upon private persons or corporations, under such terms and conditions as the government and its political subdivisions may impose in the interest of public welfare, security and safety.

Section 103. Imposition of Tax. – There is hereby levied a tax at the rate of eighty two point five percent (82.5%) of one percent (1%) on businesses enjoying a franchise based on the gross annual receipts which shall include both cash sales and sales on account realized during the preceding calendar year within the territorial jurisdiction of the city.

In the case of a newly-started business, the tax shall be seven point five percent (7.5%) of one percent (1%) of the capital investment.

In the succeeding calendar year, regardless of when the business started to operate, the tax shall be based on the gross receipts for the preceding calendar year, or fraction thereof.

The capital investment to be used as basis of the tax of a newly stated business as herein provided, shall be determined in the following manner:

(a) If the principal office of the business is located in the city, the paid-up capital stated in the articles of incorporation in case of corporations, or in any similar document in case of other types of business organizations, shall be considered as the capital investment.

(b) Where there is a branch or sales office which commences business operations during the same year as the principal office but which is located in another province or city, the paid-up capital referred in (a) shall be reduced by the amount of the capital investment made for the said branch or sales office which shall be taxable instead by the province or city where it is located.

(c) Where the newly started business located in the city is a branch or sales office commencing business operations at a year later than that of the principal office, capital investment shall mean the total funds investment in the branch or sales office.

Section 104. Exclusion. – The term business enjoying franchise shall not include holders of certificates of public conveyance for the operation of public utility vehicles for the reason that such certificates are not considered as franchise.

Section 105. – Time of Payment., the tax shall be paid on the thirty-first (31st) day of January of each year.

Section 106. Surcharge for the Late Payment. – Failure to pay the levied tax on time shall be subject to a surcharge of twenty five percent (25%) of the original amount of tax due, such surcharge to be paid oat he same time and in the same manner as the tax due.

Section 107. Interest of Unpaid Tax. – In addition to the surcharge for late payment, there shall be imposed upon the unpaid amount an interest of tow percent (2%) per month form the due date until the tax is fully paid but in no case shall the total interest on the unpaid amount or portion thereof exceed thirty-six (36) months.

Section 108. Penalty. – Any violation of the provision of this Article shall be punishable by a fine of not less than One Thousand Pesos (PhP1,000.00) but not more than Five Thousand Pesos (PhP5,000.00) or imprisonment of not less than one (1) month but not more than six (6) months, or both, at the discretion of the court.


Article 10. Tax on Transfer of Real Property Ownership


Section 109. Imposition of Tax. – There is herby levied a tax on the sale, donation, barter, or on any other mode of transferring ownership or title of real property at the rate of eighty two point five percent (82.5%) of the one percent (1%) of the total consideration involved in the transfer of the property or of the fair market value in case the monetary consideration involved in the transfer is not substantial, whichever is higher. For purposes of determining the fair market value of lands, the zonal values established by the Bureau of Internal Revenue shall be used.

Section 110. Time of Payment. – The tax herein imposed shall be paid to the City Treasurer by the buyer, donee, or transferee to the City Treasurer within sixty (60) days from the date of the execution of the deed or from the date of the decedent’s death.

Section 111. Surcharge for Late Payment. – Failure to pay the levied tax on time shall be subject o tab surcharge of tent-five (25%) of the original amount of the tax due, such surcharge to be paid at the same time and in the same manner as the tax due.

Section 112. Interest on Unpaid Tax. – In addition to the surcharge for late payment, there shall be imposed upon the unpaid amount an interest of two percent (2%) per month form the due date until the tax is fully paid but in no case shall the total interest on the unpaid amount or portion thereof exceed thirty-six (36) months.

Section 113. Administrative Provisions – (a) the Register of Deeds of the city shall, before registering any deed, require the presentation of the evidence of payment of the transfer tax. The City Assessor shall likewise make the same requirement before canceling an old tax declaration and issuing a new one in place thereof.

(b) Notaries Public shall furnish the City Treasurer with a copy of any deed transferring ownership or title to any real property within (30) days from the date of notarization.

Section 114. Penalty. – Any violation of the provision of this article Shall be punishable by a fine of not less than One Thousand Pesos (PhP1,000.00) but not more than Five Thousand Pesos (PhP5,000.00) or imprisonment of not less than one (1) month buy not more than six (6) months, or both, at the discretion of the Court.



Article 11. Professional Tax

Section 115. Imposition of Tax. – There is hereby levied an annual professional tax on each person engaged in the exercise or practice of his profession requiring government examination at the rate of Three Hundred Pesos (Php300.00).

Section 116. Coverage – The following professionals who passed the bar examinations, or any board, or other examinations conducted by the Professional Regulation Commission (PRC) and the other government agencies shall be subject to the professional tax:

Actuaries; Architects; land and naval aviators; certified public accountants; chemists; criminologist; custom brokers; dentists; dietitians; engineers; aeronautical, agricultural, chemical, chief motor, civil, electrical, electronic, marine, mechanical plant engineers, junior mechanical engineers and certified plant mechanics unless they are professional engineers, and have paid the tax as mechanical engineers; mining, sanitary, etc; food technologies; foresters; insurance agents, sub-agents, brokers, or adjusters; geologist; geodetic engineers; lawyers marine officers; third mates; second mates; chief mates, ship master; marine surveyors; masters marines; medical practitioners; medical technologist; midwives; morticians, nurses, nutritionists; opticians; optometrist; pharmacist; physical and occupational therapist; real estate brokers; registered electricians; stockbrokers; sugar technologies; and veterinarians.

Section 117. Exemption. – professionals exclusively employed in the government shall be exempt from the payment of this tax.

Section 118. Payment of the Tax – the Professionals tax shall be paid before any profession herein specified can be lawfully pursued. A line of profession does not become exempt even if conducted with another profession for which the tax has been paid.

Section 119. Time of Payment. - The professional tax shall be payable annually on or the thirty-first (31st) day of January. Any person first beginning to practices a profession after the month of January must, pay the full tax before engaging therein.

Section 120. Surcharge for Late Payment. – Failure to pay the levied tax on time shall be subject 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 din the same manner as the tax due.

Section 121. Interest on Unpaid Tax. – In addition to the surcharge for late payment, these shall be imposed upon the unpaid amount an interest of two percent (2%) per month form the due date until the tax is fully paid but in no case shall the interest on the unpaid amount or portion thereof exceed thirty-six (36) months.

Section 122. Place of Payment. – Every person legally authorized to practice his profession shall pay the professional tax to the City of Olongapo, where he practices profession or where he maintains his principal office, in case he practices his profession in several places.

Section 123. Administrative Provisions. – (a) Every person who has paid the corresponding professional tax shall be entitled to practice his profession in any part of the Philippines without being subjected to any other national or local tax, license, or fee for the practice of such profession.

(b) Any individual, association, organization, partnership or corporation employing a person subject to professional tax shall: (1) require payment by that person of tax on his profession before employment and annually thereafter, and (2) submit a list professionals under his/her employ to the Office of the Mayor including the following information on or before the last day of March of every year:

(i) Name of professional
(ii) Profession
(iii) Amount of tax paid
(iv) Date and number of official receipt
(v) Year covered and place of payment

Failure to submit the certified list herein required, shall subject the person to a penalty of Fifty Pesos (PhP50.00) per month of delay or fraction thereof.

(a) Any person subject to the professional tax shall write in deeds, receipts, prescriptions, reports, books of accounts, plans and design, surveys and maps, as the case may be, the number of the official receipt issued to him.

(b) For the purpose of collecting the tax, the City Treasurer or his duly authorized representative shall require from such professionals their current annual registration cards issued by competent authority before accepting payment of their professional tax for the current year. The PRC shall likewise require the professional presentation of proof of payment before registration of said professional for renewal of their license.

Section 124. Penalty. – Any violation of the provision of this Article shall be punishable by a fine of not less than One Thousand Pesos (PhP1,000.00) but not m ore than Five Thousand Pesos (PhP5,000.00) or imprisonment of not less than one (1) month but not more than six (6) months, or both, at he discretion of the court.

Section 125. Imposition of Tax. – There is hereby levied a tax to be collected form the proprietor, lessees, or operators of theaters, cinemas, concert halls, circuses, boxing, studio, and other amusement places at the rate of thirty percent (30%) of the gross receipt form admission fees.

Section 126. Manner of Computing the Tax. – In cases of theaters or cinemas, the tax shall be deducted and withheld by their proprietors, lessees, or operators and paid to the City Treasurer before the gross receipt are divided between said proprietors, lessees, or operators and the distributors of the cinematographic films.

Section 127. Exemptions. – The holding of operas, concerts, dramas, recitals, paintings, and art exhibitions, flower shows, musical programs, literary and oratorical presentation, except pop, rock, or similar concerts shall be exempt form the payment of the tax imposed herein but subject to permits and regulatory fees imposed in this Code.

Section 128. Accrual of Proceeds of the Tax. – The proceeds from the amusement tax shall accrue entirely to the General Fund of the City.

Section 129. Time and Manner of Payment. – The tax imposed herein on the gross receipts within the first ten working days of the month shall be paid to the City Treasurer on Monday of the week following and every Monday thereafter.

A ten days amusement tax return indicating the gross receipt for ten (10) days duly certified by the proprietor, owner, operator, or lessee under oath shall be submitted to the City Treasurer every tenth day payment of the tax. The City Treasurer shall compare the return with the corresponding record of inspectors assigned during he week and verify the correctness of the return before acknowledging the tax payment.

Section 130. Surcharge for Late Payment. – Failure to pay the levied tax on time shall be subject 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.

Section 131. Interest on Unpaid Tax. – In addition to the surcharge for late payment, there shall be imposed upon the unpaid amount interest of two percent (2%) per month form the due date until the tax is fully paid but in no case shall the total amount on the unpaid interest or portion thereof exceed thirty-six (36) months.

Section 132. Administrative Provision. – (a) All admission tickets of amusement places subject to tax impose in this Article shall be registered with the Office the City Mayor without charge who shall mark said tickets properly with the word “REGISTERED” and keep a record thereof. The Office of the City Mayor shall likewise issue a certification to the owner, proprietor, or lessee to the effect that such quantity, denomination and serial numbers of admission tickets were duly registered with his Office. A color scheme and numbering system shall be prescribed by the Office of the City Mayor for control purposes.

(b) The City Mayor shall require owners, proprietors, operators or lessees of amusement places to provide their establishment with two boxes, one marked with letter “O” for operator and the other marked with letter “G” for government in the place where
tickets are presented by customers. Duly registered admission tickets shall be cut in halves upon presentation of the same by customers. One-half of the ticket shall be deposited in the box marked with letter “O”, and the other half shall be deposited in the box marked with letter “G”.

(c) The boxes for used admission tickets shall be provided with two lock devices. One lock device shall be provided with padlock by the management while the other lock device shall be provided by the City Government. Both boxes shall be opened daily in the presence of representatives from the management and the city government who shall certify the number of admission tickets by denomination in the daily count sheet. The daily count sheets of admission tickets shall be attached to the Weekly Amusement Tax Return to be submitted to the Office of the City Mayor. The City Treasurer shall be furnished a copy of such return.

Section 133. Penalty. – Any violation of the provision of this Article shall be punishable by a fine of not less than One Thousand Pesos (PhP1,000.00) but not more than Five Thousand Pesos (PhP5,000.00) or imprisonment of not less than one (1) month but not more than sic (6) months or both, at the discretion of the Court.

Article 13. Annual Fixed Tax For Every Delivery Truck or Van

Section 134. Imposition of Tax. – There is hereby levied an annual fixed tax for every truck, van or any vehicle used by manufacturers, producers, wholesalers, dealers or retailers in the delivery or distribution of distilled spirits, fermented liquors, soft drinks, cigars and cigarettes, and other products to sales outlets, or consumers, whether directly or indirectly within the city in the amount of Seven Hundred Fifty Pesos (PhP750.00).

Section 135. Time of Payment. – The tax shall be paid on the thirty-first twenty (31st) day of January of each year.

Section 136. Surcharge for Late Payment. – Failure to pay the levied tax on time shall be subject 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.

Section 137. Interest on Unpaid Tax. – In addition to the surcharge for late payment, there shall be imposed upon the unpaid amount an interest of two percent (2%) per month from the due date until the tax is fully paid but in no case shall the total interest on the unpaid amount or portion thereof exceed thirty-six (36) months.

Section 138. Administrative Provisions. – (a) The City Treasurer shall keep a register of trucks, van or vehicles subject to tax showing the name of the owner or proprietor, name of manager or president in the case of partnership or corporation, address and location of principal office, plate number, certificate of registration number, engine number, sticker number assigned for the year and other information.

(b) The owner or proprietor of the truck, van or vehicle shall be required to file a application for business tax and permit in a prescribed form in three (3) copies showing the needed information with the Office of the City Mayor for the processing ad approval.

(c) The City Treasurer shall collect the taxes and fees, register the vehicle involved and issue the corresponding sticker and the receipt acknowledging payment, date of payment and the amount paid.

(d) Non-compliance hereof, unloading of their cargo shall not be allowed.


Section 139. Penalty. – Any violation of the provision of this Article shall be punishable by a fine of not less than One Thousand Pesos (PhP1,000.00) but not more than Five Thousand Pesos (PhP5,000.00) or imprisonment of not less than one (1) month but not more than six (6) months, or both, at the discretion of the Court, without prejudice to the penalty of not allowing to unload within the City after given due warnings.


Article 14. Tax on Peddlers


Section 140. Imposition of Tax. – there is hereby levied an annual tax on peddlers engaged in the sale of any merchandise or article of commerce within the city on the following rates:

(a) Peddlers of any article or merchandise carried in trucks
or any other motor vehicle, per peddler……………………………..PhP750.00

(b) Peddlers of any article or merchandise carried in a
motorized bicycle, tricycle or other motorized similar
vehicles other than those specified in letter
above, per peddler…………………………………………………..PhP500.00

(c) Peddlers of any article or merchandise carried in a cart,
caretela or other vehicle drawn by animals,
per peddlers…………………………………………………………PhP100.00

(d) Peddlers of any article or merchandise carried on bicycle,
pedicab or other similar vehicle, per peddler………………………...PhP90.00

(e) Peddlers of any article or merchandise carried by
person, per peddler…………………………………………………...PhP70.00


Section 141. Time of Payment. – The tax herein imposed shall be payable every thirty-first (31st) of January of every year. An individual who will start to peddle merchandise or articles of commerce after January thirty-one (31) shall pay the whole amount of tax before engaging in such activity.

Section 142. Administrative Provision. – The official receipt evidencing payment of the tax shall be carried in the person of the peddler and shall be produced upon demand by the City Mayor or Treasurer of their duly authorized representatives.

Article 15. Community Tax

Section 143. Individual Community Tax. – Every inhabitant of the City of Olongapo eighteen (18) years of age or over who has been regularly employed on a wage or salary basis for at least thirty (30) consecutive working days during any calendar year, or is engaged in business or occupation, or owns real property with an aggregate assessed value of PhP1,000.00 or more, or is required by law to file an income tax return shall pay an annual basic community tax of Five Pesos (PhP5.00) and annual addition tax of One Peso (PhP1.00) for every One Thousand Pesos (PhP1,000.00) of income regardless of whether form business, exercise of profession or property but in no case shall the additional tax exceed Five Thousand Pesos (PhP5,000.00).

In case of husband and wife, each of them shall be liable to pay the basic tax of Five Pesos (PhP5.00) but the additional tax imposable on the husband and wife shall be One Peso (PhP1.00) for every One Thousand Peso (PhP1,000.00) of income from the total property owned bye them and/or the total gross receipt or earnings derived by them.

Section 144. Corporate Community Tax. – Every corporation, no matter how created or organized, whether domestic or resident foreign, engaged in or doing business I the Philippines, shall pay an annual community tax of Five Hundred Pesos (PhP500.00) and an annual additional tax of Tow Pesos (PhP2.00) for (a) every Five Thousand Pesos (PhP5,000.00) worth of real property in the Philippines owned by it during the preceding year based on the valuation used in the payment of real property tax under existing law found in assessment rolls of this City; and (b) every Five Thousand Pesos (PhP5,000.00) of gross receipt or earnings derived by it form it’s business in the Philippines during the proceeding year. The Additional community tax on corporation shall not exceed Ten Thousand Pesos (PhP10,000.00).

The dividends received by a corporation form another corporation shall, for the purposes of the additional tax, be considered as part of the gross receipt of earnings of said corporation.

Section 145. Exemption. – The following are exempt from the payment of the community tax: (a) diplomatic and consular representatives: and (b) transient visitors when their stay in this City does not exceed three (3) months.

Section 146. Time of Payment. – (a) The community tax shall accrue on the first (1st) day of January of each year which shall be paid not later than the last day of February of each year.

(b) If a person reaches the age of eighteen (18) years or otherwise loses the benefit and exemption on or before the last day of June, he shall be liable for the community tax on the day he reaches such age or upon the day the exemption ends. However, if a person reaches the age of eighteen (18) years or loses the benefit of exemption on or before the last of March, he shall have twenty (20) days to pay the community tax without becoming delinquent.

(c) Persons who come to reside in this City or reach the age of eighteen (18) years on or after the first (1st) day of July of any year, cease to belong to an exempt class on or after the same date, shall not be subject to the community tax for that year.

(d) Corporations established and organized on or before the last day of June shall be liable for the community tax for that year. But corporations established and organized on or before the last day of March shall have twenty (20) days within which to pay the community tax without becoming delinquent. Corporations established and organized on or after the first (1st) day of July shall not be subject to the community tax for that year

Section 147. Place of Payment. – (a) The community tax shall be paid in the City where the residence of the individual is located or where the principal office of the juridical entity is located.

(b) It shall be unlawful for the City Treasurer of this City to collect community tax outside the territorial jurisdiction of the city.

(c) In case a corporation has a branch, sales office or warehouse in this City and sales are made therein, the corresponding community tax shall be paid to the city.

(d) Any person, natural or juridical, who pays the community tax to the city or municipality other than this city where his residence or principal office in the case or juridical persons is located shall remain liable to pay such tax to this city.

Section 148. Collection and Allocation of Proceeds of the Community Tax. – The City Treasurer may deputize the Barangay Treasurers to collect the community tax in their respective jurisdictions. Such deputation shall be limited to the community tax payable by individual taxpayers and shall be extended only to Barangay Treasurers who are properly bonded in accordance with applicable laws.

Ninety-five percent (95%) of the proceeds of the community tax actually and directly collected by the City Treasurer shall accrue entirely to the general fund of the city, and the remaining five percent (5%) thereof to the general fund of the National Government to cover the cost of printing and the distribution of the forms of the community tax certificates and related expenses. The City Treasurer shall remit to the National Treasurer the said share of the national government within ten (10) days after the end of each quarter.

The proceeds of the community tax collected through the Barangay Treasurer shall be apportioned as follows after deducting the five percent (5%) share of the National Government:

(a) Fifty percent (50%) shall accrue to the general fund of the City; and
(b) Fifty percent (50%) shall accrue to the barangay where the tax is collected.

Section 149. Penalty for the Late Payment. – If the tax is not paid within the prescribed period, there shall be added to the unpaid amount an interest of twenty-four percent (24%) per annum from the due date until it is paid.

Section 150. Community Tax Certificate. – A community tax certificate shall be issued to every person or corporation upon payment of the community tax. A community tax certificate may also be issued to any person or corporations not subject to the community tax upon payment of One Peso (PhP1.00).
Section 151. Presentation of Community Tax Certificate on Certain Occasions. – (a) When an individual subject to the community tax acknowledges any
document before a notary public, takes the oath of office upon elections or appointment to any position on the government service; receives any license, certificate, or permit form any public authority; pays any tax or fee; receives any money form any public fund; transact other official business; or receives any salary or wage form any person or corporation, it shall be the duty of any person, officer, or corporations with whom such transactions is made or business done or from whom any salary or wage is received, to require such individual to exhibit he community tax certificate

The presentation of community tax certificate shall not be required in connection with the registration of a voter.

(b) When, through it’s authorized officers, any corporation subject to the community tax receives any license, certificate, or permit form any public authority, pays any tax or fee, receives money form public funds, or transacts other official business, it shall be the duty of the public official with whom such transaction is made or business done, to require such corporations to exhibit community tax certificate.

(c) The community tax certificate required in the two preceding paragraphs shall be the one issued for the current year, except for the period from January until the fifteenth (15th) d of April each year, in which case, the certificate issued for the proceeding year shall suffice.

Section 152. Availment of the Blank Forms Of the Community Tax Certificate. – The City Treasurer shall secure the necessary blank forms of the community Tax Certificate form the Bureau of Internal Revenue.

2002 oRD nO. 81 - Section 93 - Section 95 - city taxes

Section 93. Interest of Unpaid Tax. – In addition to the surcharge imposed herein, there shall be imposed an interest of two percent (2%) per month of unpaid taxes, fees or charges including surcharge, until such amount is fully paid but in no case shall the total interest on the unpaid amount or portion thereof exceed thirty-six (36) months.

Where an extension of time for the payment of the tax has been granted and the amount is not paid in full prior to the expiration of the extension, the interest above mentioned shall be collected on the unpaid amount from the date it becomes originally due until fully paid.

Section 94. Administrative Provision.

(a) Requirement – Any person who shall establish, operate or conduct any business, trade or activity mentioned in this Article in the City Of Olongapo, shall first obtain a Mayor’s Permit and pay the fee therefore and the business tax imposed under this Article.

