NIRC v.

TRAIN Law

NIRC TRAIN
Section 116. Tax on Persons Exempt from Sec. 116. Tax on Persons Exempt from Value-
Value-Added Tax (VAT). - Any person whose added Tax (VAT). – Any person whose sales or
sales or receipts are exempt under Section 109 (V) receipts are exempt under Section 109 (BB) of this
of this Code from the payment of value-added tax Code from the payment of value-added tax and who
and who is not a VAT-registered person shall pay a is not a VAT-registered person shall pay a tax
tax equivalent to three percent (3%) of his gross equivalent to three percent (3%) of his gross
quarterly sales or receipts: Provided, That quarterly sales or receipts: Provided, That
cooperatives shall be exempt from the three percent cooperatives, and beginning January 1, 2019,
(3%) gross receipts tax herein imposed." self-employed and professionals with total
annual gross sales and/or gross receipts not
exceeding Five hundred thousand pesos
(P500,000) shall be exempt from the three percent
(3%) gross receipts tax herein imposed.

Section 127. Tax on Sale, Barter or Exchange Sec. 127. Tax on Sale, Barter or Exchange of
of Shares of Stock Listed and Traded through Shares of Stock Listed and Traded through the
the Local Stock Exchange or through Initial Local Stock Exchange or through Initial Public
Public Offering. – Offering. –
(A) Tax on Sale, Barter or Exchange of Shares of (A) Tax on Sale, Barter or Exchange of Shares of
Stock Listed and Traded through the Local Stock Stock Listed and Traded through the Local Stock
Exchange. - There shall be levied, assessed and Exchange. - There shall be levied, assessed and
collected on every sale, barter, exchange, or other collected on every sale, barter, exchange or other
disposition of shares of stock listed and traded disposition of shares of stock listed and traded
through the local stock exchange other than the sale through the local stock exchange other than the sale
by a dealer in securities, a tax at the rate of one-half by a dealer in securities, a tax at the rate of six-
of one percent (1/2 of 1%) of the gross selling price tenths of one percent (6/10 of 1%) of the
or gross value in money of the shares of stock sold, gross selling price or gross value in money of the
bartered, exchanged or otherwise disposed which shares of stock sold, bartered, exchanged or
shall be paid by the seller or transferor. otherwise disposed which shall be paid by the seller
or transferor.
xxx
xxx

Section 128. Returns and Payment of Sec. 128. Returns and Payments of
Percentage Taxes. - Percentage Taxes. –
(A) Returns of Gross Sales, Receipts or Earnings and (A) x x x
Payment of Tax. - (1) x x x
(2) Persons Retiring from Business. – x x x
(1) Persons Liable to Pay Percentage Taxes. x x x (3) Determination of Correct Sales or Receipts. – x x
 x
(2) Person Retiring from Business. x x
xxx
(3) Exceptions. - The Commissioner may, by
rules and regulations, prescribe:
(a) The time for filing the return at intervals
other than the time prescribed in the
preceding paragraphs for a particular class or
classes of taxpayers after considering such
factors as volume of sales, financial condition,
adequate measures of security, and such
other relevant information required to be
submitted under the pertinent provisions of
this Code; and
(b) The manner and time of payment of
percentage taxes other than as hereinabove
prescribed, including a scheme of tax
prepayment.

(4) Determination of Correct Sales or Receipts. -

When it is found that a person has failed to issue
receipts or invoices, or when no return is filed, or
when there is reason to believe that the books of
accounts or other records do not correctly reflect the
declarations made or to be made in a return
required to be filed under the provisions of this
Code, the Commissioner, after taking into account
the sales, receipts or other taxable base of other
persons engaged in similar businesses under similar
situations or circumstances, or after considering
other relevant information may prescribe a minimum
amount of such gross receipts, sales and taxable
base and such amount so prescribed shall be prima
facie correct for purposes of determining the
internal revenue tax liabilities of such person.