Amending Section 206 (Caterer's Tax) And Section 268 (Amusement Taxes) Of The National Internal Revenue Code Of 1977

Case Overview and Summary

Summary of Presidential Decree No. 1299

Caterer's Tax (Section 1, amending Section 206 of the National Internal Revenue Code of 1977):
- 3% tax on gross receipts of proprietors/operators of restaurants, refreshment parlors, and other eating places, including clubs and caterers. (Section 206.1)
- 3% tax on gross receipts from food/refreshment sales and 7% tax on gross receipts from distilled spirits, fermented liquors, or wine sales for proprietors/operators of restaurants, bars, cafes, and other eating places, including clubs. Separate invoices/receipts required for each type of sale. (Section 206.2)
- 10% tax on gross receipts of proprietors/operators of restaurants, refreshment parlors, bars, cafes, and other eating places maintained within or accessible to cockpits. (Section 206.3)
- 12% tax on gross receipts of proprietors/operators of restaurants, refreshment parlors, bars, cafes, and other eating places maintained within or accessible to cabarets, night or day clubs. (Section 206.3)
- 20% tax on gross receipts of proprietors/operators of restaurants, refreshment parlors, bars, cafes, and other eating places maintained within or accessible to jai-alai or race tracks. (Section 206.3)
- The above tax rates apply to clubs of any kind, regardless of their net income disposition or whether they cater exclusively to members/guests. (Section 206.3)

Amusement Taxes (Section 2, amending Section 268 of the National Internal Revenue Code of 1977):
- 10% tax on gross receipts of proprietors, lessees, or operators of cockpits, irrespective of admission charges. (Section 268)
- 12% tax on gross receipts of proprietors, lessees, or operators of cabarets, night or day clubs, irrespective of admission charges. (Section 268)
- 20% tax on gross receipts of proprietors, lessees, or operators of jai-alai or race tracks, irrespective of admission charges. (Section 268)
- "Gross receipts" includes all receipts of the proprietor, lessee, or operator of the amusement place. (Section 268)
- Taxes are payable quarterly, with returns and payments due within 20 days after the end of each quarter. (Section 268)
- 25% increment on unpaid taxes after the due date. (Section 268)
- 50% surcharge on willful neglect to file returns or false/fraudulent returns. (Section 268)