BIR Ruling No. 003-61

January 4, 1961 BIR RULING NO. 003-61 This is with reference to your query dated . . ., requesting a ruling from this Office as to whether or not your client, Mr. Arsenio P. Buenaventura of Olongapo, Zambales, is subject to any internal revenue tax under the following alleged facts: LLpr Arsenio F. Buenaventura is a "Filipino private civilian contractor of the United States Naval Base, Subic Bay, Philippines. He is an independent labor contractor whose main duty is to furnish, upon request of the Contracting Officer, men to perform certain specific duties inside the United States Naval Base and that these men are under his own complete control. This labor contract runs on December 1, 1960 through June 30, 1961." Based on the foregoing facts as presented, please be informed that your client is not subject to any business tax provided that the services rendered by the men or laborers under your client's control are exclusively destined for and actually utilized in the construction, operation, maintenance and defense of the U.S. military base above-mentioned, in accordance with Art. XVIII, U.S.-P.I. Military Base Agreement of 1947, as supplemented by an Agreement by both countries on December 29, 1952. In this connection, however, your client, under the same facts, is liable to the Philippine income and residence taxes. prll