10% Tax on Hotel Room Occupancy

June 16, 1980 BIR RULING NO. 071-80 The Ministry of Foreign Affairs M a n i l a Attention: Mr . Sime D . Hidalgo Acting Director-General ASEAN National Coordinating Agency of the Philippines Gentlemen : This refers to your letter dated December 28, 1979 requesting exemption from the payment of the 10% tax on hotel room occupancy for the 60 ASEAN participants in the ASEAN Disaster Preparedness Seminar held at the Hyatt Hotel. In reply, I have the honor to inform you that this Office finds no legal basis to grant the request for exemption on the ground 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 Batas Pambansa Blg. 2. The fact that such tax may ultimately be shifted to or passed on to the hotel guests will not constitute the same as tax payable by said guests or the entity shouldering the expenses of the guests. cdti Moreover, P.D. No. 31 which exempted foreign tourist and travellers such as said ASEAN participants from the payment of the hotel room occupancy tax, has been repealed by Batas Pambansa Blg. 2 which took effect on April 1, 1979. (BIR Ruling Nos. 22-79). Very truly yours, RUBEN B. ANCHETA Acting Commissioner