BIR Ruling
BIR Ruling • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Oct 26, 1976
Full text
October 26, 1976 Security Agency, Receipts Derived by it Not Subject to Withholding Provisions of RA No . 1051 In reply to your letter dated August 25, 1976, I have the honor to inform you that "AB" Security Services, Inc., a security agency, is exempt from the payment of the 3% contractor's tax imposed by Section 191 of the Tax Code, pursuant to Republic Act No. 5487, which provides that a private detective and watchmen agency pay a fixed internal revenue tax of P100.00 per annum in lieu of percentage taxes. (BIR Ruling No. 73-026, Sept. 24, 1973). Accordingly, the receipts derived by the said security are not subject to the withholding provisions of Republic Act No. 1051. cdtech
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