BIR Ruling No. 018-65

April 19, 1965 BIR RULING NO. 018-65 2nd Indorsement Returned to the Director, Regional District No. 15, Zamboanga City, the papers bearing on the case of Mr. Fernando F. Macrohon. It appears that Mr. Macrohon in the representative of the Metro-Goldwyn-Mayer Manila, Inc., and the Columbia Picture of Philippines, Inc., both distributors of American motion pictures. As such, he maintains an office known as the "South Sea Booking Office". His operation consists essentially in the solicitation of exhibitors of the cinematographic films of his principals. When he locates an exhibitor, he orders for the films which are sent directly to him. As regards MGM films, he fixes the rentals of the films and his compensation consists of 10% thereof as commission. The rentals for Columbia pictures are fixed by the Columbia Pictures of the Philippines, Inc., and his compensation consists of the overprice which he may effect thereon. Under the foregoing facts, Mr. Macrohon is neither a commercial broker nor a business agent but a cinematographic film distributor. As cinematographic film distributor, he is subject to the P150.00 fixed tax per annum prescribed by Section 182(A)(3)(v) of the Tax Code and to the 2% tax on gross receipts prescribed by Section 195 of the Tax Code. His taxable gross receipts consists of the commission and overprice. cdtech (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue