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Tax Liability of a Lending Investor

BIR Ruling No. 086-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Mar 8, 1988

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March 8, 1988 BIR RULING NO. 086-88 103 (j) 000-00 086-88 Gentlemen : In reply to your letter dated December 28, 1987, please be informed that as a lending investor, you are exempt from the value-added tax pursuant to Sec. 103(j) of the Tax Code, as amended by E.O. No. 273. As such, your gross income is, however, subject to the 5% percentage tax imposed under Section 116 of the same Code, as amended. aisadc Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner

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