Gross Receipts of the Owner of a Barber Shop

September 23, 1958 BIR RULING NO. 519-58 Mr. Pedro V. Javier 12 Apo Street Quezon City S i r : In reply to your letter dated September 18, 1958, I have the honor to inform you that, for purposes of the income and additional residence taxes, the gross receipts of the owner of a barber shop consist only of the amount corresponding to his share in the barber's fee. For example, if the fee is P1.00, seventy centavos (P0.70) of which is the share of the barber and P0.30 that of the owner, only the amount of P0.30 is deemed the owner's gross receipt. Where the owner is also a barber, the entire fee of P1.00 for every hair cut made by him is his gross receipt. The additional residence tax payable by a barber is computed at P1.00 for every P1,000.00 of his gross earnings. The additional residence tax payable by the owner of a barber shop is, however, computed at P2.00 for every P5,000.00 of his gross receipts in excess of P10,000.00. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue