BIR Ruling

January 11, 1968 Premier Concrete Products Company 432 A. Bonifacio Street Balintawak, Quezon City Gentlemen : This refers to your request for tax exemption under Republic Act No. 3470. Investigation conducted by this Office disclosed that Premier Concrete Products Company is a non-registered partnership with a capital investment of P16,000; that it is engaged in manufacturing hollow blocks; that it keeps books of account duly registered with the BIR; that it employs 8 laborers who are close relatives of the partners of said company; that the plant facilities consists of 2 simple moulding machines; that it produces daily an average of 1000 pieces of hollow blocks and sells them at an average of from P320.00 to P350.00; that the business is carried on a small scale; and that it is duly registered with the Nacida. In reply thereto, I have the honor to inform you that your industry being registered with the Nacida and actually operating as a cottage industry, is exempt from the payment of the fixed and percentage taxes for a period of five years from the date of the registration of your industry with the Nacida, pursuant to Republic Act No. 3470. You are, however, subject to the income and additional residence taxes. liblex Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue