5% Franchise Tax - Ice Manufacture

April 24, 1979 BIR RULING NO. 020-79 5% Franchise tax ice manufacture This refers to your letter dated August 28, 1978 requesting opinion as to the tax you should pay pursuant to your franchise granted under Republic Act No. 5936 approved on June 21, 1969 Section 6 of which provides: "SEC. 6. In consideration of this franchise the grantee shall pay a tax equivalent to five per cent of its gross income.' Under your franchise, you are granted for a period of 25 years the right, privilege and authority to construct, maintain and operate ice plants and cold storage in the City of Manila and in the Province of Rizal, for the purpose of manufacturing ice and supplying cold storage facilities and to sell and distribute the ice so manufactured and supply cold storage facilities in the City and province. In reply, please be informed that you are subject to a franchise tax of 5% on the gross receipts derived from your business of manufacturing ice and supplying cold storage facilities, pursuant to Section 267 of the Tax Code of 1977. Moreover, you are also subject to the annual fixed tax of P2,000.00, pursuant to Section 192(c) (gg) of the Tax Code of 1977, as amended by P.D. No. 1457. Finally, you are subject to income tax on the aforenamed businesses covered by your franchise.