BIR Ruling

June 19, 1973 Mr. Cesar P. Corcuera Philippine Amusement Enterprises, Inc. 731 Aurora Boulevard, Quezon City S i r : This refers to your letter dated April 26, 1973 requesting a ruling as to the various taxes that your company is subject to pay under the existing laws for engaging in the operation of coin operated music machine. In reply, I have the honor to inform you that gross receipts derived from the operation of the coin music machines (juke boxes) which are placed in restaurants, stores and other places where you divide the receipts with the owners of said establishments is not subject to the percentage tax prescribed under Section 191 of the Tax Code, as amended by Presidential Decree No. 69. However, if the juke boxes are leased to the owners or proprietors of said establishments for a fixed monthly rental, then you are a lessor of personal property subject to the P50.00 annual fixed tax prescribed in Section 182(A)(1) of the Tax Code and your gross receipts derived therefrom is subject to the 3% tax prescribed in section 191(17) of the same Code. Moreover all income or earnings derived or received from the operation of these said machines are subject o the income and additional residence taxes. cdtech Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue