BIR Ruling No. 054-62

February 19, 1962 BIR RULING NO. 054-62 Mr. Francisco G. Sanchez, Jr. 166 D. Tuazon St. Quezon City S i r : Reference is made to your letter requesting opinion whether or not the business concern referred to therein is considered a contractor under the provisions of Section 191 of the National Internal Revenue Code and, therefore, subject to the 3% contractor's tax. You stated that said concern maintains and conducts the business of selling gifts stamps, trading stamps or coupons to wholesalers or retailers for the latter's distributions to their customer without additional cost. Distribution is done each time a customer makes a purchase. Later, such stamps or coupons are redeemed, traded or exchanged with prizes, premiums or gifts from the holders thereof. You stated further that the main purpose of the sale or issuance of stamps or coupons is to advertise, or otherwise promote the sale of wholesalers or retailers and in some instances it may include the introduction of a particular product, goods or item being sold by the wholesaler or retailer. In reply thereto, I have the honor to inform you that the above-mentioned concern is not a contractor within the purview of Section 191 of the Tax Code. It is, however, a business agent subject to the business agent's fixed and percentage taxes prescribed in Sections 182(A)(3)(w) and 191 of said Code. prcd Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue