BIR Ruling No. 052-82

March 4, 1982 BIR RULING NO. 052-82 53-f 000-00 052-82 Pilcar Transport Services, Inc. Tradewinds Hotel South Superhighway, Makati Metro Manila Attention: Col . Mariano Imperial President Gentlemen : This refers to your letter dated May 5, 1981 requesting that your creditable income tax be credited against sales tax (percentage tax) and withholding tax due from you. It is represented that your business is renting out cars with drivers; that you charged your customer in an itemized bill for the rental of the car, the compensation of the driver and reimbursement for gasoline consumed; that your customers deduct 5% withholding tax from the totality of the bill; that the cars which you are renting out are not yours; and that you retain 30% of the amount you charge your customers and the 70% is being remitted to the owner of the cars. In reply, I have the honor to inform you that your request cannot be granted. Under Section 53(f) of the Tax Code, as amended, said creditable income tax can be credited only against your income tax liability for the taxable year. It may be stated that in case the creditable income tax exceeds your income tax liability, you can claim refund or tax credit on the excess by complying with the requirements of Section 10 of Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79, quoted as follows: "Claims for tax credit or refund of income tax deducted and withheld on income payments shall be given due course only when it is shown on the return that the income payments received was declared as part of the gross income and, the fact of withholding is established by a copy of the statement duly issued by the payor to the payee (BIR Form 1743-A) showing the amount paid and the amount of tax withheld therefrom." Very truly yours, RUBEN B. ANCHETA Acting Commissioner