BIR Ruling

November 2, 1967 The Assistant Regional Director BIR Revenue Region No. 20 Zamboanga City S i r : This refers to your memorandum dated August 31, 1967 to the Revenue District Officer, Revenue District No. 90, Jolo, Sulo, informing him that there is no law or provision of the National Internal Revenue Code compelling franchise grantees to pay their taxes in a certain locality or in the place where their branches may be located. cdpr In this connection, you are hereby informed that the place of payment of the franchise tax by a holder of a franchise is most often specifically provided for in the franchise itself; and if not so provided, the tax, being an excise tax, must be necessary implication of tax enforcement be paid with the collection agent where the franchise operates. As to the payment of income tax, Revenue Memorandum Circular No. 19-66 dated April 11, 1966 provides that income tax returns must be filed with and the tax paid to the collection agent of the city or municipality where the principal office of the taxpayer is located and its books of accounts are kept. Thus, the telecommunication service operators referred to in your ruling must file their income tax in Jolo, if they are doing business and their books of accounts are kept therein. However, if the said telecommunication companies have branches, they may apportion the second installment to the localities where they have such branches. prcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue