BIR Ruling No. 142-83

August 4, 1983 BIR RULING NO. 142-83 Gentlemen : This refers to your letter dated April 5, 1983 requesting a ruling as to the amount of tax to be withheld from the talent fee which will be paid to Mr. Dennis Hartley for his performance in your stage presentation of the play "Dracula". It appears that Mr. Hartley is a British citizen and an employee of the British Airways in London, United kingdom, but not a professional actor. cdtech In reply, I have the honor to inform you that under Revenue Regulations No. 13-78, as amended by Revenue Regulations No. 6-79, implementing Presidential Decree No. 1351, now Section 53(f) of the Tax Code, payments only to persons enumerated therein are subject to the withholding tax. Considering that your money payments to Mr. Hartley for his performance in your stage presentation of the play "Dracula" is not among those specific in said Regulations, said payment is not subject to the expanded withholding tax. However, the talent fee which will be paid to Mr. Hartley is subject to Philippine income tax at the rate prescribed by Section 22 of the Tax Code, as amended, depending on his length of stay in the Philippines during the taxable years. A non-resident alien individual who comes to the Philippines and stays therein for an aggregate period of more than 180 days during any calendar year shall be deemed a non-resident alien doing business in the Philippines. (Sec. 22 (a)(l), Tax Code.) Accordingly, if on the year you had your stage presentation, Mr. Hartley stayed in the Philippines for less than 180 days, he is considered a non-resident alien not doing business in the Philippines, and, therefore, his entire income received from all sources within the Philippines shall be subject to a tax equal to 30% of such income. However, if his stay in the Philippines exceeded 180 days, he shall be considered a non-resident alien engaged in trade or business in the Philippines and shall be subject to tax in the same manner as resident citizens and aliens on taxable net income received from all sources within the Philippines. Very truly yours, (SGD.) RUBEN B. ANCHETA Acting Commissioner Bureau of Internal Revenue