Taxability of the Business of Raising Poultry and Producing Eggs

October 1, 1958 BIR RULING NO. 545-58 Mrs. Rita O. Sarinas 2567 Esmaeralda St. Vito Cruz, Manila M a d a m : In reply to your query of September 18, 1958, I have the honor to inform you that your business of raising poultry and producing eggs is not subject to any internal revenue fixed or percentage tax on business because poultry and eggs are considered agricultural products which are exempt from the sales tax pursuant to Section 188(b) of the Tax Code. You are, however, subject to the income and additional residence taxes. Generally, persons required by law to pay internal revenue taxes shall keep a journal and a ledger or their equivalents. However, those whose gross quarterly sales, earnings, receipts or output do not exceed P5,000.00 may keep and use only a simplified set of bookkeeping records duly authorized by the Secretary of Finance within all transactions and results of operations are shown and from which all taxes due the government may readily and accurately be ascertained and determined anytime of the year. Furthermore, you are required to issue a sales or commercial invoice to the purchaser for each sales of P2.00 or more. In case of sales of less than P2.00, receipts need not be issued but unless a receipt is issued, the transaction must be recorded in a petty sales book the entries in which to be summarized at the end of the business day and the total transferred to the journal or internal revenue sales book or book of receipts. If your total gross sales for the preceding year exceeds P20,000.00, every sale or transaction must be covered by an invoice irrespective of the amount of the sales. This Office cannot furnish you information on municipal taxation because it is not within its jurisdiction. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue