Determination of Rates of Amusement Tax; National and Municipal Tax Imposed on Cine Operators

October 8, 1970 BIR RULING NO. 044-70 Determination of rates of amusement tax; National and municipal tax imposed on cine operators . This is with reference to the telegram dated April 13, 1970 of Mr. N. E. Remitio, Kidapawan Cotabato, requesting information whether the term "admission price" (amount paid for admission) referred to in Section 260 of the Tax Code, as amended by Republic Act No. 6110, means the price paid by moviegoers or the price paid minus the national and municipal taxes. In reply thereto, I have the honor to inform you that for the purpose of determining the rates of amusement tax either at 20% or 30%, as the case may be, the following rules shall be applied: 1. If the amount of the taxes (including municipal or city tax, if imposed) are indicated on the face of the admission ticket, the basis of the tax is the price or amount paid for the admission is P1.00 (excluding municipal tax of P0.05 and national tax of P0.20 indicated on the face of the ticket) the taxable amount paid for admission is P1.00, and the tax at the rate of 20% is P0.20; 2. If the amount of the taxes (national, city or municipal) are not indicated on the face of the admission ticket, the price or amount paid for admission shall not be deemed to include the amount of such tax or taxes and therefore, such price or amount paid for the ticket shall be the basis for the purpose of applying the corresponding rate at 20% or 30%, as the case may be. Thus, if the amount paid for admission is P1.20, without indicating on the face of admission ticket any amount corresponding to the amusement tax or taxes, the total amount of P1.20 shall be subject to the tax at the rate of 30% or P0.36. (Revenue Memorandum Circular No. 11-70, dated February 12, 1970. casia The foregoing rules have been promulgated to implement the provision of Section 260 of the Tax Code, as amended by Republic Act No. 6110. In other words, under these rules, if the ticket indicated the amount of national and municipal taxes, for the purposes of the amusement tax, means amount paid by moviegoers less said national and municipal taxes. On the other hand, if the said taxes are indicated, the admission price means the amount paid by moviegoers, without any deduction.