REVENUE REGULATIONS NO. 16-2003 issued on April 29, 2003 imposes advance payment of Value-Added Tax (VAT) or Percentage Tax and of Income Tax on operators of “privilege stores” (or “tiangges”), as well as prescribes the tax obligations of organizers or exhibitors of space for the operation of “privilege stores.” A fixed amount of VAT or Percentage Tax, as the case may be, of P 150 per day (or P 4,500 per month) and Income Tax of P 50 per day (or P 1,500 per month), shall be imposed and collected in advance on a monthly basis from “privilege store” operators during the entire duration of their business operations. Provided, however, that if the duration of operation of the privilege store is less than one month, then the advance payment shall cover only said lesser period. Said advance payments shall be credited against the actual business tax and income tax due from such persons for the taxable period for which such payments were remitted to the Bureau. On the part of the organizers or exhibitors, their obligations shall cover the following: 1) deduction and withholding of the 5% Expanded Withholding Tax on lease payments to the lessor of real property; 2) posting in a conspicuous place of their Certificate of Registration (COR) issued by the BIR; 3) providing the Revenue District Office (RDO) with the list of names, Taxpayer Identification Numbers and CORs of persons/entities participating in the event and the specific dates and duration when such operations shall be conducted; 4) ensuring registration with the BIR as well as the remittance of actual withholding tax liabilities and advance tax payments by the “privilege store” operators; and 5) reporting to the BIR of non-compliance by the “privilege store” operators with their obligations and responsibilities. In addition to their obligation to pay advance business tax and income tax, “privilege store” operators are also required to deduct and withhold the 5% Expanded Withholding Tax on rental payments made to exhibitor/organizer for sub-leased spaces. The advance payment of business tax and of income tax shall be evidenced by the duly validated copy of BIR Form No. 0605 and the Official Receipt/Deposit Slip issued by the Authorized Agent Bank (AAB) or the Revenue Collection Officer (RCO), in the absence of an AAB, of the RDO having jurisdiction over the place where the “privilege store” operates. For purposes of claiming the advance payments as credits against the actual taxes due, the applicable tax returns to be filed must be accompanied by a duly filed Payment Form (BIR Form No. 0605) and by Official Receipts/Deposit Slips issued by the AABs or RCO, if applicable, which shall constitute as the proof for the advance payment of taxes. Without such proof attached to the tax returns, any claim on account thereof shall be disallowed and the assessment of deficiency taxes shall correspondingly be made.