BIR Ruling

August 7, 1969 L.C. Diaz & Associates Certified Public Accountants 304-305 Filoil Building Taft Avenue, Manila Attention: Mr . Luis C . Diaz Gentlemen : This refers to your letter requesting information as to what business taxes your client is liable for engaging in the business of laminating timber. After a verification made by this Office, it has been found out that the business of your client is of the type described in your basic letter dated September 7, 1964, viz. that it laminates timber for building constructions and other special structures upon specific orders of the customers. That the company not only provides the services such as, kiln, drying, lamination, surfacing and other related services, but also provides the materials needed in the lamination. In reply, I have the honor to inform you that timber laminating is considered manufacturing under Section 194(x) of the Tax Code and, therefore, your client is a manufacturer subject to the fixed tax of P20.00 and to the 7% sales tax prescribed by Sections 182(A)(1) and 186 of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue