The Baguio City Council has adopted a policy excluding amounts actually and verifiably remitted to named beneficiaries from the taxable gross receipts of concerts for a cause, subject to the submission and verification of required documents.
The policy was adopted through Resolution 773-2026 passed by the City Council on September 21, 2026, following the recommendation of the City Treasury Office in response to the City Council’s Resolution 608-2026 which sought an opinion on whether concerts for a cause held in public gyms or auditoriums are subject to amusement tax.
Section 9, Chapter II of Tax Ordinance No. 2000-001, as amended, imposes amusement tax on gross receipts from admission fees for concerts and other places of amusement and provides exemptions for certain artistic and cultural presentations except pop, rock, or similar concerts.
In his response on July 28, 2026, City Treasurer Alex Cabarrubias recommended that for concerts for a cause, whether held in public or privately owned venues, amusement tax be computed on gross receipts less the amount actually donated to the named beneficiary.
Under the policy, only the portion of ticket sales or admission collections that is genuinely and verifiably remitted to the beneficiary may be excluded from the taxable base. Amounts retained by organizers for production costs, fees, or profit will remain subject to amusement tax.
The exclusion is subject to a valid Solicitation Permit issued by the Department of Social Welfare and Development (DSWD), a Memorandum of Agreement between the promoter and beneficiary specifying the donation, and proof of actual remittance through an official receipt or liquidation report.
The DSWD permit requirement is consistent with Ordinance 23-2006 which requires solicitations, fund-raising activities, and requests for sponsorships involving public support to be backed by a duly authorized DSWD solicitation permit under Presidential Decree No. 1564.
In the absence of proof of actual remittance, the entire gross receipts will be subject to amusement tax.
The resolution also clarifies that City Government co-sponsorship including waived venue fees, funding, or logistical support, does not by itself reduce the taxable base or exempt an event from amusement tax. Any such arrangement must be authorized by the City Council and covered by a separate agreement between the City and the organizer.
The policy follows related discussions during a public consultation on August 19, 2026 regarding amusement tax where city offices, creatives, event organizers, and other stakeholders discussed existing tax rules and safeguards for activities conducted for a cause. **Jordan G. Habbiling
