BIR Ruling

September 10, 1973 Republic of the Philippines Golf Association 717 Mariwasa Building Aurora Blvd., Quezon City Attention: Mr . Enrique C . Quema Executive Vice-President Gentlemen : This refers to your letter dated August 27, 1973 requesting tax exemption on the charges on hotel accommodations of foreign participants to the 13th South East Asia Amateur Golf Team Championship. It is represented that the Republic of the Philippines Golf Association (RPGA) will be the host to the participants of the Championship which will be held at the Wack Wack Golf and Country Club on December 12-15, 1975; that under the rules of the tournament which is a yearly affair, the host country provides free hotel accommodations to the visiting teams; that expected to participate aside from the Philippines are Malaysia, Indonesia, Singapore, Thailand, Burma, Hongkong, and perhaps South Vietnam and Shri-Langka, Ceylon; and that the RPGA will have to pay for the hotel accommodations in pesos. In reply, I have the honor to inform you that the above-named participants are considered foreign tourist and travellers. Hence, said participants will be exempt from the documentary and science stamp taxes on the hotel receipts and the 3% percentage tax on the hotel revenue from hotel room occupancy, in accordance with Presidential Decree No. 31 dated October 27, 1972. The said exemption accorded to the participants is, however, subject to its condition that the payment of the hotel room charges is effected in any of the acceptable foreign currencies. (Revenue Regulations No. 10-72 dated November 8, 1972) In view thereof, it would seem that, if the hotel charges will be shouldered by that Association in the Philippines pesos, exemption cannot be availed of. aisadc Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."