Republic of the Philippines
HOUSE OF REPRESENTATIVES.
Quezon City

rH CONGRESS
First Regular Session

nouse BILL No, 8683

Introduced by Representative CARMELO B. LAZATIN IL

AN ACT
REQUIRING EVERY INDIVIDUAL WHO IS SUBJECT TO INCOME TAX TO.
FILE A DECLARATION OF ESTIMATED INCOME FOR THE FIRST QUARTER
OF THE CURRENT YEAR ON OR BEFORE MAY 15 OF THE SAME TAXABLE,
YEAR, AMENDING FOR THE PURPOSE SECTION 74 OF REPUBLII
8424, OTHERWISE KNOWN AS THE "NATIONAL INTERNAL REVENUE CODE
OF 1997", AS AMENDED

EXPLANATORY NOTE

This bill seeks to provide relief to every individual income taxpayer who is receiving
self-employment income, whether it constitutes the sole source of his income or in combination
with salaries, wages and other fixed or determinable income, to make and file a declaration of his
estimated income for the first quarter of the current taxable year on or before May 15 of the same
taxable year and not on or before April 15 as provided in Section 74(A) of Republic Act No
8424, as amended, Otherwise known as the “National Internal Revenue Code of 1997.”

The deadline of April 15 for individual income taxpayers is only fifteen (15) da
the quarter ending March 31 of the current taxable year, ‘The second and third quarter deadlines
for the quarter ending June 30 and September 30, respectively, are on August 15 and November
15, respectively, both of which are forty-five (45) days from the end each of each quarter. ‘Thus,
the fifteen (15) day deadline after the end of the first quarter is clearly inconsistent with the 45-
day deadline after the end of the second and third quarters.



On the other hand, the corporately quarterly income tax return is filed with or without
payment within sixty (60) days following the close of each of the first three (3) quarters of the
taxable year. Clearly, there is consistency in the number of days provided to corporations to file
their quarterly income tax returns.

April 15 is also the deadline of filing and payment of the annual income tax for the prior
year for both individual and corporate income taxpayers. This is three and a half months from
the end of the calendar year to give ample time to both corporate and individual income
taxpayers to consolidate their annual income tax returns. However, to make the deadline for the
filing of the individual quarterly income tax return on the same date, April 15, is too burdensome
for the individual income tax payers.

In view of the foregoing, immediate approval of this bill into law is earnestly sought

CARMELO “JON” B. LAZATIN IT


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS

First Regular Session

3682
House Bill No

Introduced by Honorable CARMELO B. LAZATIN IL

ANA
REQUIRING EVERY INDIVIDUAL WHO IS SUBJECT TO INCOME TAX TO
FILE A DECLARATION OF ESTIMATED INCOME FOR THE FIRST QUARTER
OF THE CURRENT YEAR ON OR BEFORE MAY 15 OF THE SAME TAXABLE
YEAR, AMENDING FOR THE PURPOSE SECTION 74 OF REPUBLIC ACT NO.
8424, OTHERWISE KNOWN AS THE "NATIONAL INTERNAL REVENUE CODE
OF 1997", AS AMENDED

Be it enacted by the Senate and House of Representatives in Congress assembled:
SECTION 1. Section 74 of Republic Act No. 8424, as amended, is hereby further
amended to read as follows:
"Sec, 74. Dectaration of Income Tax for Individuals.”
"(A) In General. — Except as otherwise provided in this

Section, every individual subject to ineome tax under Sections 24


and 25(A) of this Title, who is receiving self-employment
income, whether it constitutes the sole source of his income or in
combination with salaries, wages and other fixed or determinable
income, shall make and file a declaration of his estimated income

for the current taxable year on or before [April 15] MAY 15 of

the same taxable year. In general, self-employment income
consists of the earnings derived by the individual from the
practice of profession or conduct of trade or business carried on
by him as a sole proprietor or by a partnership of which he is a
member, Nonresident Filipino citizens, with respect to income
from without the Philippines, and nonresident aliens not engaged
in trade or business in the Philippines, are not required to render a
declaration of estimated income tax. The declaration shall contain
such pertinent information as the Secretary of Finance, upon
recommendation of the Commissioner, may, by rules and
regulations prescribe, An individual may make amendments of a
declaration filed during the taxable year under the rules and
regulations prescribed by the Secretary of Finance, upon

recommendation of the Commissioner.

"(B) Return and Payment of Estimated Income Tax by
Individuals. — The amount of estimated income as defined in
Subsection (C) with respect to which a declaration is required

under Subsection (A) shall be paid in four (4) installments, The


first installment shall be paid at the time of the declaration and
the second and third shall be paid on August 15 and November 15
of the current year, respectively. The fourth installment shall be
paid on or before [April 15] MAY 15 of the following calendar

year when the final adjusted income tax return is due to be filed."

"(C) xxx XXX XXX

Sec, 2. All laws, acts, presidential decrees, executive orders, issuances, rules and

regulations or parts thereof which are contrary to or inconsistent with any provisions of this,

Act are hereby repealed, amended or modified accordingly

Sec. 3. This Act shall take effect upon its publication in the Official Gazette or in a

newspaper of general circulation

Approved,