Tax Rate of a Forestry Licensee Authorized to Gather Unsplit Rattan

August 18, 1959 BIR RULING NO. 413-59 The Equipment & Machinery Corporation of the Philippines P. O. Box 1655, Manila Gentlemen : In reply to your letter requesting information as to the taxes your company should pay as a forestry licensee authorized to gather unsplit rattan and on its business of processing raw rattan it gathered into materials ready for the manufacture of furniture, please be informed as follows: As a forestry licensee your company is subject to the forest charges on unsplit rattan in accordance with the rates prescribed in section 9 of Revenue Regulations No. 85, as amended. The existing rates of forest charges on unsplit rattan are P2.00 per 1,000 linear meters on those measuring 2 centimeters or less in diameter and those with a diameter of over 2 centimeters, P5.00 per 1,000 linear meters. These charges should be paid prior to the removal of the products from the cutting area. (Sections 9 & 11, Rev. Reg. No. 85). Your company, in processing raw rattan into materials ready for the manufacture of furniture, is deemed a manufacturer of the said materials, pursuant to section 194(x) of the Tax Code. As such manufacturer, your company is subject to a fixed tax of P20.00 which shall be paid at the commencement of the business and, thereafter, annually or semi-annually, and the 7% sales tax based on the gross selling price of the processed rattan sold by it during the preceding month without any deduction, pursuant to section 182 and 186 of the said Code. It should file, within twenty days after the end of each month, a true and compete return of the amount of its gross monthly sales of processed rattan and should pay the tax thereon also within the same period. (Section 183, Tax Code). cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue