Exemption from Hotel Room Occupancy Tax - Legal Basis

May 16, 1979 BIR RULING NO. 026-79 Exemption from hotel room occupancy tax legal basis This refers to your letter dated April 27, 1979 requesting that the Nutrition Center of the Philippines be exempted from the payments of the 10% (not 20%) tax on hotel room accordancy for the visiting acrobats from Muhan, China who are invited by the First Lady to do a series of performances in several major cities including Manila on May 10-27, 1979, the problems of which will be for the benefit of/the Nutrition Center of the Philippines. In reply, I have the honor to inform you that this Office finds no legal basis to grant the requested exemption for the reason that the said hotel room occupancy tax is a tax imposed on the proprietors, operators, or keepers of hotels, motels, resthouses, pension houses, lodging houses and resorts pursuant to Section 205-A of the Tax Code of 1977, as amended by Batasang Pambansa Blg. 2. The fact that such tax may intimately be shifted to or passed upon to the hotel guests will not constitute the same as tax payable by said guests or the entity shouldering the expenses of the guests, which in this case is the Nutrition Center of the Philippines. cdt Moreover, Presidential Decree No. 31 which would have exempted foreign tourists and travellers such as the said visiting acrobats from whom China from the payment of the hotel room occupancy that has been repealed by Batas Pambansa Blg. 2 which took effect on April 1, 1979.