BIR Ruling

March 18, 1977 Philips Industrial Development, Inc. 2246 Pasong Tamo Makati, Rizal Attention: Mr . F . P . Delgado Gentlemen : In reply to your letter dated January 17, 1977, I have the honor to inform you that your importation of simultaneous interpreting system consisting of microphone units, wireless receiver, headphone, special control desk, signalling cable and other parts and accessories of said system (except the tape recorder), which are more particularly described in Offer/Order No. 1263 issued to the Department of Foreign Affairs, is subject to the 7% advance sales tax, the tax to be based on the landed cost thereof plus 25% mark-up pursuant to Section 183(b) in relation to Section 186, both of the Tax Code. However, the tape recorder and the tapes are subject to the 40% advance sales tax with a 50% mark-up pursuant to Section 183(b) in relation to Section 185-B(g) both of the Tax Code. Very truly yours, EFREN I. PLANA Acting Commissioner of Internal Revenue TAN-1456-040-3 "TAXPAYERS SHOULD INDICATE THEIR TAN IN ALL COMMUNICATIONS TO THE BIR."