Taxability of the Services Rendered by Franchise Grantees
BIR Ruling No. 143-88 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Apr 18, 1988
Full text
April 18, 1988 BIR RULING NO. 143-88 103 (j) 061-87 143-88 Gentlemen : In reply to your letter dated January 12, 1988, please be informed that the services rendered by franchise grantees like you are subject to the percentage tax under Title V, particularly Section 117, of the Tax Code, as amended by Executive Order No. 273. Accordingly, your receipts derived as a franchise grantee are exempt from the 10% value-added tax, pursuant to Section 9(b)(10)(E) of Revenue Regulations No. 5-87 amplifying Section 103(j) of the Tax Code, as amended by Executive Order No. 273. Moreover, beginning January 1, 1988, you are no longer subject to the annual fixed tax of P2,000.00 as a franchise grantee. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner
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