BIR Ruling No. 114-62

October 8, 1962 BIR RULING NO. 114-62 Mr. Nicanor D. Yap San Fernando Pampanga S i r : Reference is made to your latter requesting information on the tax license requirements for engaging in the so-called business of "news clipping service" and of "magazine and book agency." cdt It appears that the first business consists in informing people who are featured in newspapers and furnishing them clippings of the news item for a certain fee, while the second in soliciting subscriptions to books and magazine for a fee or commission. In reply thereto, I have the honor to inform you that as subscription solicitor of magazines, you will not be subject to any internal revenue tax on business. This ruling revokes Ruling No. 623 issued in 1958. However, as alleged solicitor of books, you would in effect be constituted a commercial broker subject to the fixed and percentage taxes prescribed in sections 182 and 195 of the Tax Code. This is for the reason that, in so doing, you would be bringing about the sales of books for commission, books generally not being subscribed for. On the other hand, "news clipping service" is not subject to any business or occupation tax. Your income and earnings from the abovementioned activities are subject to the income and additional residence taxes. The matter of municipal license is not within the jurisdiction of this Office. It is, therefore, suggested that the same be taken up with the deputy provincial treasurer of that place. prcd Very truly yours, JOSE B. LINGAD Acting Commissioner of Internal Revenue