Corporate and Dividend Taxes of a Philippine

February 24, 1958 BIR RULING NO. 151-58 2nd Indorsement Respectfully returned to the Honorable, the Undersecretary of Finance, Manila. Puericulture centers, being organized under authority of Department of Interior Order No. 10, series of 1921, are government agencies. As such, activities conducted by them which are governmental in character are exempt from internal revenue taxes. However, in the conduct of other activities, such as the holding of benefit dances, puericulture centers are necessarily subject to tax. Accordingly, the Naga Puericulture Center No. 90 and Maternity House is subject to the amusement tax prescribed in Section 260 of the Tax Code on the admission fees or charges it realized from the holding of the benefit dance alluded to in the basic communication. The fact that, as claimed by its President, the aforenamed puericulture center is "going out of funds" is not a legal ground for exemption from the tax, in question. It may be stated that a copy hereof has, on even date, been furnished the Regional Director, Naga City, for assessment and collection of the amusement tax, plus penalty, due from the Naga Puericulture Center No. 90 and Maternity House. LLpr (SGD.) JOSE ARAAS Commissioner of Internal Revenue