QuestionsQuestions (CDA MEMORANDUM CIRCULAR NO. 2013-17)
Presidential Decree No. 1456 is a law issued by the President of the Philippines, amending Section 268 of the National Internal Revenue Code (NIRC) of 1977, specifically on amusement taxes.
It amends Section 268 of the National Internal Revenue Code of 1977, as amended.
Cockpits, cabarets, night or day clubs, boxing exhibitions, professional basketball games (as envisioned in PD No. 871), Jai-Alai, race tracks, and bowling alleys.
Cockpits: 12%; Cabarets/night/day clubs: 12%; Boxing exhibitions: 10%; Professional basketball games: 10%; Jai-Alai and race tracks: 20%; Bowling alleys: 10% of gross receipts.
The amusement tax imposed by Section 268 is intended to replace other percentage-based taxes that would otherwise apply to the same receipts/activity, so the taxpayer pays the in-lieu amusement tax rather than additional percentage taxes of that type.
Gross receipts embraces all receipts of the proprietor, lessee, or operator. It includes income from television, radio, and motion picture rights, if any.
No. The tax applies to gross receipts 'irrespective of whether or not any amount is charged or paid for admission.'
The proprietor, lessee, or operator of the amusement place. It also provides that any person/entity/association conducting an activity subject to the tax shall be similarly liable for the portion of receipts derived by him or it.
The tax is payable at the end of each quarter. The proprietor/lessee/operator must file a true and complete return and pay the tax due within twenty (20) days after the end of each quarter.
If not paid within the time prescribed, the amount of the tax is increased by twenty-five percent (25%), and the increment becomes part of the tax.
A surcharge of fifty percent (50%) of the amount of the tax or deficiency tax is added (with special rules on when payment has already been made before discovery of falsity/fraud).
Section 2 expressly repeals and/or modifies inconsistent rules and laws, including the provision of Section 13 of Presidential Decree No. 231 in the case of boxing exhibitions.
All laws, orders, and decrees such as the cited PD 231 Section 13 provision for boxing exhibitions, and any rules/regulations inconsistent with PD 1456, are repealed and/or modified accordingly.
It takes effect immediately.
Yes. Gross receipts include income from television, radio and motion picture rights, if any.