An Act Amending or Repealing Certain Sections of Title V of the National Internal Revenue Code

REPUBLIC ACT No. 41

An Act Amending or Repealing Certain Sections of Title V of the National Internal Revenue Code

Be it enacted by the Senate and House of Representatives of the Philippine Congress Assembled:

Section 1. Section one hundred and eighty-four of Commonwealth Act Numbered Four hundred and sixty-six, as amended by section one of Commonwealth Act Numbered Five hundred and twenty-five, is hereby further amended to read as follows:

Section 2. Section one hundred and eighty-five of Commonwealth Act Numbered Four hundred and sixty-six, as amended by section two of Commonwealth Act Numbered Five hundred and twenty-five, is hereby further amended to read as follows:

Section 3. Section one hundred and eighty-six of Commonwealth Act Numbered Four hundred and sixty-six is hereby amended to read as follows:

Section 4. Section one hundred and eighty-seven of Commonwealth Act Numbered Four hundred and sixty-six, as amended by section one of Commonwealth Act Numbered Five hundred and three, is hereby repealed.

Section 5. Section one hundred and eighty-eight of Commonwealth Act Numbered Four hundred and sixty-six, as amended by section two of Commonwealth Act Numbered Five hundred and three, is hereby further amended to read as follows:

Section 6. Section one hundred and eighty-nine of Commonwealth Act Numbered Four hundred and sixty-six, as amended by section three of Commonwealth Act Numbered Five hundred and three, is hereby further amended to read as follows:

Section 7. This Act shall take effect on October first, nineteen hundred and forty-six.

Approved: October 1, 1946

"Sec. 184. Percentage tax on sales of jewelry, automobiles, toilet preparations, and others.— There is levied, assessed and collected once only on every original sale, barter, exchange, or similar transaction intended to transfer ownership of, or title to, the articles hereinbelow enumerated a tax equivalent to twenty per centum of the gross selling price or gross value in money of the articles so sold, bartered, exchanged, or transferred, such tax to be paid by the manufacturer, producer, or importer: Provided, That where the articles are manufactured out of materials subject to tax under this section, the total cost of such materials, as duly established, shall be deductible from the gross selling price or gross value in money of the manufactured articles.

"Sec. 185. Percentage tax on sales of automobiles, sporting goods, refrigerators, musical instruments, and others.— There is levied, assessed, and collected once only on every original sale, barter, exchange, or similar transaction intended to transfer ownership of, or title to, the articles hereinbelow enumerated, a tax equivalent to ten per centum of the gross selling price or gross value in money of the articles so sold, bartered, exchanged, or transferred, such tax to be paid by the manufacturer, producer, or importer: Provided, That where the articles are manufactured out of materials subject to tax under this section and section one hundred and eighty-six the total cost of such materials, as duly established, shall be deductible from the gross selling price or gross value in money of the manufactured articles.

"Sec. 186. Percentage tax on sales of other articles.— There is levied, assessed, and collected once only on every original sale, barter, exchange, or similar transaction intended to transfer ownership of, or title to, the articles not enumerated in sections one hundred and eighty-four and one hundred and eighty-five a tax equivalent to five per centum of the gross selling price or gross value in money of the articles so sold, bartered, exchanged, or transferred, such tax to be paid by the manufacturer, producer, or importer: Provided, That where the articles are manufactured out of materials subject to tax under this section, the total cost of such materials, as duly established, shall be deductible from the gross selling price or gross value in money of the manufactured articles."

"Sec. 188. Transactions and persons not subject to percentage tax.— In computing the tax imposed in section one hundred and eighty-four, one hundred and eighty-five, and one hundred and eighty-six, transactions in the following commodities shall be excluded:

"The following persons shall be exempt from the percentage taxes imposed in sections one hundred and eighty-four, one hundred and eighty-five and one hundred and eighty-six:

"Sec. 189. Percentage tax upon proprietors or operators of rope factories, sugar centrals, rice mills, coconut oil mills, corn mills, and desiccated coconut factories.— Proprietors or operators of rope factories, sugar centrals, rice mills, coconut oil mills, corn mills, and desiccated coconut factories shall pay a tax equivalent to two per centum of the gross value in money of all the rope, sugar, rice, coconut oil, ground or milled corn, and desiccated coconut manufactured or milled by them, including the by-products of the raw materials from which the said articles are produced or manufactured such tax to be based on the actual selling price or market value of these articles at the time they leave the factory or mill warehouse.

"In case the raw materials are manufactured or milled in pursuance of a contract where the factory, central, or mill receives a share of the finished products, the tax on the share pertaining to the planter or owner of the raw materials shall be charged to the planter or owner and withheld by the proprietor or operator of the factory, central or mill and paid by him to the Collector of Internal Revenue.

"A proprietor or operator of a refined sugar factory shall be subject to the tax imposed by this section but shall be permitted to deduct from the actual selling price or market value of the refined sugar the total cost, as duly established, of the raw sugar upon which the tax under this section has previously been paid.

"Where articles are manufactured out of materials subject to tax under this section, the total cost, as duly established, of the said materials shall be deductible from the gross selling price or gross value in money of the manufactured articles."