BIR Ruling No. 212-15

June 19, 2015 BIR RULING NO. 212-15 BIR RMC No. 39-2007 Centro-Tech, Inc. Suite 116 Ortigas Building Ortigas Avenue, Pasig City 1605 Attention: Mr. Francisco F. Panlilio, Jr. Vice-President for Business Development Gentlemen : This refers to your letter dated April 2, 2013 requesting for clarification whether or not Revenue Memorandum Circular No. 39-2007, which clarifies the income tax and VAT treatment of agency fees/gross receipts of security agencies including the withholding of taxes due thereon, applies to Centro-Tech, Inc. (CTI). It is represented that CTI is a corporation duly organized and existing under and by virtue of Philippine Laws. One of its purposes is "to operate the business (of) maintaining, cleaning, preserving, and sanitizing building, factories, power plants, offices, shops, equipment and facilities and any or all constructions and development projects of all kinds and to provide manpower help and services to all the above-mentioned business establishments." In other words CTI provides for janitorial manpower services. In its dealing with clients, CTI imposes 12% VAT on the gross contract price billed to its clients. In reply, please be informed that it is basic in statutory construction that when the words of a statute are clear and unambiguous they must be held to mean what they plainly express. The statute must be literally construed ( Swarts vs. Siegel ,117 Fed. 13).It is a settled rule of statutory construction that the express mention of one person, thing, act, or consequence excludes all others. This rule is expressed in the familiar maxim expressio unius est exclusio alterius .(Agpalo, Statutory Construction, 2nd Ed.,1990, pp. 160-161, and the cases therein cited). There is nothing in the context of RMC No. 39-2007 that would manifest or suggest the intention to have the RMC apply to manpower agencies, i.e. ,janitorial and clerical services, other than security agencies. Thus, unless the issuance is amended, the RMC cannot apply to agencies other than security agencies. Wherefore, VAT shall be confined on the gross contract price CTI billed to its clients pursuant to Section 108 of the Tax Code of 1997, as amended. This ruling is being issued on the basis of the foregoing facts as represented. However, if upon investigation, it will be disclosed that the facts are different, then this ruling shall be considered null and void. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue