BIR Ruling [DA-290-00]

July 25, 2000 BIR RULING [DA-290-00] Hon . Antonio F . Corrado Assistant Secretary for Legislation Presidential Legislative Liaison Office Malacaang S i r : This refers to your letter dated March 20, 2000 requesting our comments and recommendations on House Bill No. 442 and Senate Bill No. 657 both of which are entitled: " AN ACT CREATING THE FILM DEVELOPMENT AND INCENTIVES BOARD, DEFINING ITS POWERS AND FUNCTIONS, ABOLISHING FOR THE PURPOSE, THE FILM DEVELOPMENT FOUNDATION OF THE PHILIPPINES, INC . AND THE FILM RATINGS BOARD, AND FOR OTHER PURPOSES " The Bureau of Internal Revenue recognizes the need to upgrade the artistic and technical quality of local films. We, therefore, do not offer any objection to the proposal to grant tax incentives to local film producers as contemplated in Sections 12, 13 & 14 of H.B. No. 442 and Section 12 of S.B. No. 657. It is noted, however, that the proposed tax incentives pertain to amusement tax deduction, remittances and allocation which are the concern of local governments particularly the cities and municipalities in Metro Manila and other highly urbanized cities in the Philippines. Accordingly, the comments of the local governments concerned should be secured since they are expected to register opposition being the ones directly affected by the proposed bills. Very truly yours, Commissioner of Internal Revenue By: (SGD.) LILIAN B. HEFTI Deputy Commissioner Legal and Inspection Group