BIR Ruling

February 21, 1972 Col. R. Bocalbos and Associates, Inc. Room 600 TMBC Building 6772 Ayala Ave. Makati, Rizal Attention: Col . R . Bocalbos (Ret . ) President-General Manager Gentlemen : This refers to your letter dated February 1, 1972 requesting a ruling as to the business tax liability of ABC, Incorporated, which is a corporation licensed as a General Agent. It is represented that the corporation will engage in selling life and non life insurance for XYZ life Insurance Corporation and to receive income in the form of overriding commission. In reply, I have the honor to inform you that under the foregoing set-up, ABC Incorporated is considered an independent contractor subject to the annual fixed tax of P50.00 and to the 3% tax on its gross receipts in accordance with Sections 182(A)(1) and 191(18) of the Tax Code, as amended by Republic Act No. 6110. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue