BIR Ruling

March 19, 1970 Mrs. Beatriz K. Eustaquio Rattan Interiors 303 F. Ramos Street Cebu City M a d a m : This refers to your letter dated November 25, 1969 requesting exemption from the payment of fixed and percentage taxes under the provisions of Republic Act No. 3470. Investigation conducted by this Office disclosed that you are the owner-proprietor of the Rattan Interiors at 303 F. Ramos Street, Cebu City; that you are engaged in the manufacture of rattan and wood furnitures and have paid the corresponding privilege trees (C-13 & C-14) for the years 1967, 1968, 1969 and 1970; that you employed two permanent laborers who are your relatives and five carpenters who are not however, your relatives working in piece work basis; that your plant facilities consists of tools and small hand operated machines; that your initial capital investment as of August, 1967 is P4,000.00 with a total capital asset not exceeding P15,000.00 as of December 31, 1969; and that you are registered with the NACIDA as a cottage industry under Certificate No. 00212 dated September 29, 1967. In reply thereto, I have the honor to inform you that under the foregoing circumstances, you are exempt from the payment of fixed and percentage taxes pursuant to the provisions of Republic Act No. 5326. aisa dc Very truly yours , MISAEL P. VERA Commissioner of Internal Revenue