Tax Exempt on the Sale of Fresh Fish

July 11, 1960 BIR RULING NO. 290-60 Messrs. San Juan, Africa & Benedicto Attorneys-at-Law Shidco Building 180 Padre Faura, Manila Gentlemen : In answer to your letter of the 8th instant, I have the honor to inform you that, as a fishing operator, your client's sales of fresh fish are exempt from the fixed and percentage (sales) taxes prescribed in sections 182(A)(1) and 186 of the Tax Code. However, for processing some of his catch into salted and smoked fish before selling them, he is considered a manufacturer and, therefore, subject to said fixed and percentage taxes. The fixed tax is P20.00 per annum, payable, at the election of the taxpayer, annually on or before January 20th of each year, or semi-annually on or before January 20th and July 20th. However, as your client will embark on the business for the first time, he must pay said tax before commencing business, regardless of whether or not the ordinary period for payment thereof has already passed. The sales tax is 7% of the gross selling price of the salted and smoked fish, minus the cost of deductible raw materials, if any, and payable within twenty days after the end of each month. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue