ARTICLE 1. GRADUATED TAX ON BUSINESS
SECTION 32. IMPOSITION AND TIME OF PAYMENT. There is hereby levied an annual tax on the following business undertakings/activities at the rates prescribed herein.
- On manufacturers, importers, assemblers, repackers, or processors of any article of commerce of whatever kind or nature, in accordance with the following schedule:
- On wholesalers, distributors, or dealers in any article of commerce of whatever kind or nature in accordance with the following schedule:
- On exporters, and on manufacturers, millers, producers, wholesalers, distributors, dealers or retailers of essential commodities enumerated hereunder at a rate of one-half (1/2) of the rates prescribed under subsections (a), (b), and (d) of this Section:
- Rice and corn;
- Wheat or cassava flour, meat, dairy products, locally manufactured, processed or preserved food, sugar, salt and other agricultural, marine, and fresh water products.
- Cooking oil and cooking gas;
- Laundry soap, detergents and medicines;
- Agricultural implements, equipment and post-harvest facilities, fertilizers, pesticides, insecticides, herbicides and other farm inputs;
- Poultry feeds and other animal feeds;
- School supplies; and
- Cement
- On retailers,
- Owners or operators of business establishment rendering or offering services shall pay the tax in accordance with the schedule hereafter provided, such as:
- Advertising agencies; arrastre services; assaying laboratories; barber shops; battery charging shops; beauty parlors; belt and buckle shops; blacksmith shops; book-binders; booking offices for film exchange, booking offices for transportation on commission basis; breeding of game cocks and other sporting animals belonging to others; building maintenance contractors; business agents and other independent contractors (juridical or natural) not included among those subject to occupation tax under this Code whose activity consists essentially of the sale of all kinds of services for a fee; business management services; cinematographic film owners, lessors or distributors; collecting agencies; commercial or immigration brokers; customs brokerages; demolition, filling and salvage contractors; diesel injection services; drafting services; dyeing establishments; electric light or gas system, installers of building (general); engineering (general), building (general) and specialty contractors; engraving plants; escort services; feasibility studies, consultancy services; funeral services; garages; garbage disposal contractors; gold and silversmith shops; hatters and milliner shops; heat or power system, installer of heavy equipment (bulldozers and tractors) proprietors or operators who make them available to others for consideration; hotels and motels; inns, apartelles, pension houses and other similar establishments; private hospitals, private clinics maintained or operated by any medical practitioner; animal hospitals; house and/or sign painting shops; indentors; inspection services for incoming and outgoing cargoes; insurance agencies/adjusters/brokerages; interior decorating services; janitorial services; job placement/recruitment agencies; landscaping contractors; lathe machine shops; laundry shops including dry cleaning establishments, steam laundry and washing machine; lithographers; management consultants not subject to occupation tax; massage and therapeutic clinics; medical and dental laboratories; mercantile agencies; messengerial services; mine drillers; operator of any vehicle for hire purposely to transport merchandise or any article of commerce including school bus operators; operator of shoe-shine stand; painting shops; parking lots; perma press establishments; photographic studios; planing or surfacing or recutting of lumber; shops for plant maintenance or rent-a-plant services; plating establishments, plumbing installation services; polo players, school for and/or horse-back riding academy; private detective or watchman agencies; real estate appraisers; real estate brokerages; real estate developers; recopying or duplicating services like plastic lamination, photostatic, white/blue printing, Xerox, typing, and mimeographing services; rental of bicycles and other light equipment like betamax/vhs tapes, laser disc, skates, furniture, sound system, etc.; repair and/or construction shops for motor or animal drawn vehicles, bicycles and/or tricycles, furniture, shoes, watches, household appliances, boats, typewriters, etc.; roasting of pigs, fowls, etc.; sawmills under contract to saw or cut logs belonging to others; sculpture shops; service stations for washing and greasing of motor vehicles; shipping agencies; shipyard for repairing ships for others; shops for shearing of animals; silk-screen or T-shirt printing shops; slenderizing and body building salons; smelting plants; stables; stevedoring services; stock brokerages; tailor or dress shops; tinsmith shops; towing services; travel agencies; upholstery shops; vaciador shops; warehouses (public or private) or bodegas; water system, installation of; welding shops; electrical shops; battery shops; wood carving shops.
- Exporters, other than those covered by other provisions of this Section, shall pay the tax in accordance with the following schedule:
- Owners or operators of cafes, cafeterias, ice cream and other refreshment parlors, restaurants, soda fountain bars, carinderias and food caterers shall pay the tax in accordance with the following schedule:
- On banks and other financial institutions including lending investors, finance and investment companies, pawnshops, money shops, insurance companies, stock markets, stock brokers, and dealers in securities and foreign exchange:
- Real estate dealers shall pay the tax in accordance with the following schedule:
- Lessors or sub-lessors of real estate including accessories, apartelles, pension inns, apartments, condominium, houses for lease, rooms and spaces for rent shall pay the tax in accordance with the following schedule:
- Owners or operators of privately-owned public markets and shopping centers shall pay the tax in accordance with the following schedule:
- On any business, not otherwise specified in the preceding paragraphs:
For renewal of business, there is hereby imposed a tax rate of three percent (3%) of the gross receipts or sales of the preceding calendar year.
For new businesses, the initial tax is fixed at Php 1,000.
SECTION 33. NEWLY OPERATED BUSINESS. For a newly started business falling under paragraph (a), (b), (c), (d), (e), (f), (g), (h) above, the tax shall be fixed by the quarter. The initial tax for the quarter in which the business starts to operate shall be one half (1/2) of one-tenth (1/10) of one (1%) percent of the capital investment, but in no case shall it be less than the minimum provided therefor by the pertinent schedule.
However, in succeeding quarter or quarters, in case the business opens before the last quarter of the year, the tax shall be based on the gross sales/receipts for the preceding quarter at the rate of one-fourth (1/4) of the annual rates fixed in the pertinent schedule of paragraphs (a), (b), (c), (d), (e), (f), (g), or (h) as the case may be. In the succeeding years, regardless of when the business started to operate, the tax shall be based on the gross sales/receipts for the preceding calendar year, or any fraction thereof, as provided in the pertinent schedule.
SECTION 34. RENEWAL OF APPLICATION FOR BUSINESS PERMIT. In all renewal of application for business permit by any person, partnership, corporation, entities or other business establishments, submission of the prior year financial statement duly stamped by the Bureau of lnternal Revenue is a mandatory requirement as one of the basis for the assessment of tax.
As a general rule, doing business within the City of Mandaluyong without first securing business permit or license to do so is a gross violation of this Code sanctionable under the general penalty provision.
SECTION 35. PAYMENT OF BUSINESS TAX.
- The taxes imposed under Section 32 shall be payable for every separate or distinct establishment or place where business subject to the tax is conducted and one line of business does not become exempt by being conducted with some other businesses for which such tax has been paid. The tax on a business must be paid by the person conducting the same.
- In cases where a person conducts or operates two (2) or more of the businesses mentioned in Section 32 of this Code which are subject to the same rate of tax, the tax shall be computed on the combined total gross sales or receipts of the said two (2) or more related businesses.
- In cases where a person conducts or operates two (2) or more businesses mentioned in Section 32 of this Code which are subject to different rates of tax, the gross sales or receipts of each business shall be separately reported for the purpose of computing the tax due from each business.
SECTION 36. SITUS OF THE TAX
- For purposes of collection of the taxes under Section 32 of this Code, manufacturers, assemblers, repackers, brewers, distillers, rectifiers and compounders of liquor, distilled spirits and wines, millers, producers, exporters, wholesalers, distributors, dealers, contractors, banks and other financial institutions, and other businesses, maintaining or operating branch or sales outlet elsewhere shall record the sale in the branch or sales outlet making the sale or transaction, and the tax thereon shall accrue and shall be paid to the City where such branch or sales outlet is located. In cases where there is no such branch or sales outlet in the City or Mandaluyong where the sale or transaction is made, the sale shall be duly recorded in the principal office and the taxes due shall accrue and shall be paid to such city or municipality.
- The following sales allocation shall apply to manufacturers, assemblers, contractors, producers, and exporters with factories, project offices, plants, and plantations in the pursuit of their business:
- Thirty percent (30%) of all sales recorded in the principal office shall be taxable by the City or Mandaluyong where the principal office is located; and
- Seventy percent (70%) of all sales recorded in the principal office shall be taxable by the City or Mandaluyong where the factory, project office, plant or plantation is located.
- In case of a plantation located at a place other than the place where the factory is located, said seventy percent (70%) mentioned in subparagraph (b) of subsection (2) above shall be divided as follows:
- Sixty percent (60%) to the city or municipality where the factory is located; and
- Forty percent (40%) to the city or municipality where the plantation is located.
- In cases where a manufacturer, assembler, producer, exporter or contractor has two (2) or more factories, project offices, plants or plantations located in different localities, the seventy percent (70%) sales allocation mentioned in subparagraph (b) of subsection (2) above shall be prorated among the localities where the factories, project offices, plants, and plantations are located in proportion to their respective volumes or production during the period for which the tax is due.
- The foregoing sales allocation shall be applied irrespective of whether or not sales are made in the locality where the factory, project office, plant or plantation is located.
Graduated Tax on Business : Manufacturers
On manufacturers, importers, assemblers, repackers, or processors of any article of commerce of whatever kind or nature, in accordance with the following schedule:
| Gross Sales or Receipts for the Preceding Calendar Year |
Amount of Tax per Annum | |
|---|---|---|
| Less than | P30,000.00 | 673.00 |
| 30,000.00 or more but less than | 40,000.00 | 1,010.00 |
| 40,000.00 or more but less than | 50,000.00 | 1,262.50 |
| 50,000.00 or more but less than | 75,000.00 | 2,020.00 |
| 75,000.00 or more but less than | 100,000.00 | 2,524.00 |
| 100,000.00 or more but less than | 150,000.00 | 3,366.00 |
| 150,000.00 or more but less than | 200,000.00 | 4,207.00 |
| 200,000.00 or more but less than | 300,000.00 | 5,890.00 |
| 300,000.00 or more but less than | 500,000.00 | 8,415.00 |
| 500,000.00 or more but less than | 750,000.00 | 12,241.00 |
| 750,000.00 or more but less than | 1,000,000.00 | 15,301.00 |
| 1,000,000.00 or more but less than | 2,000,000.00 | 21,038.00 |
| 2,000,000.00 or more but less than | 3,000,000.00 | 25,246.00 |
| 3,000,000.00 or more but less than | 4,000,000.00 | 30,295.00 |
| 4,000,000.00 or more but less than | 5,000,000.00 | 35,345.00 |
| 5,000,000.00 or more but less than | 6,500,000.00 | 37,296.00 |
| 6,500,000.00 or more but less than | 7,500,000.00 | 39,591.00 |
| 7,500,000.00 or more but less than | 8,500,000.00 | 44,181.00 |
| 8,500,000.00 or more but less than | 9,500,000.00 | 48,771.00 |
| 9,500,000.00 or more but less than | 50,000,000.00 | 48,771.00 plus 49.5% of 1% of excess over 9.5 Million |
| 50,000,000.00 and above | 249,246.00 plus 27.5% of 1% in excess of 50 Million | |
Graduated Tax on Business : Wholesalers
On wholesalers, distributors, or dealers in any article of commerce of whatever kind or nature in accordance with the following schedule:
| Gross Sales or Receipts for the Preceding Calendar Year |
Amount of Tax per Annum | |
|---|---|---|
| Less than | 10,000.00 | 286.00 |
| 10,000.00 or more but less than | 15,000.00 | 336.00 |
| 15,000.00 or more but less than | 20,000.00 | 420.00 |
| 20,000.00 or more but less than | 30,000.00 | 504.00 |
| 30,000.00 or more but less than | 40,000.00 | 673.00 |
| 40,000.00 or more but less than | 50,000.00 | 1,009.00 |
| 50,000.00 or more but less than | 75,000.00 | 1,470.00 |
| 75,000.00 or more but less than | 100,000.00 | 2,019.00 |
| 100,000.00 or more but less than | 150,000.00 | 2,861.00 |
| 150,000.00 or more but less than | 200,000.00 | 3,702.00 |
| 200,000.00 or more but less than | 300,000.00 | 5,049.00 |
| 300,000.00 or more but less than | 500,000.00 | 6,732.00 |
| 500,000.00 or more but less than | 750,000.00 | 10,098.00 |
| 750,000.00 or more but less than | 1,000,000.00 | 13,464.00 |
| 1,000,000.00 or more but less than | 2,000,000.00 | 15,301.00 |
| 2,000,000.00 or more | 15,301.00 plus 55% of 1% in excess of 2 Million | |
Graduated Tax on Business : Retailers
On retailers:
| Gross Sales or Receipts for the Preceding Calendar Year |
Rate of Tax per Annum |
|---|---|
| Php 400,000.00 or less | 3.0% of the gross for the preceding calendar year |
| more than P 400,000.00 | 12,000.00 plus 44% of 1% in excess of 400,000.00 |
Graduated Tax on Business : Services
Owners or operators of business establishment rendering or offering services shall pay the tax in accordance with the schedule hereafter provided:
| Gross Sales or Receipts for the Preceding Calendar Year |
Amount of Tax per Annum | |
|---|---|---|
| Less than | 20,000.00 | 252.00 |
| 20,000.00 or more but less than | 30,000.00 | 420.00 |
| 30,000.00 or more but less than | 40,000.00 | 589.00 |
| 40,000.00 or more but less than | 50,000.00 | 841.00 |
| 50,000.00 or more but less than | 75,000.00 | 1,346.00 |
| 75,000.00 or more but less than | 100,000.00 | 2,019.00 |
| 100,000.00 or more but less than | 200,000.00 | 4,039.00 |
| 200,000.00 or more but less than | 250,000.00 | 5,554.00 |
| 250,000.00 or more but less than | 300,000.00 | 7,069.00 |
| 300,000.00 or more but less than | 400,000.00 | 9,425.00 |
| 400,000.00 or more but less than | 500,000.00 | 12,623.00 |
| 500,000.00 or more but less than | 750,000.00 | 14,153.00 |
| 750,000.00 or more but less than | 1,000,000.00 | 15,683.00 |
| 1,000,000.00 or more but less than | 2,000,000.00 | 17,596.00 |
| 2,000,000.00 or more | 17,596.00 plus 82% of 1% of the gross receipts in excess of 2 M |
Graduated Tax on Business : Exporters
Exporters, other than those covered by other provisions of this Section, shall pay the tax in accordance with the following schedule:
| Gross Sales or Receipts for the Preceding Calendar Year |
Amount of Tax per Annum | |
|---|---|---|
| Less than | 100,000.00 | 1,177.00 |
| 100,000.00 or more but less than | 150,000.00 | 1,683.00 |
| 150,000.00 or more but less than | 200,000.00 | 2,103.00 |
| 200,000.00 or more but less than | 300,000.00 | 2,944.00 |
| 300,000.00 or more but less than | 500,000.00 | 4,207.00 |
| 500,000.00 or more but less than | 750,000.00 | 6,120.00 |
| 750,000.00 or more but less than | 1,000,000.00 | 7,650.00 |
| 1,000,000.00 or more but less than | 2,000,000.00 | 10,519.00 |
| 2,000,000.00 or more but less than | 3,000,000.00 | 12,623.00 |
| 3,000,000.00 or more but less than | 4,000,000.00 | 15,147.00 |
| 4,000,000.00 or more but less than | 5,000,000.00 | 17,672.00 |
| 5,000,000.00 or more but less than | 6,500,000.00 | 18,648.00 |
| 6,500,000.00 or more but less than | 7,500,000.00 | 19,795.00 |
| 7,500,000.00 or more but less than | 8,500,000.00 | 22,090.00 |
| 8,500,000.00 or more but less than | 9,500,000.00 | 24,385.00 |
| 9,500,000.00 or more but less than | 50,000,000.00 | 24,385.00 plus 27.5% of 1% of excess over 9.5 Million |
| Over 50,000,000.00 | 137,760.00 plus 16.5% of 1% in excess of 50 Million |
Graduated Tax on Business : Food Service Establishments
Owners or operators of cafes, cafeterias, ice cream and other refreshment parlors, restaurants, soda fountain bars, carinderias and food caterers shall pay the tax in accordance with the following schedule:
| Gross Sales or Receipts for the Preceding Calendar Year |
Amount of Tax per Annum | |
|---|---|---|
| Less than | 10,000.00 | 229.00 |
| 10,000.00 or more but less than | 15,250.00 | 336.00 |
| 15,250.00 or more but less than | 18,250.00 | 413.00 |
| 18,250.00 or more but less than | 23,375.00 | 535.00 |
| 23,375.00 or more but less than | 27,000.00 | 612.00 |
| 27,000.00 or more but less than | 30,000.00 | 688.00 |
| 30,000.00 or more but less than | 33,000.00 | 765.00 |
| 33,000.00 or more but less than | 35,875.00 | 841.00 |
| 35,875.00 or more but less than | 40,625.00 | 933.00 |
| 40,625.00 or more but less than | 45,500.00 | 1,009.00 |
| 45,500.00 or more but less than | 50,000.00 | 1,147.00 |
| For every P1,000.00 or fraction thereof in excess of | 50,000.00 | 12.00 |
Graduated Tax on Business : Financial Institutions
On banks and other financial institutions including lending investors, finance and investment companies, pawnshops, money shops, insurance companies, stock markets, stock brokers, and dealers in securities and foreign exchange:
| Type of Business: | Rate of Tax per Annum | ||
|---|---|---|---|
| 1. | Pawnshops with capital of: | ||
| Main Pawnshop | Php 4,708.00 | ||
| For each additional branch | 1,765.00 | ||
| 2. | Money Shops/Money Changers | 235.00 | |
| 3. | Individual Lending Investors | 353.00 | |
| 4. | Finance and Investment Companies: | ||
| Principal Office in the City | 2,354.00 | ||
| For each additional branch | 706.00 | ||
| 5. | Insurance Companies: | ||
| Principal Office in the City | 3,531.00 | ||
| For each additional branch | 706.00 | ||
| 6. | Commercial Banks: | ||
| Principal Office in the City | 5,885.00 | ||
| For each additional branch and ATM machine isolated outside bank | 1,177.00 | ||
| 7. | Savings or thrift banks/savings and loan associations: | ||
| Principal Office in the City | 2,354.00 | ||
| For each additional branch | 470.00 | ||
| 8. | Rural Banks | 706.00 | |
| 9. | Dealers in Securities and Foreign Exchange dealers | 1,177.00 |
FOR RENEWAL OF BUSINESS
- 60% of 1% of the gross receipts of the preceding calendar year
Minimum tax shall not be less than the rate prescribed above.
Graduated Tax on Business : Real Estate Dealers
Real estate dealers shall pay the tax in accordance with the following schedule:
| Gross Sales or Receipts for the Preceding Calendar Year |
Amount of Tax per Annum | |
|---|---|---|
| Less than | Php 10,000.00 | 573.00 |
| 10,000.00 or more but less than | 50,000.00 | 1,147.00 |
| 50,000.00 or more but less than | 100,000.00 | 1,720.00 |
| 100,000.00 or more but less than | 200,000.00 | 3,442.00 |
| 200,000.00 or more but less than | 400,000.00 | 5,164.00 |
| 400,000.00 or more but less than | 700,000.00 | 9,180.00 |
| 700,000.00 or more but less than | 1,000,000.00 | 13,7700.00 |
| 1,000,000.00 or more but less than | 1,500,000.00 | 20,082.00 |
| 1,500,000.00 or more but less than | 2,000,000.00 | 24,099.00 |
| 2,000,000.00 or more but less than | 3,000,000.00 | 31,558.00 |
| 3,000,000.00 or more but less than | 5,000,000.00 | 36,722.00 |
| 5,000,000.00 or more but less than | 6,500,000.00 | 45,903.00 |
| 6,500,000.00 or more but less than | 8,000,000.00 | 57,378.00 |
| 8,000,000.00 or more but less than | 10,000,000.00 | 72,297.00 |
| For every P 500,000.00 in excess of | 10,000,000.00 | 2,648.00 |
For newly started business, the initial tax shall be the minimum prescribed above.
Graduated Tax on Business : Real Estate Lessors
Lessors or sub-lessors of real estate including accessories, apartels, pension inns, apartments, condominium, houses for lease, rooms and spaces for rent shall pay the tax in accordance with the following schedule:
| Gross Sales or Receipts for the Preceding Calendar Year |
Amount of Tax per Annum | |
|---|---|---|
| Less than | 10,000.00 | 114.00 |
| 10,000.00 or more but less than | 20,000.00 | 344.00 |
| 20,000.00 or more but less than | 30,000.00 | 688.00 |
| 30,000.00 to 50,000.00 | 1,147.00 | |
| In excess of P50,000.00 | ||
| Commercial Lessor | 1.65% | |
| Residential Lessor | 1.10% |
Graduated Tax on Business : Markets
Owners or operators of privately-owned public markets and shopping centers shall pay the tax in accordance with the following schedule:
| Gross Receipts for the Preceding Quarter | Amount of Tax per Annum | |
|---|---|---|
| Less than | 50,000.00 | 1,966.00 |
| 50,000.00 or more but less than | 60,000.00 | 2,359.00 |
| 60,000.00 or more but less than | 70,000.00 | 2,752.00 |
| 70,000.00 or more but less than | 80,000.00 | 3,146.00 |
| 80,000.00 or more but less than | 90,000.00 | 3,539.00 |
| 90,000.00 or more | 100,000.00 | 3,932.00 |
| For every P1,000.00 in excess of | 100,000.00 | 33.00 |
For newly started privately-owned public markets, the tax shall be the minimum prescribed above.