BIR Ruling No. 137-82

April 22, 1982 BIR RULING NO. 137-82 207 085-79 137-82 Engalla & Co., CPA's Suite 723 Rufino Bldg. Ayala Avenue, Makati Metro Manila Attention: Mr . Wilfredo C . Engalla Managing Partner Gentlemen : This refers to your letters dated March 17, 1981 and June 26, 1980 requesting for a ruling on the following representation of facts: Company X, a single proprietorship, operates tourist coaches which are offered for hire to tourist/tour companies. Its Office is in Metro Manila but its buses which are operated by its employees go to as far as any tourist spot in Luzon. While a particular bus is being hired, gasoline and maintenance expenses are paid for by Company X. Company X pays a quarterly 2% common carrier's tax. QUERY: Is Company X income from tourist/tour companies subject to expanded withholding tax? If so, under what classification listed in the Revenue Regulation No. 13-78 covering expanded withholding tax? In reply, I have the honor to inform you that under Revenue Regulation No. 13-78 and Revenue Regulations No. 6-79, both implementing Presidential Decree No. 1351, payments only to persons enumerated therein are subject to withholding tax. Since Company X is a common carrier and that income payment to a common carrier is not one of those specified in the Regulations, Company X is not subject to the withholding tax. Very truly yours, RUBEN B. ANCHETA Acting Commissioner