BIR Ruling

August 9, 1968 Buendia Commercial Press 1318 Batangas St., cor. Buendia Avenue, Makati Rizal Gentlemen : This refers to your letter dated June 26, 1968 stating that you are currently negotiating the possibility of publishing a song book for your client, said song book to bear the name of your client's products; that this song book may either be sold at cost plus delivery or mailing expenses or distributed for free to customers upon presentation of any one of your client's products; and that your client is also contemplating to publish said song book monthly if the sales gimmick would prove beneficial to it. You now ask, in effect, the consequences of the foregoing undertaking. In reply, I have the honor to inform you as follows: Under the foregoing facts, you client will be considered the publisher of the song book subject to the P20.00 annual fixed tax imposed in Section 183(A)(1) of the Tax Code and to the 3% tax prescribed in Section 191 of the same Code. The Buendia Commercial Press, on the other hand will, as a printer, be subject to the same fixed and percentage taxes. lexlib Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue