BIR Ruling No. 017-61

January 23, 1961 BIR RULING NO. 017-61 With reference to your letter . . ., I have the honor to inform you that a corporation intending to engage in business as a manufacturer of "Citronella", a constitutive ingredient in the manufacture of laundry soap and medicinal drugs, from local raw materials (native grass), will be subject to the fixed annual tax of P20.00, pursuant to Section 182(A), in relation to Sections 178 and 180, of the Tax Code, as amended, and to the 7% sales tax, based on the gross selling price or gross value in money of the articles to be sold, bartered, exchanged, or transferred, pursuant to Section 186, in relation to Section 183(a), of the same Code. prll Furthermore, the same corporation will be subject to the income tax, based upon the total annual net income which it will receive in the preceding taxable year from all sources, at the following rates: 22% upon the amount by which such total net income does not exceed P100,000.00, 30% upon the amount by which such total net income exceeds P100,000.00, in accordance with Section 24(a) of the Tax Code, as amended. The same corporation will, likewise, be required to pay the basic and additional residence taxes, pursuant to Section 2 of Commonwealth Act No. 465. cdta