BIR Ruling [DA-003-97]
BIR Ruling [DA-003-97] • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Jan 7, 1997
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January 7, 1997 BIR RULING [DA-003-97] MEMORANDUM FOR : The Commissioner This refers to the draft Memorandum of Agreement between the Bureau of Internal Revenue and Visualiteraci Design Consultants, relative to the supply by the latter of specialized services in concept/design/layout of twenty-five (25) variations of instruction booklets on Income Tax, Withholding Tax, VAT, Government Money Payments, etc. which are indicated in the Memorandum of Agreement; preparation of comprehensive studies; typesetting including computer graphics/illustration; one (1) finished copy consisting of twenty (20) to forty (40) pages for each of the twenty-five (25) differently designed instructional materials; and editing. It appears that the selection of Visualiteraci Design Consultants was done by way of comparative canvassing of at least five (5) design consultants who submitted samples and actual computer graphics designs; that Visualiteraci bested the others in artwork and clarity of presentation; that the amount of eleven thousand pesos (P11,000.00) represents payment for one (1) completely designed instruction booklet consisting of twenty (20) to forty (40) pages with computer diskettes; and the total contract price of three hundred two thousand five hundred pesos (P302,500.00) represents a package price for twenty-five (25) differently designed instruction booklets. DaEATc Based on the foregoing facts, the amount of eleven thousand pesos (P11,000.00) for one (1) booklet for artwork design and visual presentation effect represents not merely the costs of material and labor but of knowledge work and artistic creativity. Understood in this sense, the payment of three hundred two thousand five hundred pesos (P302,500.00) for twenty-five (25) variously designed instruction booklets to be used as models/computer input files for the mass production/printing thereof for free distribution to the public in 1997 is justified. SUBMITTED BY: (SGD.) MILAGROS V. REGALADO Chief, Law Division CONCURRING: (SGD.) ALICIA L. TOMACRUZ Officer-in-Charge Legal Service APPROVED: (SGD.) ESTELITA C. AGUIRRE Deputy Commissioner
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