BIR Ruling No. 023-64

April 10, 1964 BIR RULING NO. 023-64 5th Indorsement Returned to the Regional Director, Regional District No. 5, North Manila, the papers relative to the tax case of the Snow White Barber Shop, 581 Misericordia, Sta. Cruz, Manila. Opinion is requested as to whether or not the receipts derived by owners or proprietors of barber shops from sources other than hair-cutting, such as hair-dyeing, hair-pulling, pedicuring and manicuring of male patrons, are taxable under Sections 182(A)(1) and 191 of the Tax Code. This Office takes cognizance of the fact that the business of barber shops has expanded to include hair-dyeing, hair-pulling, pedicuring and manicuring. The business, therefore, has almost attained the stature of a beauty parlor. If barber shops, by reason of such activities, should be reached by internal revenue taxation on business, the logical tax would be that imposed on beauty parlors. Such being the case, it is the opinion of this Office and so holds that the receipts derived by owners or proprietors of barber shops from sources other than hair-cutting are subject to tax prescribed by Sections 182(A)(1) and 191 of the Tax Code. However, barber shops which render purely hair-cutting, that is, without rendering the services above-mentioned, are still exempt from any internal revenue tax on business. This supersedes previous rulings issued to the contrary. LLphil (SGD.) BENJAMIN N. TABIOS Acting Commissioner of Internal Revenue