BIR Ruling

April 6, 1966 The President Claims Adjusters, Inc. 429 Padilla de los Reyes Bldg. Juan Luna St., Manila S i r : This refers to your letter dated March 7, 1966, requesting information as to what taxes your corporation is subject for engaging in the business as insurance adjuster. cdpr In reply, I have the honor to inform you that a corporation which is engaged in the business as insurance adjuster, falls under the category of "other independent contractors" as provided for under Section 191 of the Tax Code. As such contractor, your corporation is subject to the annual fixed tax of P20.00 prescribed in Section 182(A)(1) and to the 3% contractors tax prescribed in Section 191, both of the same Code. However, under the amendment effected by Republic Act No. 4574 to Section 182(B) of the Tax Code, the insurance adjusters employed and performing duties in such professional capacities but without the permission to practice their profession during or after office hours to private or personal clienteles are exempted from the payment of the annual occupational taxes. Your corporation is likewise, subject to the income and additional residence taxes. prcd Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue