Revocation of Radio and Television Stations from the Payment of Privilege and Percentage Taxes Exemption

October 14, 1988 BIR RULING NO. 499-88 103 (j) 187-88 499-88 Gentlemen : This refers to your letter dated August 23, 1988 requesting for a Certificate of Exemption from the Value-Added Tax (VAT). You also want to know whether you are subject to the franchise tax considering that under Republic Act No. 2889, radio broadcasting and television stations are exempt from the payment of the privilege and franchise taxes. In reply, please be informed that as a franchise grantee operating a radio broadcasting station, you are subject to the 3% franchise tax. [Sec. 117(b), Tax Code, as renumbered by Executive Order No. 273; Revenue Memorandum Circular No. 49-86] Since you render services as a franchise grantee subject to the franchise tax, you are exempt from the value-added tax pursuant to Section 103(j) of the Tax Code, as amended by Executive Order No. 273. Moreover, beginning January 1, 1988, you are no longer subject to the annual fixed tax of P2,000.00. cdtech Republic Act No. 2889 which heretofore exempts radio and television stations from the payment of privilege and percentage taxes was already revoked by Executive Order No. 72 effective February 10, 1987. (BIR Ruling No. 61-87) Very truly yours, (SGD.) EUFRACIO D. SANTOS Deputy Commissioner