Classification of Individuals for Purposes of the Fixed and Percentage Taxes
BIR Ruling No. 231-60 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • May 9, 1960
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May 9, 1960 BIR RULING NO. 231-60 Messrs. Ablaza, Mangahas & Associates 507-508 Garcia Building Rizal Avenue, Manila Gentlemen : In your letter of February 5, 1960, you have inquired how an individual shall be classified for purposes of the fixed and percentage taxes under the circumstances you have stated as follows: "An individual is engaged in the installation and supervision of sound systems (intercom, background music, etc.) of buildings, commercial houses and offices, supplying labor and materials for a fixed or definite amount of compensation. "Incidental thereto, he buys components parts of electronic equipment and assembles them for the use of a standing contract. We should like to emphasize the fact that he does not assemble a finished equipment intended for sale to the general public; he does so only in connection with his contract." In reply, please be informed that the individual referred to above is an independent contractor subject to the fixed and percentage taxes prescribed in sections 182(A-1) and 191, respectively, of the Tax Code. cdi Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue
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