4/7/2021 E-Library - Information At Your Fingertips: Printer Friendly xxx Verily, the GPB covers gross revenue derived from transportation of passengers, cargo and/or mail originating from the Philippines up to the final destination. Any other income, therefore, is subject to the regular income tax rate. When the law is clear, there is no other recourse but to apply it regardless of its perceived harshness. Dura lex sed lex.[50] Under RR 15-2013, demurrage and detention fees are not deemed within the scope of GPB. For demurrage fees "which are in the nature of rent for the use of property of the carrier in the Philippines, is considered income from Philippine source and is subject to income tax under the regular rate as the other types of income of the on-line carrier." On the other hand, detention fees and other charges "relating to outbound cargoes and inbound cargoes are all considered Philippine-sourced income of international sea carriers they being collected for the use of property or rendition of services in the Philippines, and are subject to the Philippine income tax under the regular rate." Demurrage fee is the allowance or compensation due to the master or owners of a ship, by the freighter, for the time the vessel may have been detained beyond the time specified or implied in the contract of affreightment or the charter-party. It is only an extended freight or reward to the vessel, in compensation for the earnings the carrier is improperly caused to lose.[51] Detention occurs when the consignee holds on to the carrier's container outside of the port, terminal, or depot beyond the free time that is allotted. Detention fee is charged when import containers have been picked up, but the container (regardless if it is full or empty) is still in the possession of the consignee and has not been returned within the allotted time. Detention fee is also charged for export containers in which the empty container has been picked up for loading, and the loaded container is returned to the steamship line after the allotted free time.[52] Indeed, the exclusion of demurrage and detention fees from the preferential rate of 2.5% is proper since they are not considered income derived from transportation of persons, goods and/or mail, in accordance with the rule expressio unios est exclusio alterius. Demurrage and detention fees definitely form part of an international sea carrier's gross income. For they are acquired in the normal course of trade or business. The phrase "in the course of trade or business" means the regular conduct or pursuit of a commercial or an economic activity, including transactions incidental thereto, by any person regardless of whether or not the person engaged therein is a nonstock, nonprofit private organization (irrespective of the disposition of its net income and whether or not it sells exclusively to members or their guests), or government entity. [53] Surely, gross income means compensation for services; the profession; dealings in property; and winnings; pensions; and a income derived from whatever source, including conduct of trade or business or the exercise of a interests; rents; royalties; dividends; annuities; prizes partner's distributive share in the net income of a general professional partnership,[54] among others. Demurrage and detention fees fall https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/65912 17/25