4% Contractor's Tax Imposed on Alchemco Philippines, Inc.

January 27, 1989 BIR RULING NO. 009-89 102 (a) 158-88 009-89 Gentlemen : This refers to your letter dated March 7, 1988 requesting confirmation of your opinion that your client, Alchemco Philippines, Inc., is not liable to the 10% value-added tax on fees it received or will receive after December 31, 1987 for contracts of services billed for and completed on or before December 31, 1987. In support of your request, you have attached therewith xerox copies of (1) information return showing the names of the contractors of Alchemco for whom services were rendered and completed on or before December 31, 1987 and the contract prices outstanding as of December 31, 1987 and (2) xerox copies of each of the invoice evidencing that the fees for services rendered under the contracts included in the information return were all billed on or before December 31, 1987. Furthermore, your client undertakes to pay the 4% contractor's tax due on the fees for services rendered pursuant to the contracts and to file the proper contractor's tax return for payment of the contractor's tax received in 1988. In reply, please be informed that inasmuch as your client has sufficiently complied with the conditions set forth in Section 6(g) of Revenue Regulations No. 5-87, the fees received or will be received by it after December 31, 1987 for contracts of services billed for and completed on or before said date are still subject to the 4% contractor's tax. cdt Very truly yours, (SGD.) JOSE U. ONG Commissioner