Taxability of Advertising Agency, Thru Media

August 27, 1970 BIR RULING NO. 042-70 Advertising agency, thru media, taxability . This refers to your letter dated July 7, 1970 requesting information as to the internal revenue taxes due from you for engaging in the business as media representative to sell advertising space for both local and foreign publications. FACTS: It is represented that a media representative sells advertising space for publishers either directly to the advertiser or thru an advertising agency; that if the advertiser has no agency, the media representative prepares the layout and copy, including artworks and photos for the advertisement; and that he receives a 15% commission from the publisher as his remuneration. cdt REPLY: Under the foregoing facts and circumstances, you will be conducting an advertising agency. As such advertising agency, you are a business agent (Sec. 194 (v), Tax Code) subject to the annual fixed tax of P50.00 and to the 3% tax on your gross receipts or compensation in accordance with Sections 182 (A) (1) and 191 (18), respectively, of the Tax Code, as amended by Republic Act No. 6110.