BIR Ruling No. 058-80
BIR Ruling No. 058-80 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Dec 4, 1980
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December 4, 1980 BIR RULING NO. 058-80 208-00 000-00 58-80 The Philippine Society of Travel Agencies 2nd Floor, Midtown Ramada Hotel M a n i l a Attention : Mr . Francisco V . Tankiang President Gentlemen: This refers to your letter dated November 23, 1979, seeking clarification on the application of Section 208 of the Tax Code of 1977, as amended, regarding the payment of the 6% broker's tax. You have represented that non-IATA travel agencies may enter into working agreements with IATA travel agencies, thereby enabling the former to service their clients on IATA airlines; and that the 9% gross commission is divided as follows: 2% for the IATA travel agency; and 7% for the non-IATA travel agency. In reply, I have the honor to inform you that travel agencies are subject to the 6% broker's tax imposed in Section 208 of the National Internal Revenue Code, as amended, on their gross compensation actually received. Hence, IATA travel agencies shall base the 6% tax payable by them on the 2% commission while the non-IATA travel agencies shall based the 6% tax payable by them on the 7% commission. cdta Very truly yours, RUBEN B. ANCHETA Acting Commissioner
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