Taxability of Cinematographic Films Used in Television Broadcasts
BIR Ruling No. 507-58 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Sep 15, 1958
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September 15, 1958 BIR RULING NO. 507-58 Messrs. Stewart, Cunanan & Co. 107 13th Street, Port Area P. O. Box 2288 Manila S i r : With reference to your letter dated July 22, 1958, requesting information relative to the taxability of cinematographic films used in television broadcasts, I have the honor to inform you that, from the explanatory note to Republic Act No. 1919 stating "if we make less burdensome to TV operators to import better quality films for TV-casting, the T.V. audience would be more than compensated for the cost of their sets", it is clear that only cinematographic films imported by TV companies for exclusive use in television broadcasts are exempt from tax. Accordingly, rentals received by local cinematographic film producers from the lease of cinematographic films to TV companies form part of their gross receipts for purposes of the 2% tax prescribed by Section 195 of the Tax Code. Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue
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