RMC No. 39-2004: Prescribes the mechanism for the settlement of the income and franchise tax liabilities of Local Water Districts for taxable years 1996 to 2002.

Key points

1. Settlement amount. LWDs that duly execute the Settlement Agreement and fully comply with its terms may settle in full by paying 40% of their income and franchise tax liabilities for taxable years 1996 to 2002. The basic VAT due is computed by multiplying gross receipts for the period covered by 10%.
2. Payment dates. Payment and requirements for taxable years 2000 to 2002 are due on or before July 15, 2004. Those for taxable years 1996 to 1999 are due on or before December 15, 2004.
3. After the deadlines. LWDs can no longer settle under the Settlement Agreement. Revenue officers are instructed to apply the full force of the law on LWDs that did not avail of it and to collect the full tax due and increments.

Who is affected

• Local Water Districts organized under Presidential Decree No. 198

Deadlines and effectivity

• Taxable years 2000 to 2002: on or before July 15, 2004
• Taxable years 1996 to 1999: on or before December 15, 2004