BIR Ruling No. 186-82

May 26, 1982 BIR RULING NO. 186-82 205-A 010-80 186-82 Hotel Intercontinental Manila P.O. Box 731 Makati, Metro Manila Attention: Miss Rose A . Hilario Director of Marketing Gentlemen : This refers to your letter to the Minister of Finance dated February 4, 1981, relative to the request of MR. HANS A.H. DALL, FAO Representative, for waiver of the 10% hotel room occupancy tax added to the hotel bills of FAO officials, staff and consultants during the period of their stay in the Philippines. In reply, please be informed that Section 205-A of the Tax Code imposed on proprietors, operators or keepers of hotels, etc. a tax equivalent to 10% of their gross receipts derived from hotel room occupancy. As said tax is levied on, and payable by, the proprietors, operators or keepers of hotels, it cannot be said that it is payable by the FAO officials concerned although it would be ultimately passed on to their bills as hotel guests. Besides, the following provision of the Convention on the Privileges and Immunities of the United Nations, which became effective with respect to the Philippines on October 28, 1947, does not exempt representatives of members to the principal and subsidiary organs of the United Nations from excise taxes: cdt Article IV The Representative of Members "Section 11. Representatives of members to the principal and subsidiary organs of the United Nations and to conferences convened by the United Nations, shall, while exercising their functions and during the journey to and from the place of meeting, enjoy the following privileges and immunities: xxx xxx xxx "(g) Such other privileges, immunities and facilities not inconsistent with the foregoing as diplomatic envoys enjoy, except that they shall have no right to claim exemption from customs duties on goods imported (otherwise than as part of their personal baggage) or from excise duties or sales taxes." Based on the foregoing premises, there is no legal basis for the grant of exemption to FAO officials from the hotel room occupancy tax prescribed under Section 205-A of the Tax Code. cdti Very truly yours, RUBEN B. ANCHETA Acting Commissioner