BIR Ruling No. 291-61
BIR Ruling No. 291-61 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jul 27, 1961
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July 27, 1961 BIR RULING NO. 291-61 In reply to your letter . . . , I have the honor to inform you that a corporation which purchases accounts and notes receivable from business organizations and individuals perhaps on discount and undertakes the collection thereof is not subject to any business tax. If by the use of the term factoring, you mean an agency (collection agency perhaps), the corporation as such agency shall be constituted a business agent subject to the fixed and percentage taxes prescribed in Sections 182 and 191 of the Tax Code. LLjur
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