Whether the Province of Samar is Entitled to a Share in the Distribution of Proceeds of the Basic Real Property Tax from Component Cities

November 16, 1988 BIR RULING NO. 546-88 103 (j) 137-84 546-88 M a d a m : This refers to your letter dated October 14, 1988 stating that your new client is planning to engage in the business of Educational Plans; that its primary purpose is to promote, develop and sell educational assistance as well as other types of pre-need and in buying and selling stocks. You want to know whether your client is subject to the percentage tax and at what rate. In reply, please be informed that for engaging in the business of selling pre-need plan and in buying and selling stocks, your client is classified as dealer in securities; hence, shall pay a tax equivalent to 6% of its gross income under Section 116 of the Tax Code, as amended, but exempt from the value-added tax pursuant to Section 103(j) of the same Code. cdta Very truly yours, (SGD.) BIENVENIDO A. TAN, JR. Commissioner