BIR Ruling No. 177-61

May 23, 1961 BIR RULING NO. 177-61 San Miguel Brewery, Inc. Manila Gentlemen : Reference is made to your letter dated March 21, 1961, stating that the Royal Ballet of the Royal Opera Hose, Covent Garden, Ltd. will perform in Manila from May 19 to 21, 1961 assisted by the Manila Symphony Orchestra; that is a non-profit-making organization; that for each performance, it will be paid $5,000.00 which amount will be remitted to London; that the amount to be paid to said organization will be enough only to cover the salaries and wages, touring expenses, hotel accommodations and subsistence, and transportation expenses of the members thereof numbering sixty-six; and that the net proceeds to be derived from the sale of the admission tickets over and above the fees and expenses directly connected with the performances will be donated to the Philippine Cancer Society. You now request confirmation of your opinion that: cdt "1. The fees to be remitted are not subject to income tax and/or withholding tax. "2. The admission tickets will be exempt from the amusement tax. "3. The individual members of the troupe are not subject to any occupation and/or income tax during their stay in the Philippines. In answer thereto, I have the honor to inform you that, if the aforenamed organization is organized and operated exclusively for cultural purposes no part of the net income of which inures to the benefit of any private stockholder or individual, it is exempt from Philippine income tax on the compensation it will receive for the performances in question, pursuant to Section 27(e) of the Tax Code. Being exempt from income tax, said compensation is not subject to withholding. The individual members of the organization are not subject to the occupation tax. However, they are subject to the income tax on their respective salaries or wages to be received by reason of the performances at the rates prescribed by Section 21 of said Code, pursuant to Section 22(a) thereof. The tickets for admission to the performances are exempt from the amusement tax prescribed in Section 260 of the same Code, provided that said performances fall under one or more of the activities enumerated in Republic Act No. 722. cdpr Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue By: (SGD.) MISAEL P. VERA Deputy Commissioner of Internal Revenue