BIR Ruling No. 111-65

September 29, 1965 BIR RULING NO. 111-65 Mr. Wilfredo E. Alvarez 155 Magallanes Extension Cotabato City S i r : Reference is made to your letter dated August 5, 1965, stating as follows: "Mr. Faisal Madidu, a Moslem, is providing nightly security to a number of business establishments located on the same street in this city. He does not belong to any protective agency. Neither does he employ persons to watch for him. He alone acts as watchman, carrying his own .22 cal. pistol. For security service rendered, he collects from each of the business establishments a monthly fee of P20.00. "Query: For purposes of taxation, is Mr. Madidu considered a business agent, subject to an annual fixed tax of P75.00? If not, to what business or occupation tax is he subject to?" Based on the facts stated above, I have the honor to inform you that Mr. Madidu is not subject to any business or occupation tax. He is not considered a business agent but simply one selling service to all in need of the same. His activity is more of an occupation than of a business. Such occupation is not, however, subject to ay internal revenue tax. However, his income as such watchman is subject to the income and additional residence taxes. liblex Very truly yours, (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue