Whether the Business of Leasing Tugboats, Motorboats, Barges or Ships and of Towing, Carrying or Transporting Cargoes and Passengers Within the Territorial Waters of the Philippines can be Classified as that of a Common Carrier; hence, Subject only to the 3% Common Carrier's Tax

August 21, 1995 BIR RULING NO. 122-95 115 000-00 122-95 Davao Tugboat and Allied Services, Inc. 3rd Floor, Antwell Building Santa Ana, Davao City Attention: Capt . Cirilo P . Zamora President Gentlemen : This refers to your letter dated April 26, 1995 requesting for a confirmation of your opinion that for internal revenue tax purposes, your business of leasing tugboats, motorboats, barges or ships and of towing, carrying or transporting cargoes and passengers within the territorial waters of the Philippines, can be classified as that of a common carrier; hence, you are subject only to the 3% common carrier's tax. cdta It appears that you are a domestic corporation duly registered with the Securities and Exchange Commission under SEC Registration No DS 093-000055; that under your Articles of Incorporation,, your primary purpose is to engage in the business of leasing tugboats, motorboats, barges or ships and of towing, carrying and/or transporting cargoes and passengers within the territorial waters of the Philippines; and that you also render ancillary services such as assisting cargo/passenger vessels to dock and undock to and from their respective berths in port as well as in towing cargo-passenger vessels, barges with cargoes from a point to another point or place/destination within the Philippines. In reply, please be informed that based on your duly registered primary activity, your opinion that your business is classified as that of a common carrier, is hereby confirmed. Accordingly, you are subject to the 3% common carrier's tax computed on the basis of your quarterly gross receipts pursuant to Section 115 of the Tax Code, as amended. cdti Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue