BIR Ruling No. 060-80

December 15, 1980 BIR RULING NO. 060-80 192-3-nn 025-66 60-80 Mainit Trading and Milling Corporation 1002 R. Hidalgo Street M a n i l a Attention : Mr . Emeterio M . Mozar President Gentlemen: In reply to your letter dated August 7, 1980, please be informed as follows: 1. As an operator of a rice and corn mill, for milling rice and corn for the public and the National Grains Authority (NGA), you are subject only to the annual graduated fixed tax imposed in Section 192(3)(nn) of the Tax Code of 1977, as amended. For such milling, you are not considered a contractor; hence, you are not subject to the 3% contractor's tax imposed in Section 205 of the Tax Code. Accordingly, the withholding provision of Republic Act No. 1051 requiring the withholding of the 3% contractor's tax on money payments made by government entities does not apply in your case. 2. Your payment of the said annual graduated fixed tax prescribed in Section 192(3)(nn) is sufficient for your business as rice mill operator whether you mill for your account or for others or both. Accordingly, you are not subject to any fixed and percentage taxes on your milled rice and/or by-product which are sold to the public. aisadc Very truly yours, RUBEN B. ANCHETA Acting Commissioner