NPM 050-2013

Requesting Entity: Bureau of Internal Revenue (BIR)

Issues Concern: Concessionaire for the Executive Lounge of the BIR



Whether the selection of a concessionaire for the lease of its Executive Lounge is covered by Republic Act No. 9184 and its revised Implementing Rules and Regulations (IRR).

The agreement being contemplated by BIR with the concessionaire entails the payment by the latter of a consideration for the use of the Executive Lounge, which amounts to a transaction often classified as leasing out of a government-owned building or real property for private use.

In this regard, we wish to reiterate the view that transactions where a government agency leases out its real property for private use, such as in the case of a canteen or food concessionaire for the Executive Lounge of BIR, are governed by Executive Order 301, Series of 1987 and its associated guidelines.