Payment of the Broker's Tax at the Place of Business
BIR Ruling No. 591-58 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Oct 10, 1958
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October 10, 1958 BIR RULING NO. 591-58 Everett Steamship Corporation 245 Juan Luna Manila Gentlemen : This has reference to your letter dated September 20, 1958 requesting the reconsideration of the ruling contained in our letter to you dated September 10, 1958 to the effect that payment of the broker's tax by your travel agent at Cebu City should be made thereat, the same being the place of his business. You seem to be of the impression that the amount you pay to your agent is deductible from your gross compensation. Hence you are apprehensive of the fact that your agent might not pay the tax, in which case, you shall be held liable therefor. Please be informed that the 6% tax payable by you is based on your total gross compensation without deduction. Your taxable compensation, therefore, includes the commission you pay to your agent. Your agent, on the other hand, is, in his personal capacity, liable to tax on the total compensation he receives from you. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue
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