BIR Ruling No. 077-61

March 17, 1961 BIR RULING NO. 077-61 This is with reference to your letter . . . requesting information from this Bureau under the following facts as presented: prcd "I am a cinematograph operator in this town since December 1954 up to the present. The admission tickets are: P0.40 for adults and P0.20 for children and for which I pay P0.06 as amusement tax on the P0.40 ticket. Recently, the Municipal Treasurer of this town has notified me, thru my employee, that instead of P0.06 which I used to pay on the P0.40 admission ticket, I should now pay P0.08 amusement tax on the P0.40 ticket because amusement taxes on theaters and other amusement places have been increased since 1957. As far as I know no such amendment has been made on our Tax Code with respect to amusement taxes. Will you please enlighten me on this Matter?" Based on the foregoing facts, I have the honor to inform you that in determining the rate of tax due on admission to amusement places, such as theaters, the amount of the national amusement tax should first be deducted from the amount of admission indicated on the face of the admission tickets. [Sec. 3(b), Revenue Regulations No. V-57]. Accordingly, if the amount paid for admission as in the instant case is P0.40, the amount paid for admission is actually less than P0.40 exclusive of the tax which will more or less fall under bracket 29-39 centavos, subject to P0.06 rate of tax as prescribed in Section 260(b) of the Tax Code, as amended. cdpr You committed no error, therefore, in paying the amount of P0.06 as national amusement tax on the P.40 admission ticket used in your amusement place (cinematograph).