BIR Ruling

October 15, 1969 Mr. Ramon A. Fabella 39 Quezon Blvd. Ext. Quezon City S i r : This refers to your letter dated September 8, 1969 requesting information as to the internal revenue taxes payable by persons engaging in the following business and/or activities : cd 1. Cargo solicitor ; 2. Vessel (barges, tugboats, steam or motor ships) charterers for the purpose of re-chartering same to cargo shippers ; 3. Husbanding and shipping agents for local and foreign shipping companies; 4. Forwarding agents, lighterage, commercial and customs brokers. In reply, I have the honor to inform you as follows: A customs broker is subject to the annual fixed tax of P150.00 (C-9) and to the 6% tax on his gross compensation pursuant to Section 182(A) (3) (s) and Section 195 of the Tax Code, respectively. Cargo solicitors, forwarding agents and those engaging in the business of husbanding and shipping agents for local and foreign shipping companies are considered commercial brokers, subject to the annual fixed tax of P150.00 (C-9) prescribed by Section 182 (A) (3) (s) of the Tax Code and to the 6% tax on their gross compensation pursuant to Section 195 of the same Code. Regarding charterers of vessels, this Office cannot issue a fixed and definite ruling as to whether or not they are subject to any internal revenue tax on business unless we are first informed of the character of the charter party. Persons engaging in the foregoing businesses are also subject to the income and residence taxes. prcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue