BIR Ruling

May 4, 1973 Mr. Jorge G. Elardo City Treasurer of Bais Negros Oriental Attention: Mr . Cesar R . Resentes Asst . City Treasurer S i r : This is with reference to your letter dated March 29, 1973 requesting information whether or not the sales or gross receipts of corporation as well as individual planters who are engaged in sugar plantations are subject to the additional residence tax. In reply thereto, I have the honor to inform you that the proceeds from the sale of agricultural products, such as palay, sugar, corn, and fish from fishponds received by landowners need not be returned for additional residence tax purposes, where the assessed value of the property on which said products have been raised has been already declared for purposes of the residence tax. However, if the producer receiving such proceeds is not himself the owner of the land from which the agricultural products were derived, then the proceeds so received constitute taxable receipts returnable for additional residence tax purposes, irrespective of whether or not the owner of the land has previously declared the assessed value thereof for the purpose of the residence tax. (B.I.R. Ruling No. 125.02, dated December 27, 1954) Very truly yours, (SGD.) CONRADO P. DIAZ Acting Commissioner of Internal Revenue