Tax on the Keepers or Operators of Dormitories

July 2, 1958 BIR RULING NO. 353-58 2nd Indorsement Returned to the Regional Director, Regional District No. 3, Manila. Considering that only keepers of hotels and lodging houses are, among others, subject to the fixed and percentage taxes prescribed in Sections 182 (A-1) and 191 of the Tax Code, as amended, and that keepers or operators of dormitories cannot be classified under the category of the former, the latter are not subject to said taxes. It may be stated that the principal difference between hotels and lodging houses, on the one hand, and dormitories, on the other, is that, unlike the former, the latter is not open indiscriminately to the general public. Dormitories and similar boarding houses cater only to students, professors and employees and do not charge their boarders as high a fee as that charged by hotels and lodging houses. Needless to state, keepers or operators of dormitories are, in proper cases, subject to the income and additional residence taxes. Please be guided accordingly. LexLib (SGD.) JOSE P. TRINIDAD Acting Commissioner of Internal Revenue