Exemption from Withholding Tax — Persons Engaged in Automotive Repair Services
BIR Ruling No. 119-79 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Dec 12, 1979
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December 12, 1979 BIR RULING NO. 119-79 Exemption from withholding tax persons engaged in automotive repair services This refers to your letter dated March 5, 1979 requesting opinion on whether payments due your client, The Tropical Distributors, Inc., for automotive repair services rendered by its service workshops are subject to withholding tax under Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79, implementing Presidential Decree No. 1351. It is represented that the Tropical Distributors, Inc. is regularly engaged in the sales of Renault cars and spare parts. As part of its after-sale activities, it maintains service workshops to attend to automotive repair needs of its customers. In reply, I have the honor to inform you that under the aforesaid Regulations, payments only to persons enumerated therein are subject to withholding tax. Since persons engaged in automotive repair services are not among those enumerated, income payments due to your client for said services are not subject to the withholding tax. aisa dc
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