BIR Ruling No. 386-61

1961 BIR RULING NO. 386-61 Reference is made to your letter, requesting information as to what fixed and percentage taxes your client, the . . . Corporation (hereinafter referred to as Robot), is liable. cdt In an investigation conducted by this Office, it was found that Robot conducts surveys, researches, polls and other forms of studies on any given subject for businessmen and industrialists; that a contract is entered into by Robot and the businessman or industrialist for the purpose; and that Robot charges fees or compensation for such services. It was found further that Robot has a "Center" for the accumulation of information useful to scientific, industrial, commercial, agricultural and economic research, which renders services for a fee or compensation, although when the request for data or information is made by one who reciprocally renders free services to Robot, nothing is charged therefor. Finally, that Robot publishes weekly and monthly statistical data which are of interest to businessmen and industrialist; that fees are charged therefor, called subscription fees; and that there is no material difference between the weekly and monthly publications. A sample of a weekly publication was furnished this Office. Under the circumstances, this Office is of the opinion and so holds that Robot is engaged in the business of independent contractor. Accordingly, it is subject to the annual fixed tax of P20.00 and to the 3% contractor's tax on its gross monthly receipts, pursuant to Sections 182(A)(1) and 191 of the National Internal Revenue Code. LLphil