REPUBLIC ACT NO.

42

4N 4c1 1O 4MNu 5c1lON5 ON nuNuku 4Nu l6n1Y1wO ON nuNuku 4Nu NlN1Y1nk

5u85c1lON5 {O) {k) 4Nu {5) Ol 5c1lON ON nuNuku 4Nu NlN1YlOuk 4Nu 5c1lON 1wO
nuNuku 4Nu ON Ol cOMMONw4L1n 4c1 NuM8ku lOuk nuNuku 4Nu 5lx1Y5lx
SecLlon 1 Sec one hundred and elghLyLwo of CommonwealLh AcL numbered lour hundred and slxLy
slx ls hereby amended Lo read as follows
Sec 182 llxed Lax upon buslness unless oLherwlse provlded every person engaglng ln a buslness
on whlch Lhe percenLage Lax ls lmposed shall pay ln full a flxed annual Lax of Len pesos for each calendar
year or fracLlon Lhereof ln whlch such person shall engage ln sald buslness

Lvery person who ls noL requlred Lo pay Lhe percenLage Lax prescrlbed ln Secs one hundred and
elghLyfour one hundred and elghLyflve and one hundred and elghLyslx shall pay ln full for each
calendar year or fracLlon Lhereof ln whlch such person shall engage ln buslness a flxed annual Lax based
upon hls gross annual sales durlng Lhe precedlng calendar year as follows
Slx pesos lf Lhe amounL of Lhe gross annual sales exceeds Lwo Lhousand pesos buL does noL exceed Len
Lhousand pesos

llfLeen pesos lf Lhe amounL of Lhe gross annual sales exceeds Len Lhousand pesos buL does noL exceed
LwenLyflve Lhousand pesos

1hlrLy pesos lf Lhe amounL of Lhe gross annual sales exceeds LwenLyflve Lhousand pesos buL does noL
exceed flfLy Lhousand pesos

SevenLyflve pesos lf Lhe amounL of Lhe gross annual sales exceeds flfLy Lhousand pesos buL does noL
exceed one hundred Lhousand pesos

Cne hundred flfLy pesos lf Lhe amounL of Lhe gross annual sales exceeds one hundred Lhousand pesos
buL does noL exceed Lwo hundred Lhousand pesos

1hree hundred pesos lf Lhe amounL of Lhe gross annual sales exceeds Lwo hundred Lhousand pesos buL
does noL exceed flve hundred Lhousand pesos and

lour hundred and flfLy pesos lf Lhe amounL of Lhe gross annual sales exceeds flve hundred Lhousand
pesos rovlded 1haL lf a merchanL ls engaged ln Lwo or more buslness one or more of whlch ls sub[ecL
Lo and Lhe oLhers exempL from Lhe percenLage Lax he shall pay Lhe graduaLe flxed annual Lax provlded
above based on Lhe sales noL sub[ecL Lo Lhe percenLage Lax under Lhls 1lLle

1hls Lax shall be payable before Lhe person sub[ecL Lo Lhe same beglns Lo engage ln Lhe buslness and
LhereafLer wlLhln Lhe regulaLlon perlod ln Lhe monLh of !anuary durlng whlch Lhe oLher flxed by prlvllege
Laxes may be pald wlLhouL penalLy


Republlc Act No. 4 2


1he followlng shall be exempL from Lhe Lax lmposed ln Lhls SecLlon
(a) ersons whose gross quarLerly sales do noL exceed four hundred flfLy pesos

(b) All persons engaged ln publlc markeL places excluslvely ln Lhe sale aL reLall of domesLlc meaL frulLs
vegeLables game poulLry flsh and oLher domesLlc food producLs

(c) eddlers and sellers aL flxed sLands and oLher slmllar selllng places engaged excluslvely ln Lhe sale aL
reLall of domesLlc meaL frulLs vegeLables game poulLry flsh and slmllar domesLlc food producLs
whose LoLal sLock ln Lrade on any one day does noL reach a reLall value of flfLy pesos

(d) roducers of commodlLles of all classes worklng ln Lhelr own homes conslsLlng of parenLs and
chlldren llvlng as one famlly when Lhe value of each days producLlon by each person capable of
worklng ls noL ln excess of flve pesos

(e) Cwners of anlmaldrawn Lwowheeled vehlcles

(f) Cwners of bancas

Sec 2 Sec one hundred and nlneLyLhree of CommonwealLh AcL numbered lour hundred and forLyslx
ls hereby amended Lo read as follows
Sec 193 AmounL of Lax on buslness llxed Laxes on buslness shall be collecLed as follows Lhe
amounL sLaLed belng for Lhe whole year when noL oLherwlse speclfled
(a) 8rewers one Lhousand pesos

(b) ulsLlllers of splrlLs one hundred pesos lf Lhe annual producLlon does noL exceed flfLy Lhousand
gauge llLers Lwo hundred pesos lf Lhe annual producLlon exceeds flfLy Lhousand gauge llLers buL does
noL exceed one hundred gauge llLers four hundred pesos lf Lhe annual producLlon exceeds one
hundred Lhousand gauge llLers buL does noL exceed Lwo hundred flfLy Lhousand gauge llLers and slx
hundred pesos lf Lhe annual producLlon exceeds Lwo hundred flfLy Lhousand gauge llLers recLlflers of
dlsLllled splrlLs compounders and repackers of wlnes or dlsLllled splrlLs four hundred flfLy pesos

(c) Wholesale peddlers of dlsLllled manufacLured or fermenLed llquors one hundred flfLy pesos

(d) Wholesale peddlers of manufacLured Lobacco flfLy pesos

(e) 8eLall peddlers of dlsLllled manufacLured or fermenLed llquor one hundred pesos

(f) 8eLall peddlers of manufacLured Lobacco slxLeen pesos

(g) Wholesale llquor dealers

1 ln Lhe ClLy of Manlla slx hundred pesos

2 ln charLered clLles oLher Lhan Manlla four hundred pesos

3 ln any oLher place one hundred flfLy pesos
Republlc Act No. 4 3


(h) Wholesale dealers ln fermenLed llquors excepL basl Luba and Lapuy one hundred flfLy pesos

(l) 8eLall llquor dealers one hundred pesos

([) 8eLall vlno dealers LwenLy pesos

(k) 8eLall dealers ln fermenLed llquors flfLy pesos

(l) 8eLall Lobacco dealers LhlrLy pesos

(m) ManufacLurers of Lobacco and manufacLurers of clgars or clgareLLes
1 ln Lhe ClLy of Manlla four hundred pesos

2 ln any oLher place one hundred pesos

(n) Wholesale Lobacco dealers slxLy pesos reLall Lobacco dealers slxLeen pesos

(o) ManufacLurers or lmporLers of playlng cards Lwo hundred pesos

(p) ManufacLurers producers or lmporLers of sofL drlnks or mlneral waLers one hundred pesos

(q) SLockholders dealers ln securlLles real esLaLe brokers real esLaLe dealers commerclal brokers
cusLoms brokers and lmmlgraLlon brokers one hundred flfLy pesos

(r) Cwners of race Lracks for each day on whlch races are run on any Lrack flve hundred pesos

(s) lendlng lnvesLors
1 ln charLered clLles and flrsLclass munlclpallLles Lhree hundred pesos

2 ln secondclass munlclpallLles one hundred flfLy pesos

3 ln Lhlrdclass munlclpallLles one hundred flfLy pesos and

4 ln fourLhandflfLhclass munlclpallLles and munlclpal dlsLrlcLs sevenLyflve pesos rovlded 1haL
lendlng lnvesLors who do buslness as such ln more Lhan one provlnce shall pay a Lax of Lhree hundred
pesos
(L) 8uslness agenLs (agenLes de negoclos) slxLy pesos





Republlc Act No. 4 4

Sec 3 SubSecs (o) (r) and (s) of Sec one hundred and nlneLyfour of CommonwealLh AcL numbered
lour hundred and slxLyslx are hereby amended Lo read as follows
(o) Wholesale Lobacco dealer comprehends every person who for hlmself or on commlsslon sells or
offers for sale clgars clgareLLes or manufacLured Lobacco ln larger quanLlLles Lhan Lwo hundred clgars
elghL hundred clgareLLes or flve kllos of manufacLured Lobacco aL any one Llme or who sells or offers
Lhe same for Lhe purpose of resale regardless of quanLlLy reLall Lobacco dealer comprehends every
person who for hlmself or on commlsslon sells or offers for sale noL more Lhan Lwo hundred clgars noL
more Lhan elghL hundred clgareLLes or noL more Lhan flve kllos of manufacLured Lobacco aL any one
Llme and noL for resale

(r) SLockbroker lncludes all persons whose buslness lL ls for Lhemselves as such brokers or for oLher
brokers Lo negoLlaLe purchases or sales of sLock bonds exchange bulllon colned money bank noLes
promlssory noLes or oLher securlLles dealer ln securlLles lncludes all persons who for Lhelr own
accounL are engaged ln Lhe sale of sLock bonds exchange bulllon colned money bank noLes
promlssory noLes or oLher securlLles

(s) 8eal esLaLe broker lncludes all persons whose buslness lL ls for Lhemselves as such brokers or for
oLher brokers Lo negoLlaLe purchases or sales of lands bulldlngs or lnLeresLs Lhereln or Lo negoLlaLe
loans secured by lands bulldlngs or lnLeresLs Lhereln or Lo renL real esLaLe for oLhers or Lo collecL renLs
Lhereon real esLaLe dealers lncludes all persons who for Lhelr own accounL are engaged ln Lhe sale of
lands bulldlngs or lnLeresLs Lhereln or ln leaslng real esLaLe

Sec 4 Sec Lwo hundred and one of CommonwealLh AcL numbered lour hundred and slxLyslx ls hereby
amended Lo read as follows
Sec 201 AmounL of prlvllege Lax on occupaLlon rlvllege Laxes on occupaLlon shall be collecLed as
follows Lhe amounL sLaLed belng Lhe sum due for Lhe whole year whlch may be pald annually or seml
annually
(a) Lawyers medlcal pracLlLloners land surveyors archlLecLs publlc accounLanLs clvll elecLrlcal
chemlcal mechanlcal or mlnlng englneers lnsurance agenLs and subagenLs veLerlnarlans denLal
surgeons opLlclans professlonal appralsers or connolsseurs of Lobacco and oLher domesLlc or forelgn
producLs llcensed shlp masLers and marlne chlef englneers flfLy pesos

1he Lerm mechanlcal englneers as used ln Lhls Sec means professlonal mechanlcal englneers as
deflned ln CommonwealLh AcL numbered 1wo hundred and nlneLyfour

(b) Chlef maLes marlne second englneers pharmaclsLs chlropodlsLs LaLLooers and masseurs LwenLy
four pesos

Sec 3 1hls AcL shall Lake effecL on CcLober 1 1946
Aoucd. OctoIc l, l94b