Question & AnswerQ&A (Commonwealth Act No. 128)
The purpose of Commonwealth Act No. 128 is to impose a percentage tax on the gross receipts of theaters, cinematographs, concert halls, circuses, cabarets, race tracks, cockpits, and other places of amusement where admission prices exceed forty centavos.
The Act imposes a tax equivalent to five percent (5%) of the gross receipts from the specified places of amusement.
No, receipts from the sale of liquors, beverages, or other articles subject to specific tax with an internal-revenue tax already paid are excluded from the percentage tax under this Act.
The tax applies to theaters, cinematographs, concert halls, circuses, boxing exhibitions, cabarets, race tracks, cockpits, and other places of amusement where admission prices exceed forty centavos.
Admission fees or charges collected by or on behalf of religious, charitable, scientific, or educational institutions or associations are exempt, provided no part of the net proceeds benefits any private stockholder or individual.
The Collector of Internal Revenue or his deputies are responsible for collecting the tax under the rules and regulations prescribed by the Secretary of Finance.
The tax takes effect upon approval of the Act, which was November 5, 1936.
They are governed in the same manner, at the same time, and subject to the same penalties as the internal revenue percentage taxes under Article V, Chapter 40, of the Revised Administrative Code.
All collections accrue to the general funds of the National Government.
Yes, all administrative, special, and general laws relating to assessment, remission, collection, and refund of internal-revenue taxes not inconsistent with this Act are extended and made applicable to this law and the tax herein imposed.