BIR Ruling

July 21, 1970 Action Line c/o The Manila Times P. O. Box 775 Manila S i r : This refers to the letter of Mr. Ricardo U. Coronado of 58 Aramismis, Project 7, Quezon City requesting information as to the amount of fixed taxes due on three second run theaters. In reply, I have the honor to inform you that under Section 178 of the Tax Code the tax on business is payable for every separate and distinct establishment or place where business subject to tax is conducted. This provision contemplates a case where a person, firm or company who or which, although engaged in only one particular class of business, nevertheless, maintains two or more separate and distinct branches or establishments for the operation of said business, in which case, the fixed tax is imposed upon every separate and distinct branch or establishment where the business subject to tax is conducted Thus, every theater is a separate or distinct establishment or place where business is conducted. Therefore, every second run theater is subject to the annual fixed tax of P200.00 prescribed by Section 182(A)(3)(hh) of the Tax Code, as amended by Republic Act No. 6110. cdti Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue