Amendments to Revenue Regulations No. 3-76

April 25, 1978 REVENUE REGULATIONS NO. 06-78 SUBJECT : Amendments to Revenue Regulations No. 3 -7 6 TO : All Internal Revenue Officers and Others Concerned SECTION 1. Scope . Pursuant to Section 326 of the National Internal Revenue Code of 1977, the following regulations amending certain provisions of the Revenue Regulations No. 3-76 to implement the latest amendment to Section 24(b)(2) of the same Code by Presidential Decree No. 1355, are hereby promulgated and shall be known as Revenue Regulations No. 6-78. SECTION 2. Section 1 of Revenue Regulations No. 3-76 is hereby amended to read as follows: aisa dc "Section 1. Definition of Gross Philippine Billings . "International carriers shall pay a tax of 2 % of their gross Philippine billings. "For the purpose of Section 24(b)(2) of the National Internal Revenue Code, 'gross Philippine billings' includes gross revenue realized from uplifts anywhere in the world by any international carrier doing business in the Philippines of passage documents sold therein, whether for passenger, excess baggage, cargo or mail, provided the cargo or mail originates from the Philippines. The gross revenues realized from the said cargo or mail shall include the gross freight charges up to final destination. Gross revenues from chartered flights originating from the Philippines shall likewise form part of 'gross Philippine billings' regardless of the place of sale or payment of the passage documents. For purposes of determining the taxability of revenues from chartered flights, the term 'originating from the Philippines' shall include flight of passengers who stay in the Philippines for more than forty-eight (48) hours prior to embarkation. "The gross freight charges in the airway bills, bills of lading and/or value of tickets sold by each international carrier doing business in the Philippines shall be prima facie evidence of its gross lifted revenue. "The phrase 'doing business in the Philippines' includes the regular sale of tickets in the Philippines by off-line international airlines either by themselves or through their agents. "The general sales agent (GSA) in the Philippines of each off-line airline is hereby constituted as withholding agent pursuant to Section 53 of the National Internal Revenue Code." SECTION 3. Pertinent records to be furnished the Bureau of Internal Revenue . In the case of chartered flights, the chartered airline company shall furnish the Bureau of Internal Revenue (Attention: Service and Miscellaneous Tax Division) with authenticated or true copies of the Petition for Authority to Operate Chartered Flights in the Philippines together with the charter party and advanced copies of the passenger and cargo manifests within a reasonable time before commencing the chartered flight. SECTION 4. Repealing Clause . All existing rules and regulations not consistent with this Regulations are hereby repealed. CESAR VIRATA Secretary of Finance Recommended by: EFREN I. PLANA Acting Commissioner TAN-P4519-F2828-A-8