10% Hotel Room Occupancy Tax — Diplomatic Representatives

July 22, 1981 BIR RULING NO. 117-81 205-A 059-80 117-81 Australian Embassy P.O. Box 1274 MCC Makati, Metro Manila Attention: Mr . Wayne Armitage Acting First Secretary (Admin . ) and Consul Gentlemen : This refers to your letter dated November 25, 1980 requesting advice whether the Australian Embassy or its diplomatic representatives are exempt from the payment of hotel room occupancy tax. cdt Under Article 34 of the Vienna Convention on Diplomatic Relations adopted on April 18, 1961, diplomatic agents shall be exempt from all dues and taxes, personal or real, national, regional or municipal, except: (a) indirect taxes of a kind which are normally incorporated in the price of goods or services; (b) dues and taxes on private immovable property situated in the territory of the receiving state, unless he holds it on behalf of the sending state for the purpose of the mission; (c) estate, succession on inheritance duties levied by the receiving State, subject to the provisions of paragraph 4 of Article 39; (d) dues and taxes on private income having its source in the receiving state and capital taxes on investments made in commercial undertakings in the receiving State; (e) charges levied for specific services rendered; (f) registration, court or record fees, mortgage dues and stamp duty, with respect to immovable property, subject to the provisions of Article 23. It is clear from the foregoing that the tax exemptions of diplomatic representatives do not include exemption from the excise taxes such as the 10% hotel room occupancy tax falling under paragraph (a) above. Accordingly, no exemption from the payment of the said 10% tax prescribed by Section 205-A of the Tax Code, as amended, can be extended to the diplomatic representatives of your Embassy. cdtech Very truly yours, RUBEN B. ANCHETA Acting Commissioner