RR No. 11-2011: Defines gross receipts for Common Carrier’s Tax for international carriers pursuant to Section 118 of the Tax Code, amending Section 10 of RR No. 15-2002

Summary

RR No. 11-2011 defines gross receipts for the Common Carrier’s Tax of international carriers under Section 118 of the Tax Code, amending Section 10 of RR No. 15-2002.

Key points

1. What gross receipts include. Gross receipts include, but are not limited to, money or its equivalent for contract or ticket price, excess baggage fees, freight/cargo fees, mail fees, rentals, penalties, deposits applied as payments, advance payments and other service charges and fees actually or constructively received during the taxable quarter.
2. Origin of the passage. This covers passage of persons, excess baggage, cargo and/or mail originating from the Philippines in a continuous and uninterrupted flight, irrespective of the place of sale or issue and the place of payment of the passage documents.
3. Revalidated or endorsed tickets. Tickets revalidated, exchanged and/or indorsed to another international airline also form part of gross receipts if the passenger boards a plane in a port or point in the Philippines.
4. Transhipment. For a flight originating from the Philippines with transhipment outside the Philippines on another airline, only the aliquot portion of the ticket cost for the leg from the Philippines to the point of transhipment is part of gross receipts.

Who is affected

• International carriers subject to Common Carrier’s Tax

Deadlines and effectivity

• Taxable quarter

Summary by Tax Resources PH. It is not a substitute for the full text of the issuance or professional advice.