Exemption Provided for under R.A. 7432 Does Not Apply to Qualifying Fees Referred to under E.O. 48

September 1, 1994 BIR RULING NO. 134-94 R.A. 7432 000-00 134-94 Philippine Amusement & Gaming Corp. PAGCOR House 1330 Roxas Boulevard Ermita, Metro Manila Attention: Mr . Romeo T . Trio Managing Head Corporate & Legal Services Department Gentlemen : This refers to your letter dated January 14, 1994 stating that Executive Order No. 48 requires collection of qualifying fees for players entering the Philippine Amusement and Gaming Corporation (PAGCOR) casinos; that the Department of Finance is the Agency, responsible for the determination of the amount of qualifying fees and that there were instances when senior citizens have requested for a 20% discount on their qualifying fees pursuant to Republic Act No. 7432, hence you now request information on whether or not the benefits under RA. 7432 can be applied in Executive Order No. 48. In reply, please be informed that the exemption provided for under R.A. 7432 does not apply to qualifying fees referred to under E.O. 48. The 20% discount under R.A. 7432 applies to admission fees charged by theaters, cinema houses and concert halls, circus, carnivals and other places of culture, leisure and amusement. On the other hand, E.O. 48 as implemented by Revenue Regulations No. 6-93 and Revenue Memorandum Circular No. 14-93 speaks of collection of qualifying fees from players entering PAGCOR casinos; that under RR 6-93 the BIR is responsible for the printing of the coupons which shall be pre-printed and pre-numbered and shall contain security marking; the BIR shall issue these coupons to an accountable officer of PAGCOR and that the qualifying fee is imposed upon people who come to it to play in its casinos. Thus, while the qualifying fees are imposed on players, the admission fees referred to in Section 4(b) of R.A. 7432 are charged on those who enter amusement places as observers/viewers but not as players. In view of the foregoing, this Office is of the opinion as it hereby holds that the 20% discount on admission fees in places of amusement like the PAGCOR casinos, granted to Senior Citizens under R.A. 7432 does not apply to qualifying fees referred to in E.O. 48. aisadc Very truly yours, LIWAYWAY VINZONS-CHATO Commissioner of Internal Revenue