Salaries of Security Guards Form Part of the Taxable Gross Receipts of a Security Agency

December 8, 1981 BIR RULING NO. 255-81 205-16 002-69 255-81 Philippine Alert Security Agency 987 Trading Quezon Blvd. Quezon City Attention: Atty . Rodolfo P . Cainglet Executive Director Gentlemen : This refers to your letter dated December 19, 1980, requesting information as to whether or not salaries of security guards should form part of the gross receipts of the corporation for purposes of computing the 3% contractor's tax. In reply, please be informed that pursuant to BIR Ruling No. 69-002 dated February 17, 1969, salaries of security guards form part of the taxable gross receipts of a security agency for purposes of the 3% tax under Section 205 (formerly Sec. 191) of the Tax Code of 1977, as amended. Such being the case, as a security agency, the gross money payments to you which include salaries of the security guards constitute your gross receipt subject to the 3% contractor's tax. Moreover, said payments are subject to the expanding withholding tax of 3% of the 15% thereof, pursuant to Section 1(e) (2)(f) of Revenue Regulations No. 6-79, implementing Section 53(f) of the Tax Code of 1977 as amended by Presidential Decree No. 1351. cdta Very truly yours, RUBEN B. ANCHETA Acting Commissioner