BIR Ruling

September 10, 1973 Lt. Dante A. Cimatu Commanding Officer 222nd PC Company Antipolo, Rizal S i r : This refers to your letter dated September 8, 1973 requesting information whether taxi-dancers in cabarets, cocktail lounges and bars fall within the purview of the term hostesses in Section 182(B) of the Tax Code and therefore liable to the payment of the occupation tax. cdta In reply, I have the honor to inform you that under Section 182(B)(2)(a) of the Tax Code, hostesses are subject to the P50.00 annual fixed occupation tax. There is no provision in the Tax Code imposing a fixed tax on taxi-dancers or professional dancers. Section 2 of Revenue Regulations No. 14-67 dated May 3, 1967 defines a "professional hostess" and a "professional dancers" as follows: "(p) 'Professional hostess' shall include any woman employed in public resorts, such as cabarets, night clubs, and day clubs, to provide partners for pleasure seekers who may desire for one, usually for an honorarium in an amount discretionary to the pleasure seekers. "(q) 'Professional dancer' shall include any woman employed in cabarets or similar establishments who offers herself as dancing partner for a fixed fee for all such who may pick her." From the foregoing definition, it seems clear that, for internal revenue purposes, a professional dancer (taxi-dancer) is not considered a professional hostess. Such being the case, a professional dancer (taxi-dancer) is not subject to the occupation tax imposed for professional hostess. It is understood that the professional dancer shall confine her activities to those pertaining to her occupation which consists of offering herself as dancing partner for a fixed fee for anyone who may pick her, as define above. The moment she engages in activities pertaining to that of a professional hostess, she becomes liable to the occupation tax prescribed in Section 182(B) of the Tax Code. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."