BIR Ruling

April 2, 1973 Salcedo, Del Rosario, Bito, Misa & Lozada Ramon Magsaysay Center Roxas Boulevard Manila Gentlemen : This refers to your letter dated January 23, 1973 requesting confirmation that our ruling of March 19, 1971, insofar as it applies to the 2% common carrier's tax, constitutes an exception to Clause 4 of Revenue Memorandum Circular No. 44-72 dated September 8, 1972 which reads as follows: "4. In the case of transactions involving the computation of percentage taxes, the rate of exchange quoted by the Foreign Exchange Department of the Central Bank on the rate the percentage tax accrues shall be used." It appears that the ruling dated March 19, 1971 which states that ''for purposes of the 2% common carrier's tax, the bank's buying rate should be utilized in the conversion of the foreign currency into Philippine currency on the date of departure from the Philippines of the vessel carrying the outgoing shipment upon which the foreign currency has been derived by the foreign shipping company", was a reconsideration of our previous ruling dated January 11, 1971. In reply, I have the honor to inform you that since Revenue Memorandum Circular No. 44-72 was promulgated by this Office on September 8, 1972 and approved by the Secretary of Finance, this Office believes and so holds that said circular has superseded our ruling of March 19, 1971. Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue