Manner of Computing Percentage Tax of Operators/Proprietors of Motor Tricycles

May 10, 1990 BIR RULING NO. 073-90 115 000-00 073-90 S i r : This refers to your letter dated July 7, 1989 requesting, in effect, a ruling as to the manner of computing the percentage tax of operators/proprietors of motor tricycles. cdtech In reply, please be informed that pursuant to Section 115 of the Tax Code as amended by P.D. No. 1959, transportation contractors "shall pay a tax equivalent to three (3%) per centum of their quarterly gross receipts". Proprietors or operators of motor tricycles are considered transportation contractors, hence subject to the 3% common carrier's tax. (BIR Ruling Nos. 56, 47 s. 1963 and 20 s. 1964) However, in computing the said 3% tax, you cannot use the amount of P600.00 as your minimum quarterly gross receipts since the law sets the said amount specifically for provincial autocalesa. In other words, since the law does not provide the amount which shall be considered the minimum quarterly gross receipts of motor tricycles, the tax base of the 3% common carrier's tax shall be the actual quarterly gross receipts of the operator/proprietor thereof. Hence, your record should reflect the daily gross receipts of each motor tricycle which shall include the amounts representing the so-called boundary, the earnings of the drivers, expenses for gasoline and other expenses taken from the total earnings derived in the operation of the motor tricycle. cd Very truly yours, (SGD.) JOSE U. ONG Commissioner