Tax on Independent Contractor and Place of Filing ITR

May 8, 1958 BIR RULING NO. 262-58 Mr. Sofronio L. Del Castillo c/o Standard-Vacuum Oil Co. Cebu City S i r : Reference is made to your letter dated January 24, 1958, addressed to the Secretary of Finance, Manila, but which was referred to this Office for action, containing the following questions: (1) "Is a person required by law to have a contractor's license if he is in contract with a company to supply labor in loading and unloading different packages to and from truck or lighters? Is he required to pay the percentage tax on his gross receipts?" (2) "Is it contrary to law if a resident of certain municipality or city may file his income tax return in another city or municipality?" In reply, please be informed as follows: Query No. (1). A person who undertakes to supply labor with a company in loading and unloading different packages to and from the truck or lighters is essentially engaged in the business of selling his services and as such, he is deemed to be an "independent contractor" as contemplated in Section 191 of the Tax Code. Such being the case he is subject to the fixed tax prescribed in Section 182-(A-1) and the 3% contractor's tax prescribed in Section 191 of the Tax Code. Query No. (2). Section 45(b) of the Tax Code expressly provides that the return shall be filed with the Collector (now Commissioner) of Internal Revenue, provincial revenue agent, or treasurer of the province, city, or municipality in which such person has his legal residence or principal place of business, or if there be no legal residence or place of business in the Philippines, then with the Commissioner of Internal Revenue in Manila. This provision of the law is founded on expediency and convenience. The filing of returns in such manner is, therefore, always favored and advisable, However, the law does not inhibit the filing of an income tax return in any other place. Accordingly, a taxpayer may file his return in another place if the necessity for it should arise. cdt Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue