Taxes Imposed on Individual Customs Brokers Duly Registered with the Professional Regulations Commission

May 21, 1985 BIR RULING NO. 075-85 192-3 146-82 075-85 Gentlemen : In reply to your letter dated January 2, 1984, please be informed that an individual customs broker duly registered with the Professional Regulations Commission is subject to the annual fixed tax of P1,000.00 and to the 6% (now 7%) tax on his gross compensation, pursuant to Sections 192(3)(bb) and 208 of the Tax Code, as amended by P.D. No. 1959. This is aside from the occupation tax of P75.00 payable by a customs broker, in accordance with Section 12 of P.D. No. 231 or the Local Tax Code. It should be noted that Section 12(b) of the Local Tax Code prohibits the imposition of any other national tax for the practice of profession or calling . This prohibition, therefore, does not apply to the annual fixed tax of P1,000.00 which is being imposed for the privilege of pursuing the business of customs broker. (Sec. 188, Tax Code) Moreover, customs brokers, individual or corporate, were already subject to the percentage tax at the rate of 6% (now 7%) based on their gross compensations under Section 195 (now Section 208) of the Tax Code, even before the promulgation of P.D. No. 231 on July 1, 1973 and Local Tax Regulations No. 1 on October 26, 1973 authorizing the imposition of the occupation tax on customs brokers. Said percentage is a tax on business under Title V of the Tax Code. As already stated aside from the percentage tax, a customs broker is also subject to the annual fixed tax of P1,000.00. Finally, amounts paid to customs brokers are also subject to the 5% expanded withholding tax under Section 1(i) of Revenue Regulations No. 13-78 as amended by Revenue Regulations No. 6-79, implementing Section 53(f) of the Tax Code, as amended by Presidential Decree No. 1351. cdta Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner