Tax Imposed on CBN's Gross Receipts

July 28, 1960 BIR RULING NO. 326-60 Chronicle Broadcasting Network CBN Building, Aduana St. Intramuros, Manila Attention : Mr . Eugenio Lopez , Jr . Executive Vice-President Gentlemen : With reference to your letter of even date, please be informed that Republic Act No. 2889, which lapsed into law on June 19, 1960, exempts radio broadcasting and television stations from the franchise and privilege taxes only. The exemption from the privilege taxes is being construed as including the percentage tax (3%) prescribed in Section 191 of the Tax Code, as proposed in a circular which, however, is subject to the approval of the Secretary of Finance. In any event, please be informed that the CBN's gross receipts prior to June 19, 1960 are still subject to the 3% tax under Section 191 of the Tax Code. Furthermore, it remains subject to other taxes prescribed in the same Code, such as income and compensating taxes, as well as to the basis and additional residence taxes. casia Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue