BIR Ruling

October 2, 1973 The Executive Director Philippine Tourist and Travel Association, Inc. Plywood Industries Building T. M. Kalaw Street, Manila S i r : In connection with the implementation of Presidential Decree No. 31 exempting foreign tourists and travellers from taxes on receipts from hotel room occupancy. I have the honor to inform you that, according to the Central Bank, the herein below listed travel agencies and our operators are authorized and duly licensed foreign exchange dealers and that the dollar equivalent of the peso payments they make to the hotels for and in behalf of the tourists covered by package hotels arranged by them are duly accounted for as part of the country's international reserves. 1. Travelworld, Inc. 2. Mantonus, Inc. 3. Mytravel-Pacific Leisure 4. Danfil Express 5. Sarkies Tour 6. Allen-Reycor Tour and Travel 7. Baron Travel Corporation 8. Carmen's Tourist and Travel Agency 9. David's Travel Agency 10. Everett Travel Service 11. Gentours Inc. 12. House of Travel 13. My Travel International (Asia), Ltd. 14. New City Travel Agency 15. Philippine Airlines 16. Philippine American Travel Agency 17. Sharp Travel Service 18. Smith Bell Travel & Tours 19. Traders Travel Corporation 20. Travelplan, Inc. 21. Coachmen Express, Inc. 22. Fuji (Phil.) Travel Service, Inc. 23. Rajah Tours Philippines, Inc. 24. Worldwide Travel Services, Inc. 25. G. S. Transport Corporation The tourists, therefore, covered by packaged tours sponsored by the abovelisted tour operators and travel agencies may be exempted from the taxes on hotel room occupancy even if the sponsor pay the hotels concerned in pesos for and in behalf of the tourists. However for purposes of record, after the tour operators have sold to authorized agent (commercial) banks the foreign exchange received by them corresponding to the changes on their hotel room occupancy, they must furnish the hotel concerned with information as to the amount of dollars they received and sold and evidence of sale and the corresponding package tour covered thereby. The amount of foreign currency receipts corresponding to each sponsored packaged tour must tally with the hotels' room bills as indicated in the hotels' tourists registers. This letter may serve as guide to hotels concerned in the implementation of Presidential Decree No. 31. cdta Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5