Request for Information as to the Business Taxes payable by Golden Donuts, Inc.

August 22, 1986 BIR RULING NO. 153-86 158, 161 (1), 172 (1) 000-00 153-86 Gentlemen : This refers to your letter dated July 28, 1986 requesting information as to the business taxes payable by your client, Golden Donuts, Inc. You have represented that Golden Donuts, Inc. operates several Dunkin Donuts Shops in Metro Manila and other areas; that these shops serve to its customers within the premises food items consisting of donuts made by them, coffee, hot chocolate, fruit juices and soft drinks; and that these shops pay to the local authorities in the areas of their operation permit fees and licenses as restaurants or coffee shops. In reply, I have the honor to inform you that under the foregoing facts, your client is considered a caterer subject to an annual fixed tax of P200.00 and to the 4% tax prescribed in Sections 161(1) and 172(1), both of the Tax Code, as amended. Each of the Dunkin Donuts Shops operated by Golden Donuts, Inc. is considered a separate or distinct establishment or place where business subject to the tax is conducted pursuant to Section 158 of the Tax Code, as amended. Hence. each branch is liable for payment of a separate annual fixed tax of P200.00. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner