BIR Ruling No. 038-82

February 19, 1982 BIR RULING NO. 038-82 198-00 000-00 038-82 The Regional Director Revenue Region No. 11-A Cotabato City S i r : This refers to your radiogram dated July 29, 1981, requesting a ruling whether or not one may be considered a marginal farmer under the following facts: "Any person who receives P12,000.00 or more a year from salaries and other sources of income, owns a small farm for which he produces approximately P12,000.00 a year of agricultural products; his gross income exceeds P20,000.00 a year, hence, he cannot exactly be classified as an individual engaged in small scale subsistence farming because he has other sources of income." In reply, please be informed that an individual engaged in small-scale subsistence farming, whose sales, barters or exchanges of agricultural products produced by himself do not exceed a gross value of P20,000.00 per annum is a marginal farmer and, therefore, exempt from the payment of the fixed and percentage taxes imposed by Sections 192(1) and 198 of the National Internal Revenue Code, as amended. The other income of an individual apart from his sales of agricultural products, like salaries, shall not be considered for the purpose of determining whether or not he is a marginal farmer. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner