BIR Ruling

September 7, 1971 Action Line c/o The Manila Times P. O. Box 775 Manila Gentlemen : This refers to the letter dated June 23, 1971, of Mr. Vic Samaco of the GSIS, wherein he posed the following questions: aisa dc (1) As to whether or not night club hostesses are required to issues receipts for payments for services rendered in entertaining their customers; (2) As to whether or not the night club's share of the fees for services rendered by their hostesses forms part of the club's income; and (3) Finally, as to whether or not the receipts, if required to be issued by the hostesses be registered with the Bureau of Internal Revenue. In reply, I have the honor to inform you that since hostesses are subject to internal revenue taxes, they are required to issue receipts for services rendered to their customers. (Sec. 204, Tax Code) cdt On the second query, the club's share of the service fee received by their hostesses form part of its income and shall be included as part of the gross receipts of the club to be declared in its monthly return for purposes of the amusement tax. (Sec. 260, Tax Code). Finally, since hostesses are required to issue receipts to their customers for payment of their services, said receipts should be registered with this Office before using them. (Sec. 19, Bookkeeping Regulations). cdi Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue