Commonwealth Act No. 465 is the law that requires the payment of residence tax for individuals and businesses. Community tax shall be paid at the place of residence of the natural person; or the location of the registered office of the company (or other legal entity). The obligation to pay Community tax shall be due on the last day of February. Municipal tax payments after February are subject to interest. At Lumina Homes, Cedula is one of the standard documents you need to prepare after making your home reservations, whether online or by visiting the Lumina Homes community closest to you. Those who need a Community tax certificate for the first time and don`t know how to do it have you! Here are the steps to buy a cedula from your barangay, municipal, or municipal government: When used as the primary form of identification, community tax certificates are used, when a person recognizes a document before a notary, takes an oath of office or is appointed to a government position, receives a license or approval from a government agency, pays taxes or government fees, receives money from a public fund, conducts official activities (e.g. business registration) or receives salaries and wages. The Community tax certificate is particularly important if you want to start your real estate investment by buying a property. Henares: If there is a political reform, the first reform will be to remove what is not necessary. The cedula is something we don`t need now,” Henares said, adding that the Bureau of Internal Revenue spends millions of pesos a year to print cedula for local governments, but the revenue from their sales does not go back to the agency or the national government. The Community tax certificate shall be valid for one year from the date of issue.
In the Philippines, a tax certificate (CTC) or cedula serves as proof of residence and citizenship in the country where it was issued. It is a form of primary identification in our country, alongside the driver`s license and passport, and one of the closest individual documents the country has to a national identification system. A municipal tax, also known as a housing tax or capitation tax, is levied on all residents of the municipality who are eighteen years of age or older, as well as legal entities such as companies that do business in the municipality or whose office or branch is located in the municipality. The term resident of the Philippines refers to a person who has resided in the Philippines for more than three months. Community taxpayers are therefore divided into individuals and corporations. The history of Community tax certification comprises three incarnations dating back to the Spanish colonial era. Introduced in a reform of the tax system in the 19th century. In the nineteenth century, following the revolt against tribute of 1589, which abolished the tribute system, as well as subsequent tax reforms, the cédula was issued to all Indians or natives between the ages of 18 and 60 in exchange for the payment of a residence tax of eight reales or its equivalent in goods. and was paid annually. This tax was later increased to fifteen reales. When the peso fuerte was introduced in 1854, the residence tax became one peso fuerte and seven reales. In some cases, Community tax certificates are used as a secondary form of identification instead of a primary form.
Cases where this is the case include the passport application. The Community tax certificate or cedula is issued to a natural or legal person after payment of the Community tax. Community tax shall be paid at the place of residence of the natural person or at the place where the registered office of the legal person is situated. After the independence of the Philippines, the same provisions were maintained. However, the changing socio-political climate has necessitated the reform of certain provisions of Commonwealth Act No. 465. Substantial amendments to the Residence Tax Act were enacted only in 1973, after the promulgation of the local tax code, with changes concerning the distribution of housing tax and the persons covered by it, as well as provisions on payment. The same provisions of the Municipal Tax Code were subsequently incorporated into the Municipal Code of 1991. However, following the withdrawal of U.S. forces from the Philippines, tax exemptions for U.S. military personnel were also abolished, and the residence tax and residency certificate were renamed to the current community tax and community tax certificate.
Currently, according to the Local Government Code of the Philippines, revenue from municipal tax collection is divided between municipal and municipal governments and barangays, with a small portion allocated to the national government to offset the cost of printing municipal tax certificates. Municipal taxes levied by the city or municipal governments immediately go to the city or municipal treasury, while taxes levied by barangay treasurers are allocated half for half, fifty percent of the revenue being allocated to the municipal or municipal treasury and the remaining fifty percent to the barangay treasury. The residence tax and thus the cédula were abolished with the advent of American domination. Such a tax was not levied until January 1, 1940, when Commonwealth Act No. 465 came into force, imposing the imposition of a fifty centavos land residence tax and an additional tax of one peso based on factors such as income and property. The payment of this tax would justify the issue of a certificate of residence. However, persons who are not entitled to pay the housing tax may be issued with a certificate of twenty centavos. Corporations were also subject to residency tax. A Cedula or Community tax certificate number is still required for many transactions, although the paper itself is not often required. The COVID-19 vaccine can also be obtained with your Cedula as acceptable identification. The Cedula can be provided with your PhilHealth Identification Number (PIN). A CLC must be presented each time a person acknowledges receipt of a document before a notary.
take an oath upon election or appointment to a position in the public service; obtains a licence, certificate or approval from an authority; pays taxes or fees; receives money from a public fund; performs other official business; or receives money from a public fund.
No comment Click here to read/write comments
