Fixed and Percentage Taxes Imposed on Better Homes, Inc.
BIR Ruling No. 213-58 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Apr 2, 1958
Full text
April 2, 1958 BIR RULING NO. 213-58 Messrs. Stewart, Cunanan & Co. Certified Public Accountants 107 13th St., Port Area Manila Gentlemen : Reference is made to your letter dated November 9, 1957, stating the following: "Our client, Better Homes, Inc., a domestic real estate company, plans to undertake the collection of the accounts receivable of other real estate companies for which it will receive a compensation of 5% of such collection. It desires to know whether it will be subject to any internal revenue fixed and percentage tax before engaging in this particular activity." In reply thereto, I have the honor to inform you that, under the circumstances stated above, your client, the Better Homes, Inc., is a business agent within the purview of Section 194(v) of the Tax Code. As business agent, your client is subject to the fixed and percentage taxes prescribed by Sections 182(A)(3)(w) and Section 191, respectively, of the aforesaid Code. cdpr Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.