BIR Ruling

August 11, 1971 F. F. Cruz & Co., Inc. 800 E. de los Santos Avenue Quezon City Attention: Mr . Felipe F . Cruz Gentlemen : This refers to your letter to the Regional Director, Quezon City, dated August 10, 1971 requesting information as to whether or not you are exempt from the contractor's tax on the receipts you will derive from your contract with the Philippine Petroleum Corporation. cdta It appears that the Philippine Petroleum Corporation is a preferred pioneer enterprise registered with the Board of Investments under the provisions of Republic Act No. 5186 with Registration Certificate No. 69-100 dated, October 29, 1969. It further appears that you have contracts for certain work in their proposed plant for which reason you are to derive gross receipts from said corporation. In reply, I have the honor to inform you that the amendment to Section 191 of the National Internal Revenue Code exempts from the tax therein prescribed the gross receipts of contractors registered as a pioneer industry with the Board of Investments under the provisions of Republic Act No. 5186 as well as the gross receipts derived by contractors from any pioneer industry registered with the Board of Investments. Accordingly, the gross receipts that will be derived by you from the Philippine Petroleum Corporation in connection with your contracts with them be exempt from the contractor's tax. aisa dc Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue