CHAP. II. SEC. 23. GENERAL PRINCIPLES..........................................................................17 General Principles of Income Taxation in the Philippines.......................17 CHAP. III. SEC. 24. SEC. 25. SEC. 26. TAX ON INDIVIDUALS...........................................................................18 Income Tax Rates. —.............................................................................18 Tax on Nonresident Alien Individual. —.................................................23 Tax Liability of Members of General Professional Partnerships...............26 CHAP. IV. SEC. 27. SEC. 28. SEC. 29. SEC. 30. TAX ON CORPORATIONS......................................................................26 Rates of Income Tax on Domestic Corporations.....................................26 Rates of Income Tax on Foreign Corporations........................................31 Imposition of Improperly Accumulated Earnings Tax.............................36 Exemptions from Tax on Corporations...................................................37 CHAP. V. SEC. 31. COMPUTATION OF TAXABLE INCOME.................................................38 Taxable Income Defined........................................................................38 CHAP. VI. SEC. 32. SEC. 33. COMPUTATION OF GROSS INCOME.....................................................39 Gross Income.........................................................................................39 Special Treatment of Fringe Benefit.......................................................43 CHAP. VII. SEC. 34. SEC. 35. SEC. 36. SEC. 37. ALLOWABLE DEDUCTIONS.................................................................. 44 Deductions from Gross Income............................................................. 44 Allowance of Personal Exemption for Individual Taxpayer ....................61 Items not Deductible..............................................................................61 Special Provisions Regarding Income and Deductions of Insurance Companies, Whether Domestic or Foreign.............................62 Losses from Wash Sales of Stock or Securities........................................63 Capital Gains and Losses........................................................................64 Determination of Amount and Recognition of Gain or Loss....................65 Inventories............................................................................................69 Income from Sources Within the Philippines..........................................69 SEC. 38. SEC. 39. SEC. 40. SEC. 41. SEC. 42. CHAP. VIII. SEC. 43. SEC. 44. SEC. 45. SEC. 46. SEC. 47. ACCOUNTING PERIODS AND METHODS OF ACCOUNTING.................73 General Rule.........................................................................................73 Period in which Items of Gross Income Included....................................73 Period for which Deductions and Credits Taken.....................................74 Change of Accounting Period.................................................................74 Final or Adjustment Returns for a Period of Less than Twelve (12) Months...............................................................................74 National Internal Revenue Code of 1997 (as amended by the TRAIN Law, RAs 11256, 11346 and 11467)