BIR Ruling No. 107-83

June 16, 1983 BIR RULING NO. 107-83 Gentlemen : In reply to your letter dated May 2, 1983, I have the honor to inform you that under Revenue Regulations known as Expanded Withholding Tax Regulations, implementing Presidential Decree No. 1351, now Section 53(f) of the Tax Code, only payments to persons enumerated therein are subject to withholding tax. Consequently, since income payments made to your client, Precision Engine Service Center, Inc., which is engaged in diesel engine pump calibration business are not among those specified thereon, they are not subject to the expanded withholding tax. However, your client is considered an independent contractor subject to the P100.00 fixed annual tax and to the 3% contractor's tax under Sections 192(1) and 205(16) both of the Tax Code, as amended. Finally, since income payments to your client are not subject to withholding, the payor shall render an information return on such payments, pursuant to Section 77 of the Tax Code as amended by Batas Pambansa Blg. 135 and as implemented by Section 21 of Revenue Regulations No. 1-82 dated March 18, 1982. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue