Batas Pambansa Bilang 2, Consolidating the Taxes on Receipts from Room Occupancy of Hotels, Motels, and other Establishments, Repealing Presidential Decree Number Thirty-One and for other Purposes

May 14, 1979 REVENUE MEMORANDUM CIRCULAR NO. 26-79 SUBJECT : Batas Pambansa Bilang 2, Consolidating the Taxes on Receipts from Room Occupancy of Hotels, Motels, and other Establishments, Repealing Presidential Decree Number Thirty-One and for other Purposes TO : All Internal Revenue Officers and others concerned For the information and guidance of all concerned, there are quoted hereunder the pertinent provisions of Batas Pambansa Bilang 2. "SECTION 1. The National Internal Revenue Code of 1977 is hereby amended by inserting a new section between Sections 205 and 206 thereof to read as follows: "SEC. 205-A. Percentage tax on hotels, motels and others. There is hereby imposed on proprietors, operators or keepers of hotels, motels, rest houses, pension houses, lodging houses and resorts, a tax equivalent to ten percent of their gross receipts derived from room occupancy. Provided, That the foregoing tax shall be in lieu of the contractor's and the documentary stamp tax under Sections 205(12) and 238 (b) of the National Internal Revenue Code of 1977, respectively, and the science stamp tax under Section 4 of Republic Act Numbered Fifty-four hundred and forty-eight. "SEC. 2 Presidential Decree Numbered Thirty-one is hereby repealed. "SEC. 3 This Act shall take effect on April 1, 1979. "Approved, August 13, 1978." FEATURES OF THE LAW 1. This law consolidated the taxes imposed on gross receipts from room occupancy in hotels, motels, rest houses, pension houses, lodging houses and resorts into a single levy at a reduced rate of ten (10%) percent. These taxes were: (a) 3 percent contractor's tax [Sec. 205 (12), NIRC of 1977]; (b) About 5 percent (P1 on every P20 receipts or fractional part thereof) documentary stamp tax [Sec. 238 (b), NIRC of 1977]; and (c) About 5 percent (P1 on every P20 receipts or fractional part thereof) science stamp tax [Sec. 4, RA 5448]. 2. The law also withdrew the exemption from the above taxes accorded to foreign tourists and travelers under Presidential Decree No. 31. EFFECTIVITY The new Section 205-A took effect on April 1, 1979. ENFORCEMENT All internal revenue officers concerned are hereby enjoined to give this Circular as wide a publicity as possible. aisa dc EFREN I. PLANA Acting Commissioner