Taxes and/or Licenses Should be Paid by the Trust Credit and Collection Service

May 12, 1960 BIR RULING NO. 194-60 Mr. Hilarion P. Corpuz Rm-501 Bank of P.I. Bldg. Plaza Cervantes, Manila S i r : Reference is made to your letter dated May 7, 1960 requesting opinion as to what taxes and/or licenses should be paid by the Trust Credit and collection Service before operating its business on the following services: 1. Furnish clients with information on the financial capability of prospective customers to pay their accounts before credit is extended to them; and 2. Collect from our clients debtors past accounts which had been considered bad debts. You further informed that your clients shall pay the firm regular monthly fee in the sum to be agreed upon or any amount also to be agreed upon for services actually and successfully rendered. The compensation for collection of bad debts is on commission basis on the amount successfully collected. In reply thereto, I have the honor to inform you that, under the foregoing facts, the Trust Credit and Collection Service is a business agent under Section 194(v) of the Tax Code. As a business agent, it shall pay a percentage tax equivalent to three (3%) per centum of its gross receipts and annual tax of seventy-five (P75.00) pesos prescribed by Section 191 and 182(S)(w) of the Tax Code, respectively. aisadc Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue