BIR Ruling No. 051-61

January 31, 1961 BIR RULING NO. 051-61 In reply to your letter dated . . ., I have the honor to inform you that any person operating a "Private Detective and Protective Agency" is considered a business agent, subject to an annual fixed tax of P75.00, pursuant to Section 182(A)(3)(w) and a percentage tax equivalent to 3% of his monthly gross receipts as prescribed in Section 191, both provisions of the Tax Code, as amended. He is further subject to the income tax in accordance with the provisions of Title II of the same Code, and to the basic and additional residence taxes prescribed by the Residence Tax Law (Commonwealth Act No. 465), as amended. cdtech For internal revenue tax purposes, a person who desires to operate such kind of business must first pay the required privilege (fixed) tax to the deputy provincial treasurer of the municipality where the business may be established before the same can be lawfully begun. (Sec. 178, Tax Code.) He must also register with the Provincial Revenue Officer or with the provincial treasurer, in case no provincial revenue officer is assigned to the province, within ten days after securing his privilege tax receipt, his name or style, place of residence, business or occupation, and the place where such business or occupation is carried on. (Sec. 203, Tax Code.) Thereafter, he must present his books of accounts, as required by Sec. 334 of the same Code, to the Commissioner of Internal Revenue, if the place of business is in Manila, or to the Provincial Revenue Officer or to the deputy provincial or city treasurer, if in the province, for registration and approval. (Sec. 19, Revenue Regulations No. V-1, as amended by Revenue Regulations No. V-45.) After complying with these requirements, he is then free to engage in business as desired. In this connection, please be informed that the foregoing requirements of the law affecting the desired business, above-mentioned, do not involve or include the law or regulations enforced by other offices of the National Government. Neither does it include the requirements imposed by the local government. In other words, "the payment of a business or occupation tax shall not exempt any person from any tax, penalty, or punishment provided by law or ordinance in places where such business or occupation is prohibited or regulated by municipal law, nor shall the payment of any such tax be held to prohibit any municipality from placing a tax upon the same business or occupation, for local purposes, where the imposition of such tax is authorized by law." (Sec. 179, Tax Code.) A copy of the Tax Code, as amended, may be secured directly from the Bureau of Printing, Manila, for a certain sum. You are, therefore, advised to communicate with the said bureau for information if you so desire.