Lessor of Personal Property Subject to Annual Fixed Tax of P200 and to the 4% Contractor's Tax

July 22, 1986 BIR RULING NO. 119-86 170 (17) 000-00 119-86 M a d a m : In reply to your letter dated August 23, 1985, please be informed that for renting out equipments such as, transportation equipment, T.V., airconditioning unit and the like, your client is a lessor of personal property subject to the annual fixed tax of P200 and to the 4% contractor's tax based on his gross receipts, pursuant to Sections 161(1) and 170(17) of the Tax Code, as amended. However, rental payments to him are not subject to the expanded withholding tax prescribed by Revenue Regulations No. 6-85 otherwise known as the Revised and Consolidated Expanded Withholding Tax Regulations implementing Section 51(f) of the Tax Code. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner