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Franchise Grantee, Liability to Pay Franchise Tax, Income Tax, Residence Taxes A and B, and Real Estate Tax

BIR Ruling No. 006-72 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Mar 8, 1972

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March 8, 1972 BIR RULING NO. 006-72 Franchise grantee, liability to pay franchise tax, income tax, residence taxes A and B, and real estate tax . Sir: This refers to your letter dated December 13, 1971 requesting information on the taxes payable by the franchise grantee under R.A. 5725 to construct, maintain and operate radio broadcasting stations and radio stations for domestic telecommunication. In reply thereto, I have the honor to inform you that the franchise grantee is liable for the payment of the following taxes: 1. Franchise tax at the rate of 5%, if the law granting the franchise does not specify the rate thereof 2. Income tax 3. Residence taxes A and B 4. Taxes on real estate, buildings and personal property 5. Privilege tax of P500.00 as a radio station for domestic telecommunications (reception and transmission of messages), pursuant to Section 182(A)(3)(gg) of the Tax Code. However, as a radio broadcasting station, said franchise grantee is exempt from the payment of the privilege tax, pursuant to Republic Act No. 2889. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue

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