Exemption from 3% Contractor's Tax — Territorial Jurisdiction
BIR Ruling No. 118-79 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Dec 12, 1979
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December 12, 1979 BIR RULING NO. 118-79 Exemption from 3% contractor's tax territorial jurisdiction In reply to your letter dated June 15, 1978, I have the honor to inform you that, with respect to your construction job undertaken in the Carolinas Island, the gross receipts derived therefrom are not subject to the 3% contractor's tax imposed by Section 205 of the Tax Code of 1977 for the Philippine Government cannot reach the same by taxation for lack of territorial jurisdiction. (BIR Ruling No. 65-001 dated January 8, 1965). Your company is, however, liable to pay income tax on whatever income derived from the work done abroad.
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