Practice question
A distributor maintains a genuine branch sales outlet in Municipality B, which makes and records the transaction. Its principal office is in Municipality A. Assume the transaction falls under Section 150(a), with no special factory-allocation issue. Municipality A claims the sale solely because the head office is there. Which locality is entitled to the tax on the stated branch sale under that rule?
- The owner’s birthplace
- Municipality B, where the branch or outlet making and recording the sale is located
- Both automatically tax the entire sale without limitation
- Any locality selected by the buyer after payment
- Only the national BIR
Legal references
- RA7160, Sections132,143,146 and150: https://lawphil.net/statutes/repacts/ra1991/ra_7160_1991.html
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