BIR Ruling [UN-426-95]
BIR Ruling [UN-426-95] • Bureau of Internal Revenue (BIR) Issuances • Rulings (Unnumbered) • Dec 4, 1995
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December 4, 1995 BIR RULING [UN-426-95] Vicente E. Reyes and Associates 22 Tirad Pass Quezon City Attention: Mr . Amado P . Galang Partner Gentlemen : This refers to your letter dated August 2, 1995 in behalf of your client, Mercury Group of Companies, Inc., requesting for a ruling on the proper basis of computing the value-added tax (VAT) of an insurance agent. In reply, please be informed that an insurance agent is considered an independent contractor; hence, the earnings of an insurance agent which consist of commissions paid by the insurance company is subject to VAT beginning January 1, 1988. In other words, the proper basis of computing the value-added tax liability of an insurance agent is, its commission income. (BIR Ruling No. 448-88 dated September 15, 1988) cdta Very truly yours, ALICIA P. CLEMENO Assistant Commissioner (Legal Service)
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