Basis of Commercial Brokers' Fixed Tax Exemption
BIR Ruling No. 314-58 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Jun 4, 1958
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June 4, 1958 BIR RULING NO. 314-58 Messrs. Paredes, Balcoff & Poblador Suite 408-412 Roman R. Santos Bldg., Plaza Goiti Manila Gentlemen : In reply to your letter dated May 31, 1958, I have the honor to inform you that the basis of the exemption of commercial brokers from the fixed tax is their gross monthly compensation and not the amount of the sales brought about by them. Accordingly, if the gross monthly compensation derived by a broker for bringing about the sale or purchase of merchandise for other persons is P200.00 or less, he is exempt from the fixed tax, pursuant to Section 182(C)(1) of the Tax Code, as amended by Republic Act No. 1856. However, a broker is entitled to said exemption only when his gross monthly compensation during all the months of the year does not exceed P200.00. The moment his gross compensation exceeds P200.00 even for only one month, he becomes subject to the fixed annual tax prescribed in Section 182 (A)(s) of the aforementioned Code. aisadc Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue
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