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Receipts to be Derived from the Clark Air Base Project Not Subject to 3% Contractor's Tax

BIR Ruling No. 032-84 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Feb 9, 1984

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February 9, 1984 BIR RULING NO. 032-84 205-162-82-032-84 Gentlemen : In reply to your letter dated March 30, 1983, please be informed that the receipts to be derived by you from the Clark Air Base Project which involves the construction and installation of two (2) 5,000 KW diesel generating units at Clark Air Base is not subject to the 3% contractor's tax prescribed by Section 205 of the Tax Code, as amended, in accordance with Article XVIII of the PI-U.S. Military Bases Agreement. However, your income to be derived from said project is subject to corporate income tax under Section 24(a) of the same Code. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner

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