Community Tax I. Individuals.

An annual community tax

- A poll or capitation tax. of five pesos (P5.00), and an annual
- A levy of a certain amount imposed additional tax of one peso (P1.00) for
on all members of a particular class every one thousand pesos (P1,000)
who live in a designated area, of income, which in no case shall
regardless of their possessions or exceed five thousand pesos
line of work. (P5,000).
- Cities and municipalities have the II. Corporations. Annual community tax
authority to levy the annual of five hundred pesos (P500.00) and
community tax. an annual additional tax, which in no
Liable persons: case shall exceed ten thousand
I. Individuals - Every individual pesos (P10,000).
inhabitant of the Philippines 18 years Exemptions from Community Tax:
of age or over who: 1. Diplomatic and consular
1) has been regularly employed on representatives; and
a wage or salary basis for at least 2. Transient visitors when their stay in
30 consecutive working days the Philippines does not exceed
during any calendar year; three months.
2) engaged in business or 3. The following are exempt only for the
occupation; current taxable year:
3) owns real property with an a. Corporations established and
aggregate assessed value of organized on or after July 1.
P1,000 or more; b. Transient visitors whose stay
4) or those required by law to file an in the Philippines is not more
income tax return. than three months.
II. Corporations - Domestic and c. Persons who, on or after
resident foreign corporations July 1 (a) come to reside
engaged in or doing business in the in the Philippines, or (b)
Philippines. become eighteen (18)
Amount to pay tax years of age.
Time and Place of Payment
- Accrue on the first day of January of
each year which shall be paid not
later than the last day of February of
each year.
- An individual who reaches the age
of eighteen or who loses the benefit
of the exemption on or before the
last day of June, shall be liable for
the community tax on the day he
reaches such age or upon the day
the exemption ends. However, if an
individual reaches the age of
eighteen years or loses the benefit of
exemption on or before the last day
of March, he shall have twenty days
to pay the community tax without
becoming delinquent.
- Corporations established and
organized on or before the last day
of June shall be liable for the
community tax for that year.
However, corporations established
and organized on or before the last
day of March shall have twenty days
within which to pay the community
tax without becoming delinquent.
- The community tax due from an
individual shall be paid in the city or
municipality where the individual
resides; in the case of a corporation,
in the city or municipality where the
principal office of the corporation is
situated.
- If the tax is not paid within the time
prescribed, there shall be added to
the unpaid amount an interest of
twenty-four percent per annum from
the due date until it is paid.
- The total interest on the unpaid
amount or portion thereof shall not
exceed thirty-six months.
- The prescriptive period for the
collection of local taxes, community
tax included, is five years from the
date of assessment by administrative
or judicial action.
Community Tax Certificate
- Shall be issued to every person or
corporation upon payment of the
community tax and may also be
issued to any person or corporation
not subject to the community tax
upon payment of one peso.
- The community tax certificate
required to be presented shall be the
one issued for the current year,
except for the period from January
until the fifteenth of April, in which
case, the previous year's certificate
will suffice.
References:

Ballada, W., & Ballada, S. (2022). Transfer and Business Taxation. DomDane
Publishers & Made Easy Books.
Tabag, E. D. (2021). CPA Reviewer in Taxation. EDT Book Publishing.