BIR Ruling

September 19, 1969 The Honorable The Secretary of Foreign Affairs Manila Dear Mr. Secretary : I am supposed to express to you the approval of this Department of the interim remedial measures outlined in your letter of 7 August 1969 in connection with the local sale of tax-exempt motor vehicles or members of the diplomatic corps under the conditions therein stated as follows: 1. That the computation of the taxes due on the motor vehicle for its sale shall be based on the preferred rate of conversion of P2.00 to US$1.00; 2. That the preferred rate of conversion shall apply only to motor vehicles personally owned by duly accredited diplomatic officials as wells as officially-owned motor vehicles of diplomatic missions as certified to by this Department; 3. That the preferred rate shall apply only to diplomatic officials from countries which grant similar privilege to Philippine diplomatic officials stationed in such countries; and 4. That if and when the exempting statute is finally passed, the diplomatic community shall not demand any refund for taxes already paid before the effectivity of the law. The foregoing arrangement is purely on an interim basis pending enactment of a legislation which will specifically over the tax exemptions requested and in order to enable the Philippine Government to comply with its commitments under international law and the Vienna Convention on Diplomatic Relations of 1961. Please accept assurances of my highest esteem and regard. LexLib Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue