BIR Ruling

October 23, 1972 Mr. Leandro D. Enriquez President Miss Asia and Mutya ng Pilipinas Beauty Pageants Sulu Hotel, Matalino Street Civic Center, Quezon City S i r : This refers to your letter dated August 3, 1972 requesting tax exemption of the cash prizes received by the winners of the Mutya ng Pilipinas and Miss Asia Beauty Pageants for 1972. acd In reply, I have the honor to inform you that cash prizes won by candidates in beauty contests constitute income of said candidates, returnable for income tax, purposes, unless exempt from tax by law. Inasmuch as there is no law or statute exempting the cash winnings of Mesdames Janet Coutts, Dorit Bruckzaler, Vivienne Hamlin, Srunya Krajungsunk and Yvette Alfon, the same are subject to income tax. Accordingly, being non-resident aliens engaged in trade or business in the Philippines, Mesdames Coutts, Bruckzaler, Hamlim and Krajungsunk's entire net income received from all sources within the Philippines are subject to income tax at the rates prescribed in Section 21 of the Code. As regards the cash prized won by Miss Alfon as Mutya Ng Pilipinas, and as 1st Runner-up in the Miss Asia Tilt, the same are subject to income tax at the graduated rates prescribed by Section 21, also of the same Code. Very truly yours, MISAEL P. VERA Commissioner of Internal Revenue