BIR Ruling

April 10, 1973 2nd Indorsement Respectfully returned to the Honorable, the Executive Secretary, thru the Honorable, the Secretary of Finance, Manila, the attached papers bearing on the request on the request of the Olongapo Niteclub, Bar, Hotel and Restaurant Association, Inc., Olongapo City, with the intervention that the U.S. Navy . . . coming to Olongapo City when their ship anchors at Subic Bay for rest and recreation or ship repair, visiting other places in the Philippines are considered foreign travelers and as such are exempt from the hotel room tax and other charges pursuant to Presidential Decree No. 31, dated October 27, 1972. The exemption refers to the internal revenue and science documentary stamps taxes on hotel receipts and the 3% percentage tax on the hotel room occupancy for the donation of their stay in the Philippines. The exemption is subject to the condition that the payment of the hotel room charges is effected in any of the acceptable foreign currencies (Section 2 and 3, Revenue Regulations No. 10-72 dated November 8, 1972.) (SGD.) MISAEL P. VERA Commissioner of Internal Revenue