BIR Ruling

February 15, 1977 International Services, Inc. P.O. Box 1672, MCC Makati, Rizal Attention: Mr . Jack Honig Managing Director Gentlemen : This refers to your letter dated January 18, 1977 requesting a ruling based on the following facts: "We represent in the Philippines Commerce and Industry Consultants with address at 1530 Star House, Kowloon, Hongkong. After they negotiate with local suppliers and place orders, it will be our duty to follow-up the processing of the orders by the suppliers and to see to it that the goods are properly produced. We also will have to make final inspection of the goods prior to shipment. We shall then report to our principals our findings. "We are being compensated by a commission based on the value of the shipped goods, the commission varies between 0.5% and 1.0% depending on the volume of the shipment." In reply, I have the honor to inform you that under the foregoing facts, you are an independent contractor. As such contractor, you are subject to the P50.00 annual fixed tax prescribed in Section 182(A)(1) of the Tax Code and your gross receipts derived therefrom is subject to the 3% tax prescribed in Section 191 of the same Code. aisadc Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3