BIR Ruling No. 171-61
BIR Ruling No. 171-61 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 4, 1961
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May 4, 1961 BIR RULING NO. 171-61 Atty. Rafael C. M. Reyes 1064 Economia St., Sampaloc Manila S i r : In reply to your letter dated April 25, 1961, I have the honor to inform you that a grantee of a municipal franchise under Act No. 667, as amended, is subject to franchise tax at the rate of 5% upon the gross receipts or earnings prescribed by Section 259 of the National Internal Revenue Code notwithstanding the fact the franchise provides for a lesser rate of tax. (Guagua Electric Light Plant Co., vs. Commissioner of Internal Revenue, CTA No. 616). Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue
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