BIR Ruling

October 4, 1971 Mr. Camilo I. Francisco Revenue Collection Agent Camiling, Tarlac S i r : This refers to your letter dated August 9, 1971, requesting information whether the privilege tax payable by owners or operators of rice threshers is levied on the basis of one privilege tax for each owner or operator or on the number of units owned or operated by the taxpayer and whether the same may be paid quarterly. acd In reply, please be informed that an operator or owner of rice threshers who threshes the palay of others for a fee is an independent contractor subject to the P50.00 annual fixed tax imposed in Section 182(A)(1) of the Tax Code and to the 3% tax on his monthly gross receipts regardless of the number of units being operated pursuant to Section 191 of the same Code. Section 180 of the Tax Code specifies the time within which all fixed taxes should be paid which may either be annually or semi-annually. Hence, the privilege tax payable by the owner or operator cannot be paid quarterly. cdi Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue