BIR Ruling

August 21, 1968 2nd Indorsement Respectfully returned to the Acting General Manager, National Power Corporation, 161 Bonifacio Drive, Port Area, Manila the letter of ISLAND GROUP CONTRACTORS, INC. requesting his firm to remit to Limay, Bataan the 3% tax due on its construction job for the NPC. In accordance with Section 362 of the Tax Code, the entire 3% contractor's tax accrues to the National Treasury and shall be available for the general purposes of the Government regardless of the place where paid. Perhaps the reason for the request to pay the contractor's tax at Limay, Bataan is the additional allotment believed to accrue to said municipality. But as the contractor's tax accrues to the National Treasury, its payment in Limay, Bataan will not give rise to any additional allotment in favor of the municipality even if paid thereat. He should, therefore, remit to this Office the contractor's tax withheld in accordance with Republic Act No. 1051. (SGD.) MISAEL P. VERA Commissioner of Internal Revenue