Person
means an individual, a trust, estate, or corporation.

Corporation
shall include partnerships, no matter how created or organized, joint-stock companies, joint accounts (cuentas en participacion), associations, or insurance companies, but does not include general professional partnerships and a joint venture or consortium formed for the purpose of undertaking construction projects or engaging in petroleum, coal, geothermal and other energy operations pursuant to an operating consortium agreement under a service contract with the Government.

General professional partnerships
are partnerships formed by persons for the sole purpose of exercising their common profession, no part of the income of which is derived from engaging in any trade or business.

Domestic
when applied to a corporation, means created or organized in the Philippines or under its laws.

Foreign
when applied to a corporation, means a corporation that is not domestic.

Non-resident citizen means:
(1). A citizen of the Philippines who establishes to the satisfaction of the Commissioner the fact of his physical presence abroad with a definite intention to reside therein.

(2). A citizen of the Philippines who leaves the Philippines during the taxable year to reside abroad, either as an immigrant or for employment on a permanent basis.

(3). A citizen of the Philippines who works and derives income from abroad and whose employment thereat requires him to be physically present abroad most of the time during the taxable year.

(4). A citizen who has been previously considered as a non-resident citizen and who arrives in the Philippines at any time during the taxable year to reside permanently in the Philippines shall likewise be treated as a non-resident citizen for the taxable year in which he arrives in the Philippines with respect to his income derived from sources abroad until the date of his arrival in the Philippines.

(5). The taxpayer shall submit proof to the Commissioner to show his intention of leaving the Philippines to reside permanently abroad or to return to and reside in the Philippines as the case may be for purposes of this Section.

Resident alien
means an individual whose residence is within the Philippines and who is not a citizen thereof.

Non-resident alien
means an individual whose residence is not within the Philippines and who is not a citizen thereof.

Resident foreign corporation
applies to a foreign corporation engaged in trade or business within the Philippines.

Non-resident foreign corporation
applies to a foreign corporation not engaged in trade or business within the Philippines.

Fiduciary
means a guardian, trustee, executor, administrator, receiver, conservator, or any person acting in any fiduciary capacity for any person.

Withholding agent
means any person is required to deduct and withhold any tax.

Shares of stock
shall include shares of stock of a corporation, warrants and/or options to purchase shares of stock, as well as units of participation in a partnership (except general professional partnerships), joint-stock companies, joint accounts, joint ventures taxable as corporations, associations, and recreation or amusement clubs (such as golf, polo or similar clubs), and mutual fund certificates.

Shareholder
shall include holders of a share/s of stock, warrant/s and/or option/s to purchase shares of stock of a corporation, as well as a holder of a unit of participation in a partnership (except general professional partnerships) in a joint-stock company, a joint account, a taxable joint venture, a member of an association, recreation or amusement club (such as golf, polo or similar clubs) and a holder of a mutual fund certificate, a member in an association, joint-stock company, or insurance company.

Taxpayer
means any person subject to the tax.

Taxable year
means the calendar year, or the fiscal year ending during such calendar year, upon the basis of which the net income is computed under this Title. ‘Taxable year’ includes, in the case of a return made for a fractional part of a year, the period for which such return is made. 

Fiscal year
means an accounting period of twelve (12) months ending on the last day of any month other than December.

Paid or incurred and paid or accrued
shall be construed according to the method of accounting upon the basis of which the net income is computed under this Title.

Trade or business
includes the performance of the functions of a public office.

Securities
mean shares of stock in a corporation and rights to subscribe for or to receive such shares. The term includes bonds, debentures, notes or certificates, or other evidence of indebtedness, issued by any corporation, including those issued by a government or political subdivision thereof, with interest coupons or in registered form.

Dealer in securities
means a merchant of stocks or securities, whether an individual, partnership or corporation, with an established place of business, regularly engaged in the purchase of securities and the resale thereof to customers; that is, one who, as a merchant, buys securities and re-sells them to customers with a view to the gains and profits that may be derived therefrom.

Bank
means every banking institution may either be a commercial bank, a thrift bank, a development bank, a rural bank, or a specialized government bank.

Non-bank financial intermediary
means a financial intermediary authorized by the Bangko Sentral ng Pilipinas (BSP) to perform quasi-banking activities.

Quasi-banking activities
means borrowing funds from twenty (20) or more personal or corporate lenders at any one time, through the issuance, endorsement, or acceptance of debt instruments of any kind other than deposits for the borrower’s own account, or through the issuance of certificates of assignment or similar instruments, with recourse, or of repurchase agreements for purposes of relending or purchasing receivables and other similar obligations: Provided, however, That commercial, industrial and other non-financial companies, which borrow funds through any of these means for the limited purpose of financing their own needs or the needs of their agents or dealers, shall not be considered as performing quasi-banking functions.

Deposit substitutes
shall mean an alternative form of obtaining funds from the public. Public means borrowing from twenty (20) or more individual or corporate lenders at any one time) other than deposits, through the issuance, endorsement, or acceptance of debt instruments for the borrower’s own account, for the purpose of relending or purchasing of receivables and other obligations, or financing their own needs or the needs of their agent or dealer. These instruments may include, but need not be limited to bankers’ acceptances, promissory notes, repurchase agreements, including reverse repurchase agreements entered into by and between the Bangko Sentral ng Pilipinas (BSP) and any authorized agent bank, certificates of assignment or participation and similar instruments with recourse: Provided, however, That debt instruments issued for interbank call loans with maturity of not more than five (5) days to cover deficiency in reserves against deposit liabilities, including those between or among banks and quasi-banks, shall not be considered as deposit substitute debt instruments.

Ordinary income
includes any gain from the sale or exchange of property which is not a capital asset or property.

Ordinary loss
includes any loss from the sale or exchange of property which is not a capital asset. Any loss from the sale or exchange of property which is treated or considered,  as ‘ordinary loss’ shall be treated as a loss from the sale or exchange of property which is not a capital asset.

Rank and file employees
shall mean all employees who are holding neither managerial nor supervisory positions.

Mutual fund company
shall mean an open-end and close-end investment company.

Trade, business, or profession
shall not include the performance of services by the taxpayer as an employee.

Regional or area headquarters
shall mean a branch established in the Philippines by multinational companies and which headquarters do not earn or derive income from the Philippines and which act as supervisory, communications, and coordinating center for their affiliates, subsidiaries, or branches in the Asia-Pacific Region and other foreign markets.

Regional operating headquarters
shall mean a branch established in the Philippines by multinational companies which are engaged in any of the following services: general administration and planning; business planning and coordination; sourcing and procurement of raw materials and components; corporate finance advisory services; marketing control and sales promotion; training and personnel management; logistic services; research and development services and product development; technical support and maintenance; data processing and communications; and business development.

Long-term deposit or investment certificate
shall refer to certificate of time deposit or investment in the form of savings, common or individual trust funds, deposit substitutes, investment management accounts, and other investments with a maturity period of not less than five (5) years, the form of which shall be prescribed by the Bangko Sentral ng Pilipinas (BSP) and issued by banks only (not by nonbank financial intermediaries and finance companies) to individuals in denominations of Ten thousand pesos (PhP10,000) and other denominations as may be prescribed by the BSP.

The statutory minimum wage earner
shall refer to rate fixed by the Regional Tripartite Wage and Productivity Board, as defined by the Bureau of Labor and Employment Statistics (BLES) of the Department of Labor and Employment (DOLE).

Minimum wage earner
shall refer to a worker in the private sector paid the statutory minimum wage, or to an employee in the public sector with compensation income of not more than the statutory minimum wage in the non-agricultural sector where he/she is assigned.