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    Date: 2023-07-27 11:56:48.054417

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    Date: 2023-07-27 12:04:55.740500

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Taxes on Hotel Service Charges

Requested from BIR by K. Ambrocio at 11:56 AM on Jul 27, 2023.
Purpose: Tax Compliance
Date of Coverage: 07/27/2023 - 07/27/2023
Tracking no: #BIR-928290327334

Ambrocio 11:56 AM, Jul 27, 2023 

Good day!


I just like to confirm the following:
Are hotels' and restaurants' service charges subject to expanded withholding tax?

RR 11-2018 suggests that ALL services should be subject by 2%. But Service Charge Law (RA 11360) states that ALL service charges must be complete and distributed, 100%, to R&F employees.

Please confirm.


Thank you!


July 27, 2023

Dear Ms. Ambrocio:

Greetings!

Thank you for your request dated Jul 27, 2023 under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch.

Your request

You asked for Taxes on Hotel Service Charges.

Response to your request

In reply, you may get in touch with the BIR Law and Legislative Division at (02) (02) 8981-7327 and (02) 8926-5536 and look for the Officer of the Day or Atty. Bong to answer your  query/concern, pending the supposed issuance of the Implementing Rules and Regulations (IRR) for Republic Act (RA) 11360 and to the previously issued BIR Issuance (Revenue Memorandum Circular No. 72-2004).

Thank you.

FOI Receiving Officer
Public Information and Education Division

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