BIR Ruling No. 118-65

October 18, 1965 BIR RULING NO. 118-65 The Chief Revenue Officer Jolo, Sulu (Thru the Regional Director BIR Regional District No. 15 Zamboanga City S i r : This refers to your query on the business tax liability of Mrs. Mussah Usman under the foregoing facts: It appears that for and in consideration of a monthly rental of P4,567.00 which she pays to the municipality, Mrs. Usman collects and receives the market fees from sellers of sea products at the fish section. The fees chargeable by Mrs. Usman are, however, fixed at not more than 5% of the selling price of the sea products sold therein. The municipality also retains supervision thereof. In reply, I have the honor to inform you that neither the municipality nor Mrs. Usman is, under the lease contract, subject to any internal revenue tax on business. It is of course understood that she is subject to the income and additional residence taxes. Being subject to an internal revenue tax, Mrs. Usman must keep the corresponding books of accounts to record her transactions, pursuant to Section 334 of the Tax Code as implemented by Revenue Regulations No. V-1, otherwise known as the Bookkeeping Regulations. lexlib Very truly yours, (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue