BIR Ruling

April 7, 1970 Mr. Hadji Perusalem M. Calauto Saguiaran, Lanao del Sur S i r : This refers to your letter dated February 24, 1970 stating as follows: "As an Operator of Jeepneys for hire and PU cars (without chauffeur) in the province of Lanao del Sur, and in connection with your Memorandum dated January 6, 1970 fixing percentage tax on carriers and keepers of garage, per Republic Act No. 6110, otherwise known as the Omnibus Revenue Law, I have the honor to request that I be allowed to pay a tax of P200.00 (Provincial) as an Operator of Jeepneys for hire and a tax of P300.00 as an operator of PU cars (without chauffeur)." In reply, I regret to inform you that this Office cannot legally allow you to pay the percentage tax based on the amounts of P200.00 and P300.00 as operator of jeepney for hire and PU car (without chauffeur), respectively, if the gross receipts realized by you exceed these minimum amounts. As an Operator of Jeepneys and PU cars for hire, you are subject to the 2% carriers' tax based on your monthly gross receipts thereof and to an annual fixed tax of P50.00 imposed in Section 192 and 182 (A)(1) of the Tax Code, as amended by Republic Act No. 6110. In other words, the 2% tax payable by you should be based on the actual gross receipts realized from your business but shall not be less than the minimum monthly gross receipts fixed by Section 192 of the Tax Code. casia Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue