PHILIPPINE TAX SYSTEM AND INCOME TAXATION MODULE 1:OVERVIEW OF THE POWERS

AND AUTHORITY OF THE COMMISSIONER OF INTERNAL REVENUE 1

Course Module

Overview of the Powers and Authority of the

Commissioner of Internal Revenue
LEARNING OBJECTIVES
At the end of this module you are expected to:
1. Identify the different government offices
handling the tax administrative functions;
2. Discuss the powers and duties of the Bureau of
Internal Revenue;
3. Enumerate the officials of the Bureau of
Internal Revenue;
4. Enumerate the powers and extent of authority of the Commissioner of Bureau of Internal
Revenue

The National Internal Revenue Code (NIRC) of 1997 was enacted from Republic Act (RA) No.
8424, otherwise known as the Tax Reform Act of 1997, which was enacted on December 11,
1997 and became effective on January 1, 1998. Since then, this law has been amended
numerous times and few of the significant amendments are the RA 9337 (Reformed VAT Law),
RA 9243 (Revised Documentary Stamp Tax law), RA 9334 (Amended Excise Tax Law), and RA
9504 dated June 17, 2008 (amending Title II - Income Tax)
The NIRC or the “Tax Code” collates the internal revenue laws. It governs the imposition and
collection of the following national internal revenue taxes:
Income tax – a type of tax that is levied by a government directly on income earned by

the taxpayers
Estate tax – a type of tax that is levied on the net value of the estate of a deceased

person before distribution to the heirs

Donor’s tax – a type of tax that is imposed upon any person, natural or juridical,

resident or non-resident, who transfers or causes to transfer by gift or donation, whether direct
or indirect, real, personal, tangible or intangible property.
Value-added tax (VAT) – is a form of sales tax. It is a tax on consumption levied on the

sale, barter, exchange or lease of goods or properties and services in the Philippines and on
importation of goods into the Philippines. Percentage taxes
Excises taxes – these are type of taxes paid when purchases are made on a specific good,

such as gasoline. Excise taxes are often included in the price of the
product
Documentary stamp tax – is an excise tax levied on documents, instruments, loan
agreements and papers evidencing the acceptance, assignment, sale or transfer of an obligation,
rights, or property incident thereto.