BIR Ruling No. 009-65

April 12, 1965 BIR RULING NO. 009-65 The Radio Communications of the Philippines, Inc. 5th Floor Tiaoque Bldg. Plaza Sta. Cruz, Manila Attention : Mr . Romeo J . Dureza Legal Counsel Gentlemen : This refers to your letter dated March 16, 1962, requesting information as to whether or not that corporation is still subject to the fixed and percentage taxes prescribed in sections 182(A)(1) and 191 of the Tax Code, considering that it is already paying a franchise tax under Republic Act No. 2036, the law granting its franchise to establish radio stations for domestic telecommunications. In reply thereto, I have the honor to inform you that, as a rule, unless their franchises provide for exemption from taxes by the payment of the tax prescribed in said franchises, franchise grantees are subject to the taxes prescribed by the Tax Code which are normally due on the businesses pursued by them. Since its franchise does not provide for such exemption, that corporation is subject to the fixed and percentage taxes prescribed by sections 182(A)(1) and 191 of the said Code in addition to the 1 % tax on its gross receipts prescribed by its charter. (J. V. House v. Posadas, 53 Phil. 338) It may be stated further that the corporation is also subject, in proper cases, to the income and additional residence taxes. LLphil Very truly yours, (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue