Person Engaged in the Business of Promoting Film Exhibitions and/or Other Forms of Amusement

April 28, 1960 BIR RULING NO. 227-60 Miss Melitona Mendoza 734 Fajardo, Juan Luna Tondo, Manila M a d a m : In answer to the queries posed in your letter dated March 29, 1960, I have the honor to inform you as follows: lexlib A person engaged in the business of promoting film exhibitions and/or other forms of amusement is not subject to the occupation tax nor to the 3% contractor's tax prescribed in section 182(B) (formerly section 201) and section 191 (not section 183) of the National Internal Revenue Code, respectively. Neither is he subject to the amusement tax imposed in section 260 of said Code, the rate of which varies depending upon the amount paid for admission to the place of amusement, unless he is at the same time the proprietor, lessee or operator of the place. No permit is necessary before one may engage in the promotion business. In the case of Wong and Lee vs. Collector of Internal Revenue et al. (G.R. No. L-10155, August 30, 1958), the Supreme Court had occasion to rule on the exemption from the amusement tax of ballets, dramas, flower shows and other forms of amusement mentioned in Republic Act No. 722. There it was held that the exemption contemplated by Republic Act No. 722 refers to exhibitions or performances which have for their primary purpose the propagation and development of art and culture and where the element of profit is only incidental. As a rule, regardless of the kind or nature of the amusement, tickets for admission thereto priced at P1.00 or more are subject to the amusement tax at the rate of 30%. Admission tickets to places of amusement located within the City of Manila should be presented for registration to B.I.R. Regional District No. 3, Esco Bldg., Canonigo, Paco, Manila. The fact that tickets to a particular amusement place shall be sold exclusively to the members of an organization, club or society will not of itself exempt said tickets from the registration requirement. However, if you are to promote exhibitions which are exempt from tax, such as those covered by Republic Act No. 722, the admission tickets to such exhibitions need not be presented for registration. As to whether or not such tickets need be registered with the City Treasurer's Office, Manila, it is suggested that the matter be referred to that Office, it not being within the province of this Office. The so-called invitational tickets are subject to the amusement tax prescribed in the aforesaid section 260, if any amount is charged thereof; otherwise, they are not subject. In this connection, it may be stated that where the admission fees or charges are collected by or for and in behalf of a duly registered charitable institution or association, the tax on such fees or charges shall be 50% of the rate provided in section 260 of the Tax Code. LLphil The question of how much a promoter can claim as commission is a matter government by the civil law and not by the internal revenue law. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue