Publishing Letter of Instructions No. 1055

August 27, 1980 REVENUE MEMORANDUM CIRCULAR NO. 40-80 SUBJECT : Publishing Letter of Instructions No. 1055 TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, there is published hereunder the full text of Letter of Instructions No. 1055, defining who are marginal farmers and exempting them from the payment of the fixed and percentage taxes imposed by Section 192(1) and 198 of the National Internal Revenue Code of 1977, as amended. "LETTER OF INSTRUCTIONS NO. 1055 "To : The Minister of Finance Commissioner of Internal Revenue "To uplift the economic well-being of individual farmers engaged in small-scale, subsistence farming in line with the social amelioration program of the Government, a marginal farmer which shall mean an individual engaged in small-scale, subsistence farming, whose sales, barters or exchanges of agricultural products produced by himself do not exceed a gross value of P20,000 per annum, is hereby exempted from the payment of the fixed and percentage taxes imposed by Sections 192(1) and 198 of the National Internal Revenue Code of 1977 as amended. "The Minister of Finance, upon recommendation of the Commissioner of Internal Revenue, shall issue the necessary rules and regulations to implement this Letter of Instructions. "Done in the City of Manila, this 17th day of August, in the year of Our Lord, nineteen hundred and eighty. "(SGD.) FERDINAND E. MARCOS "President of the Philippines" Features of the LOI : 1. For one to be classified as a marginal farmer pursuant to this Letter of Instructions, the following requisites must concur: a. He must be an individual engaged in small-scale subsistence farming; b. He must be the producer of the agricultural products sold, bartered or exchanged by him; and c. His sales, barters or exchanges of agricultural products produced by him do not exceed P20,000 per annum. 2. A marginal farmer shall be exempted from the payment of the fixed and percentage taxes prescribed under Sections 192(1) and 198 of the National Internal Revenue Code. All internal revenue officers and others concerned are enjoined to be guided accordingly and to give this circular as wide a publicity as possible. casia RUBEN B. ANCHETA Acting Commissioner