(b) Issuance of the Posting of Official Receipt – The City Treasurer shall issue an official receipt upon the payment of the business tax. Issuance of the said official receipt shall not relieve the taxpayer from any requirement imposed by the different departments of this City.

Every person issued an official receipt for the conduct of a business or undertaking shall keep the same conspicuously posted in plain view at the place of business undertaking. If the individual has no fixed place of business or office, he shall keep the official receipt in his person. The receipt shall be produced upon demand by the City Mayor, City Treasurer, or their duly authorized representatives.

(c) Issuance of Invoices or Receipts – All persons subject to the taxes on business
shall, for each sale or transfer of merchandise or goods, or for services rendered, valued at Twenty Five Pesos (PhP25.00) or more at any one time, prepare and issue sale or commercial invoices and receipts serially numbered in duplicate, showing, among others,
their names or styles if any, and business address. The original of each sales invoice or receipts shall be issued to the purchaser or customer and the duplicate to be kept and preserved by the person subject to the said tax, in his place of business for a period of five (5) years. The receipts or invoices issued pursuant to the requirements of the Bureau of Internal Revenue for determination of national internal revenue taxes shall be sufficient for purposes of this Code.

(d) Sworn Statement of Gross Receipts or Sales – Operators of business subject to the taxes on business shall submit a sworn statement of the capital investment before the start of their business operations and upon application for a Mayor’s Permit to operate the business. Upon payment of tax levied in this Article, any person engaged in business subject to the business tax based on gross sales and/or receipts shall submit a sworn statement of his gross sales/receipts for the preceding calendar year in such manner and form as may be prescribed by the City Treasurer. Should the taxpayer fail to submit a sworn statement of gross sales or receipts, due among others to his failure to have a book of accounts, records and /or subsidiaries for his business, the City Treasurer or his authorized representatives may verify or assess the gross sales or receipts of the taxpayer under the best available evidence upon which the tax may be based.

(d) Issuance of Certification – The City Treasurer shall, upon presentation of satisfactory proof that the original official receipt has been lost, stolen or destroyed, issue a certification to the effect that the business tax has been paid, indicating therein, the number of the official receipt issued, upon payment of a fee of Fifty Pesos (PhP50.00).

(e) Transfer of Business to Other Location – Any business for which a city business tax has been paid by the person conducting it maybe transferred and continued in any other place within the territorial limits of this city without the payment of additional tax during the period for which the payment of the tax was made.

(f) Retirement of Business – (1) Any person who discontinues or closed his business operation shall within thirty (30) days upon closure of the business apply for the
retirement/surrender of his permit to the City Treasurer in a prescribed form. No business shall be retired or terminated unless all the past and current taxes are paid. A sworn statement of its gross receipts or sales for the current year shall be presented to the City Treasurer and the corresponding taxes shall be collected.

For purposes hereof, termination shall mean that business operations are stopped
completely. Any change in ownership, management and/or name of the business shall not constitute termination as contemplated in this Article. Unless stated otherwise, assumption of the business by any new owner or manager or re-registration of the same business under a new name will only be considered by this City for record purposes in the course of the renewal of the permit or license to operate the business.

The City Treasurer shall see to it that the payment of the taxes of a business is not avoided by simulating the termination or retirement thereof. For this purpose, the following procedural guidelines shall be strictly observed:

(i) The City Treasurer shall assign every application for the termination or retirement of business to an inspector in his office who shall go to the address of the business on record to verify if it is really no longer operating. If the inspector finds that the business is simply placed under a new name, manager and/or new owner, the City Treasurer shall recommend to the Mayor the disapproval of the application for the termination or retirement of said business. Accordingly, the business continues to become liable for the payment of all taxes, fees and charges imposed thereon under existing local tax ordinance; and

(ii) In case of the new owner to whom the business was transferred by sale or other form of conveyance, said new owner shall be liable to pay the tax or fee for the transfer of the business to him if there is an existing ordinance prescribing such transfer tax.

(2) The permit issued to the business retiring or terminating its operations shall be surrendered to the City Treasurer who shall forthwith cancel the same and record such cancellation in his books.

(g) Death of Licensee – When an individual paying a business tax dies, and the business is continued by a person interested in his estate, no additional payment shall be required for the residue of the term for which the tax was paid.

Section 95. Penalty. – Any violation of the provisions of this Article shall be punished by a fine not less than One Thousand Pesos (PhP1,000.00) but not more than Five Thousand Pesos (PhP5,000.00), or imprisonment not less than one (1) month but not more than five (5) months , or both, at the discretion of the Court.

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.

2002 Ord No. 81 - Article 7 section 84 - City Taxes

CHAPTER III.

CITY TAXES

Article 7. Business Tax

Section 84. Definitions. – When used in this Article:

(a) Advertising Agency include all persons who are engaged in the
business of advertising for others by means of billboards, posters,
placards, notices, signs, directories, pamphlets, leaflets, handbills,
electric or neon lights, airplanes, balloons or media, whether in pictorial
reading form.

(b) Agricultural product includes the yield of the soil, such as corn, rice, wheat, rye, hay, coconuts, sugarcane, tobacco, root crops, vegetables, fruits, flowers, and their by-products; ordinary salt, all kinds of fish;
poultry; and livestock and animal products, whether in their original
form or not.

Agricultural products as defined include those that have undergone
not only simple but even sophisticated processes employing advanced
technological means in packaging like dressed chicken or ground coffee
in plastic bags or Styrofoam or other packaging materials intended to
process and prepare the products for the market.

