Request for Exemption from Payment of Certain Taxes on the Production and Theatrical Release of a Feature Film on Jose Rizal

January 2, 1996 BIR RULING NO. 004-96 100 102 000-00 004-96 National Centennial Commission 2/F JMT Condominium, ADB Ave. corner Julia Vargas Avenue Ortigas Center, Pasig City Attention: Mr . Salvador H . Laurel Chairman Gentlemen : This refers to your letter dated November 23, 1995 stating that the Rizal's Martyrdom Centennial Commission (RMCC) was created under Proclamation No. 346 of President Fidel V. Ramos; that the Commission is tasked to undertake programs and activities to commemorate the martyrdom of our National Hero; and that you have appointed Cinemax Studios to produce a feature film on Jose Rizal which will be one of the major highlights of next year's celebration, the 1996 Rizal Centenary. LexLib In connection therewith, you are requesting exemption from the payment of amusement tax, specific tax and value-added tax on rental of equipment and facilities; raw stock and other film supplies, and other taxes relative to the production and theatrical release of the movie. In reply thereto, please be informed that you are not subject to income tax and VAT relative to the production and theatrical release of the feature film on Jose Rizal which is the major highlight of year's celebration of the 1996 Rizal Centenary. However, the lessor of the equipment and facilities for the production of the film shall be subject to VAT under Section 102(a) of the Tax Code, as amended. Likewise, the seller of the raw stock and other film supplies shall be subject to VAT under Section 100 (a) of the Tax Code, as amended, although the cinematographic film which will be used for the production of said feature film is not subject to excise tax under Section 147 (b) (1) of the Tax Code, as amended. llcd Finally, your request for exemption from amusement tax should be addressed to the Department of Finance which has jurisdiction on the matter. Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue