Fees Received by a Geodetic Engineer in Consideration for His Service are Not Subject to Contractor's Tax But Only to Income Tax

November 23, 1987 BIR RULING NO. 374-87 170 047-83 374-87 S i r : In reply to your letter dated November 10, 1987, please be informed that as a Geodetic Engineer your client, Rico J. Rasay is a professional subject to the occupation tax under Section 12 of the Local Tax Code and is therefore not considered an independent contractor within the contemplation of Section 170 of the Tax Code as amended. Accordingly, fees received by him in consideration for his service are not subject to the 4% contractor's tax but only to income tax imposed by Section 21(a) of the Tax Code and consequently to the 10% expanded withholding tax under Section 1 (a)(1) of Revenue Regulations No. 6-85 implementing Section 51(b) of the Tax Code as amended. atdc Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner