BIR Ruling

August 22, 1969 Mr. Claudio V. Pealosa Principal Gumaca Provincial High School Gumaca, Quezon S i r : This is with reference to your letter requesting information as to whether or not benefit shows which you intend to hold in order to raise funds for educational purposes is subject to internal revenue taxes. It is represented that no part of the fund will inure to the benefit of any private individual or association. In reply thereto, I have the honor to inform you as follows: Section 261 of the Tax Code grants 50% exemption from the amusement taxes imposed in Section 260 of the same Code to duly registered charitable institutions or associations only. Inasmuch as your school is not a duly registered charitable institution or association it is not exempt from the payment of the amusement tax. Liability to the said tax accrues on the date of admission to the amusement place of the person paying such admission fees, pursuant to Section 260 of the National Internal Revenue Code. A true and complete return of the amount of gross receipts derived from the benefit shows must be filed and the tax paid within ten days after the ended of the month within which the performance was held. As to the holding of the benefit show no BIR permit is required. The Amusement Tax Regulations require that the price of the tickets be printed thereon. Section 17 of the Bookkeeping Regulations also require that the tickets be registered with the Bureau of Internal Revenue before the same are sold or disposed of. In this connection, you are informed that Republic Act No. 1284, which took effect on June 14, 1955, exempts from the amusement tax athletic meets conducted by public schools, provided that the net proceeds therefrom shall accrue to the athletic fund or library fund of the school. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue