BIR Ruling No. 136-65
BIR Ruling No. 136-65 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Dec 27, 1965
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December 27, 1965 BIR RULING NO. 136-65 Mr. Paul T. Naidas 866 Aurora Boulevard Cubao, Quezon City S i r : This refers to your letter dated November 15, 1965 requesting opinion on the following: "We are contemplating to operate some company canteens where the prices of employees meal are extremely low meaning in the bracket of P1.00 to P1.50 per meal. These meals are subsidized by the company that requested us to operate their canteens. It is actually a facility the company gives their employees. "I am writing you this letter of inquiry to ask your opinion on this matter; as to whether the 3% sales tax applies hereto or it is exempt in view of the fact that is a subsidy the company is giving to their employees." In reply, I have the honor to inform you that based on the foregoing facts, you are considered a keeper of restaurant. Such being the case you are subject to a fixed annual tax of P20.00 and to the percentage tax of 3% on your monthly gross receipts pursuant to Sections 182(A)(1) and 191 of the National Internal Revenue Code. prcd Very truly yours, (SGD.) MISAEL P. VERA Acting Commissioner of Internal Revenue
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