Whether the Cover Story Marketing is Exempt from the Payment of the 2% Tax Imposed by Section 112 of the Tax Code
BIR Ruling No. 280-92 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Oct 7, 1992
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October 7, 1992 BIR RULING NO. 280-92 112 118-92 280-92 Arturo N. Tangal & Associates Certified Public Accountants Suite 409 Ma. Cristina Bldg. Fuente Osmea, Cebu City Attention: Mr . Arturo N . Tangal Managing Partner Gentlemen : This refers to your letter dated August 13, 1992, in effect, requesting a ruling that your client, Cover Story Marketing, is exempt from the payment of the 2% tax imposed by Section 112 of the Tax Code. It is represented that your abovenamed client is a dealer of books and magazines (e.g., Time, Newsweek, Asiaweek, Fortune) and also review or bulletin. In reply, please be informed that as long as the book, newspaper, magazine, review or bulletin (1) appears at regular intervals; (2) with a fixed price for subscription; and (3) is not devoted principally to the publication of advertisements, your client is exempt not only from the 10% value-added tax imposed by Section 100 of the Tax Code, as amended by Executive Order No. 273, but also from the 2% percentage tax prescribed by Section 112 of the same Code, irrespective of the amount of its gross quarterly sales or receipts. cdtech Very truly yours, JOSE U. ONG Commissioner of Internal Revenue
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