A community tax certificate (CTC), also known as sedula, is issued to every individual or corporation upon payment of the community tax.
Individuals liable to community tax
- Every inhabitant of the Philippines eighteen (18) years of age or over who has been regularly employed on a wage or salary basis for at least thirty (30) consecutive working days during any calendar year;
- who is engaged in business or occupation;
- who owns real property with an aggregate assessed value of One thousand pesos (P1,000.00) or more;
- who is required by law to file an income tax return
Juridical persons liable to community tax
Every corporation, no matter how created or organized, whether domestic or resident foreign, engaged in or doing business in the Philippines shall pay an annual community tax of Five hundred pesos (P500.00) and an annual additional tax, which, in no case, shall exceed Ten thousand pesos (P10,000.00) in accordance with the following schedule:
- For every Five thousand pesos (P5,000.00) worth of real property in the Philippines owned by it during the preceding year based on the valuation used for the payment of real property tax under existing laws, found in the assessment rolls of the city or municipality where the real property is situated – Two pesos (P2.00); and
- For every Five thousand pesos (P5,000.00) of gross receipts or earnings derived by it from its business in the Philippines during the preceding year – Two pesos (P2.00).
The following are exempt from the community tax:
- Diplomatic and consular representatives; and
- Transient visitors when their stay in the Philippines does not exceed three (3) months.