Bulldozer Owner Who Leases His Bulldozer to a Third Party Considered Independent Contractor

September 3, 1968 BIR RULING NO. 016-68 Mr. S. J. Esguerra 5-4 Dungon Quezon City S i r : This refers to your letter dated June 17, 1968 stating the following: "'A' is a bulldozer owner who leases his bulldozer to a third party. The condition of the lease is that the owner of the bulldozer takes care of the wages of his operator, fuel and lubricant and repair of his equipment and for the consideration of the above, he gets a fixed hourly rental rates on his equipment. "What tax or taxes does 'A' have to pay?" In reply, I have the honor to inform you that under the foregoing facts, "A" is considered an independent contractor, subject to the annual fixed tax of P20.00 and to the 3% percentage tax prescribed in Sections 182(A)(1) and 191 of the Tax Code. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue