BIR Ruling No. 155-84

September 12, 1984 BIR RULING NO. 155-84 21-b-000-00-155-84 S i r : This refers to your letter dated January 30, 1984 requesting a ruling as to whether or not your business of conducting the Children's Workshop is exempt from the 3% contractor's tax imposed under Section 205 of the Tax Code, as amended. It is represented that in your Children's Workshop, children of pre-school age are taught the basic knowledge of everyday living as good habit, table manners, music, art science, writing, etc.; and that you charge each child monthly an amount of P100.00 for the salaries of teachers and materials used. In reply, please be informed that by conducting a Children's Workshop, you are not subject to the annual fixed tax of P100.00 prescribed in Section 192(1) of the Tax Code, as amended and your gross receipts derived therefrom are not also subject to the 3% contractor's tax imposed in Section 205 of the same Code. However, the income derived by you therefrom should form part of your gross income subject to income tax under Section 21 of the Tax Code, as amended. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner