BIR Ruling

November 18, 1969 Mr. Hermogenes S. Lozano BOQ Station #18 Heet 1361 Agana Guam M.I. S i r : This refers to your letter dated October 14, 1969 requesting a copy of a memorandum as to the value of personal properties that Filipino residents returning to the Philippines can bring without taxes. cdll In reply, I have the honor to quote hereunder the provisions of Section 190(e) and (f) of the National Internal Revenue Code which exempt personal and household effects of returning Filipino-residents from the payment of compensating tax, to wit: "(e) Wearing apparel and articles for personal use purchase in foreign countries by the residents of the Philippines which have been used abroad and accompanying them upon their return to the Philippines the export value of which does not exceed the amount of: P250 when the sojourn is not less than one week; P500 when the sojourn is not less than two weeks; or P1,000 when the sojourn is not less than one month. Personal and household effects purchased in foreign countries and brought into the Philippines by returning residents which effects have been used abroad, neither imported for the account of any other person nor intended for barter, sale or hire and accompanying them upon their return to the Philippines or arriving within ninety days before or after their return, the export value of which does not exceed the amount of: P1,500 when the sojourn is not less than three months; P2,500 when the sojourn is not less than six months or P3,000 when the sojourn is not less than one year. Additional exemption shall be granted for books, professional instruments and implements belonging to Filipino professionals, students and grantees of fellowship and scholarships returning to the Philippines from training, studies and/or employment abroad, the export value of which does not exceed the amount of one thousand pesos: Provided, That an additional exemption shall be granted to returning Filipino Doctors of Medicine and Dentistry and other scientists for professional instruments and implements related to their particular field of specialization as attested to by the respective institutions or training, studies and/or employment, the export value of which does not exceed three thousand pesos: Provided, further, That returning Filipino professionals, students and grantees of fellowships and scholarships, shall present to the Commissioner of Internal Revenue a certificate issued by the schools they have attended: Provided, finally, That such returning residents shall not have previously received the benefits herein granted within one hundred and eighty days immediately preceding their arrival. (f) Professional instruments and implements, tools of trade, occupation or employment, wearing apparel, domestic animals, and personal and household effects belonging to persons coming to settle for the first time in the Philippines, including citizens of the Philippines who have resided abroad for not less than ten years, for their own use and not for barter, sale or exchange, accompanying such persons, or arriving within ninety days before or after the arrival of their owners, upon the production of evidence satisfactory to the Commissioner of Internal Revenue that such persons are actually coming to settle in the Philippines, that the articles were brought from their former place of abode, that change of residence is bona fide: Provided, That no merchandise of any kind, machinery or other articles for use in manufacture, shall be classified under this subsection." Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue