Income Tax Due from Authors, Writers and Publishers of Books or Novels

July 24, 1958 BIR RULING NO. 405-58 Mr. Muhammad Kurais II South Ubian, Sulu S i r : In answer to your letter dated June 1, 1957, I have the honor to inform you that the income tax due from authors, writers and publishers of books or novels should be paid to the deputy provincial treasurer of your locality. It may be stated, in this connection, that publishers are subject to the annual fixed tax of P20.00 and to the 3% publisher's tax on their gross receipts, pursuant to Sections 182 (A) (1) and 191 of the National Internal Revenue Code, which should be paid also to the aforesaid official. Unlike in the case of the Income tax, where the tax is based on the net income (gross income minus allowable deductions), the publisher's tax is based on the receipts of the publisher without any deduction. Authors and writers who cause their works to be published and sold to the public are embraced within the term "publisher" used in said Section 191 of the Tax Code. However, those merely receiving royalties for the publication, or publication and sale, of their works are not considered publishers. cdpr Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue