BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Dec 10, 1976
Full text
December 10, 1976 Mr. Jose E. Fernandez Salamat Pawnshop P. O. Box 364 Zamboanga City S i r : In reply to your letter dated October 13, 1976, I have the honor to inform you that the collection of service charges by pawnbrokers consisting of 1% of the principal loan but not to exceed P5.00 as required by Section 23 of Central Bank Circular No. 374 is incidental to the business of pawnbrokers. Accordingly, the pawnbroker is not subject to the contractor's fixed and percentage taxes prescribed in Section 182 (A)(1) and 191, respectively, of the Tax Code arising from the collection of said charges. However, the pawnbroker is subject to the annual fixed tax of P500.00 prescribed by Section 182(A)(3)(ff) of the Tax Code as well as income tax. aisa dc Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."
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