The term by-product shall mean those materials which in the
cultivation or processing of an article remain over, and which are still
of value and marketable like copra cake or molasses from sugarcane.

© Amusement is a pleasurable diversion and entertainment. It is
synonymous to recreation, relaxation, avocation, pastime or fun.

(d) Amusement Places include theaters, cinemas, concert halls, circuses
and other places of amusement where one seeks admission to entertain
oneself by seeing or viewing the show or performances. They also
include those places where one seeks admission to entertain himself by
direct participation.

(e) Apartel- any building or edifice containing several independent and
furnished or semi-furnished apartments, regularly leased to tourists and
travelers for dwelling on a more or less long term basis and offering
basic services to its tenants, similar to hotels.

(f) Banks and Other Financial Institutions includes banks, non-bank
financial intermediaries, lending investors, finance and investment
companies, investment houses, pawnshops, money shops, insurance
companies, stock markets, stock brokers and dealers in securities and
foreign exchange including pre-need companies, and foreign exchange as defined under applicable law, or rules and regulations.

(g) Bar includes any place where intoxicating and fermented liquors or
malt are sold, even without food, where services hired waitresses are
employed; and where customers may dance to music not rendered by a regular dance orchestra or musicians hired for the purpose; otherwise the place shall be classified as a dance hall or night or day club. A
cocktail lounge or beer garden is considered a bar even if there are no hostesses or waitresses to entertain customers.

(h) Boarding House includes any house where boarders are accepted for
compensation by the week or by the month or where meals are
served to boarders only. A pension inn (or pension house) shall be
considered a boarding house unless, by the nature of its services and
facilities, it falls into another classification.

(i) Brewer includes all persons who manufacture fermented liquors of
any description for sale or delivery to others, but does not include
manufacturers of tuba, basi, tapuey, or similar domestic fermented
liquors, whose daily production does not exceed two hundred (200)
gauge liters.

(j) Business Agent (Agente de negocio) includes all persons who act
as agents of others in the transaction of business with any public
officer, as well as those who conduct collecting, advertising,
employment, or private detective agencies.

(k) Business Center a place for business transactions; a place of
transacting business as well as collecting, advertising, purchasing a
product or service.

(l) Cabaret/Dance Hall includes any place or establishment where
dancing is permitted to the public in consideration of any admission,
entrance, or any other fee paid on, before, or after dancing, and
where professional hostesses or dancers are employed.

(m) Calling means one’s regular business, trade, profession, vocation or
employment which does not require the passing of an appropriate
government board or bar examination, such as professional actors
and actresses, hostess, masseurs, commercial stewards and
stewardess, etc.

(n) Capital Investment is the capital which a person puts in any
undertaking, or which he contributes to the common stock of a
partnership, corporation or any other juridical entity or association.

(o) Carinderia refers to any public eating place where food already
cooked are served at a price.

(p) Cockpit includes any place, compound, building, or portion thereof,
where cockfights are held, whether or not money bets are made on
the results of such cockfights.

(q) Collecting Agency includes any person, other than a practicing
attorney-in-law, engaging in the business of collecting or suing debt
or liabilities placed in his hands, for said collection or suit, by
subscribers or customers applying and paying therefore.

® Commercial Broker includes all persons other than importers,
manufacturers, producers or bonafide employees, who for
compensation or profit, sell or bring about sales or purchases or
merchandise for other persons; bring proposed buyers and sellers
together or negotiate freights or other business for owners of vessels
or other means of transportation for shippers, consignees of freight
carried by vessels or other means of transportation. The term
includes commission merchants.

(s) Computer Sales and Rental Shops – establishments engaged in
selling of computer accessories, computer rentals, scanning and
other similar services.

(t) Computer Services – establishments engaged in computer tutorial,
printing service, programming and system development, internet
access, IT consultancy, connectivity and networking, web
development, computer games, play stations and trouble shooting
and repair of computers beyond warranty.

(u) Contractor – includes person, natural or juridical, not subject to
professional tax whose activity consists essentially of the sale of all
kinds of services for a free regardless of whether or not the
performance of the service calls for the exercise or use of the physical or mental faculties of such contractor or his employees.

As used in this Article, the term contractor shall include general engineering, general building and specially contractors are defined under applicable laws; filing, demolition and salvage works contractors; proprietors or operators of mine drilling apparatus; proprietors or operators of computer services/rental; proprietors or operators of dockyards; persons engaged in the installation of water system, and gas or electric light, heat, or power; proprietors or operators of smelting plants; engraving, planting, and plastic lamination establishments; proprietors or operators of establishments for repairing, repainting upholstering, washing or greasing of vehicles, heavy equipment, vulcanizing, recapping and battery charging, proprietors or operators of furniture shops and establishments for planting or surfacing and recutting of lumber, sawmills under contract to saw or cuts logs belonging to others; proprietors or operators of dry-cleaning or dyeing establishments, steam laundries, and laundries using washing machines; proprietors
or owners of shops for the repair of any kind of mechanical and
electrical devices, instruments, apparatus, or furniture and shoe repairing by machine or any mechanical contrivance; proprietors or operators of establishments or lots for parking purposes; proprietors or operator of tailor shops, dress shops, milliners and hatters, beauty parlors, barbershops, massage clinics, sauna, Turkish and Swedish baths, slenderizing and building saloons and similar establishments; photographic studios; funeral parlors; proprietors or operators of arrester and stevedoring, warehousing, or forwarding establishments; master plumbers, smiths, and house or sign painters; printers, bookbinders, lithographers, publishers except those engaged in the
publication or printing of any newspaper, magazine, review or
bulletin which appears at regular intervals with fix prices for
subscription and sale and which is not devoted principally to the
publication of the advertisements; business agents, private detective
or watchman agencies, commercial and immigration brokers, and
cinematographic film owners, and distributors.

(v) Corporation – includes partnerships, no matter how created or
organized, joint-stock companies, joint accounts (cuentas en
participation), associations or insurance companies but does not
include general professional partnerships and a joint venture or
consortium formed for the purpose of undertaking construction
projects or engaging in petroleum, coal, geothermal, and other
energy operations pursuant to an operating or consortium agreement
under a service contract with the government. General professional
partnerships are partnerships formed by persons for the sole purpose of exercising their common profession, no part of the income of
which is derived from engaging in any trade or business.

The term “ resident foreign” when applied to a corporation means
a foreign corporation not otherwise organized under the laws of the
Philippines but engaged in trade or business within the Philippines
or having an office or place of business therein.

(w) Cooperative – is a duly registered association of persons, with
common bond of interest, who have voluntarily joined together to
achieve a lawful common social or economic end, making equitable
contributions to the capital required and accepting a fair share of the
risks and benefits of the undertaking in accordance with universally
accepted cooperative principles.

(x) Dealer in Securities include all persons who for their own accounts
are engaged in the sale of stocks, bonds, exchange, bullion, coined
money, bank notes, promissory notes, and other securities. It shall
also include pre-need companies or those engaged in the sale of
educational plans, health care plans, memorial plans, etc.

(y) E-Commerce it is generally used to cover the “distribution ,
marketing, sale or delivery of goods, and services by electronic
means.”

(z) Exporter means any person who is engaged in the business of
exporting articles or goods of any kind from the Philippines for the
sale or consumption abroad.

(aa) General Building Contractor is a person whose principal
contracting business is in connection with any structure built, being
built, or to be built, for the support, shelter and enclosure of persons,
animals, chattels, or movable property of any kind, requiring in its
construction the use of more than two unrelated building trades or
crafts, or to do or superintend the whole or any part thereof. Such
structure includes sewers and sewerage disposal plants and systems,
parks, playgrounds, and other recreational works, refineries,
chemical plants and similar industrial plants requiring specialized
engineering knowledge and skill, powerhouses, power plants and
other utility plants and installation, mines and metallurgical plants,
cement and concrete works in connection with the above mentioned
fixed works. A person who merely furnishes materials or supplies
without fabricating them into or consuming them in the performance
of the work of the general building contractor does not necessarily
fall within this definition.

(bb) General Engineering Contractor is a person whose principal
contracting business is in connection with fixed works requiring
specialized engineering, knowledge and skill, including the
following divisions or subjects: irrigation, drainage, water power,
water supply, flood control, inland waterways, harbors, docks and
wharves, shipyards and ports, dams, hydroelectric projects, levees,
river control and reclamation works, railroads, highways, streets and
roads, tunnels, airports and airways, waste reduction plants, bridges,
overpasses, underpasses and other similar works, pipelines and other
systems for the transmission of petroleum and other liquid or
gaseous substances, land-leveling and earth-moving projects,
excavating, graving, trenching, paving, and surfacing works.

(cc) Holding Company a controlling company that has one or more
subsidiaries and confines its activities primarily to their
management.

(dd) Hotel includes any house or buildings or portion thereof in which
any person or persons may be regularly harbored or received as
transients or guests. A hotel shall be considered as living quarters
and shall have the privilege to accept any number of guests and to
serve food to the guests therein.

(ee) Importer means any person who bring articles, good wares or
merchandise of any kind or class into the Philippines from abroad
for unloading therein, or which after entry are consumed herein or
incorporated into the general mass of property in the Philippines. In
case of tax free articles, brought or imported in the Philippines by
person, entities or agencies exempt from tax which are subsequently
sold, transferred, or exchanged in the Philippines to non-exempt
private person or entities, the purchaser or recipient shall be
considered the importer thereof.

(ff) Independent Wholesaler means a person other than a manufacturer,
producer or importer who buys commodities for resale to persons
other than the end-users, regardless of the quantity of transaction.

(gg) Lodging House includes any house or building, or portion thereof,


in which any person or persons may be regularly harbored or
received as transients for compensation.

(hh) Manufacturer includes every person who, for the purpose of sale or
distribution to others and not for his own use or consumption, by
physical or chemical process: (1) alters the exterior texture of from,
or inner substance of any raw material or manufactured or partially
manufactured product in such manner as to prepare it for a special
use or uses to which it could not have been put in its original
condition; (2) alters the quality of any such raw material or
manufactured or partially manufactured product so as to reduce it to
marketable shape or prepare it for any use of industry; or (3)
combines any raw materials or manufactured or partially
manufactured product with other materials or products of the same
or different kind in such manner that the finished product of such
process or manufacture can be put to a special use or uses to which
such materials, or manufactured or partially manufactured product
in its original condition could not have been put.

(ii) Motorist Hotel (Motel) – any structure of several separate units
primarily located along the highway with individual or common
parking space at which motorists may obtain lodging and in some
instances, meals.

(jj) Motor Vehicle means any vehicle propelled by any power other
than muscular power using the public roads, but excluding road rollers, trolley cars, street-weepers, sprinklers, lawnmowers,
bulldozers, graders, forklifts, amphibian trucks, and cranes if not
used on public road vehicles which run only on rails or tracks, and
tractors, trailers and traction engines of all kinds used exclusively
for agricultural purposes.

(kk) Night or Day Club includes any place frequented at nighttime or
daytime, as the case may be, where patrons are served food or drinks
and are allowed to dance with their partners or with professional
hostesses furnished by the management.

(ll) Occupation means one’s regular business or employment or an
activity which principally takes up one’s time, thought and energies.
It includes any calling, business, trade, profession, or vocation.

(mm) Peddler is a person who, either for himself or for commission,
travels from place to place within the city and sells his goods or
offers to sell or deliver the same.

(nn) Pension House – a private or family-operated tourist boarding
house, tourist guest house or tourist lodging house employing non-
professional domestic helpers regularly catering to tourists and
travelers, containing several independent lettable rooms, providing
common facilities such as toilets, bathrooms, showers, living and

(oo) Private-Owned Market means those market establishments
including shopping centers funded and operated by private
persons, natural or juridical, under government permit.

(pp) Profession means a calling which requires the passing of an
appropriate government board or bar examinations, such as
practice of law, medicine, public accountant, engineering, et.

(qq) Public Market refers to any place, building, or structure of
any kind designated as such by the local board or council,
except public streets, plazas, parks and the like.

(rr) Real Estate Brokers includes any person, other than a real
estate salesman as hereinafter defined, who for another, and
for a compensation or in the expectation or promise or receiving
compensation, (1) sells, or offers for sale, buys or offers to buy,
lists or solicits for prospective purchasers, or negotiate the
purchase, sale or exchange of real estate or interests therein;
(2) or negotiate loans on real estate; (3) or leases or offers to
lease or negotiates the sale, purchase or exchange of lease, or
rents or places for rent or collects rent from real estate or
improvements thereon; (4) or shall be employed by or on behalf
of the owner or owners of lots or other parcels of real estate at
a stated salary or commission, or otherwise to sell such real
estate or any part thereof in lots or parcels. Real Estate salesman
means any natural person regularly employed by a real estate
broker to perform in behalf of such broker or any or all the
functions of a real estate broker. One act of a character embraced
within the above definition shall constitute the person performing
or attempting to perform the function of the same a real estate
broker. The foregoing definition do not include a person who shall
directly perform any acts aforesaid reference to his own property,
where such acts are performed in the regular course of or as an
incident to the management of such property; nor shall they apply
to persons acting pursuant to a duly executed power-of-attorney
from the owner authorizing final consummation by performer of a
contract conveying a real estate by sale, mortgage or lease; nor
shall they apply to any receiver, trustee or assignee in bankruptcy
or insolvency or in any person acting pursuant to the order of any
court; nor to a trustee selling under a deed of trust.

(ss) Real Estate Dealer includes any person engaged in the business of
buying , selling, exchanging, leasing or renting property as
principal and holding himself out as a full or part-time dealer in
real estate or as owner or rental property or properties rented or
offered for rent for an aggregate amount of One Thousand Pesos
(PhP 1,000.00) or more a year. Any person shall be considered as
engaged in business as real estate dealer by mere fact that he is the
owner or sub-lessor of property rented or offered for rent
for an aggregate amount of One Thousand Pesos (PhpP1,000.00)
or more a year.

(ss.a) Real Estate Developer – To buy sell, lease or otherwise acquire
and own real estate, improve and develop the same, erect and
construct building and other improvements thereon, to rent, sell
or otherwise dispose or real estate and deal generally in all
contracts pertaining to the purpose, sale, management and
disposition of real estate; to erect, repair, remodel, construct,
improve and develop homes, business industries and commercial
buildings, hereditaments, easements and appurtenances thereto,
wherein situated, to the fullest extent permitted by law.

(tt) Rectifier comprises every person who rectifies, purifies, or refines
distilled spirits or wines by any person other than by original and
continuous distillation from mash, wort, wash, sap, or syrup
through continuous closed vessels and pipes until the manufacture
thereof is complete. Every wholesale or retail liquor dealer who
has in his possession any still or mash tub, or who keeps any
other apparatus for the purpose of distilling of spirits, or in any
manner refining distilled spirits, shall also be regarded as a
rectifier and as being engaged in the business of rectifying.

(uu) Resort – any place or places with pleasant environment and
atmosphere conducive to comfort, healthful relaxation and rest,
offering food, sleeping accommodations and recreational facilities
to the public for a fee.

(vv) Restaurant refers to any place which provides food to the public
accepts orders from them at a price. This terms includes caterers.

(ww) Retail means a sale where the purchaser buys the commodity for
his own consumption, irrespective of the quantity of the
commodity sold.

(xx) Shopping Center are business establishments containing sections
of groceries, appliances, food, amusement activities, movie
houses, fitness centers, clothing apparels, home furnishings, etc.
housed in one building or several buildings. It may be operated
by one person or by different persons renting spaces in the
complex.

(yy) Social/Sport Club is the club the social features of which are the
individual purposes of each organization and which conducts
various kinds of entertainment, on sporting contests and have
elaborate amusement or sport facilities therefore.

(zz) Specialty Contractor is a person whose operations pertain to the
performance of construction work requiring special skill and
whose principal contracting business involves the use of
specialized building trades or crafts.

(aaa) Theater or Cinema house includes any edifice, building or
enclosure where motion pictures are exhibited and/or where
operatic or dramatic performances, presentations or plays, or
other shows are held.


(bbb) Tourist Inn - a lodging establishment catering to transient which
does not meet the minimum requirements of an economy hotel.

(ccc) Vessel includes every type of boat, craft, or other artificial
contrivances used, or capable of being used ,as a means of
transportation on water.