4% Contractor's Tax Applicable to Gross Receipts Derived from Contracts Entered into/Renegotiated on or after Oct. 15, 1984

August 23, 1985 BIR RULING NO. 134-85 205 000-00 134-85 Gentlemen : In reply to your letter dated July 5, 1985, please be informed that the 4% contractor's tax imposed under Section 205 of the National Internal Revenue Code, as amended by P.D. 1959, shall be applied on gross receipts derived from contracts entered into or renegotiated on or after October 15, 1984. Gross receipts derived from contracts entered into or renegotiated prior to October 15, 1984 shall still be subject to the 3% contractor's tax. (Rev. Regulations No. 7-85 dated May 14, 1985) Accordingly, a contractor whose gross receipts, from contracts entered into or renegotiated prior to October 15, 1984, have been subjected to the 4% contractor's tax should file with this Bureau; Attn.: Appellate Division, a written claim for tax credit of the excess 1% tax withheld, within two (2) years from the payment thereof under Section 295 of the Tax Code, as amended. Automatic off-setting of the said excess 1% contractor's tax against similar taxes due on future billings of the contractor is not authorized by law. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner