Person Baking Bread for the Purpose of Sale is Considered a Manufacturer

November 12, 1959 BIR RULING NO. 584-59 Mrs. Catalina U. Amores Atimonan, Quezon M a d a m : Your letter dated October 9, 1959 was referred to this Office for action and in reply thereto, I have the honor to inform you as follows: A person baking bread for the purpose of sale is considered a manufacturer subject to a fixed annual tax of P20.00 and to 7% sales tax on his sales thereof, pursuant to sections 182(A) and 186 of the Tax Code. However, pursuant to sections 182(C)(4) and 188(d) of the Tax Code, producers of commodities of all classes working in their homes, consisting of parents and children living as one family, when the value of each day's production by each person capable of working is not in excess of five pesos are exempted from the aforesaid fixed and percentage taxes. Accordingly, when the value of each day's production by each member of your family capable of working is not in excess of five pesos, exclusive of the value of the bread consumed by your family, you are exempt from said taxes. But, when the value of each day's production by each member of your family capable of working is more than five pesos, you are subject to said taxes. casia Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue