Title XI of the National Internal Revenue Code (NIRC) specifies the deductions from total collections of the Bureau of Internal Revenue (BIR) to determine the amount which is allocable to the national government (NG) and the local government units (LGUs). Section 284 of Republic Act (RA) 7160 or the Local Government Code prescribed that LGUs on the third year of effectivity of the Code and thereafter, shall have a 40% share in the national internal revenue taxes reckoned from the third fiscal year preceding the current year. For instance, the applicable base year for 2020 income allocation for LGUs is 2017.>>read complete document
