Exemption from Withholding Tax and 3% Contractor's Tax

September 3, 1979 BIR RULING NO. 082-79 Exemption from withholding tax and 3% contractor's tax This refers to your letter dated December 28, 1978 requesting information whether your money payments to the Times Journal for the publication of your Invitation to Bid is subject to the 3% withholding tax, pursuant to Revenue Regulations No. 13-78 implementing Presidential Decree No. 1351. You would like to be informed also whether the Times Journal is subject to the 3% contractor's tax imposed by Section 205 of the Tax Code and consequently, to the withholding provisions of Revenue Regulations No. 16-77, the revised regulations implementing Republic Act No. 1051. In reply, I have the honor to inform you that under Section 1(e)(6) of Revenue Regulations No. 13-78, "printers, bookbinders, lithographers and publishers except those engaged in the publication or printing and publication of any newspaper, magazine, review or bulletin which appears at regular intervals, with fixed prices for subscription and sale and which is not devoted principally to the publication of advertisements" are subject to the 3% withholding tax. Such being the case, since Times Journal, falls within the exception as newspaper publisher, your money payments to it are not subject to the withholding tax provisions of Revenue Regulations No. 13-78. In like manner, your money payments to the Times Journal are not subject to the 3% contractor's tax because said newspaper-publisher falls within the exception prescribed by Section 205(15) of the Tax Code, as amended. Said money payments are not also subject to the withholding provisions of Revenue Regulations No. 16-77.