BIR Ruling

April 11, 1973 Miss Rosalinda S. de Lara General Manager International Businessmen's Information Center 564 Remedios St., Malate Manila M a d a m : This refers to your undated letter requesting, in effect, information as to what kind of privilege tax the International Businessmen's Information Center is liable to for engaging in the following business activities: "The nature of the business is exactly the same as 'Discount Card'. We will be inviting business establishment owners to affiliate with me. In return they will give discounts (cash) to our individual members. Business establishment owners won't pay for anything to us. We will be just selling membership ID's individual in which we charge them P25.00 for one year membership fee. " . . . beside of the cash discounts that I will be giving to my individual members as their benefits, I will give more business and travel informations. They are the following benefits: 1. Free business informations. 2. Free travel guide informations. 3. Free secretariat services. 4. Free weekly business news. 5. Free cash discounts." In reply, I have the honor to inform you that under the foregoing circumstances, you are 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 quarterly gross receipts is subject to the 3% contractor's tax imposed in Section 191 of the same code. aisa dc Very truly yours , (SGD.) MISAEL P. VERA Commissioner of Internal Revenue