Title II — TAX ON INCOME
(f) Technical advice, assistance or services rendered in connection
with technical management or administration of any scientific,
industrial or commercial undertaking, venture, project or
scheme; and
(g) The use of or the right to use:
(i)
Motion picture films;
(ii) Films or video tapes for use in connection with television;
and
(iii) Tapes for use in connection with radio broadcasting.
(5) Sale of Real Property. — Gains, profits and income from the sale of
real property located in the Philippines; and
(6) Sale of Personal Property. — Gains, profits and income from the sale
of personal property, as determined in Subsection (E) of this Section.
(B)
Taxable Income From Sources Within the Philippines. —
(1) General Rule. — From the items of gross income specified in
Subsection (A) of this Section, there shall be deducted the expenses,
losses and other deductions properly allocated thereto and a ratable
part of expenses, interests, losses and other deductions effectively
connected with the business or trade conducted exclusively within
the Philippines which cannot definitely be allocated to some items or
class of gross income: Provided, That such items of deductions shall
be allowed only if fully substantiated by all the information necessary
for its calculation. The remainder, if any, shall be treated in full as
taxable income from sources within the Philippines.
(2) Exception. — No deductions for interest paid or incurred abroad shall
be allowed from the item of gross income specified in Subsection (A)
unless indebtedness was actually incurred to provide funds for use in
connection with the conduct or operation of trade or business in the
Philippines.
(C)
Gross Income From Sources Without the Philippines. — The following
items of gross income shall be treated as income from sources without the
Philippines:
(1) Interests other than those derived from sources within the
Philippines as provided in paragraph (1) of Subsection (A) of this
Section;
(2) Dividends other than those derived from sources within the
Philippines as provided in paragraph (2) of Subsection (A) of this
Section;
National Internal Revenue Code of 1997 (as amended by the TRAIN Law, RAs 11256, 11346 and 11467)
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