Taxability of Payments for Services Made to the C.I.C.M. Mission Seminaries, Inc.

April 27, 1992 BIR RULING NO. 135-92 50 (b) 000-00 135-92 Valdez, Domondon & Associates Suite 410 Windsor Towers, Legaspi St., Legaspi Village, Makati, Metro Manila Attention: Mr . Abelardo T . Domondon For the Firm Gentlemen : This refers to your letter dated March 2, 1992 requesting opinion as to whether the payments to be made by your client, C.I.C.M. Mission Seminaries, Inc. to architect Danilo L. Alvarez is subject to the 10% VAT or to the 10% expanded withholding tax. It is represented that C.I.C.M. Mission Seminaries, Inc. has engaged the services of architect Danilo L. Alvarez as its project administrator who will undertake the supervision and administration of the construction of its Regional Formation House, situated at 11th St., corner Pinehill St., Damayang Lagi, New Manila, Quezon City. In reply thereto, I have the honor to inform you that payment to be made by your client, C.I.C.M. Mission Seminaries, Inc. to architect Danilo L. Alvarez for his services as project administrator is not subject to VAT pursuant to Section 103 (r) of the Tax Code, as amended. However, said payment is subject to the 10% expanded withholding tax pursuant to Section 1 (a) (1) of Revenue Regulations No. 6-85 otherwise known as the Revised and Consolidated Expanded Withholding Tax Regulations implementing Section 50 (b) of the Tax Code, as amended. iatdc Very truly yours, JOSE U. ONG Commissioner of Internal Revenue