BIR Ruling

October 20, 1970 Mr. Sotero T. Segui Certified Public Accountant 10 North Lawin, Philamlife Homes Quezon city S i r : This refers to your letter dated October 8, 1970 requesting information as to whether or not a beach resort is subject to the amusement tax imposed in Section 260 of the Tax Code, as amended by Republic Act No. 6110. It is stated in your letter that there is a beach resort in the suburbs; that it has a small snack inside the premises where soft drinks and food are sold; that there is a jukebox where records are played; and that an admission fee of P1.50 is being charged for the use of the swimming pool and the beach. cdta In reply, I have the honor to inform you that under the foregoing facts and circumstances, the operator of the beach resort mentioned in your letter is subject to the annual fixed tax of P100.00 pursuant to Section 182(A)(3)(ii) of the Tax Code, as amended by Republic Act No. 6110 and the admission fees collected by the said operator are subject to the amusement tax prescribed by Section 260 of the Tax Code. Moreover, for operating a snack counter inside the beach resort, the operator thereof is subject to the annual fixed tax of P50.00 and to the 3% tax on his gross receipts from the sale of soft drinks and food pursuant to Section 192(A)(1) and Section 191-A, respectively of the Tax Code. (BIR Ruling No. 70-035). cd Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue