Taxability of a Corporate Contractor Primarily Engaged in Photogrammetric Survey

August 26, 1980 BIR RULING NO. 119-80 Certeza Surveying & Aerophoto Systems, Inc. 795 Epifanio de los Santos Avenue Quezon City Attention: Mr . Fernando S . del Rosario Vice President for Finance Gentlemen : In reply to your letter dated December 10, 1979, please be informed as follows: (1) As a corporate contractor primarily engaged in "photogrammetric" survey . . . . for the purpose of preparing hydrographic and photographic maps, controlled or uncontrolled mosaics, photo-interpretation studies on land uses and capabilities, and cadastral maps," you are not among the payees listed under Revenue Regulations No. 23-76 as amended by Revenue Regulations No. 6-79, known as the Expanded Withholding Tax Regulations. Hence, the payments made by your clients for services/works undertaken by you as such photogrammetric surveyor are not subject to the withholding tax prescribed in the said Regulations. (2) However, the payments for services/works contracted by you in pursuance of the following business objectives within the framework of your Articles of Incorporation are subject to the expanded withholding tax, at the rates indicated after each economic activity: (a) In acting as management and technical consultant 10% (Sec. (1)(a)(5) Rev. Regs. No. 13-78, as amended by Rev. Regs. No. 6-79) (b) In engaging in road construction projects as contractor 3% of 15% of gross payments (Sec. (1) (e) (1) (a) (3)) (c) In engaging in general construction 3% of 15% of gross payments (Sec. (1) (e) (1) (b)) (d) In undertaking general salvage works 3% of 15% of gross payments (Sec. (1) (e) (2) (a)) (e) In leasing real property 5% of the gross rental (Sec, 1 (c)); and (f) In acting as real estate broker 5% of the gross payment (Sec. 1 (i)). cdta Very truly yours, TOMAS C. TOLEDO Acting Commissioner