BIR Ruling

August 9, 1968 Mr. Elfren M. Vibar Revenue Examiner II (1257) Daet, Camarines Norte S i r : This refers to your letter dated June 19, 1968 requesting information as to whether a person who is under contract to haul iron ores and iron wastes from the mine site to a designated place, using his own transportation facilities and men for the purpose, is subject to 2% as transportation contractor under Section 192 of the Tax Code, or the 3% tax as independent contractor under Section 191 of the same Code. In reply thereto, please be informed that under the foregoing facts, the person referred to therein is a transportation contractor, subject to the annual fixed tax of P20.00 and to the 2% tax prescribed in Section 182(A)(1) and 192, respectively, of the Tax Code. Transportation contractors are owners of motor vehicles who utilize their vehicles for the transportation of persons or goods for a fee even if their vehicles are not registered for transportation purposes. (BIR Ruling No. 67-015) Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue