Independent Contractors Subject to P100.00 Fixed Tax and 3% Contractor's Tax

July 23, 1980 BIR RULING NO. 105-80 Philippine Cultural Communications Service 2169 Int. 3 Agno Street Malate, Manila Attention: Ms . Amelia B . Bonifacio President & Gen . Manager Gentlemen : In reply to your letter dated May 8, 1960, please be informed that as a firm organized principally for the purpose of rendering services in the form of delivering formal or informal classes or group instruction, private teaching or tutoring, advising or consultation functions, program designs, research and development study and/or work in the different aspect of language and/or acculturation and specialization involving the national native language and various dialects and culture of the Philippines and other countries, you are an independent contractor. As such independent contractor, you are subject to the P100.00 fixed tax prescribed in Section 192(1) of the National Internal Revenue Code, as amended, and your gross receipts derived therefrom are subject to the 3% tax imposed in Section 205 of the same Code. aisadc In view of the foregoing, your gross receipts for rendering services to the U.S. Peace Corps in the Philippines together with your receipts from other transactions are subject to the 3% contractor's tax. Very truly yours, RUBEN B. ANCHETA Acting Commissioner