By ATTY. NELLY FAVIS VILLAFUERTE
MANILA, Philippines – Many people are familiar with the so-called
Community Tax Certificate more popularly known as the Cedula. But while
this is so, many of us need to know more about the cedula.
One may ask: What is the history of the community tax
certificate? Many may be surprised to know that the community tax
certificate or the cedula dates back to Spanish colonial time. The
cedula, which was then issued to all Filipinos between the ages of 18
and 60 upon the payment of an annual residence tax, replaced the system
of tribute then existing. The cedula took the limelight shortly before
the start of the Philippine Revolution when Andres Bonifacio and other
members of the Katipunan tore up their residence certificates as an act
of defiance of the Spanish rule. Remember the cry of Pugad Lawin?
Come American rule in the Philippines, the so-called residence
tax and the cedula were abolished. Until January 1, 1940 when
Commonwealth Act No. 465 imposed again the payment of residence tax for
individuals and corporations.
Let me share with you some basic information found in the Local
Government Code of the Philippines about the cedula (community tax
certificate):
A. Cities or municipalities may impose an annual community tax upon individuals and corporations that are residents in said places. All residents of cities and municipalities who are at least 18 years old – and regularly employed on a wage or salary basis for at least 30 consecutive working days during any calendar year; or who is engaged in business or occupation; or who owns real property with an aggregate assessed value of One Thousand (P1,000.00) Pesos or more; or who is required by law to file an income tax return shall file a basic annual community tax of Five (P5.00) Pesos and an additional tax of One Peso (P1.00) for every One Thousand (P1,000.00) Pesos regardless of whether the income comes from business, exercise of profession or property.
B. For individuals, the community tax shall not exceed Five
Thousand (P5,000) Pesos plus the basic Five Pesos (P5.00) – a total of
P5,005.00.
C. For corporations, whether domestic or resident foreign engaged
in or doing business in the Philippines shall pay a basic annual
community tax of Five Hundred (P500.00) Pesos and an annual additional
tax which shall not exceed Ten Thousand (P10,000.00) Pesos or a total
tax of Ten Thousand Five Hundred (P10,500.00) Pesos (basic and
additional). The additional corporate community tax shall be Two Pesos
(P2.00) for every Five Thousand (P5,000.00) Pesos worth of real property
or for every Five Thousand (P5,000.00) Pesos of Gross receipts or
earnings.
D. The Community Tax shall be paid in the place of residence of
the individual; or in the place where the principal office of the
corporation (or other juridical entity) is located. The city or
municipal treasurer shall deputize the barangay treasurer to collect
provided said barangay treasurer shall be bonded according to the law.
E. The proceeds of the Community Tax shall be shared as follows:
fifty (50%) percent shall accrue to the general fund of the city or
municipality while the other fifty (50%) percent shall accrue to the
barangay where the community tax is collected. The city or municipality
shall pay the Bureau of Internal Revenue (BIR) the actual cost of
printing and distribution of the forms and other expenses (funds will
accrue to the general fund of the national government) spent by BIR in
printing the Community Tax Certificate.
The city or municipal treasurer shall remit to the national
treasurer the share of the national government within ten (10) days
after the end of each quarter.
F. The Community Tax shall be paid not later than the last day of
February of each year. A community tax certificate shall be issued to
every person or corporation upon payment of the community tax. A
community tax certificate may also be issued to any person or
corporation not subject to the community tax upon payment of One Peso
(P1.00).
Here is a question often asked about the Community Tax
Certificate/Cedula: Can a Philippine notary public accept the cedula as
proof of identity of the persons who present to the notary public
certain documents for notarization?
The answer is NO. Not anymore. Under the provisions of the 2004
Rules on Notarial Practice (A.M. No. 02-8-13-SC), a Philippine Notary
Public is mandated to require “competent evidence of identity” from
parties who would like to have some documents (like Special Power of
Attorney) notarized. To quote the provisions of Section 12 of Rule II of
the 2004 Rules on Notarial Practice, as amended by A.M. No. 02-8-13-SC
of the Supreme Court dated February 19, 2008:-“Sec. 12. Competent Evidence of Identity.– The phrase "competent
evidence of identity" refers to the identification of an individual
based on:
“(a) at least one current identification document issued by an
official agency bearing the photograph and signature of the individual,
such as but not limited to, passport, driver's license, Professional
Regulations Commission ID, National Bureau of Investigation clearance,
police clearance, postal ID, voter's ID, Barangay certification,
Government Service Insurance System (GSIS) e-card, Social Security
System (SSS) card, Philhealth card, senior citizen card, Overseas
Workers Welfare Administration (OWWA) ID, OFW ID, seaman's book, alien
certificate of registration/immigrant certificate of registration,
government office ID, certificate from the National Council for the
Welfare of Disabled Persons (NCWDP), Department of Social Welfare and
Development certification [as amended by A.M. No. 02-8-13-SC dated
February 19, 2008]; or (underscoring supplied)
“(b) the oath or affirmation of one credible witness not privy to
the instrument, document or transaction who is personally known to the
notary public and who personally knows the individual, or of two
credible witnesses neither of whom is privy to the instrument, document
or transaction who each personally knows the individual and shows to the
notary public documentary identification.”
This Section 12 Rule II of the Rules on Notarial Practice afore-quoted was applied in the case of Dolores L. Dela Cruz et al. vs Atty. Jose R. Dimaano, Jr. in Case No. A.C. No. 7781, dated September 12, 2008. Finally, the Supreme Court said in this case:
“One last note. Lawyers commissioned as notaries public are
mandated to discharge with fidelity the duties of their offices, such
duties being dictated by public policy and impressed with public
interest. It must be remembered that notarization is not a routinary,
meaningless act, for notarization converts a private document to a
public instrument, making it admissible in evidence without the
necessity of preliminary proof of its authenticity and due execution. A
notarized document is by law entitled to full credit upon its face and
it is for this reason that notaries public must observe the basic
requirements in notarizing documents. Otherwise, the confidence of the
public on notarized documents will be eroded.” (underscoring supplied)
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