BIR Ruling

March 6, 1969 Mr. Juan S. Zamora RDA Bldg., 60 Buendia Avenue Makati, Rizal S i r : This refers to your letter dated January 28, 1969 addressed to the Secretary of the Finance, requesting information as to whether or not your professional fee derived from services rendered as architect who prepared the plans and specifications relative to the construction of the Municipal Building of Mandaluyong, Rizal is subject to the 3% contractor's tax imposed in Section 191 of the Tax Code. A perusal of the agreement entered into by and between you and the Municipality of Mandaluyong, Rizal shows that the professional services rendered by you as an architect consist of the necessary conferences, the preparation of preliminary studies, working drawings, specifications, large scale and full size detail drawings and the drafting of forms of proposals and contracts; and that the general administration and supervision of the work is not included in the agreement. In reply, I have the honor to inform you that the foregoing professional services rendered do not constitute you a contractor. It may be stated, in this connection that an architect is a person skilled in the art of building; a professional student or architecture, or one who makes it his occupation to form plans and designs of, and to draw up specifications for building, and to superintend their execution. (Webster's International Dictionary) Inasmuch as you have already paid your professional tax as architect under Section 182(B) of the Tax Code, the professional fee derived by you for services rendered in connection with the preparation of plans and specifications of the above mentioned project is exempt from the 3% tax imposed in Section 191 of the Tax Code. LLjur Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue