BIR Ruling

March 30, 1967 Mr. Deogracias Murillo 2218-A Int. Makata Sta. Cruz, Manila S i r : This refers to your letter dated February 28, 1967 stating the following: "Kindly answer the following questions: "1. Are barbershops subject to payment of privilege business tax payment of percentage tax on their gross receipts and registration of their name or style with provincial revenue agent or treasurer, in pursuance of Com. Act No. 466, Sections 178, 191 and 203? cdta "2. What are taxes to be paid by barbershops, if there are not subject to taxes above? "3. What is the procedure of registration of business name of barbershops, if these are not subject to Com. Act No. 466, Sec. 203? "Thank you for your answers, I am a citizen." In reply thereto, I have the honor to inform you as follows: Barbershops which render purely hair-cutting are not subject to the fixed and percentage taxes prescribed in Sections 182(A)(1) and 191 of the National Internal Revenue Code and, therefore, their business name or style need not be registered with this Bureau. (BIR Ruling No. 64-023, s. 1964) However, barbershops which render not only hair-cutting but also services such as hair-dyeing, hair-pulling, pedicuring and manicuring of male patrons, are subject to the P20.00 annual fixed tax and to the 3% tax prescribed in Sections 182(A)(1) and 191 of the Tax Code. (BIR Ruling No. 64-023, s. 1964) In this case, they are required to register their business name and style with this Bureau. Registration of business name and style is effected by presenting the privilege tax receipt with the internal revenue officer concerned; secure an application form for the purpose, and after accomplishing the necessary form submit the same to the provincial revenue officer (now the District Revenue Officer) or with the Revenue Collection Agent in municipalities other than those where the District Revenue Officer hold office. LexLib In either instance, the receipts derived by owners or proprietors of barbershops are subject to the income and additional residence taxes. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue