BIR Ruling

September 26, 1968 Mr. Lim Leong Seng Comptroller-General of Inland Revenue Bangunan, Suleiman Kuala Lumpur, Malaysia S i r : This refers to your letter dated July 8, 1968 addressed to Mr. Angel Q. Yoingco, Executive Director of the Joint-Legislative-Executive Tax Commission, Manila, Philippines, requesting information on the question of whether or not non-resident international artists or public entertainers performing as such in the Philippines and receiving income therefrom are exempt from the payment of income tax. In reply, I have the honor to inform you that non-resident aliens who derive income in the Philippines by performing as international artists or public entertainers are subject to the payment of income tax. They are, however, entitled to a personal exemption in an amount equal to the exemption allowed by the income tax law in the country of which they are subjects or citizens to citizens of the Philippines not residing in such country, but not to exceed the amount fixed in the law as exemption for citizens or residents of the Philippines. If the country of the non-resident alien does not have any income tax law, or even if it has such a law but the same does not allow any exemption to citizens of the Philippines not residing in that country, the non-resident alien will not be entitled to personal exemption. Moreover, non-resident aliens desiring to take advantage of the benefit of the said tax exemption are required to file a true and accurate return of their total income from all sources within the Philippines with the Commissioner of Internal Revenue. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue