BIR Ruling No. 081-82

March 15, 1982 BIR RULING NO. 081-82 205-16 000-00 081-82 Mr. Rufino P. Carreon Suite 504 Victoria Building 11th Avenue, Caloocan City S i r : In reply to your letter dated January 9, 1981, please be informed that Section 35 of Republic Act No. 1457 specifically repealed paragraph (d) of Section 8 of Republic Act No. 5487 which requires a private detective and watchman agency to pay a fixed internal revenue tax of P100.00 per annum in lieu of percentage taxes. Moreover, Section 24 of same P.D. No. 1457 amended Section 205(16) of the Tax Code so as to include said agency as subject to the 3% contractors tax. In other words, it is clear that, contrary to your allegation, the aforesaid provision of Republic Act No. 5487 has already been repealed, in which case, beginning June 11, 1978 (effective date of P.D. No. 1457) security agencies (private detective and watchman agencies) are subject to the privilege tax of P100.00 per annum and to the 3% contractor's tax based on their gross receipts under Section 192(1) and 205(16) of the Tax Code, as amended. cdt Very truly yours, RUBEN B. ANCHETA Acting Commissioner