Clarification on the Payment of the Percentage Tax

February 27, 1959 BIR RULING NO. 125-59 Mr. Lucilo Paner 194-B, Blumentrit St. San Juan, Rizal S i r : In reply to your letter requesting clarification on the payment of the percentage tax due from you, I have the honor to inform you as follows: As a producer of charcoal you are subject to the fixed and percentage taxes prescribed in Sections 182 and 186 of the Tax Code, as amended. The fixed tax is P20.00 and is payable annually or semi-annually, at your option. The 7% tax shall be based on your gross sales of charcoal during the preceding month without any deductions. The cost of labor and the forest charges you pay for the charcoal you produce are not deductible in computing the percentage tax thereon. You must pay your percentage tax within twenty (20) days after the end of each month. It is further stated in this connection that if your only business is that of a producer of charcoal and for that purpose you secure the C-14 privilege tax receipts, you need not provide yourself with the C-13 privilege tax receipt. LLjur Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue