How to get Cedula 2023: requirements and computation for Community Tax Certificate
A Cedula or Community Tax Certificate (CTC) is a personal registration tax certificate in the Philippines. The government issues the document to people or corporations that have paid residence or community tax. This post explains how one can get a Cedula.
The Cedula is one of the basic requirements for most government transactions. It is essential when registering a new business, applying for a job, and filing income tax returns. This guide will help you know how to get your Cedula.
Who is eligible for Cedula?
The following people qualify for Cedula, Philippines:
- An inhabitant of the Philippines who is 18 years or older.
- Individuals who are salaried employees for at least 30 consecutive working days during any calendar year.
- An inhabitant of the Philippines who is engaged in a business or occupation.
- An inhabitant of the Philippines who owns real property with a collective assessed value of Php 1000 or more.
- An inhabitant of the Philippines who is required by law to file income tax returns.
Why do you need a Cedula?
A Community Tax Certificate in the Philippines has the following purposes but is not limited to these:
- Registering a new business.
- Renewing a business.
- Applying for a job.
- Purchasing a house.
- It is a marriage license requirement.
- Filing Income Tax Returns (ITR).
- Seeking notarization of other valid identification documents.
- Applying for licenses, receipts, and certificates from government offices.
- It bears your residential address and is needed when receiving payment or salary from government agencies.
- It is a requirement for Proof of Ownership of Real Estate Properties.
- It is a requirement for Proof of Residency.
- It is a requirement for Payment of Dues to exercise a profession.
- For other legal purposes.
How to get a Cedula in the Philippines
Applying for CTC takes approximately 15 to 20 minutes. The certificate contains a unique Cedula number. The Community Tax Certificate number makes the document a valid identification card. Here is a step-by-step guide to getting a CTC:
- Visit the municipal hall, city hall, or barangay hall within your area of residence.
- Present your valid ID.
- Fill out the application slip with the required information.
- Submit the form for checking and computation.
- Pay the applicable fees.
- The officer will then issue you with three copies of the CTC.
- Sign and affix your thumbprint on the copies.
- You will then get the original copy of the Cedula from the officer.
The Community Tax Certificate application form or slip requires you to provide the following details but is not limited to them:
- Full name
- Civil status
- A TIN number (Tax Identification Number)
- Place of birth
- Gross annual income (for employed)
How to get a Cedula online
Some cities in the Philippines allow online applications for Cedula. Cebu City and San Fernando La Union have online CTC registration websites. Those applying for Cedula from the City of San Fernando can use this guide:
- Visit the San Fernando Cedula application website.
- Fill out the application form and print it.
- Present your valid ID and the printed application form at the city hall.
- Pay the applicable fees.
- Sign and affix your thumbprint on the copies the officer gives you.
- Wait for the issuing officer to provide you with the CTC.
How to get Cedula for students
A student who is a Philippine inhabitant can get a Community Tax Certificate in the Philippines. These are the Cedula requirements for students:
- The student should be a Philippine inhabitant.
- The student must be at least 18 years old.
- The student must have a school ID or the most recent school study load (for those who don't have school IDs issued yet).
- The student must pay the corresponding fees for the Cedula to be issued.
The student should present these documents to the nearest Municipal, Barangay, or City hall and pay the necessary fees to get a Cedula certificate.
How to get a Cedula for business
You need a CTC to start a business, get a job, own real estate properties, and do many other things in the Philippines. You should apply for it in the city you are opening the business. You need some documents when applying for a Community Tax Certificate in the Philippines. The following are the Cedula requirements for employment, to start a business, and other purposes:
- You must be a Philippine inhabitant.
- You must be at least 18 years old.
- You should have a valid ID.
- You should obtain an application slip obtained from the Municipal, Barangay, or City halls.
- You should have proof of income for employed individuals and business owners.
- You will pay a Cedula application fee.
You can fill out a Cedula application form online, print it and take it to the nearest Municipal, Barangay, or City hall. Remember to bring the required documents along with the application form.
Cedula expiration is usually a year from the date of issue. For example, if you get your CTC on 1st March 2020, it will expire on 28th February 2021. Below is a Cedula sample.
How to get a Cedula for another person
You can help someone to apply for a Cedula online. The person must print the filled-out application form and submit it at the nearest Municipal, Barangay, or City hall to sign some documents and give bio-metrics like a thumbprint.
Can you get Cedula without an ID?
You cannot get a Cedula without a valid ID. Some acceptable valid IDs are the UMID card, the Philippine passport, a TIN card, your driver’s license, and a school ID (for students). If you do not any, consider acquiring one before applying for a CTC.
How much is the Cedula fee?
Your Cedula fee depends on whether you are employed, own businesses, or are unemployed.
Do you need a Barangay clearance for a Cedula?
You can get a Cedula without a Barangay clearance. On the other hand, the Barangay Clearance is only issued to those with Community Tax Certificates or Cedula.
Can you get cedula in Barangay?
You can obtain it from the Municipal, Barangay, or City Hall in your area. Most inhabitants in the Philippines know where to get Cedula. They can help find these places.
How much is Cedula tax?
People exempted from paying community tax in the Philippines are:
- Diplomatic and consular representatives
- Transient visitors whose stay in the Philippines does not exceed three months.
Cedula computation for individuals
- Minimum basic community tax of Php5
- Additional tax of Php 1 for every Php 1000 of gross earnings acquired during the previous year.
- For real property, a tax of Php 1 for each Php 1000 of the total assessed value.
- The maximum community tax for individuals is Php 5,005.
Cedula computation for corporations
- The minimum basic community tax is P 500
- Additional tax of Php 2 for every Php 5000 of gross income during the previous year.
- Additional tax of Php 2 for every Php 5000 of the total assessed value.
- The maximum community tax for corporations is Php 10,500.
How do you calculate Cedula?
The following examples can help you learn how to compute community tax in the Philippines.
An individual earning Pure Compensation Income
Ann earned Php 10,000 in pure compensation income from her employer. Her aggregate earnings for the preceding year were Php 100,000. It included her 13th month's pay. Ann's community tax due would be as follows:
|Basic Community Tax||Php 5|
|Additional Community Tax (100,000/1,000)*P1.00))||Php 100|
|Total Community Tax||Php 105|
An individual earning Mixed-Income and Owns Real Properties
Businessman Rashid's gross receipts include Php 400,000 in business income from India and Php 300,000 from the Philippines. He acquired Php 1,000,000 in real property in India and land worth Php 2,000,000 in the Philippines. He also earned Php 100,000 as compensation from his part-time nursing job in the Philippines. Rashid's community tax due would be:
|Basic Community Tax||Php 5|
|Additional Community Tax (300,000+2,000,000+100,000)/1,000)*P1.00)))||Php 2400|
|Total Community Tax||Php 2405|
Rashid's income earned in the Philippines, and properties in the Philippines are the only ones used when calculating additional community tax.
Community tax of a Domestic Corporation
The community tax of a domestic corporation in the Philippines that has Php 500,000,000 gross receipts would be as follows:
|Basic Community Tax||Php 500|
|Additional Community Tax (500,000,000/5000)*P2) OR 10,000 whichever is lower||Php 10,000|
|Total Community Tax||Php 10,500|
Community tax has a threshold. A corporation should not pay additional community tax exceeding Php 10,000.
Cedula is a must-have document for everyone residing in the Philippines and is 18 years or older. It proves you pay your community tax and can be used as a valid ID.
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