BIR Ruling

August 11, 1967 Mr. Pablo Aguillo Collection Agent Office of the Collection Agent Bureau of Internal Revenue Aparri, Cagayan S i r : This refers to your letter dated June 6, 1967 stating the following: "In the Administrative Schedule and Paragraphs are shown the following: "C-14(a) Merchants: (Manufactures, Procedures, Importers and Exporters) Tax of 50% (RA No. 588 effective Sept. 22, 1950 as last extended up to Dec. 31, 1955 by RA No. 1091). Now made permanent by RA No. 1506) 100%, 75% 50% "C-14(b) Merchants (Manufacturers, Producers, Importers and Exporters) Tax 30% (Idem) "C-14(b) Merchants (Manufacturers, Producers, Importers and Exporters) Tax 30% (Idem) "I cannot clearly understand how C-14(a), C-14(b) and C-14(c) are respectively applied to the merchants covered or affected by each of these schedules and in connection hereof, I beg to request for a detailed clarification for my guidance. "A Corporation who is a Timber Licensee owns a sawmill where some of its logs and sawn or manufactured into lumber and also exports the logs certified as exportable. What are the kind of taxes that this particular kind of business should pay? "Are logs for export subject to percentage tax and how much?" In reply, please be informed as follows: C-14(a) Merchants: (Manufacturers, producers, importers and exporters Sales tax of 100%, 75%, 50%) is the Administrative Schedule and Paragraph applicable to manufacturers, producers or importers of articles enumerated in Section 184 of the Tax Code. cdtech C-14(b) Merchants: (Manufacturers, producers, importers and exporters Sales Tax of 30%) is the Administrative Schedule and Paragraph applicable to manufacturers, producers or importers of articles enumerated in Section 185 of the Tax Code. C-14(c) Merchants: (Manufacturers, producers and importers. Sales tax of 7%) is the Administrative Schedule and Paragraph applicable to manufacturers, producers or importers of articles under Section 186 of the Tax Code. A Timber Licensee who owns a sawmill where some of his logs are sawn or manufactured is subject to the annual fixed tax of P20.00 and to the 7% sales tax on his gross sales of lumber produced by his sawmill for domestic sale pursuant to Sections 182 (A) (1) and 186 of the Tax Code. aisadc Logs produced by a timber concessionaire and exported by him are exempt from the percentage tax pursuant to Section 188(e) of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue