Tax Status of Stand-Ads, Incorporated

May 16, 1960 BIR RULING NO. 228-60 Stand-Ads, Incorporated Suite 301 Trade & Commerce Bldg. Juan Luna, Manila Gentlemen : Reference is made to your letter dated April 21, 1960, requesting information regarding your tax status. cdt You stated that aside from your work as an advertising agency, you also accept orders for quantities of posters displaying the corresponding clients' products mounted on billboards. Furthermore, you stated that aside from the aforestated transactions, you also engage in the sale of general merchandise. From the foregoing, you are considered engaged in three kinds of taxable businesses, namely: as an advertising agency or business agent, independent contractor and as dealer in general merchandise. As an advertising agency or business agent, you are subject to the 3% tax on your gross receipts derived therefrom and to the fixed tax of P75.00 per annum. As an independent contractor, you are subject to the 3% tax on gross receipts and to the annual fixed tax of P20.00. Finally, as a dealer in general merchandise, you are subject to the graduated annual fixed tax under section 182(A), (2) of the Tax Code. Aside from the foregoing, you are also subject to the income and residence taxes. All of said taxes are payable to the Commissioner of Internal Revenue or his deputies. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue