Transfer of the Collection of Certain Taxes Under the National Internal Revenue Code, as amended, from the National Government to the Provincial Government, as Provided in the Local Tax Code adopted and Approved Pursuant to Presidential Decree No. 231, dated June 28, 1973

September 28, 1973 REVENUE MEMORANDUM CIRCULAR NO. 49-73 SUBJECT : Transfer of the Collection of Certain Taxes Under the National Internal Revenue Code, as amended, from the National Government to the Provincial Government, as Provided in the Local Tax Code adopted and Approved Pursuant to Presidential Decree No. 231, dated June 28, 1973 TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all internal revenue officers and others concerned, there is quoted hereunder Part V of Provincial Circular No. 22-73 dated September 7, 1973 of the Secretary of Finance containing the instructions on the implementation of Presidential Decree No. 231, as follows: "V. ON TRANSFERRED TAXES AND FEES "A. National Taxes and Fees Transferred to the Provinces and Cities . "The power to levy and collect the following taxes and fees has been transferred from the National Government to the provinces under Sections 12, 13 and 14, and to the cities under Section 23 of the Code.: "1. Occupation Tax on all persons engaged in the exercise or practice of their profession or calling; "2. Amusement Tax on Admission to be collected from the proprietors, lessees, or operators of theaters, cinematographs, concert halls, circuses and other places of amusements; and "3. Fees for sealing and licensing of weights and measures . "Any person liable to pay the occupation tax , who has already paid the same to the national government, shall hereafter pay the tax to the local government concerned effective January 1, 1974. However, delinquencies due and payable before July 1, 1973, the date of effectivity of Presidential Decree No. 231 shall still be paid to the national government. Any person who became liable for the payment of the tax on or after July 1, 1973 shall pay the same to the local government concerned unless he can show proof that he has already paid the amount due to the national government. "All amusement places liable for the payment of the amusement tax on admission shall pay the same to the corresponding local government effective October 1, 1973. The tax shall be determined as follows: "1. If the amount of the tax (including municipal tax, if imposed) is indicated on the face of the admission ticket, the basis of the tax is the price or amount paid for admission exclusive of the tax. Thus, if the price paid for admission is P1.05 (including municipal tax of P0.05), the taxable amount paid for admission is P1.00 and the tax at the rate of 20% is P0.20. "2. If the amount of tax (municipal) is not indicated on the face of the admission ticket, the price or amount paid for admission shall not be deemed to include the amount of such tax and, therefore, such price or amount paid for the ticket shall be the basis for purposes of applying the corresponding rate of 20% or 30%, as the case may be. Thus, if the amount paid for admission is P1.20 and on the face of the admission ticket the amount of the amusement tax is not indicated, the same amount of P1.20 shall be subject to tax at the rate of 30% and the amount of the tax payable would be P0.36." In accordance with the foregoing, effective January 1, 1974, privilege taxes on professionals as defined under Section 182 (B) of the National Internal Revenue Code, as amended, shall be collected by the Treasurers of local governments. However, any delinquency due and payable before July 1, 1973 shall be paid to the National Government through its Collection Agents. The amusement taxes provided for in Chapter IV of Title VIII, also of the Tax Code, as amended shall continue to be collected by the Collection Agents of the Bureau of Internal Revenue until such time as the local government has passed the appropriate ordinance imposing the amusement tax. Upon the passage of the appropriate ordinance and the effectivity thereof, collection of the amusement tax will be handled by the Treasures of local governments. This circular is issued in order to provide an advance information to all concerned with the revenue service as well as the taxpaying public to avoid confusion in the initial stages implementing the transfer of the collection of the above-enumerated taxes from the National Government to the local governments. All those concerned are hereby enjoined to give this matter as wide a publicity as possible and to follow the provisions thereof. aisa dc MISAEL P. VERA Commissioner of Internal Revenue TAN-1601-593-5 APPROVED: PEDRO M. ALMANZOR Acting secretary of Finance ANNEX 1st Indorsement October 11, 1973 Respectfully returned to the Commissioner of Internal Revenue, Manila, hereby approving Revenue Memorandum Circular No. 49-73 regarding the "transfer of the collection of certain taxes under the National Government to the Provincial Government, as provided in the Local Tax Code adopted and approved pursuant to Presidential Decree No. 231, dated June 28, 1973." PEDRO M. ALMANZOR Acting Secretary