Republic of the Philippines
Congress of the Philippines
Third Regular Session
Begun and held in Metro Manila, on Monday, the twenty-fourth day of July, two thousand.
REPUBLIC ACT NO. 9010]
AN ACT TO FURTHER DEFER THE IMPOSITION OF THE VALUE-ADDED TAX ON CERTAIN SERVICES, AMENDING FOR THE PURPOSE SECTION 5 OF REPUBLIC ACT NO. 8424, AS AMENDED BY REPUBLIC ACT NO. 8761
SECTION 1. Section 5 of Republic Act No. 8424, as amended by Republic Act No. 8761, is hereby further amended to read as follows:
“SEC. 5. Transitory Provisions. Effectivity of the Imposition of VAT on Certain Services. – The imposition of the value-added tax on the following services shall take effect on January 1, 2003:
“(a) Services performed in the exercise of profession or calling subject to the professional tax as provided for under Republic Act No. 7160, otherwise known as the Local Government Code of 1991, and professional services performed by registered general professional partnerships; actors, actresses, talents, singers and emcees; radio and television broadcasters, choreographers; musical, radio, movie, television and stage directors; and professional athletes;
“(b) Services rendered by banks, nonbank financial intermediaries, finance companies and other financial intermediaries not performing quasi-banking functions; and
“(c) Services rendered by stock, real estate, commercial, customs and immigration brokers: Provided, That for the years beginning January 1, 2001 up to December 31, 2002, the aforementioned brokers shall, in lieu of the value-added tax prescribed under Title IV of the National Internal Revenue Code of 1997, be subject to a tax equivalent to seven percent (7%) based on gross receipts from brokering services which shall be paid in the manner and in accordance with the provisions of Title V of the said Code: Provided, further, That beginning January 1, 2003, the aforementioned brokers shall be subject to the value-added tax in lieu of the seven percent (7%) tax.
“The taxpayers rendering services mentioned under paragraphs (a) and (b) hereof, shall pay the applicable taxes prescribed under the pertinent provisions of the National Internal Revenue Code, as amended.”
SEC. 2. The Secretary of Finance shall, upon the recommendation of the Commissioner of Internal Revenue, promulgate the necessary rules and regulations for the effective implementation of this Act.
SEC. 3. All laws, decrees, orders, issuances, rules and regulations and other issuances or parts thereof inconsistent with this Act are hereby repealed or modified accordingly.
SEC. 4. The effectivity of this Act shall retroact to January 1, 2001.
(Sgd.) AQUILINO Q. PIMENTEL JR.
(Sgd.) ARNULEO P. FUENTEBELLA
This Act which is a consolidation of House Bill No. 12237 and Senate Bill No. 2225 was finally passed by the House of Representatives and the Senate on January 16, 2001 and January 15, 2001, respectively.
(Sgd.) LUTGARDO B. BARBO
(Sgd.) ROBERTO P. NAZARENO
Approved: FEB 27 2001
(Sgd.) GLORIA MACAPAGAL-ARROYO
President of the Philippines