Revenue Memorandum Circular No. 35-2012
Dear Members and Guests:
On August 3, 2012, the Bureau of Internal Revenue issued Revenue Memorandum Circular No. 35-2012 clarifying the taxability of clubs organized and operated exclusively for pleasure, recreation and other non-profit purposes. Based on the said circular, such clubs, including the Montemar Beach Club is liable for income tax for all income generated from whatever source, including membership fees, assessment dues, rental income, and service fees. In addition, all our gross receipts including membership fees, assessment dues, rental income and service fees are likewise subject to value added tax.
While the Association of Non-Profit Clubs, of which the Montemar Beach Club is a member, decided to request the BIR to defer, if not suspend, the implementation of the circular, absent any favorable action on the part of the BIR, we may be constrained to revise our prices in the near future as these taxes will impact on the viability of the Club.
We will keep you apprised of further developments.
MONTEMAR BEACH CLUB
PDF FILE
