BIR Ruling

December 18, 1968 Mr. Salvador Enriques, Jr. S. Enriques Jr. & Associates (Public Accountants) 618 Roman Santos Building Plaza Goiti, Manila S i r : This has reference to your letter dated November 12, 1968 requesting information as to the proper business taxes to be paid by one of your clients who is organizing a corporation to engage in the solicitation of subscriptions to magazine, journals and other periodicals published in the Philippines and in other countries, such business to be carried out by getting the payments in advance from prospective subscribers and in turn remitting the corresponding cost of the subscriptions to the various publishers. In reply, I have the honor to inform you that the aforecited corporation is considered an agent or broker of the publishers of the periodicals and as such it is subject to the broker's fixed tax of P150.00 and to the 6% tax pursuant to Sections 182 (A)(3)(s) and 195 of the Tax Code. Moreover, the said corporation is subject to income and residence taxes. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue