NIRC SECTION 22 – DEFINITIONS during the taxable year to reside

permanently in the PH shall also be

A. Person: individual, a trust, estate, or
treated as a non-resident citizen for
corporation
the taxable year in which he arrives in
B. Corporation
the PH with respect to his income
• Shall include partnerships, no
derived from sources abroad until the
matter how created or organized,
date of his arrival in the PH.
joint-stock companies, joint
5. Taxpayer shall submit proof to the
accounts, associations, or insurance
Commissioner to show his intention of
companies
leaving the PH to permanently reside
• But does not include general
abroad or to return to and reside in the
professional partnerships and a
PH.
joint venture or consortium formed
F. Resident Alien: an individual whose
for the purpose of undertaking
residence is within the PH and not a citizen
construction projects in petroleum,
thereof
coal, geothermal, and other energy
G. Non-resident Alien: an individual who
operations.
residence is not within the PH and not a
• General professional
citizen thereof
partnerships: partnerships formed
H. Resident Foreign Corporation: applies to
by persons for the sole purpose of
a foreign corporation engaged in trade or
exercising their common profession
business within the PH
C. Domestic: applied to a corporation, means
I. Non-resident Foreign Corporation:
created or organized in the PH or under its
applies to a foreign corporation engaged in
laws
trade or business within the PH
D. Foreign: means a corporation which is not
J. Fiduciary: means guardian, trustee,
domestic
executor, administrator, receiver,
E. Non-resident citizen:
conservator, or any person acting in any
1. A citizen of the PH who establishes to
fiduciary capacity for any person
the satisfaction of the Commissioner
K. Withholding Agent: any person required
the fact of his physical presence
to deduct and withhold any tax under Sec
abroad with a definite intention to
57
reside therein
L. Shares of stock: shall include shares of
2. A citizen of the PH who leaves the PH
stock of a corporation, warrant and/or
during the taxable year to reside
options to purchase shares of stock, as
abroad, either as an immigrant or for
well as units of participation in a
employment on permanent basis
partnership, joint stock companies, joint
3. A citizen of the PH who works and
accounts, joint ventures taxable as
derives income from abroad and whose
corporations, associations, and recreation
employment requires him to be
or amusement clubs (golf, polo, or similar
physically present abroad most of the
clubs)
time during taxable year
o Except: General professional
4. A citizen who has been previously
partnerships
considered as non-resident citizen and
M. Shareholder:
who arrives in the PH at any time
N. Taxpayer: any person subject to tax Z. Ordinary Income: any gain from the sale
imposed by this Title or exchange of property which is not a
O. Including and includes capital asset or property
P. Taxable year: calendar year, or the fiscal o Ordinary loss: any loss from the
year ending during such calendar year, sale or exchange of property which
upon the basis of which the net income is is not a capital asset
computed
o Includes: In case of a return made
for a fractional part of a year, the
period for which such return is
made
Q. Fiscal year: an accounting period of 12
months ending on the last day of any month
other than Dec
R. Paid or incurred or accrued: construed
according to the method of accounting
upon the basis of which the net income is
computed
S. Trade or business: performance of the
functions of a public office
T. Securities: shares of stock in a
corporation and rights to subscribe for or
to receive such shares
o Includes bonds, debentures, notes
or certificates
U. Dealer in securities: merchant of stocks
or securities, whether an individual,
partnership or corp, with an established
place of business, regularly engaged in the
purchase of securities and the resale
thereof to customers
V. Bank: means every banking institution
o May either be a commercial bank, a
thrift bank, a development bank, a
rural bank or a specialized
government bank
W. Non-bank financial intermediary
X. Quasi-banking activities
Y. Deposit substitutes: an alternative form
of obtaining funds from the public
o Public: borrowing from 20 or more
individual or corporate lenders at
any one time