Amusement Tax Amendments

The decree mandates an urgent increase in government financial resources to support expanding economic development.
The decree requires amusement places to contribute their just share to the government.
The decree orders amended amusement tax rules to ensure proper contribution from amusement places.

Section 268 imposes an amusement tax collected from the proprietor, lessee, or operator of covered amusement activities.
The tax applies to cockfights, cabarets, night or day clubs, boxing exhibitions, professional basketball games, Jai-Alai, race tracks, and bowling alleys.
A person, entity, or association conducting an activity subject to the tax is liable for tax with respect to the portion of receipts derived by the person, entity, or association.
The tax is in lieu of all other percentage taxes of whatever nature and description.

Section 268 imposes the following amusement tax rates:
- Twelve per centum for cockpits.
- Twelve per centum for cabarets, night or day clubs.
- Ten per centum for boxing exhibitions.
- Ten per centum for professional basketball games as envisioned in Presidential Decree No. 871.
- Twenty per centum for Jai-Alai and race tracks.
- Ten per centum for bowling alleys.
The tax applies to gross receipts and applies irrespective of whether or not any amount is charged or paid for admission.
For amusement tax purposes, “gross receipts” embraces all the receipts of the proprietor, lessee, or operator of the amusement place.
Gross receipts include income from television, radio and motion picture rights, if any.

Section 268 requires the proprietor, lessee, or operator (and any party liable) to pay the amusement tax at the end of each quarter.
Section 268 requires a true and complete return of the gross receipts derived during the preceding quarter.
The return and payment are due within twenty days after the end of each quarter.
The duty to file and pay extends to any party liable and not only the proprietor, lessee, or operator.

If the amusement tax is not paid within the prescribed time, the tax amount increases by twenty-five per centum, and the increment becomes part of the tax.
If there is willful neglect to file the return within the period prescribed, a surcharge is imposed.
If a false or fraudulent return is willfully made, a surcharge is imposed.
The surcharge is fifty per centum of the amount of the tax or deficiency tax, subject to the timing rule below.
The surcharge is collected in the same manner and at the same time as the tax unless the tax has already been paid before the discovery of the falsity or fraud, in which case the assessed amount is collected in the same manner as the tax.

Section 2 repeals and/or modifies laws, orders, and decrees inconsistent with the amended Section 268, including Section 13 of Presidential Decree No. 231 as it applies to boxing exhibitions.
The decree takes effect immediately on June 11, 1978.