Exemption from 3% Contractor's Tax — Partnership

April 8, 1981 BIR RULING NO. 069-81 053-f 055-79 069-81 Froilan L. Hong & Partner 123 Kalayaan Avenue Diliman, Quezon City Attention: Ms . Angelina L . Elazegui Comptroller Sir/Madam : In reply to your letter dated June 30, 1980, please be informed that being a registered partnership of licensed professional architects rendering professional services by preparing plans and specifications for a particular project, you are exempt from income tax pursuant to Section 24(a) of the Tax Code, as amended. Accordingly, payments to you for services rendered are exempt from the withholding tax provisions of Revenue Regulations No. 13-78 as amended by Revenue Regulations No. 6-79, both implementing P.D. No. 1351. Likewise, as a partnership formed for the purpose of exercising a common profession, you are not considered a contractor; hence not subject to the 3% contractor's tax prescribed by Section 205 of the Tax Code of 1977, as amended. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner