Application of the 4% Contractor's Tax Imposed under Sec. 205 of the Tax Code, as Amended
BIR Ruling No. 005-86 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jan 13, 1986
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January 13, 1986 BIR RULING NO. 005-86 205 134-85 005-86 Gentlemen : In reply to your letter dated July 23, 1985, please be informed that the 4% contractor's tax imposed under Section 205 of the Tax Code, as amended by P.D. No. 1959, shall be applied on gross receipts derived from contracts entered into or renegotiated on or after October 15, 1984. Gross receipts derived from contracts entered into or renegotiated prior to October 15, 1984 shall still be subject to the 3% contractor's tax. (Rev. Regs. No. 7-85 dated May 14, 1985) Accordingly, gross receipts derived from your contract entered into with the government on February 14, 1983 are still subject to the 3% contractor's tax. cdti Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner
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