Presidential Decree No. 31, dated October 27, 1972

November 8, 1972 REVENUE REGULATIONS NO. 10-72 SUBJECT : Presidential Decree No. 31, dated October 27, 1972, entitled, "Exempting Foreign Tourists and Travellers from payment of Hotel Room Tax for the duration of their stay in the Philippines" TO : All Internal Revenue Officers and Others Concerned SECTION 1. Scope . Pursuant to the authority granted in Section 338, in relation to Section 4 of Commonwealth Act No. 466, otherwise known as the National Internal Revenue Code, as amended, the following regulations relative to the enforcement of the provisions of Presidential Decree No. 31, dated October 27, 1972, entitled, "Exempting Foreign Tourists and Travellers from Payment of Hotel Room Tax for the Duration of their stay in the Philippines" are hereby promulgated and shall be known as Revenue Regulations No. 10-72. SECTION 2. Nature and extent of exemption . The exemption granted by the decree covers only the internal revenue and science and documentary stamp taxes on hotel receipts and the 3% percentage tax on the hotel revenue from hotel room occupancy. cd SECTION 3. Who are exempted . The exemption from the payment of the tax as shown in No. 1 hereof shall be accorded only to foreign tourists and travellers and only if the payment of the hotel room charges is effected in any of the acceptable foreign currencies. SECTION 4. Records to be kept . Hotel owners/operators shall keep a separate register book exclusively for foreign tourists and travellers which must show a complete record of transactions, indicating therein, among others, the tourists/travellers name, address, nationality, passport number and amount of foreign currency paid corresponding to the hotel room occupancy. SECTION 5. Disposition of Foreign Currency . The disposition of the foreign currency receipts derived by hotel owners/operators from hotel room occupancy by foreign tourists and travellers shall remain subject to the pertinent circulars, rules and regulations of the Central Bank of the Philippines. SECTION 6. Reports to be submitted . After the end of each quarter, hotel owners and operators shall make a true and complete return of the gross receipts derived during the preceding quarter from the tourists and travellers during their stay in the hotel showing in detail the amount of exemption of taxes which otherwise would have been due and collectible. Such report should be attached to the quarterly percentage tax return filed with the Bureau of Internal Revenue. SECTION 7. Effectivity clause . These regulations shall take effect immediately. aisa dc CESAR VIRATA Secretary of Finance Recommended by: MISAEL P. VERA Commissioner of Internal Revenue