Filing and Payment of Business Tax Returns by a Multinational Company with Several Branches

December 23, 1987 BIR RULING NO. 421-87 158 163 000-00 421-87 Gentlemen : This refers to your letter dated September 10, 1987 requesting a ruling as to whether you must file your business tax returns on sales effected at your branch offices. It is represented that you are a multinational company engaged in the manufacture of tires, that you have your principal office in Makati, Metro Manila where you keep your books of accounts and maintain electronic data processing for tax purposes; that you have branch offices in Cebu City, Davao City and Bacolod City which maintain inventory, sell tires and collect payments but keep no books of accounts; and that while you have been filing a consolidated original sales tax return in Makati, and would like to continue doing so, you were lately informed by our Revenue District Officer in Davao City to file and pay your business taxes in the B.I.R. Collection Office in Davao City for sales made thereat. adc In reply, please be informed that pursuant to Revenue Regulations No. 2-86, you may file and pay your consolidated tax return on original sales in Makati, Metro Manila, where your principal office is located. However, your fixed annual tax must be paid in the Revenue District where each separate and distinct branch office is situated pursuant to Section 158 of the Tax Code, as amended. Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner