Tax status and Liability of QSV Promotions, Inc.

May 31, 1960 BIR RULING NO. 252-60 Mr. Adriano D. Icasas 2488 Dacana Street Pasay City S i r : Reference is made to your letter dated May 16, 1960, requesting information as follows: "The QSV Promotions, Inc, is an advertising agency engaged in the business of preparing and releasing advertisements and other promotional work for clients. "The main source of revenue are monthly or annual retainers, service fees, and commissions on advertisements released. "What taxes are they liable to pay? What should be the basis of their percentage tax, the gross receipts from retainer, service fees, and commissions? or should it be the gross receipts from commissions only?" In answer thereto, I have the honor to inform you that the aforesaid corporation is a business agent subject to the fixed and percentage taxes prescribed in sections 162(A)(3)(W) and 191 of the Tax Code. The basis of the percentage tax is the aggregate of the retainer and service fees, commissions and other receipts actually received by the Corporation as such business agent. cdt Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue (SGD.) MISAEL P. VERA Deputy Commissioner of Internal Revenue