Tax Imposed on Those Who Sell Locally Purchased Jewelry

October 1, 1958 BIR RULING NO. 550-58 Mr. Teofilo Abejo R-208 Digna Building Corner David & Dasmarias Manila S i r : This is with reference to the query stated in your letter, dated August 30, 1958, as follows: cdll "On behalf of my client, Esmeralda, Inc., which was recently organized to engage principally in the sale of locally bought jewelries, either from establishments or private persons, I desire to inquire as to what classes of licenses will be necessary for such kind of business. "Likewise, we desire to be informed if there is any special assessment or tax on those purchases from private persons of jewelries or other valuable ornaments." In reply thereto, I have the honor to inform you that those who sell locally purchased jewelry are deemed dealers within the purview of Section 182(A)(2) of the National Internal Revenue Code and, therefore, subject to the fixed annual tax (C-13) therein imposed, the amount thereof to depend on their gross annual sales during the preceding calendar year. Those who are engaged in such business for the first time and, therefore, have not as yet any gross annual sales on which the tax can be based, should upon engaging in said business, pay the amount of P10.00 as fixed annual tax. Accordingly, your client, Esmeralda, Inc., should, upon engaging in the business hereinabove mentioned, pay the amount of P10.00 and, thereafter, the amounts fixed in Section 182(A)(2) of the Tax Code. llcd Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue