The Community Tax Certificate (CTC), universally known as the “Cedula,” is the official receipt and proof that a natural or juridical person has paid the annual community tax due to a local government unit (LGU). It is issued by the city or municipal treasurer and remains one of the most frequently required documents in Philippine administrative, notarial, licensing, and employment transactions.

Legal Basis
The community tax is governed by Republic Act No. 7160, otherwise known as the Local Government Code of 1991, specifically Sections 156 to 164. These provisions establish who is liable, the rates, the place and time of payment, the manner of issuance of the certificate, the mandatory instances of its presentation, and the corresponding penalties. Local revenue codes and ordinances of individual cities and municipalities may prescribe additional procedural details, forms, and reasonable service fees for the printing and processing of the certificate, but they cannot alter the substantive rates or liability rules set by the national law.

Persons Liable to Pay the Community Tax
Section 157 of RA 7160 provides that every inhabitant of the Philippines, whether citizen or alien, who is eighteen (18) years of age or over and who meets any of the following conditions is liable:

Has been residing in the Philippines for more than three (3) months;
Owns real property with an aggregate assessed value of One Thousand Pesos (₱1,000.00) or more;
Is engaged in any occupation, business, or profession;
Receives any compensation, salary, or wages from any source;
Owns shares of stock in any corporation; or
Has income from Philippine sources.

Juridical persons—corporations, partnerships, associations, and other entities created by law—are likewise liable under Section 158. A juridical person organized or authorized to operate in the Philippines must pay the tax regardless of whether it earned income in the preceding year.

Persons below eighteen (18) years of age are exempt. Certain foreign diplomatic and consular personnel may claim exemption on the basis of international law and reciprocity, but this must be properly documented with the Department of Foreign Affairs and the concerned LGU.

Amount of Community Tax
Under Section 159:

For natural persons the tax consists of a basic community tax of Five Pesos (₱5.00) plus an additional tax of One Peso (₱1.00) for every One Thousand Pesos (₱1,000.00) of gross income, gross receipts, or gross compensation derived from all sources during the preceding calendar year. The total additional tax shall not exceed Five Thousand Pesos (₱5,000.00). Thus, the maximum community tax payable by an individual is ₱5,005.00.

For juridical persons the tax consists of a basic community tax of Five Hundred Pesos (₱500.00) plus an additional tax of Two Pesos (₱2.00) for every Five Thousand Pesos (₱5,000.00) of gross receipts or earnings derived from business in the Philippines during the preceding year. The total additional tax shall not exceed Ten Thousand Pesos (₱10,000.00). Thus, the maximum community tax payable by a juridical person is ₱10,500.00.

The tax is computed on the basis of the declarant’s own sworn statement of gross income or gross receipts. Willful understatement or false declaration constitutes a violation subject to criminal penalty.

Place and Time of Payment
Section 160 requires that the community tax be paid in the place of residence of the individual or in the place where the principal office of the juridical person is located. A juridical person with branches or sales offices may be required by the LGU to pay a proportionate tax in the locality where the branch operates, but the principal tax is paid at the head office.

Section 161 provides that the tax accrues on the first day of January of each year and must be paid on or before the last day of February. Payment after this date incurs a surcharge of twenty-five percent (25%) of the tax due. Persons who become liable after 28 February (e.g., upon reaching the age of majority, establishing residence, or organizing a corporation) must pay within thirty (30) days from the date liability arises.

Where and How to Apply for the CTC
The CTC is issued only by the Office of the City Treasurer or Municipal Treasurer (or their duly authorized deputies) of the city or municipality where the tax is paid. In practice, applicants proceed to the Treasurer’s Office located at the city or municipal hall. Some LGUs maintain satellite collection centers or barangay-based collection points during peak periods (January–March), but the certificate itself is issued under the authority and signature of the treasurer.

Step-by-Step Procedure

Obtain the prescribed Community Tax Certificate application form from the Treasurer’s Office or, where available, download it from the LGU’s official website.
Accomplish the form completely and truthfully, declaring name, address, civil status, age, occupation, gross income or gross receipts for the preceding year, and other required data.
Present a valid government-issued photo identification card (Philippine Passport, Driver’s License, UMID, Voter’s ID, PRC ID, or senior citizen ID are commonly accepted). First-time applicants or those whose information has changed may be asked to submit additional proof of residence such as a barangay certificate or utility bill.
For juridical persons, submit: (a) SEC Certificate of Registration or equivalent; (b) board resolution or secretary’s certificate authorizing the representative; (c) valid ID of the representative; and (d) the declaration of gross receipts.
Pay the community tax due plus any local processing or form fee (typically nominal, ranging from ₱5.00 to ₱50.00 depending on the LGU’s revenue ordinance). Payment is usually in cash; some treasuries accept GCash or other e-payments.
The treasurer or authorized deputy computes the tax, issues the official receipt, and releases the CTC bearing the taxpayer’s name, the amount paid, the serial number, and the treasurer’s signature and seal.

The entire process normally takes a few minutes once the form is accomplished and payment is made. During peak season, long queues are common; some LGUs open additional windows or extend hours in January and February.

Documentary Requirements Summary

Duly accomplished CTC application form
Valid government-issued photo ID
For corporations/partnerships: corporate documents and authorization
Supporting documents when the treasurer requires verification of declared income or residence (rare for simple individual applications)

Validity and Renewal
A CTC is valid only for the calendar year in which it is issued. A new certificate must be secured every year. The serial number and the treasurer’s signature are security features; photocopies are generally not accepted for official transactions unless certified by the issuing treasurer.

Mandatory Presentation (Section 163)
The CTC must be exhibited or presented in the following instances, among others:

Acknowledgment of documents before a notary public
Taking an oath of office
Application for or renewal of any license, permit, grant, or franchise from any government agency
Payment of any national or local tax or fee
Receipt of money from any government office
Any transaction with a government office or agency
Passport application and renewal
Driver’s license application and renewal
NBI and police clearance applications
Employment and certain banking or credit transactions where the institution requires proof of local tax compliance

Public officers who knowingly transact official business without requiring presentation of a current CTC when mandated may be held administratively and criminally liable.

Penalties and Sanctions

Late payment after 28 February: 25% surcharge on the tax due.
Willful failure or refusal to pay the community tax, or furnishing false information to evade payment: fine of not less than Five Hundred Pesos (₱500.00) nor more than Five Thousand Pesos (₱5,000.00), or imprisonment of not less than one (1) month nor more than six (6) months, or both, at the discretion of the court.
Any person who makes a false declaration on the application form may also be prosecuted for perjury or falsification of public documents.

Special Cases and Practical Notes

Overseas Filipino Workers who have not resided in the Philippines for more than three months in the taxable year and who derive no income from Philippine sources are generally not required to pay; however, upon return and when they need the certificate for local transactions, they must pay the tax based on any Philippine-sourced income or property they possess.
Spouses are treated as separate taxpayers; each must secure an individual CTC.
A lost CTC may be replaced upon payment of a replacement or certification fee; the original tax payment for the year is not collected again.
Indigent applicants may request assistance or reduced rates under certain local ordinances, although the basic liability under RA 7160 remains.
Some LGUs have introduced online or kiosk-based application systems. Applicants should verify the availability of such facilities directly with their city or municipal treasurer’s office or through the LGU’s official digital channels before visiting in person.

The Community Tax Certificate remains a core instrument of local fiscal autonomy and a practical gateway to countless government services. Compliance is straightforward when the taxpayer appears in person at the proper Treasurer’s Office, declares income accurately, and pays the computed tax on time.