Tax Liability of a Business as a Boxing Promoter

October 24, 1960 BIR RULING NO. 456-60 Mr. Cezar Avila 12-A Cartimar Avenue Pasay City S i r : Reference is made to your letter dated October 14, 1960, as supplemented by that dated October 20, 1960, requesting information regarding your business as a boxing promoter. You stated that you intend to be a promoter of boxing bouts that are to be televised; that you will solicit sponsors interested in advertising their products; that no fees for admission to the boxing bouts will be collected; and that the only receipts that you will realized therefore are the fees to be paid to you by the said sponsors. In answer thereto, I have the honor to inform you that, based on your representation, you are a business agent within the meaning of Section 194(v) of the National Internal Revenue Code and, therefore, subject to the fixed and percentage taxes imposed in Sections 182(A)(3)(w) and 191 of said Code. The fixed tax is P75.00 per annum payable before commencing the business, and thereafter on or before January 20 of every calendar year. The same can, however, be paid in two equal installments, the first on or before January 20 and the second on or before July 20 of each calendar year. The percentage tax is equivalent to 3% of the gross receipts realized from the business, payable within twenty (20) days after the end of each calendar month. The receipts and income derived from the business are also, in proper cases, subject to the additional residence and income taxes. Pursuant to Section 203 of the same Code, on or before commencing business, you should register with the Regional Director, B.I.R. Regional District No. 4, Quezon City, within ten (10) days after securing your privilege tax receipt, your name or style, place of residence or business, and the place where the business is carried on. You should also issue the invoices or receipts and keep the books of accounts respectively prescribed in Section 204 and 334 of the Tax Code, as implemented by Revenue Regulations No. V-1, otherwise known as the Bookkeeping Regulations, as amended. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue