Taxability on the Business of Providing Special Watchmen or Guards to Its Patrons

November 26, 1958 BIR RULING NO. 686-58 Mr. Cayetano S. Baclig 718 Granate St. Quiapo, Manila S i r : In reply to your letter dated November 17, 1958, requesting information as to whether or not your employer, Mr. Teodorico M. Laserna, is required to pay 3% of his gross receipts derived from his business of providing special watchmen or guards to its patrons, under the business name and style, "Visayan Security Service Agency", I have the honor to inform you in the affirmative. A watchman or protective agency, such as the case of the "Visayan Security Service Agency", for purposes of taxation, is considered a business agent, subject to an annual fixed tax of P75.00 pursuant to Section 182(A)(3)(w) and a percentage tax equivalent to 3% of his monthly gross receipts as prescribed in Section 191, both provisions of the Tax Code, as amended. LLphil Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue