Amusement Tax

July 25, 1979 BIR RULING NO. 067-79 Amusement Tax This refers to your request for revenue assistance regarding the proposed charity fashion show which you will stage at the Philippine Plaza Hotel Grand Ballroom on August 3, 1979, the proceeds of which will be given to the Sapang Palay Rehabilitation Center, an agency under the Ministry of Social Services and Development. In reply, please be informed that the admission fees to the fashion show will be subject to the amusement tax which is now being collected by the local government concerned in accordance with Presidential Decree No. 231, as amended. Nevertheless, the tickets to be issued by you shall be registered with this Bureau prior to the use thereof, pursuant to Section 17 of Revenue Regulations No. V-1, otherwise known as the Bookkeeping Regulations. (BIR Ruling No. 75-003 dated May 6, 1975) Any income to be derived by you from the show is subject to income tax and should, therefore, be declared as part of your gross income for the current year for income tax purposes. Since the donation will be made to an agency of the National Government, the same is exempt from the gift tax, pursuant to Section 123(a)(2) of the Tax Code of 1977. Finally, the donation is deductible from your gross income for income tax purpose but only to the extent of 6% of your taxable net income. (Sec. 30(h), Tax Code of 1977)