Title II — TAX ON INCOME (3) For casual labor not in the course of the employer’s trade or business, or (4) For services by a citizen or resident of the Philippines for a foreign government or an international organization. If the remuneration paid by an employer to an employee for services performed during one-half (½) or more of any payroll period of not more than thirty-one (31) consecutive days constitutes wages, all the remuneration paid by such employer to such employee for such period shall be deemed to be wages; but if the remuneration paid by an employer to an employee for services performed during more than one-half (½) of any such payroll period does not constitute wages, then none of the remuneration paid by such employer to such employee for such period shall be deemed to be wages. (B) Payroll Period. — The term ‘payroll period’ means a period for which payment of wages is ordinarily made to the employee by his employer, and the term ‘miscellaneous payroll period’ means a payroll period other than, a daily, weekly, biweekly, semi-monthly, monthly, quarterly, semi-annual, or annual period. (C) Employee. — The term ‘employee’ refers to any individual who is the recipient of wages and includes an officer, employee or elected official of the Government of the Philippines or any political subdivision, agency or instrumentality thereof. The term ‘employee’ also includes an officer of a corporation. (D) Employer. — The term ‘employer’ means the person for whom an individual performs or performed any service, of whatever nature, as the employee of such person, except that: (1) If the person for whom the individual performs or performed any service does not have control of the payment of the wages for such services, the term ‘employer’ (except for the purpose of Subsection A) means the person having control of the payment of such wages; and (2) In the case of a person paying wages on behalf of a nonresident alien individual, foreign partnership or foreign corporation not engaged in trade or business within the Philippines, the term ‘employer’ (except for the purpose of Subsection A) means such person. SEC. 79.  Income Tax Collected at Source.37— (A) Requirement of Withholding. — Except in the case of a minimum wage earner as defined in Section 22(HH) of this Code, every employer making 37 As amended by Section 21 of the TRAIN Law. Subsections (D) (Personal Exemptions) and (F) (Husband and Wife) were removed. National Internal Revenue Code of 1997 (as amended by the TRAIN Law, RAs 11256, 11346 and 11467) 95

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