BIR Ruling

September 15, 1969 Firestone Ceramic, Incorporated 2814 F. B. Harrison Pasay City Gentlemen : This refers to your letter dated September 10, 1969 requesting clarification of the ruling contained in our letter to you dated August 18, 1969 regarding your exemption under Republic Act No. 3823. cdlex It appears that you were given a certificate of qualification for tax exemption as operator of a new mine beginning January 29, 1969 by the Secretary of Agriculture and Natural Resources on June 19, 1969. You also orally represented that you are a new mining corporation and that the mine covered by your certificate is the only mine you are operating. In reply, I have the honor to inform you as follows: In accordance with Section 79-A, a new section inserted in Commonwealth Act No. 137, otherwise known as the Mining Act, new mines and old mines which resume operation, when certified to as such by the Secretary of Agriculture and Natural Resources, upon the recommendation of the Director of Mines, shall be granted five years complete tax exemption, except income tax, from the time of its actual bona fide orders for equipment for commercial production. Inasmuch as you have been duly established to be operating a new mine, it is the opinion of this Office as it hereby holds that you are exempt from, among others, the sales tax for a five year period beginning January 29, 1969, the date fixed by the Secretary of Agriculture and Natural Resources in your certificate of qualification and which may be considered as the time when you actually made your orders for equipment for commercial production. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue