BIR Ruling

December 28, 1966 Philips Electrical Lamps, Inc. 544 San Luis, Ermita Manila Attention: Mr . J . P . de Visser van Bloemen General Manager Gentlemen : This refers to your letter dated October 18, 1966 together with its enclosures requesting the qualification of your locally manufactured TV picture tubes to be reduced rate of percentage tax prescribed in Section 185-B of the Tax Code. In reply thereto, I have the honor to inform you that under the law, only manufacturers of "locally manufactured articles" are entitled to the reduced rate of tax. The words "locally manufactured articles" mean articles manufactured in a manufacturing enterprise which processes physically and/or chemically raw materials such a copper clad boards, silicon, steel laminations, other metal sheets, wires, plastic powder and/or pellets, fiber boards, wood, metallic and non-metallic tubes, rods, special paper, etc., into various intermediate components and parts, and subsequently assembling or fitting them together with other collateral or intermediate components and parts into such completed and finished articles. Consequently, as you are only a manufacturer of TV picture tubes, you do not qualify to the reduced rate of tax. LexLib Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue