QuestionsQuestions (LETTER OF INSTRUCTIONS No. 1437)
PD No. 1931 was promulgated to rationalize the duty and tax exemption privileges granted to government-owned or controlled corporations and other units of the Government.
Because CCP not only manages the CCP complex but also supports various government cultural and arts projects (e.g., National Arts Center, Museum of Philippine Arts, and affiliates/subsidiaries). Withdrawal of exemptions would dislocate CCP’s financial structure and jeopardize viability and operations, including those of supported projects.
Article XV, Section 9(2) of the Constitution, which states that Filipino culture shall be preserved and developed for national identity and that arts and letters shall be under the patronage of the State.
CCP is exempted from the provisions of Presidential Decree No. 1931.
No. LOI No. 1437 maintains that the business operation of CCP remains liable for all taxes, except income taxes.
All taxes that, according to LOI No. 1437, are excepted from the income taxes rule are to be remitted directly to CCP instead of being paid directly to the Bureau of Internal Revenue, as provided in PD No. 1825.
It means that while CCP’s business operations remain liable for taxes, income taxes are excluded from this liability under the LOI’s stated rule.
It provides that taxes (except income taxes) shall be remitted directly to CCP rather than paid directly to the Bureau of Internal Revenue, consistent with the system referred to in PD No. 1825.
LOI No. 1437 references PD No. 1825 to determine the rule on CCP’s tax remittance/payment mechanics and establishes that CCP’s business operations are liable for taxes in accordance with PD No. 1825 (with the LOI’s specific modification).
Because it would cause dislocation of CCP’s financial structure, jeopardizing its viability and operations, as well as those of the cultural/arts projects it supports.
The LOI explicitly states that CCP’s business operation shall remain liable for taxes, except for income taxes.
It took effect immediately, as stated in the last line of the LOI.
Yes. While CCP is exempt from PD No. 1931, LOI No. 1437 still subjects its business operation to taxes, except income taxes, and specifies the remittance arrangement.
Because taxes (except income taxes) are to be remitted directly to CCP instead of being paid directly to the BIR, CCP and the concerned agencies must determine the correct tax types covered and the proper remittance process.