Branch Office of a Business Establishment is Subject to Separate Privilege Tax

November 17, 1968 BIR RULING NO. 036-68 A. B. ENCARNACION & ASSOCIATES Law & Accounting Offices 2nd Floor, Doa Salud (GIBBS) Bldg. 417 Dasmarias, Manila Attention : Mr . Alfonso B . Encarnacion Gentlemen : This refers to your letter requesting opinion as to whether or not your client "Pierre Gift & Beauty Shop", with main business office in Manila, is required to register its business name and style in Makati for opening a branch store in the latter place considering that your client's business name and style has already been registered in Manila. In reply thereto, I have the honor to inform you that under Section 178 of the Tax Code every separate or distinct establishment or place where business subject to tax is conducted is subject to the payment of fixed tax. The branch office of your client in Makati is, therefore, subject to a separate privilege tax. Such being the case, your client must necessarily register its branch in Makati with the BIR Makati Office within ten (10) days after securing the privilege tax receipt in accordance with Section 203 of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue