The community tax certificate, or cedula, is issued when you pay the yearly community tax to your city or municipality. Under RA 7160, an individual pays ₱5 plus ₱1 for every ₱1,000 of income, with the extra capped at ₱5,000. A corporation pays ₱500 plus ₱2 for every ₱5,000 of gross receipts and of real property, capped at ₱10,000. It is due by the last day of February.[1]
Cedula rates under RA 7160
| Individual (Sec 157) | Corporation (Sec 158) | |
|---|---|---|
| Basic amount | ₱5 | ₱500 |
| Additional, on income or receipts | ₱1 per ₱1,000 of income | ₱2 per ₱5,000 of gross receipts or earnings from business in the preceding year |
| Additional, on property | Counted in income from property | ₱2 per ₱5,000 of real property owned in the preceding year |
| Cap on the additional tax | ₱5,000 | ₱10,000 |
| Where to pay | City or municipality where you live | Where the principal office is |
Who has to pay
Section 157 covers every inhabitant aged 18 or over who has been regularly employed on a wage or salary basis for at least 30 consecutive working days in a year, or who is engaged in business or occupation, or who owns real property with an aggregate assessed value of ₱1,000 or more, or who must file an income tax return. A business owner falls under "engaged in business". For a husband and wife, the additional tax is based on their total property and total gross receipts or earnings.[1]
Section 158 covers every corporation doing business in the Philippines, domestic or resident foreign. Diplomatic and consular representatives, and transient visitors staying three months or less, are exempt.[1]
Worked examples
Example: a sari-sari store owner in Quezon City, round numbers. Income of ₱300,000. Additional tax: ₱300,000 ÷ ₱1,000 × ₱1 = ₱300. Add the ₱5 basic amount: ₱305. The additional part stops growing at ₱5,000, which an individual reaches at ₱5,000,000 of income.[1]
Example: a small OPC, round numbers. Gross receipts of ₱2,000,000 in the preceding year and no real property. Additional tax: ₱2,000,000 ÷ ₱5,000 × ₱2 = ₱800. Add the ₱500 basic amount: ₱1,300. If it also owned real property valued at ₱1,000,000, add ₱400 more. The additional part is capped at ₱10,000.[1]
Your treasurer computes the final amount from what you declare. Bring proof of income, such as your latest income tax return, so the figure is right the first time.
When it is due, and the late penalty
The community tax accrues on 1 January and must be paid not later than the last day of February. Unpaid amounts earn interest of 24% a year from the due date until paid.[1]
Example only: an individual's ₱305 cedula paid six months late adds about half of 24%, or 12%, which is roughly ₱37. Small in pesos, but it is easy to avoid by getting the cedula in January when you renew your permits.[1]
Where you will be asked for it
Section 163 lets offices require you to show your cedula when you transact with them, such as when you get a license or have a document notarized, and the same applies to corporations. It cannot be required for voter registration. From January to 15 April, the previous year's certificate is accepted; after that, offices may ask for the current one.[1]
In practice, many barangays and city halls ask for a cedula with your barangay clearance and mayor's permit application, so get it before you queue. Some barangays also issue cedulas; check with yours.
Getting your cedula
- Go to the treasurer of the city or municipality where you live
- For a corporation, go where the principal office is
- Bring a valid ID and proof of income or gross receipts
- Pay by the last day of February to avoid interest
- Keep the cedula with your permit papers
- Get a new one every January
Questions people ask
- How much is a cedula for a small business owner?
- ₱5 plus ₱1 for every ₱1,000 of income, with the extra capped at ₱5,000. On ₱300,000 of income, that is ₱305.
- Where do I get a cedula?
- From the city or municipality where you live; a corporation pays where its principal office is located.
- Is last year's cedula still valid?
- Offices accept the previous year's certificate from January until 15 April. After that, expect to be asked for the current year's.
- Can I get a cedula even if I am not required to pay?
- Yes. RA 7160 allows a community tax certificate to be issued to a person or corporation not subject to the tax.
Sources
Checked 13 November 2026. We link the agency's own page for every requirement. Rules change; confirm with the office before you pay.
- Republic Act No. 7160 (Local Government Code of 1991) · Congress of the Philippines (via Lawphil) · 10 October 1991