Independent Contractors, Taxability of

January 7, 1958 BIR RULING NO. 015-58 Mr. Bernardo R. Sebastian 471 Shaw Blvd., Mandaluyong Rizal S i r : This is with reference to your query, stated as follows: "This is with reference to my contract with the Bureau of Public Works, for the wood pile foundation of the proposed Immigration Building situated at Magallanes Dive, Manila. cdta "In this connection, I most respectfully request for information as to whether to the work performed under said contract is deemed to be construction work and, thus falls within the purview of Section 191 of the National Internal Revenue Code and therefore, taxable thereunder. "For your kind information and guidance, the contract consists primarily of supplying and driving timber piles and excavation of foundation. It is also required under the contract that the contractor shall remove and dispose of trees, stumps, brush, roots, vegetation, logs, rubbish and other objectionable matter within the specified area, removal of excavation materials required for construction of super-structure, depositing the same to a place to be designated by the Engineering and cleaning up to the site and the excavation of any rock, earth and all other materials encountered." In reply thereto, I have the honor to inform you that the aforesaid activities are not deemed construction works within the purview of Section 191 of the Tax Code. However, you fail within the purview of the term "and other independent contractors" and as such, you are subject to the fixed and percentage taxes prescribed in Section 182 and Section 191, respectively, of the Tax Code, as amended. cdti Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue