BIR Ruling

April 14, 1970 Apex Exploration & Mining Co., Inc. Rm. 602, FGR Bldg. Buendia Avenue Makati, Rizal Attention: Mr . Eduardo Baez Administrative Officer Gentlemen : This refers to your letter dated March 16, 1970 requesting opinion as to the privilege tax liability of the Apex Exploration and Mining Co., Inc. taking in consideration the primary and secondary purposes for which it is formed as contained in its Articles of Incorporation. cd In reply, I have the honor to inform you as follows: For engaging in business or performing activities principally incidental to mining and exploration, the company is not liable for the payment of any privilege tax. For mining, milling, concentrating, converting, smelting, treating, preparing gold, silver, copper, lead, zinc, brass, iron, steel, and all kinds of ores, metals, and minerals, and the products and by products thereof for market, the company is merely considered a mining company subject to the mining taxes. (See Sections 241-243, Tax Code as amended by R.A. No. 6110). For buying, selling, exchanging, leasing, acquiring and dealing in lands and other real properties, it is furthermore considered a real estate dealer subject to the annual graduated fixed tax of P150.00 if the annual income from buying, selling, exchanging, leasing or renting property is over P4,000.00 but not exceeding P10,000.00; P300.00, if the annual income exceeds P10,000.00 but does not exceed P30,000.00; P500.00, if the annual income exceeds P30,000.00 but does not exceed P50,000.00, pursuant to Section 182(A)(3)(aa) of the same Code as amended by Republic Act No. 6110. The fixed tax is payable immediately before engaging in the said business as real estate dealer. acd Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue