BIR Ruling No. 026-83

February 18, 1983 BIR RULING NO. 026-83 Gentlemen : This refers to your letter dated October 21, 1982 requesting in effect, exemption from the common carriers tax on the transportation, and sales tax on the meals, room and accommodation of the delegation to 4th IFYE World Conference 1982. It is represented that the International Farm Youth Exchange (Philippines), Inc., through the Ministry of Agriculture and the Ministry of Tourism, with the assistance of the Philippine Government, will host the 4th IFYE World Conference from October 29 until November 6, 1982; that the participants of the conference represent more than 50 different countries, most of them former IFYE Exchanges; that you are expecting over 300 foreign delegates or no less than 750 participants, including the Filipino counterparts; and as host to these delegates and/or participants, you will pay for their rooms and meals at Manila Midtown Hotel, Philippine International Convention Center and University of Life; and for transportation with Sarkies Tours. In reply, please be informed that this Office finds no legal basis to grant your request for the reason that the 10% hotel room occupancy tax is imposed on the proprietors, operators, or keepers of hotels, pursuant to Section 205-A of the Tax Code, as amended by Batas Pambansa Blg. 2; and the 3% caterer's tax is imposed on the proprietors or operators of restaurants, bars, cafes, refreshment parlors, and other eating places under Section 206 of the same Code, as amended. In other words, the hotel room occupancy tax and the 3% tax on food are directly payable by the said establishments. The fact that the said taxes may ultimately be shifted to or passed on to the participants of the IFYE World Conference and to be paid by that organization with Government assistance will not constitute the same as taxes payable by said participants or by you for purposes of the exemption. For the same reasons, you are not also exempt from the carrier's tax prescribed by Section 207 of the Tax Code because the same is imposed on the lessee, transportation contractors, persons who transport passengers or freight for hire, and common carriers; and not on the passengers thereof. cdtech Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue