Tax Liability of Braiding and Textile Industries of the Philippines, Inc.

April 21, 1960 BIR RULING NO. 211-60 The President Braiding and Textile Industries of the Philippines, Inc. Pasong Tamo and Yakal Streets Makati, Rizal S i r : In answer to your letter dated April 13, 1960, I have the honor to inform you as follows: In a previous letter, you informed this Office that the Braiding and Textile Industries of the Philippines, Inc., hereafter to as the "Industry", which was solely owned by you prior to July 1, 1959 was converted into a corporation as of that date. In our reply letter, we held that for the period from January 1, 1959 to June 30, 1959, you must file income tax return in your individual capacity and for the period from July 1, 1959 to December 31, 1959, you must file an income tax return under your assumed corporate name as an unregistered association (pending receipt of your Certificate of Registration) and pay the corresponding corporate income tax. In determining the amount of tax payable by you in your individual capacity for the period from January 1 to June 30, 1959, first compute the normal tax due on your net income for said period. Take 10% of this normal tax, and the resulting amount is the tax payable by you. For the period from July 1 to December 31, 1959, you must necessarily pay the full corporate tax on the net income for said period which is 22% on the first P100,000 and 30% on the amount in excess thereof. When the tax due is in excess of P500, the taxpayer may pay the same in two equal installments, the first installment to be paid upon the filing of the return and the second on or before July 15, in case of the calendar year basis, or on or before the 15th day of the 7th month following the close of the fiscal year, in case of the fiscal year basis. Taxes can be paid with the personal checks of the taxpayer. You may file your income tax return in Makati or in Manila, but we suggest that you file in Makati because it is the place where your business is located. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue