BIR Ruling

October 8, 1975 The Cottage Industry Development Enterprise Office of the President 3rd Floor, Insurance Center Bldg. 633 Gen. Luna St., Intramuros Manila Attention: Miss Nelia S . J . Villa OIC, Auditor's Office Gentlemen : This refers to your letter dated September 1, 1975 requesting information as to whether contractors for janitorial and security services fall under the category of "independent contractors" under Section 191 of the Tax Code. In reply, I have the honor to inform you that persons rendering janitorial services to offices and establishments fall under the category of independent contractors in Section 191 of the Tax Code and, therefore, their gross receipts are subject to the 3% tax therein imposed. On the other hand, security services fall within the term business agents under Section 194 (V) of the Tax Code, taxable under Section 191 (16) of the same Code. However, because of the provisions of Section 8(d) of Republic Act No. 5487, as amended, private detective and watchman agency which provide the security services are not subject to the 3% tax prescribed in Section 191 of the Tax Code. They are subject only to the P100.00 fixed tax per annum pursuant to Section 9(d) of Republic Act No. 5487. aisa dc Very truly yours, (SGD.) EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3