Summary
RMC No. 18-2010 clarifies the coverage and taxability of amusement places under Section 125(b) of the National Internal Revenue Code of 1997, as amended.
Key points
- Establishments covered. Amusement places offering the same pleasurable diversion and entertainment as night and day clubs and cabarets now include videoke bars, karaoke bars, karaoke televisions, karaoke boxes and music lounges.
- Applicable tax. Proprietors, lessees or operators of these establishments are subject to the 18% amusement tax under Section 125(b), and not to the 12% VAT on gross receipts.
Who is affected
- Proprietors, lessees or operators of videoke bars, karaoke bars, karaoke televisions, karaoke boxes and music lounges
Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.
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