BIR Ruling

April 23, 1970 Christian Welfare Movement Bo. Kapitolyo, Pasig Rizal Attention: M . M . Crescini, Jr . President Gentlemen : This is with reference to your letter dated April 14, 1970 requesting exemption from the payment of amusement tax on the proceeds from the proposed Grand Fair which will be sponsored by commercial establishments and community organizations. It is alleged that the proceeds from your said proposed project will inure to the benefit of the handicapped and indigent families of Pasig, Rizal. aisa dc In reply, I regret to inform you that your request cannot be granted for lack of legal basis. Under Section 261 of the Tax Code, the exemption of 50% amusement taxes imposed in Section 260 of the same Code, as amended by Republic Act No. 6110, is granted only to duly registered charitable institutions or associations. Inasmuch as the Christian Welfare Movement is not a duly registered charitable institution or association, the same is subject to the payment of the amusement tax on the admission fees to the aforesaid Grand Fair. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue