Amusement Tax Exemption on Film Admission Receipts

January 2, 1958 BIR RULING NO. 001-58 Mr. Ben R. Mahinay Executive Secretary Philippine International Friendship Organization, Inc. Department of Foreign Affairs Padre Faura, Manila S i r : In reply to your letter of the 15th instant requesting for the exemption from the payment of the amusement tax on the receipts derived from admissions to the benefit premiere showing of the film entitled "Fire Down Below" held at the Capitol Theatre, Manila, on November 22, 1957, by the Philippine International Friendship Organization. I regret to have to inform you that your request cannot be granted by this Office for the reason that according to Section 261 of the National Internal Revenue Code, the 50% exemption of the rates provided in Section 260 of the same Code is allowed only where the admission fees or charges are collected by or for and in behalf of a duly registered charitable institution or association. Since the Philippine International Friendship Organization Inc. is a duly registered charitable institution, it is not, therefore entitled to the benefit defined in said Section 261 of the Tax Code. Very truly yours, (SGD.) JOSE ARAAS Collector of Internal Revenue