BIR Ruling

March 15, 1973 Mr. Honorio Halili Porac, Pampanga S i r : In reply to your letter of even date, I have the honor to inform you that as a repacker of denatured alcohol you are not considered a manufacturer and, therefore, you are not subject to the manufacturers fixed and percentage taxes, provided that the aforesaid alcohol has been purchased from duly licensed manufacturers who have paid the corresponding sales tax thereon. However, you are subject to the graduated annual fixed tax prescribed in Section 182(A) (2) of the Tax Code, the initial amount of which is P10.00; thereafter, the amount of tax will depend upon the amount of gross sales during the preceding calendar year. Accordingly, since you are subject only to the graduated annual fixed tax as hereinabove stated, you are not required to file the surety bond required of manufacturers and importers of articles subject to specific tax under Section 136 of the Tax Code, as amended. aisa dc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue