BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Aug 6, 1968
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August 6, 1968 Santillan, Jimenez & Roque Certified Public Accountants R-555 Wellington Building Binondo, Manila Gentlemen : This refers to your letter dated July 22, 1968 requesting, in behalf of your client, information as to whether receipts from maintenance, repairs and construction projects within U.S. Navy installations are free from the payment of percentage taxes. In reply I have the honor to inform you that pursuant to the P.I.-U.S. Military Bases Agreement (43 O.G. No. 3, pp. 1020-1034), as supplemented by the exchange of notes between the two governments on December 29, 1952, any person or entity who enters into a contract with the U.S. Army and Navy, as contractor, for the construction, operation, maintenance or defense of military bases, is exempt from the 3% contractor's tax prescribed in Section 191 of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue
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