BIR Ruling

August 25, 1967 Mr. Renee Sison P.O. Box 4131, Manila S i r : This refers to your letter dated August 3, 1967 stating the following: "Our company is a credit and collection agency, with Privilege Tax Receipt No. C4(52)-0569319 issued on February 15, 1967. LexLib "In this connection, we would like to be clarified as to whether we are liable to tax under the provisions of Section 178, Paragraph (t) of the National Internal Revenue Code, and for how much. Also, we would like to ask whether our gross receipts from our collection transactions is subject to the 3% contractor's tax?" In reply thereto, I have the honor to inform you that based on the aforequoted facts, you are a business agent in accordance with Section 194(v) of the Tax Code, hence, subject to the fixed annual tax of P75.00 and to the 3% tax on gross receipts prescribed in Sections 182(A)(3)(w) and 191, respectively of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue