Independent Contractor is Subject to Annual Fixed Tax

November 11, 1981 BIR RULING NO. 223-81 205-00 05-80 223-81 Business Day Corporation 113 West Avenue, Quezon City P.O. Box 132 Attention: Mr . Miguel Z . Patolot Forward Planning Director Gentlemen : This refers to your letter dated December 5, 1980, requesting the opinion of this Office as to whether or not your activity of organizing seminars and conferences as part of your educational thrust will be subject to the contractor's tax under the Tax Code. cdta In reply, I have the honor to inform you that by conducting such activity of organizing seminars and conferences as part of your educational thrust, you are considered as an independent contractor pursuant to the provision of section 205 of the Tax Code, as amended, which provides as follows: "The term "independent contractor" includes person (juridical or natural) not enumerated above (but not including individuals subject to the occupation tax under Section 12 of the Local Tax Code) whose activity consists essentially of the sale of all kinds of services for a fee regardless of whether or not the performance of the service calls for the exercise or use of the physical or mental faculties of such contractors or their employees." Such being the case, you are subject to the annual fixed tax of P100.00 prescribed in Section 192(1) of the Tax Code, as amended and your gross receipts derived therefrom are subject to the 3% tax imposed in Section 205 of the same Code. cdti Very truly yours, RUBEN B. ANCHETA Acting Commissioner