An Act to Amend Certain Sections of Commonwealth Act Numbered Four Hundred Sixty-Five, Otherwise Known as the Residence Tax Law, as Amended
Year:
1956
Category:
Other
Date Approved:
June 16, 1956
Summary
Plain-language AI-assisted summary — not the official text. As of July 1, 2026. Read the full text below or on the official source.
This Act amends certain sections of the Commonwealth Act No. 465, which is known as the Residence Tax Law. It outlines the liabilities for residence tax for individuals and corporations, as well as exemptions from the tax.Full Text
REPUBLIC ACT No. 1503
An Act to Amend Certain Sections of Commonwealth Act Numbered Four Hundred Sixty-Five, Otherwise Known as the Residence Tax Law, as Amended
Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:
Section 1. Sections one, two and four of Commonwealth Act Numbered Four hundred sixty-five, as amended, are hereby further amended to read as follows:
Section 2. This Act shall take effect upon its approval.
Approved: June 16, 1956.
"Sec. 1. Persons liable to residence tax. -Every inhabitant of the Philippines over eighteen years of age who has been regularly employed on a wage or salary basis for at least thirty consecutive days during any calendar year at the rate of not less than fifty centavos a day, or who is engaged in business or occupation, or who owns real property with an aggregate assessed value of one thousand pesos or more, or who is required by law to file an income tax return shall pay an annual residence tax of fifty centavos and an annual additional tax which in no case shall exceed one thousand pesos, in accordance with the following schedule:
"For the purposes of the additional tax, dividends received by the taxpayer from any corporation shall not be considered as part of his gross receipts or earnings.
"In the case of husband and wife, the additional tax herein imposed shall be based upon the total property owned by them or upon the total gross receipts or earnings derived by them.
"Sec. 2. Entities liable to residence tax. -Every corporation, no matter how created or organized, whether domestic or resident foreign, engaged in or doing business in the Philippines shall pay an annual residence tax of five pesos and an annual additional tax which, in no case, shall exceed two thousand pesos, in accordance with the following schedule:
"The term "corporation" as used in this Act includes joint-stock company, partnership, joint account (cuenta en participacion), association, or insurance company, no matter how created or organized.
"The term "resident foreign" when applied to a corporation means a foreign corporation engaged in trade or business within the Philippines.
"Sec. 4. Exemptions. -The following shall not be taxed under this Act:
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