Taxability of Book Publishers

October 3, 1968 BIR RULING NO. 021-68 R. Martinez & Sons 3 Espaa, Cor. Mayon Quezon City Gentlemen : This has reference to your letter dated April 18, 1968, stated as follows: "We are engaged in the business of publishing books. May we know if the books we are selling to bookstores are still subject to 3% monthly percentage tax? Will it not constitute double taxation, since the bookstores are already paying the 3% on the same articles bought from us?" In reply, I have the honor to inform you that as publisher of books, you are subject to the 3% publisher's tax imposed in Section 191 of the Tax Code, based on the gross receipts derived by you from the sales of those books. Section 191 of the Tax Code provides, among others, that publishers, except those engaged in the publication of any newspaper, magazine, review or bulletin which appears at regular intervals, with fixed prices for subscription and sales, and which is not devoted principally to the publication of advertisements; printers and bookbinders, . . . shall pay a tax equivalent to three per centum of their gross receipts. Contrary to your belief, your payment of the 3% tax on gross sales of books published by you will not constitute double taxation since sales made by bookstores of books purchased from publishers are not subject to 3% tax but only to the graduated annual fixed tax prescribed in Section 182(A)(2) of the Tax Code. lexlib Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue