BIR Ruling No. 213-15

June 19, 2015 BIR RULING NO. 213-15 BIR RMC No. 39-2007 Philcare Manpower Services 6111 Albert St., Makati City Attention: Mr. Ricardo E. Solivio Marketing Officer Gentlemen : This refers to your letter dated March 7, 2013 requesting for clarification whether or not Revenue Memorandum Circular (RMC) 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 a janitorial services contract. It is represented that Philcare Manpower Services (PMS) is engaged in the business of providing janitorial services to its clients. It joined a bidding conducted by the Land Transportation Office Bids and Awards Committee (LTO-BAC) for LTO's Janitorial Services Contract for 2013. PMS believes that the LTO-BAC does not comply with or follow BIR regulations requiring a 12% VAT on the gross amount of the Contract Price. Apparently, the LTO-BAC only considers VATable the Administrative Fee and Supplies charges in view of RMC No. 39-2007. 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, the RMC not being applicable to manpower agencies providing for janitorial services, the basis for VAT on the janitorial contracts of PMS with its clients should be the whole contract price and not merely the administrative fee and supplies charges thereof. Please be guided accordingly. Very truly yours, (SGD.) KIM S. JACINTO-HENARES Commissioner of Internal Revenue