The SEC Express Nationwide Submission (SENS)

Section 141 of the Corporation Code of the Philippines requires a corporation, lawfully doing business in the Philippines, to submit to SEC an annual report of its operations, together with a financial statement of its assets and liabilities covering the preceding fiscal year. The report shall be submitted within the prescribed period to SEC (Click here for 2015 Reports) . In view of the deadlines imposed on the filing of these reports, there is a surge in the submission of annual corporate reports every year.

The SEC is now introducing an innovative, integrated solution to address the increasing volume of Annual Reports submission consisting of Audited Financial Statements stamped received by the BIR and General Information Sheet that will be able to integrate seamlessly with the SEC process resulting in a more efficient, reliable and convenient process for compliance of Annual Reportorial Requirements of corporations without the need to proceed to the SEC personally to submit the said documents.

In line with this, on March 18, 2016 the SEC will be soft launching a new system for the submission of these documents to the SEC called the SEC Express Nationwide Submission or SENS. This allows filers an additional submission option to the SEC’s standard procedures. With this option filers can simply send their documents to the SEC through a designated courier or courier of their choice instead of submitting these personally at SEC office and/or Satellite Offices. Below is the step-by-step process when using SENS when submitting documents to the SEC:

1. Log on to www.secexpress.ph/sens
2. Accomplish, print and sign the SENS form, checklist and undertaking. Enclose these documents with the reports to be filed with the SEC in one envelope.
3. Filers who do not require a return copy of the document submissions may proceed to the nearest courier office of their choice and pay the courier fee.
4. Filers who require a return copy of their document submissions may proceed to the designated SENS courier (right now there is only 1 designated courier as per checking. See list of Air 21 branches below) and pay the service/courier fees. A list of designated SENS Couriers is available at www.secexpress.ph/sens for your reference.
5. For inquiries please contact 737-8888.

The SEC Express System hotline is available to answer any questions regarding SENS. To call the hotline for free, simply dial 737-8888 using any landline in Metro Manila; calls from mobile phones and landlines outside Metro Manila will be charged according to mobile and landline carrier rates. The hotline is available from 8am to 5pm, Mondays to Saturdays.

AIR21 Branches

You may download a copy of this SEC Announcement here. 

REPUBLIC ACT NO. 8792

AN ACT PROVIDING FOR THE RECOGNITION AND USE OF ELECTRONIC COMMERCIAL AND NON-COMMERCIAL TRANSACTIONS AND DOCUMENTS, PENALTIES FOR UNLAWFUL USE THEREOF, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

PART I

SHORT TITLE AND DECLARATION OF POLICY

Section 1. Short Title - This Act shall be known as the "Electronic Commerce Act of 2000." 

Section 2. Declaration of Policy - The State recognizes the vital role of information and communications technology (ICT) in nation-building; the need to create an information-friendly environment which supports and ensures the availability, diversity and affordability of ICT products and services; the primary responsibility of the private sector in contributing investments and services in telecommunications and information technology; the need to develop, with appropriate training programs and institutional policy changes, human resources for the information technology age, a labor force skilled in the use of ICT and a population capable of operating and utilizing electronic appliances and computers; its obligation to facilitate the transfer and promotion of technology; to ensure network security, connectivity and neutrality of technology for the national benefit; and the need to marshal, organize and deploy national information infrastructures, comprising in both telecommunications network and strategic information services, including their interconnection to the global information networks, with the necessary and appropriate legal, financial, diplomatic and technical framework, systems and facilities. 

PART II

ELECTRONIC COMMERCE IN GENERAL 

CHAPTER I

GENERAL PROVISIONS

Section 3. Objective - This Act aims to facilitate domestic and international dealings, transactions, arrangements agreements, contracts and exchanges and storage of information through the utilization of electronic, optical and similar medium, mode, instrumentality and technology to recognize the authenticity and reliability of electronic documents related to such activities and to promote the universal use of electronic transaction in the government and general public. 

Section 4. Sphere of Application - This Act shall apply to any kind of data message and electronic document used in the context of commercial and non-commercial activities to include domestic and international dealings, transactions, arrangements, agreements contracts and exchanges and storage of information. 

Section 5. Definition of Terms - For the purposes of this Act, the following terms are defined, as follows: 

(a) "Addressee" refers to a person who is intended by the originator to receive the electronic data message or electronic document. The term does not include a person acting as an intermediary with respect to that electronic data message or electronic data document.

(b) "Computer" refers to any device or apparatus which, by electronic, electro-mechanical, or magnetic impulse, or by other means, is capable of receiving, recording, transmitting, storing, processing, retrieving, or producing information, data, figures, symbols or other modes of written expression according to mathematical and logical rules or of performing any one or more of these functions.

(c) "Electronic Data Message" refers to information generated, sent, received or stored by electronic, optical or similar means.

(d) "Information and Communications System" refers to a system intended for and capable of generating, sending, receiving, storing, or otherwise processing electronic data messages or electronic documents and includes the computer system or other similar device by or in which data is recorded or stored and any procedures related to the recording or storage of electronic data message or electronic document.

(e) "Electronic Signature" refers to any distinctive mark, characteristic and/or sound in electronic form, representing the identity of a person and attached to or logically associated with the electronic data message or electronic document or any methodology or procedures employed or adopted by a person and executed or adopted by such person with the intention of authenticating or approving an electronic data message or electronic document.

(f) "Electronic Document" refers to information or the representation of information, data, figures, symbols or other modes of written expression, described or however represented, by which a right is established or an obligation extinguished, or by which a fact may be prove and affirmed, which is receive, recorded, transmitted, stored, processed, retrieved or produced electronically.

(g) "Electronic Key" refers to a secret code which secures and defends sensitive information that cross over public channels into a form decipherable only with a matching electronic key.

(h) "Intermediary" refers to a person who in behalf of another person and with respect to a particular electronic document sends, receives and/or stores provides other services in respect of that electronic data message or electronic document.

(i) "Originator" refers to a person by whom, or on whose behalf, the electronic document purports to have been created, generated and/or sent. The term does not include a person acting as an intermediary with respect to that electronic document.

(j) "Service provider" refers to a provider of -

• i. On-line services or network access or the operator of facilities therefor, including entities offering the transmission, routing, or providing of connections for online communications, digital or otherwise, between or among points specified by a user, of electronic documents of the user's choosing; or

• ii. The necessary technical means by which electronic documents of an originator may be stored and made accessible to designated or undesignated third party. Such service providers shall have no authority to modify or alter the content of the electronic data message or electronic document received or to make any entry therein on behalf of the originator, addressee or any third party unless specifically authorized to do so, and who shall retain the electronic document in accordance with the specific request or as necessary for the purpose of performing the services it was engaged to perform.  

CHAPTER II

LEGAL RECOGNITION OF ELECTRONIC WRITING OR DOCUMENT AND DATA MESSAGES

Section 6. Legal Recognition of Electronic Data Messages - Information shall not be denied legal effect, validity or enforceability solely on the grounds that it is in the data message purporting to give rise to such legal effect, or that it is merely referred to in that electronic data message. 

Section 7. Legal Recognition of Electronic Documents - Electronic documents shall have the legal effect, validity or enforceability as any other document or legal writing, and - 

(a) Where the law requires a document to be in writing, that requirement is met by an electronic document if the said electronic document maintains its integrity and reliability and can be authenticated so as to be usable for subsequent reference, in that - 

• i. The electronic document has remained complete and unaltered, apart from the addition of any endorsement and any authorized change, or any change which arises in the normal course of communication, storage and display; and 
• ii. The electronic document is reliable in the light of the purpose for which it was generated and in the light of all relevant circumstances. 

(b) Paragraph (a) applies whether the requirement therein is in the form of an obligation or whether the law simply provides consequences for the document not being presented or retained in its original from. 

(c) Where the law requires that a document be presented or retained in its original form, that requirement is met by an electronic document if - 

• i. There exists a reliable assurance as to the integrity of the document from the time when it was first generated in its final form; and 
• ii. That document is capable of being displayed to the person to whom it is to be presented: Provided, That no provision of this Act shall apply to vary any and all requirements of existing laws on formalities required in the execution of documents for their validity. 

For evidentiary purposes, an electronic document shall be the functional equivalent of a written document under existing laws. This Act does not modify any statutory rule relating to admissibility of electronic data massages or electronic documents, except the rules relating to authentication and best evidence. 

Section 8. Legal Recognition of Electronic Signatures. - An electronic signature on the electronic document shall be equivalent to the signature of a person on a written document if that signature is proved by showing that a prescribed procedure, not alterable by the parties interested in the electronic document, existed under which -

(a) A method is used to identify the party sought to be bound and to indicate said party's access to the electronic document necessary for his consent or approval through the electronic signature;

(b) Said method is reliable and appropriate for the purpose for which the electronic document was generated or communicated, in the light of all circumstances, including any relevant agreement; 

(c) It is necessary for the party sought to be bound, in or order to proceed further with the transaction, to have executed or provided the electronic signature; and 

(d) The other party is authorized and enabled to verify the electronic signature and to make the decision to proceed with the transaction authenticated by the same. 

Section 9. Presumption Relating to Electronic Signatures - In any proceedings involving an electronic signature, it shall be presumed that -

(a) The electronic signature is the signature of the person to whom it correlates; and 

(b) The electronic signature was affixed by that person with the intention of signing or approving the electronic document unless the person relying on the electronically signed electronic document knows or has noticed of defects in or unreliability of the signature or reliance on the electronic signature is not reasonable under the circumstances. 

Section 10. Original Documents. -

(1) Where the law requires information to be presented or retained in its original form, that requirement is met by an electronic data message or electronic document if; 

• (a) the integrity of the information from the time when it was first generated in its final form, as an electronic data message or electronic document is shown by evidence aliunde or otherwise; and 
• (b) where it is required that information be resented, that the information is capable of being displayed to the person to whom it is to be presented. 

(2) Paragraph (1) applies whether the requirement therein is in the form of an obligation or whether the law simply provides consequences for the information not being presented or retained in its original form.

(3) For the purpose of subparagraph (a) of paragraph (1):

• (a) the criteria for assessing integrity shall be whether the information has remained complete and unaltered, apart from the addition of any endorsement and any change which arises in the normal course of communication, storage and display ; and
• (b) the standard of reliability required shall be assessed in the light of purposed for which the information was generated and in the light of all the relevant circumstances.

Section 11. Authentication of Electronic Data Messages and Electronic Documents. - Until the Supreme Court by appropriate rules shall have so provided, electronic documents, electronic data messages and electronic signatures, shall be authenticated by demonstrating, substantiating and validating a claimed identity of a user, device, or another entity is an information or communication system, among other ways, as follows;

(a) The electronic signature shall be authenticated by proof than a letter , character, number or other symbol in electronic form representing the persons named in and attached to or logically associated with an electronic data message, electronic document, or that the appropriate methodology or security procedures, when applicable, were employed or adopted by such person, with the intention of authenticating or approving in an electronic data message or electronic document; 

(b) The electronic data message or electronic document shall be authenticated by proof that an appropriate security procedure, when applicable was adopted and employed for the purpose of verifying the originator of an electronic data message and/or electronic document, or detecting error or alteration in the communication, content or storage of an electronic document or electronic data message from a specific point, which, using algorithm or codes, identifying words or numbers, encryptions, answers back or acknowledgement procedures, or similar security devices.

The supreme court may adopt such other authentication procedures, including the use of electronic notarization systems as necessary and advisable, as well as the certificate of authentication on printed or hard copies of the electronic document or electronic data messages by electronic notaries, service providers and other duly recognized or appointed certification authorities.

The person seeking to introduce an electronic data message or electronic document in any legal proceeding has the burden of proving its authenticity by evidence capable of supporting a finding that the electronic data message or electronic document is what the person claims it be.

In the absence of evidence to the contrary, the integrity of the information and communication system in which an electronic data message or electronic document is recorded or stored may be established in any legal proceeding -

a.) By evidence that at all material times the information and communication system or other similar device was operating in a manner that did not affect the integrity of the electronic data message and/or electronic document, and there are no other reasonable grounds to doubt the integrity of the information and communication system, 

b.) By showing that the electronic data message and/or electronic document was recorded or stored by a party to the proceedings who is adverse in interest to the party using it; or 

c.) By showing that the electronic data message and/or electronic document was recorded or stored in the usual and ordinary course of business by a person who is not a party to the proceedings and who did not act under the control of the party using the record.

Section 12. Admissibility and Evidential Weight of Electronic Data Message or Electronic Document. - In any legal proceedings, nothing in the application of the rules on evidence shall deny the admissibility of an electronic data message or electronic document in evidence -

(a) On the sole ground that it is in electronic form; or

(b) On the ground that it is not in the standard written form, and the electronic data message or electronic document meeting, and complying with the requirements under Sections 6 or 7 hereof shall be the best evidence of the agreement and transaction contained therein.

In assessing the evidential weight of an electronic data message or electronic document, the reliability of the manner in which it was generated, stored or communicated, the reliability of the manner in which its originator was identified, and other relevant factors shall be given due regard.

Section 13. Retention of Electronic Data Message or Electronic Document. - Notwithstanding any provision of law, rule or regulation to the contrary -

 (a) The requirement in any provision of law that certain documents be retained in their original form is satisfied by retaining them in the form of an electronic data message or electronic document which - 

•  (i) Remains accessible so as to be usable for subsequent reference; 

•  (ii) Is retained in the format in which it was generated, sent or received, or in a format which can be demonstrated to accurately represent the electronic data message or electronic document generated, sent or received; 

•  (iii) Enables the identification of its originator and addressee, as well as the determination of the date and the time it was sent or received. 

(b) The requirement referred to in paragraph (a) is satisfied by using the services of a third party, provided that the conditions set fourth in subparagraph s (i), (ii) and (iii) of paragraph (a) are met.

Section 14. Proof by Affidavit. - The matters referred to in Section 12, on admissibility and Section 9, on the presumption of integrity, may be presumed to have been established by an affidavit given to the best of the deponent's knowledge subject to the rights of parties in interest as defined in the following section.

Section 15. Cross - Examination.

(1) A deponent of an affidavit referred to in Section 14 that has been introduced in evidence may be cross-examined as of right by a party to the proceedings who is adverse in interest to the party who has introduced the affidavit or has caused the affidavit to be introduced. 

(2) Any party to the proceedings has the right to cross-examine a person referred to in section 11, paragraph 4, sub paragraph c. 

CHAPTER III. 

COMMUNICATION OF ELECTRONIC DATA MESSAGES OR ELECTRONIC DOCUMENTS

Section 16. Formation of Validity of Electronic Contracts.

(1) Except as otherwise agreed by the parties, an offer, the acceptance of an offer and such other elements required under existing laws for the formation of contracts may be expressed in, demonstrated and proved by means of electronic data messages or electronic documents and no contract shall be denied validity or enforceability on the sole ground that it is in the form of an electronic data message or electronic document, or that any or all of the elements required under existing laws for the formation of contracts is expressed, demonstrated and proved by means of electronic data messages or electronic documents. 

(2) Electronic transactions made through networking among banks, or linkages thereof with other entities or networks, and vice versa, shall be deemed consummated upon the actual dispensing of cash or the debit of one account and the corresponding credit to another, whether such transaction is initiated by the depositor or by an authorized collecting party: Provided, that the obligation of one bank, entity, or person similarly situated to another arising therefrom shall be considered absolute and shall not be subjected to the process of preference of credits.

Section 17. Recognition by Parties of Electronic Data Message or Electronic Document. - As between the originator and the addressee of an electronic data message or electronic document, a declaration of will or other statement shall not be denied legal effect, validity or enforceability solely on the ground that it is in the form of an electronic data message.

Section 18. Attribution of Electronic Data Message. -

(1) An electronic data message or electronic document is that of the originator if it was sent by the originator himself. 

(2) As between the originator and the addressee, an electronic data message or electronic document is deemed to be that of the originator if it was sent: 

• (a) by a person who had the authority to act on behalf of the originator with respect to that electronic data message or electronic document; or
• (b) by an information system programmed by, or on behalf of the originator to operate automatically. 

(3) As between the originator and the addressee, an addressee is entitled to regard an electronic data message or electronic document as being that of the originator, and to act on that assumption, if: 

• (a) in order to ascertain whether the electronic data message or electronic document was that of the originator, the addressee properly applied a procedure previously agreed to by the originator for that purpose; or
• (b) the electronic data message or electronic document as received by the addressee resulted from the actions of a person whose relationship with the originator or with any agent of the originator enabled that person to gain access to a method used by the originator to identify electronic data messages as his own. 

(4) Paragraph (3) does not apply: 

• (a) as of the time when the addressee has both received notice from the originator that the electronic data message or electronic document is not that of the originator, and has reasonable time to act accordingly; or
• (b) in a case within paragraph (3) sub-paragraph (b), at any time when the addressee knew or should have known, had it exercised reasonable care of used any agreed procedure, that the electronic data message or electronic document was not that of the originator. 

(5) Where an electronic data message or electronic document is that of the originator or is deemed to be that of the originator, or the addressee is entitled to act on that assumption, then, as between the originator and the addressee, the addressee is entitled to regard the electronic data message or electronic document as received as being what the originator intended to send, and to act on that assumption. The addressee is not so entitled when it knew or should have known, had it exercised treasonable care or used any agreed procedure, that the transmission resulted in any error in the electronic data message or electronic document as received. 

(6) The addressee is entitled to regard each electronic data message or electronic document received as a separate electronic data message or electronic document and to act on that assumption, except to the extent that it duplicates another electronic data message or electronic document and the addressee knew or should have known, had it exercised reasonable care or used any agreed procedure, that the electronic data message or electronic document was a duplicate.

Section 19. Error on Electronic Data Message or Electronic Document. - The addressee is entitled to regard the electronic data message or electronic document received as that which the originator intended to send, and to act on that assumption, unless the addressee knew or should have known, had the addressee exercised reasonable care or used the appropriate procedure -

(a) That the transmission resulted in any error therein or in the electronic document when the electronic data message or electronic document enters the designated information system, or 

(b) That electronic data message or electronic document is sent to an information system which is not so designated by the addressee for the purposes.  

Section 20. Agreement on Acknowledgement of Receipt of Electronic Data Messages or Electronic Documents. - The following rules shall apply where, on or before sending an electronic data message or electronic document, the originator and the addressee have agreed, or in that electronic document or electronic data message, the originator has requested, that receipt of the electronic document or electronic data message be acknowledged:

a.) Where the originator has not agreed with the addressee that the acknowledgement be given in a particular form or by a particular method, an acknowledgement may be given by or through any communication by the addressee, automated or otherwise, or any conduct of the addressee, sufficient to indicate to the originator that the electronic data message or electronic document has been received. 

b.) Where the originator has stated that the effect or significance of the electronic data message or electronic document is conditional on receipt of the acknowledgement thereof, the electronic data message or electronic document is treated as though it has never been sent, until the acknowledgement is received. 

c.) Where the originator has not stated that the effect or significance of the electronic data message or electronic document is conditional on receipt of the acknowledgement, and the acknowledgement has not been received by the originator within the time specified or agreed or, if no time has been specified or agreed, within the reasonable time, the originator may give notice to the addressee stating that no acknowledgement has been received and specifying a reasonable time by which the acknowledgement must be received; and if the acknowledgement is not received within the time specified in subparagraph (c), the originator may, upon notice to the addressee, treat the electronic document or electronic data as though it had never been sent, or exercise any other rights it may have. 

Section 21. Time of Dispatch of Electronic Data Messages or Electronic Documents. - Unless otherwise agreed between the originator and the addressee, the dispatch of an electronic data message or electronic document occurs when it enters an information system outside the control of the originator or of the person who sent the electronic data message or electronic document on behalf of the originator.  

Section 22. Time of Receipt of Electronic Data Messages or Electronic Documents. - Unless otherwise agreed between the originator and the addressee, the time of receipt of an electronic data message or electronic document is as follows:

a.) If the addressee has designated an information system for the purpose of receiving electronic data message or electronic document, receipt occurs at the time when the electronic data message or electronic document enters the designated information system: Provide, however, that if the originator and the addressee are both participants in the designated information system, receipt occurs at the time when the electronic data message or electronic document is retrieved by the addressee; 

b.) If the electronic data message or electronic document is sent to an information system of the addressee that is not the designated information system, receipt occurs at the time when the electronic data message or electronic document is retrieved by the addressee; 

c.) If the addressee has not designated an information system, receipt occurs when the electronic data message or electronic document enters an information system of the addressee. 

These rules apply notwithstanding that the place where the information system is located may be different from the place where the electronic data message or electronic document is deemed to be received.

 Section 23. Place of Dispatch and Receipt of Electronic Data Messages or Electronic Documents. - Unless otherwise agreed between the originator and the addressee, an electronic data message or electronic document is deemed to be dispatched at the place where the originator has its place of business and received at the place where the addressee has its place of business. This rule shall apply even if the originator or addressee had used a laptop other portable device to transmit or received his electronic data message or electronic document. This rule shall also apply to determine the tax situs of such transaction.

For the purpose hereof -

a. If the originator or addressee has more than one place of business, the place of business is that which has the closest relationship to the underlying transaction or, where there is no underlying transaction, the principal place of business. 

b. If the originator or the addressee does not have a place of business, reference is to be made to its habitual residence; or 

c. The "usual place of residence" in relation to a body corporate, means the place where it is incorporated or otherwise legally constituted.  

Section 24. Choice of Security Methods. - Subject to applicable laws and /or rules and guidelines promulgated by the Department of Trade and Industry with other appropriate government agencies, parties to any electronic transaction shall be free to determine the type of level of electronic data message and electronic document security needed, and to select and use or implement appropriate technological methods that suit their need.

PART III

ELECTRONIC COMMERCE IN SPECIFIC AREAS 

CHAPTER I. 

CARRIAGE OF GOODS 

Section 25. Actions Related to Contracts of Carriage of Goods. - Without derogating from the provisions of part two of this law, this chapter applies to any action in connection with, or in pursuance of, a contract of carriage of goods, including but not limited to:

(a) (i) furnishing the marks, number, quantity or weight of goods; 

     (ii) stating or declaring the nature or value of goods; 

     (iii) issuing a receipt for goods; 

     (iv) confirming that goods have been loaded; 

(b) (i) notifying a person of terms and conditions of the contract; 

     (ii) giving instructions to a carrier; 

(c) (i) claiming delivery of goods; 

     (ii) authorizing release of goods; 

     (iii) giving notice of loss of, or damage to goods; 

(d) giving any other notice or statement in connection with the performance of the contract; 

(e) undertaking to deliver goods to a named person or a person authorized to claim delivery; 

(f) granting, acquiring, renouncing, surrendering, transferring or negotiating rights in goods; 

(g) acquiring or transferring rights and obligations under the contract. 

Section 26. Transport Documents. -

(1) Where the law requires that any action referred to contract of carriage of goods be carried out in writing or by using a paper document, that requirement is met if the action is carried out by using one or more data messages or electronic documents. 

(2) Paragraph (1) applies whether the requirement there in is in the form of an obligation or whether the law simply provides consequences for failing either to carry out the action in writing or to use a paper document. 

(3) If a right is to be granted to, or an obligation is to be acquired by, one person and no person, and if the law requires that, in order to effect this, the right or obligation must be conveyed to that person by the transfer, or use of, a paper document, that requirement is met if the right or obligation is conveyed by using one or more electronic data messages or electronic documents unique; 

(4) For the purposes of paragraph (3), the standard of reliability required shall be assessed in the light of the purpose for which the right or obligation was conveyed and in the light of all the circumstances, including any relevant agreement. 

(5) Where one or more data messages are used to effect any action in subparagraphs (f) and (g) of Section 25, no paper document used to effect any such action is valid unless the use of electronic data message or electronic document has been terminated and replaced by the used of paper documents. A paper document issued in these circumstances shall contain a statement of such termination. The replacement of the electronic data messages or electronic documents by paper documents shall not affect the rights or obligation of the parties involved. 

(6) If a rule of laws is compulsorily applicable to a contract of carriage of goods which is in, or is evidenced by, a paper document, that rule shall not be inapplicable to such a contract of carriage of goods which is evidenced by one or more electronic data messages or electronic documents by reason of the fact that the contract is evidenced by such electronic data messages or electronic documents instead of by a paper document. 

PART IV

ELECTRONIC TRANSACTIONS IN GOVERNMENT 

Section 27. Government Use of Electronic Data Messages, Electronic Documents and Electronic Signatures. - Notwithstanding any law to the contrary, within two (2) years from the date of the effectivity of this Act, all departments, bureaus, offices and agencies of the government, as well as all government-owned and -controlled corporations, that pursuant to law require or accept the filling of documents, require that documents be created, or retained and/or submitted, issue permits, licenses or certificates of registration or approval, or provide for the method and manner of payment or settlement of fees and other obligations to the government, shall -

(a) accept the creation, filing or retention of such documents in the form of electronic data messages or electronic documents; 

(b) issue permits, licenses, or approval in the form of electronic data messages or electronic documents; 

(c) require and/or accept payments, and issue receipts acknowledging such payments, through systems using electronic data messages or electronic documents; or 

(d) transact the government business and/or perform governmental functions using electronic data messages or electronic documents, and for the purpose, are authorized to adopt and promulgate, after appropriate public hearing and with due publication in newspapers of general circulation, the appropriate rules, regulations, or guidelines, to, among others, specify - 

• 1) the manner and format in which such electronic data messages or electronic documents shall be filed, created, retained or issued;
• 2) where and when such electronic data messages or electronic documents have to signed, the use of an electronic signature, the type of electronic signature required;
• 3) the format of an electronic data message or electronic document and the manner the electronic signature shall be affixed to the electronic data message or electronic document;
• 4) the control processes and procedures as appropriate to ensure adequate integrity, security and confidentiality of electronic data messages or electronic documents or records of payments;
• 5) other attributes required to electronic data messages or electronic documents or payments; and
• 6) the full or limited use of the documents and papers for compliance with the government requirements: Provided, that this Act shall be itself mandate any department of the government, organ of state or statutory corporation to accept or issue any document in the form of electronic data messages or electronic documents upon the adoption, promulgation and publication of the appropriate rules, regulations or guidelines. 

Section 28. RPWEB To Promote the Use of Electronic Documents or Electronic Data Messages In Government and to the General Public. - Within two (2) years from the effectivity of this Act, there shall be installed an electronic online network in accordance with Administrative Order 332 and House of Representatives Resolution 890, otherwise known as RPWEB, to implement Part IV of this Act to facilitate the open, speedy and efficient electronic online transmission, conveyance and use of electronic data messages or electronic documents amongst all government departments, agencies, bureaus, offices down to the division level and to the regional and provincial offices as practicable as possible, government owned and controlled corporations, local government units, other public instrumentalities, universities, colleges and other schools, and universal access to the general public.

The RPWEB network shall serve as initial platform of the government information infrastructure (GII) to facilitate the electronic online transmission and conveyance of government services to evolve and improve by better technologies or kinds and electronic online wide area networks utilizing, but not limited to, fiber optic, satellite, wireless and other broadband telecommunication mediums or modes.

To facilitate the rapid development of the GII, the Department of Transportation and Communications, National Telecommunications Commission and the National Computer Center are hereby directed to aggressively promote and implement a policy environment and regulatory framework that shall lead to the substantial reduction of costs of including, but not limited to, lease lines, land, satellite and dial-up telephone access, cheap broadband and wireless accessibility by government departments, agencies, bureaus, offices, government owned and controlled corporations, local government units, other public instrumentalities and the general public, to include the establishment of a government website portal and a domestic internal exchange system to facilitate strategic access to government and amongst agencies thereof and the general public and for the speedier flow of locally generated internal traffic within the Philippines.

The physical infrastructure of cable and wireless system for cable TV and broadcast excluding programming content and the management thereof shall be considered as within the activity of telecommunications for the purpose of electronic commerce and to maximize the convergence of ICT in the installation of the GII.

Section 29. Authority of the Department of Trade and Industry and Participating Entities. - The Department of Trade and Industry (DTI) shall direct supervise the promotion and development of electronic commerce in the country with relevant government agencies, without prejudice to the provisions of Republic Act 7653 (Charter of Bangko Sentral ng Pilipinas) and Republic Act No. 337, (General Banking Act) as amended. Among others, the DTI is empowered to promulgate rules and regulations, as well as provide quality standards or issue certifications, as the case may be, and perform such other functions as may be necessary for the implementation of this Act in the area of electronic commerce to include, but shall not limited to, the installation of an online public information and quality and price monitoring system for goods and services aimed in protecting the interests of the consuming public availing of the advantages of this Act.

PART V

FINAL PROVISIONS 

Section 30. Extent of Liability of a Service Provider. - Except as otherwise provided in this Section, no person or party shall be subject to any civil or criminal liability in respect of the electronic data message or electronic document for which the person or party acting as a service provider as defined in Section 5 merely provides access if such liability is founded on -

(a) The obligations and liabilities of the parties under the electronic data message or electronic document; 

(b) The making, publication, dissemination or distribution of such material or any statement made in such material, including possible infringement of any right subsisting in or in relation to such material. Provided, That: 

• i. The service provider does not have actual knowledge, or is not aware of the facts or circumstances from which it is apparent, that the making, publication, dissemination or distribution of such material is unlawful or infringes any rights subsisting in or in relation to such material;
• ii The service provider does not knowingly receive a financial benefit directly attributable to the unlawful or infringing activity; and
• iii. The service provider does not directly commit any infringement or other unlawful act and does not induce or cause another person or party to commit any infringement or other unlawful act and/or does not benefit financially from the infringing activity or unlawful act or another person or party; Provider, further, That nothing in this Section shall affect - 

(a) Any obligation founded on contract;

(b) The obligation of a service provider as such under a licensing or other regulatory regime established under written law; or 

(c) Any obligation imposed under any written law; 

(d) The civil liability of any party to the extent that such liability forms the basis for injunctive relief issued by a court under any law requiring that the service provider take or refrain from actions necessary to remove, block or deny access to any material, or to preserve evidence of a violation of law.

Section 31. Lawful Access. - Access to an electronic file, or an electronic signature of an electronic data message or electronic document shall only be authorized and enforced in favor of the individual or entity having a legal right to the possession or the use of plaintext, electronic signature or file or solely for the authorized purposes. The electronic key for identity or integrity shall not be made available to any person or party without the consent of the individual or entity in lawful possession of that electronic key;

Section 32. Obligation of Confidentiality. - Except for the purposes authorized under this Act, any person who obtained access to any electronic key, electronic data message or electronic document, book, register, correspondence, information, or other material pursuant to any powers conferred under this Act, shall not convey to or share the same with any other person.

Section 33. Penalties. - The following Acts, shall be penalized by fine and/or imprisonment, as follows:

(a) Hacking or crackling with refers to unauthorized access into or interference in a computer system/server or information and communication system; or any access in order to corrupt, alter, steal, or destroy using a computer or other similar information and communication devices, without the knowledge and consent of the owner of the computer or information and communications system, including the introduction of computer viruses and the like, resulting in the corruption, destruction, alteration, theft or loss of electronic data messages or electronic documents shall be punished by a minimum fine of One Hundred Thousand pesos (P 100,000.00) and a maximum commensurate to the damage incurred and a mandatory imprisonment of six (6) months to three (3) years;

(b) Piracy or the unauthorized copying, reproduction, dissemination, or distribution, importation, use, removal, alteration, substitution, modification, storage, uploading, downloading, communication, making available to the public, or broadcasting of protected material, electronic signature or copyrighted works including legally protected sound recordings or phonograms or information material on protected works, through the use of telecommunication networks, such as, but not limited to, the internet, in a manner that infringes intellectual property rights shall be punished by a minimum fine of one hundred thousand pesos (P 100,000.00) and a maximum commensurate to the damage incurred and a mandatory imprisonment of six (6) months to three (3) years;

(c) Violations of the Consumer Act of Republic Act No. 7394 and other relevant to pertinent laws through transaction covered by or using electronic data messages or electronic documents, shall be penalized with the same penalties as provided in those laws;

(d) Other violations of the provisions of this Act, shall be penalized with a maximum penalty of one million pesos (P 1,000,000.00) or six (6) years imprisonment. 

Section 34. Implementing Rules and Regulations. - The DTI, Department of Budget and Management and the Bangko Sentral ng Pilipinas are hereby empowered to enforced the provisions of this Act and issue implementing rules and regulations necessary, in coordination with the Department of Transportation and Communications, National Telecommunications Commission, National Computer Center, National Information Technology Council, Commission on Audit, other concerned agencies and the private sector, to implement this Act within sixty (60) days after its approval. Failure to Issue rules and regulations shall not in any manner affect the executory nature of the provisions of this Act.

Section 35. Oversight Committee. - There shall be Congressional Oversight Committee composed of the Committees and Trade and Industry/Commerce, Science and Technology, Finance and Appropriations of both the Senate and House of Representatives, which shall meet at least every quarter of the first two years and every semester for the third year after the approval of this Act to oversee its implementation. The DTI, DBM, Bangko Sentral ng Pilipinas, and other government agencies as may be determined by the Congressional Committee shall provide a quarterly performance report of their actions taking in the implementation of this Act for the first three (3) years.

Section 36. Appropriations. - The amount necessary to carry out the provisions of Sections 27 and 28 of this Act shall be charged against any available funds and/or savings under the General Appropriations Act of 2000 in the first year of effectivity of this Act. Thereafter, the funds needed for the continued implementation shall be included in the annual General Appropriations Act.

Section 37. Statutory Interpretation. - Unless otherwise expressly provided for, the interpretation of this Act shall give due regard to its international origin and the need to promote uniformity in its application and the observance of good faith in international trade relations. The generally accepted principles of international law and convention on electronic commerce shall likewise be considered.  

Section 38. Variation by Agreement. - As between parties involved in generating, sending, receiving, storing or otherwise processing electronic data message or electronic document, any provision of this Act may be varied by agreement between and among them.

Section 39. Reciprocity. - All benefits, privileges, advantages or statutory rules established under this Act, including those involving practice of profession, shall be enjoyed only by parties whose country origin grants the same benefits and privileges or advantages to Filipino citizens.

Section 40. Separability Clause. - The provisions of this Act are hereby declared separable and in the event of any such provision is declared unconstitutional, the other provisions, which are not affected, shall remain in force and effect.

Section 41. Repealing Clause. - All other laws, decrees, rules and regulations or parts thereof which are inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.

Section 42. Effectivity. - This Act shall take effect immediately after its publication in the Official Gazette or in at least two (2) national newspapers of general circulation. Approved: June 14, 2000 (Sgd.) JOSEPH E. ESTRADA President of the Philippines

Filing 1601E and Monthly Alphalists of Payees

1601E is monthly filed by every withholding agent (WA)/payor who is either an individual or non-individual, required to deduct and withhold taxes on income payments to Expanded/Creditable Withholding Taxes.

1. Open the program Alpha List Data Entry installed in your computer. You may download the Alphalist Data Entry & Validation Module Version 5.1 and install. BIR from time to time updates this program.

 2. Do the following as they appear. Remember where you save your file.

3. Once you are done, Print 3 sets of 1601-E and MAP then close the program.

4. Send the DAT file you created to esubmission@bir.gov.ph. Here's a screenshot of what it usually looks like (Thanks to Ivon for the screenshots). And wait for 2 e-mails from BIR: 1. Confirmation of e-Mail Receipt; 2. Validation Report

5. Open program eBIRForms (Offline filling up then Online Submission) or go to eFPS

A. Offline eBIRForms

A.1. Open the program Offline eBIRForms. If you have not installed it, you may download it here.

A.2. Fill up the form 1601E. Refer to the printed form you had in step 3. (To add the amount that you withheld you have to click the [ATC] and choose all the types of tax you withheld and then click [Ok] which is found at the bottom of the list.)

A.3. Click [Save]

A.4. Click [Validate] and you will be informed that you can still edit the file.

A.5. Click [Final Copy]

A.6. You will be asked for your log-in information.

A.7. Click [Submit] and wait for the e-mail confirmation.

A.8. Go to any AAB and pay corresponding Tax Due

B. eFPS (Will Update Next Month)

B.1. Go to eFPS BIR site.

  6. Within 15 days from sending your MAP, you should receive the Validation Report from BIR. Once you receive it submit the following to BIR

• 1601E
• MAP
• Printed E-mail confirmations and Validations
• Bank Payment Proof

Saving Business Webpages For Later Reading

I do research online. When I visit web pages and I am not able to read all the pages that I opened, what I do is I bookmark them.

However, when I go to places where there is no internet service, I can no longer access those pages.

You might have experienced this as well. It's thanks to those bloggers like myself who are generous enough to share resources for things like this.

After reading 5 Ways to Read Your Favorite Website Offline , I decided to install the first on his list.

I tried Read It – Read Now, Read Later , a google chrome extension.

When you install this extension you will see the icon at the top right of chrome. Just click it when you want to save a page and when you are offline, you click it again to list the sites you saved.

Now even when I have no internet... I get to read and access the sites I need.

NIRC : It's Importance In Your Business

One of the books that you should have is the Philippine National Internal Revenue Code of 1997.

Once you get yourself a copy of this, you can just update it.

The NIRC contains all information that you need to comply with the BIR Requirements and how you will treat your business financial activity related to tax.

Carrying a book is not ideal so have one online or a softcopy.

I have not read the NIRC. Just some part of it. Right now, I decided to start reading it and have decided to have a copy of my own online and update it with parts that I have read.

I plan to finish my NIRC page within a year.

Republic Act No. 1125

AN ACT CREATING THE COURT OF TAX APPEALS

Section 1. Court; Judges; qualifications; salary; tenure. - There is hereby created a Court of Tax Appeals which shall consist of a Presiding Judge and two Associate Judges, each of whom shall be appointed by the President, with the consent of the Commission on Appointments. The Presiding Judge shall be so designated in the commission issued to him by the President, and the Associate Judges shall have precedence according to the date o their commissions. The Presiding Judge shall receive a compensation of thirteen thousand pesos per annum and shall have the same qualifications, rank, category and privileges as the Presiding Judge of the Court of Industrial Relations. The Associate Judges shall each receive a compensation of twelve thousand pesos per annum and shall have the same qualifications, rank, category and privileges as a member of the Court of Industrial Relations. The Presiding Judge and the Associate Judges shall be appointed to hold office during good behavior, until they reach the age of seventy, or become incapacitated to discharge the duties of their office, unless sooner removed for the same causes and in the same manner provided by law for members of the judiciary of appellate rank.

Section 2. Quorum; temporary vacancy. - Any two Judges of the Court of Tax Appeals shall constitute a quorum, and the concurrence of two judges shall be necessary to promulgate any decision thereof. In case of temporary vacancy, disability or disqualification, for any reason, of any of the judges of the said Court, the President may, upon the request of the Presiding Judge, designate any Judge of First Instance to act in his place; and such Judge of First Instance shall be duly qualified to act as such.

Section 3. Clerk of court; appointment; qualification; compensation. - The Court of Tax Appeals shall have the Clerk of Court who shall be appointed by the President with the consent of the Commission on Appointments. No person shall be appointed Clerk of Court unless he is duly authorized to practice law in the Philippines. The Clerk of Court shall exercise the same powers and perform the same duties in regard to all matters within the court's jurisdiction, as are exercise and performed by clerks of Court of First Instance, in so far of those powers and the performance of those duties the clerk shall be under the direction of the said court. The Clerk of Court shall receive a compensation of six thousand pesos per annum.

Section 4. Other subordinate employees. - The Court of Tax Appeals shall appoint, in accordance with the Civil Service Law, rules and regulations, the necessary personnel to assist it in the performance of its duties. The said Court shall fix their salaries and prescribe their duties.

Section 5. Disqualifications. - No judge or other officer or employee of the Court of Tax Appeals shall intervene, directly or indirectly, in the management or control of any private enterprise which in any way may be affected by the functions of the Court. Judges of the said Court shall be disqualified from sitting in any case on the same grounds provided under Rule one hundred twenty-six of the Rules of Court for the disqualification of judicial officers. No person who has once serviced in the Court in a permanent capacity, either as Presiding Judge or as Associated Judge thereof, shall be qualified to practice as counsel before the Court for a period of one year from his separation therefrom for any cause.

Section 6. Place of office. - The Court of Tax Appeals shall have its office in the City of Manila, and shall hold hearings at such time and place as it may, by order in writing, designate with a view to assuring a reasonable opportunity for taxpayers to appear with a little inconvenience and expense as practicable.

Section 7. Jurisdiction. - The Court of Tax Appeals shall exercise exclusive appellate jurisdiction to review by appeal, as herein provided.

(1) Decisions of the Collector of Internal Revenue in cases involving disputed assessments, refunds of internal revenue taxes, fees or other charges, penalties imposed in relation thereto, or other matters arising under the National Internal Revenue Code or other law or part of law administered by the Bureau of Internal Revenue;

(2) Decisions of the Commissioner of Customs in cases involving liability for customs duties, fees or other money charges; seizure, detention or release of property affected fines, forfeitures or other penalties imposed in relation thereto; or other matters arising under the Customs Law or other law or part of law administered by the Bureau of Customs; and

(3) Decisions of provincial or city Boards of Assessment Appeals in cases involving the assessment and taxation of real property or other matters arising under the Assessment Law, including rules and regulations relative thereto.

Section 8. Court of record; seal; proceedings. - The Court of Tax Appeals shall be a court of record and shall have a seal which shall be judicially noticed. It shall prescribe the form of its writs and other processes. It shall have the power to promulgate rules and regulations for the conduct of the business of the Court, and as may be needful for the uniformity of decisions within its jurisdiction as conferred by law, but such proceedings shall not be governed strictly by technical rules of evidence.

Section 9. Fees. - The Court shall fix reasonable fees for the filing of an appeal, for certified copies of any transcript of record, entry or other document, and for other authorized services rendered by the Court or its personnel.

Section 10. Power to administer oaths; issue subpoena; punish for contempt. - The Court shall have the power to administer oaths, receive evidence, summon witnesses by subpoena and require the production of papers or documents by subpoena duce tecum, subject in all respects to the same restrictions and qualifications as apply in judicial proceedings of a similar nature. The Court shall, in accordance with Rule sixty-four for the Rules of Court, have the power to punish for contempt for the same causes, under the same procedure and with the same penalties provided therein.

Section 11. Who may appeal; effect of appeal. - Any person association or corporation adversely affected by a decision or ruling of the Collector of Internal Revenue, the Collector of Customs or any provincial or city Board of Assessment Appeals may file an appeal in the Court of Tax Appeals within thirty days after the receipt of such decision or ruling.

No appeal taken by the Court of Appeals from the decision of the Collector of Internal Revenue or the Collector of Customs shall suspend the payment, levy, distraint, and or sale of any property of the taxpayer for the satisfaction of his tax liability as provided by existing law; Provided, however, That when in the opinion of the Court the collection by the Bureau of Internal Revenue or the Commissioner of Customs may jeopardize the interest of the Government and/or the taxpayer the Court at any stage of the proceeding may suspend the said collection and require the taxpayer either to deposit the amount claimed or to file a surety bond for not more than double the amount with the Court;

Section 12. Taking of evidence. - The Court may, upon proper motion on or its initiative, direct that a case, or any issue thereof, be assigned to one of its members for the taking of evidence, when the determination of a question of fact arises upon motion or otherwise in any stage of the proceedings, or when the taking of an account is necessary, or when the determination of an issue of fact requires the examination of a long account. The hearing before such member shall proceed in all respects as though the same had been made before the Court.

Upon the recommendation of such hearing such member, he shall promptly submit to the Court his report in writing, stating his findings and conclusions; and thereafter, the Court shall render its decisions on the case, adopting, modifying, or rejecting the report in whole or in part, as the case may be, or the Court may, in its discretion recommit it with instructions, or receive further evidence.

Section 13. Decision. - Cases brought before the Court shall be decided within thirty days after the submission thereof for decision. Decisions of the Court shall be in writing, stating clearly and distinctly the facts and the law on which they are based, and signed by the judges concurring therein. The Court shall provide for the publication of its decisions in the Official Gazette in such form and manner as may best be adopted for public information and use.

As in the case of judicial officers under section one hundred twenty-nine of the Administrative Code, the judges of the Court shall each certify on their applications for leave, and upon salary vouchers presented by them for payment, or upon the payrolls under which their salaries are paid, that all proceedings, petitions and motions which have been submitted to the Court for determination or decision for a period of thirty days or more have been determined or decided by the Court on or before the date of making the certificate, and no leave shall be granted and no salary shall be paid without such certificate.

Section 14. Effect of decision that tax is barred by statute of limitations. - If the assessment or collection of any tax is barred by any statute of limitations, the decisions of the Court that effect shall be considered as its decision that there is no deficiency in respect of such tax.

Section 15. Publicity of proceedings and publication of decisions. - All decisions of, and all evidence received by the Court and its divisions, including transcript of stenographic reports of the hearings, shall be public records open to the inspection of the public, except that after the decision of the Court in any proceedings has become final the Court may, upon motion of the taxpayer or the Government permit the withdrawal, by the part entitled thereto of originals of books, documents and records, and or models, diagrams, and other exhibits, introduced in evidence before the Court or any division; or the Court may, on its own motion, make such other disposition thereof as it deems advisable. The Court shall provide for the publication of its decisions in the Official Gazette in such form and manner as may be best adopted for public information and use.

Section 16. Damages. - Where an appeal is found to be frivolous, or that proceedings have been instituted merely for delay, the Court may assess damage against the appellants in an amount not exceeding five hundred pesos, which shall be collected in the same manner as fines or other penalties authorized by law.

Section 17. Violation of penal law. - When, in the performance of its functions, it should appear to the Court that a crime or other violation of law has been committed, or, that there are reasonable grounds to believe that any official, employee or private person is guilty of any crime, offense or other violation, the Court shall refer the matter to the proper department, bureau or office for investigation or the institution of such criminal or administrative action as the facts and circumstances of the case may warrant.

Section 18. Appeal to the Supreme Court. - No judicial proceeding against the Government involving matters arising under the National Internal Revenue Code, the Customs Law or the Assessment Law shall be maintained, except as herein provided, until and unless an appeal has been previously filed with the Court of Tax Appeals and disposed of in accordance with the provisions of this Act.

Any party adversely affected by any ruling, order or decision of the Court of tax Appeals may appeal therefrom to the Supreme Court by filing with the said Court a notice of appeal and with the Supreme Court a petition for review, within thirty days from the date he receives notice of said ruling, order or decision. If, within the aforesaid period, he fails to perfect his appeal, the said ruling, order or decision shall become final and conclusive against him

If no decision is rendered by the Court within thirty days from the date a case is submitted for decision, the party adversely affected by said ruling, order or decision may file with said Court a notice of his intention to appeal to the Supreme Court, and if, within thirty days from the filing of said notice of intention to appeal, no decision has as yet been rendered by the Court, the aggrieved party may file directly with the Supreme Court an appeal from said ruling, order or decision, notwithstanding the foregoing provisions of this section.

If any ruling, order or decision of the Court of Tax Appeals be adverse to the Government, the Collector of Internal Revenue, the Commissioner of Customs, or the provincial or city Board of Assessment Appeals concerned may likewise file an appeal therefrom to the Supreme Court in the manner and within the same period as above prescribed for private parties.

Any proceeding directly affecting any ruling, order or decision of the Court of Tax Appeals shall have preference over all other civil proceedings except habeas corpus, workmen's compensation and election cases.

Section 19. Review by certiorari. - Any ruling, order or decision of the Court of Tax Appeals may likewise be reviewed by the Supreme Court upon a writ of certiorari in proper cases. Proceedings in the Supreme Court upon a writ of certiorari or a petition for review, as the case may be, shall be in accordance with the provisions of the Rules of Court or such rules as the Supreme Court may prescribe.

Section 20. Appropriation. - The sum of seventy-thousand pesos is hereby appropriated out of any funds in the National Treasury not otherwise appropriated for the salaries and the purchase of supplies and equipment necessary for the operation of the Court of Tax Appeals herein established during the current fiscal year. Thereafter the funds necessary for the operation of the Court shall be included in the regular Appropriation Act.

Section 21. General provisions. - Whenever the words "Board of Tax Appeals" are used in Commonwealth Act Numbered Four hundred and seventy, otherwise known as the Assessment Law, or in other laws, rules and regulations relative thereto, the same shall read "Board of Assessment Appeals."

The Central Board of Tax Appeals created under section two of Commonwealth Act Numbered Five hundred and thirty is hereby abolished.

Executive Order Numbered Four hundred and one-A, dated the fifth of January, nineteen hundred and fifty- one, is repealed and the Board of Tax Appeals created therein, abolished: Provided, however, That all cases heretofore decided by the said Board of Tax Appeals and thence appealed to the Supreme Court pursuant to Executive Order Numbered Four hundred one-A shall be decided by the Supreme Court on the merits to all intents and purposes as if said Executive Order has been duly enacted by the Congress: And, Provided, further, That all cases now pending in the said Board of Tax Appeals shall be transferred to the Court of Tax Appeals and shall be heard and decided by the latter to all intents and purposes as if they had been originally filed therein.

Any law or part of law, or any executive order, rule or regulation or part thereon, inconsistent with the provisions of this Act is hereby repealed.

Section 22. Pending cases to be remanded to Court. - All cases involving disputed assessment of Internal Revenue taxes or customs duties pending determination before the Court of First Instance shall be certified and remanded by the respective clerk of court to the Court of Tax Appeals for final disposition thereof.

Section 23. Separability Clause. - If any clause, sentence, paragraph or part of this act shall be adjudged by any court of competent jurisdiction to be invalid, such judgment shall not affect, impair or invalidate the remainder of this Act, but shall confined in its operations to the clause, sentence, paragraph or part thereof directly involved in the controversy.

Section 24. This Act shall take effect upon its approval.

REPUBLIC ACT NO. 10653

Republic of the Philippines
Congress of the Philippines
Metro Manila

Sixteenth Congress

Second Regular Session

Begun and held in Metro Manila, on Monday, the twenty-eighth day of July, two thousand fourteen.

REPUBLIC ACT NO. 10653

AN ACT ADJUSTING THE 13^TH MONTH PAY AND OTHER BENEFITS CEILING EXCLUDED FROM THE COMPUTATION OF GROSS INCOME FOR PURPOSES OF INCOME TAXATION, AMENDING FOR THE PURPOSE SECTION 32(B), CHAPTER VI OF THE NATIONAL INTERNAL REVENUE CODE OF 1997, AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Section 32(B), Chapter VI of the National Internal Revenue Code of the Philippines (Republic Act No. 8424) is hereby amended as follows:

“SEC. 32. Gross Income. —

“x x x

“(B) Exclusions from Gross Income. — The following items shall not be included in gross income and shall be exempt from taxation under this Title:

“xxx

“(7) Miscellaneous Items. — “xxx

“(e) 13^th Month Pay and Other Benefits. — Gross benefits received by officials and employees of public and private entities: Provided, however, That the total exclusion under this subparagraph shall not exceed eighty-two thousand pesos (P82,000) which shall cover:

“xxx

“(iv) Other benefits such as productivity incentives and Christmas bonus: Provided, That every three (3) years after the effectivity of this Act, the President of the Philippines shall adjust the amount herein stated to its present value using the Consumer Price Index (CPI), as published by the National Statistics Office (NSO).”

SEC. 2. Implementing Rules and Regulations. — The Secretary of Finance shall promulgate the necessary rules and regulations for the faithful and effective implementation of the provisions of this Act: Provided, That, the failure of the Secretary of Finance to promulgate the said rules and regulations shall not prevent the implementation of this Act upon its effectivity.

SEC. 3. Repealing Clause. — All laws, orders, issuances, circulars, rules and regulations or parts thereof which are inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 4. Separability Clause. — If any provision of this Act is declared unconstitutional or invalid, other parts or provisions hereof not affected thereby shall continue to be in full force and effect.

SEC. 5. Effectivity. — This Act shall take effect fifteen (15) days following its publication in at least two (2) newspapers of general circulation.

Approved,

(Sgd.) FRANKLIN M. DRILONPresident of the Senate

(Sgd.) FELICIANO BELMONTE JR.Speaker of the House of Representatives

This Act which is a consolidation of House Bill No. 4970 and Senate Bill No. 2437 was finally passed by the House of Representatives and the Senate on December 1, 2014 and November 26, 2014, respectively.

(Sgd.) OSCAR G. YABESSecretary of the Senate

(Sgd.) MARILYN B. BARUA-YAPSecretary General House of Representatives

Approved: FEB 12 2015

(Sgd.) BENIGNO S. AQUINO III
President of the Philippines